 The crypto bull market is full of, I told you so, people who missed out on the bull run and have been miserable, so I've been wishing for a crash and misery on everybody else the last couple of years just to probably miss the bull run again. And Peter Schiff's who call for the end of Bitcoin during bear markets. Things can honestly get tough, especially if you got in towards the tail end of the recent bull run and possibly even overextended yourself. Some people just don't look at their portfolio for the next couple of years and some just give up and sell at a loss. Hopefully you're not part of the latter. But for those who have been around long enough or experienced enough and have some extra cash during this bull market because during these market conditions, cash is king. Still make money during bear markets. So in today's video, we will be breaking down how you two can still make money trading during a bear market and really at any time, you can profit while the price of Bitcoin goes down. So if you're one of those people thinking that Bitcoin is going to drop to $10,000, this will be your chance to put your money where your mouth is. So let's go ahead and dive right into today's video. What's up guys, I am Jay and welcome to Bitcoin Daily. Remember that this content is for educational purposes only. This is not financial advice. Always do your own research before risking any of your own money. And as a disclaimer, I am invested in Bitcoin since 2016. So if you guys are new here, don't forget to smash that like button and subscribe to the channel. If not, you will have bad luck for the next 24 hours. Will that actually happen? I don't know, but why take the risk? So before we get into how you can short Bitcoin, first let's understand exactly what short selling is, which is basically what we will be doing. So what is short selling? Short selling is an investment or trading strategy that speculates on the decline in a stock or other securities price. It is an advanced strategy that should only be undertaken by experienced traders and investors. So you can use short selling for speculation or as a hedge against the downside risk of your portfolio. Now, of course, speculation is going to carry a lot more risk and is definitely more advanced. So you do need to know what you're doing and you do need to have some experience in trading, especially if using leverage while hedging is a lot more common in a basic tactic where you can reduce your exposure of some of your long positions. So in short selling, a position is opened by borrowing shares of the underlying asset that you believe will drop in value. You then sell these borrowed shares to buyers who are willing to pay at the current market prices. So if the value of that does decrease, you then basically are buying back the same share at a lower price. And that's where you make the difference, which is your profits. Now, once you're doing this on an exchange, you don't have to worry about finding buyers or anything like that who are willing to pay. The exchange basically does everything on the back end. All you're doing is opening up your positions. The exchange is basically doing everything else. Just want to make sure that you understand what it is that you're doing, which is the reason that you can make money as the value of something drops when short selling. So as a short seller, you're betting on and profiting from the drop in value of the underlying asset. For example, right now, Bitcoin, if you would have opened a short sell on Bitcoin here at its previous all time high, you would have made a whole lot of money as the price fell like this, because you would have opened your position up here, basically borrowing the shares of Bitcoin and selling it to buyers who are willing to pay the current market price. So since you were betting on the price decreasing in value, the price going down as the price went lower and lower and lower, you made more and more profit. Now, I want to tell you guys one more time to make sure that you understand short selling is a high risk, high reward, advanced trading strategy. I do recommend that if you have never traded, you practice on a fake account with fake money for at least the next three to six months before you ever really start putting your own money in. If you do want to put your money in because I know I say this and then people are going to be like, I don't want to trade with fake money. I want to do it with real money, especially if maybe they trade for a week with fake money. You see that you make profits, then you just dive in with real money. If you guys decide to dive in with real money, guys, risk very, very small amounts. Start with $10, $20, $30. Stay under $100 until you're consistently profitable for a long period of time because anyone can open a trade and be profitable. That's you can get lucky. Now, it's over the long term where the real numbers show up. So it's like going to the casino betting on red or black on the roulette table in a small number of bets, you can hit consistently by luck and think that you're the greatest trader alive. Then you put a bunch of money in and you lose it like that because you're not disciplined and you don't have to know how yet of how to consistently find high probability setups. OK, so now that we've spoken about what is short selling, why you would short sell and the high risk that comes with it. Let's dive into how you can actually do this on Bitcoin and other cryptocurrencies. So step one, you're going to need a VPN. Now, there are some free VPNs out there. If you want to Google it, look for free VPN. I'm sure you can find one. It's probably going to be capped on how much you can use it and its speed is probably going to be really slow. But there are free VPNs out there. Feel free to use any of those. Here's one of the free VPNs that I used to use called Windscribe. This has a free and a paid version. I would say use the free one. If you see yourself doing this long term, do not buy the paid version of this one. I would recommend for as far as a paid version to use Nord VPN. I will drop a link in the description for you guys for both of these. Nord VPN is just definitely a lot faster than Windscribe, which is why I prefer it if I'm going to be paying for a VPN. Step number two, once you have your VPN set up, you're going to want to set it to Switzerland. Any place in Switzerland is fine. This is just my current setup right here. So why do you need a VPN? Well, leverage training is not allowed in a lot of places, a lot of different countries in the world. I'm not sure what country you're in. But if you're in one of those countries that it's not allowed in, then you need to have a VPN. If not, you will not be able to open up an account on pretty much the majority of exchanges that have any type of short selling type of trading. Step number three, we are now going to sign up for Bybit. This is an exchange that I've been using probably for about the last two to three years. I have personally never had any type of issues with it. They run very smoothly. Their support is great. Any issues I've ever had or any of my members, any of the people in my groups have ever had, I've been able to contact them personally and get them resolved. So if you guys ever have any issues with Bybit, just reach out and I will be more than happy to help to try to get you in contact with the right person. So you're going to go to the description in this video and find my referral link. With this referral link, you're going to get some extra deposit bonuses when you do decide to deposit some money. They currently have this deposit blast off where you can earn up to $4,000 if you guys use my referral code. If you don't want to use my referral code, it's fine if you just go to Bybit on your own, but you can only get up to $3,000 in bonuses if you do it on your own. Again, you don't pay any extra money by using my referral link. Basically, Bybit pays me from the fees that they already take whether you use my link or not. There are trading fees that come with trading. So if you go directly through them, I don't get any of those fees. They basically take everything. If you go through me, I get a small percentage of those fees. Nothing charges extra to you. So that's a way of supporting this channel. Once you're signed up, make sure to log in on the tabs up here. Go to where it says derivatives. Now here you can either use inverse contracts or USDT. So you can trade with either one. It's up to you. The difference is on whether you wanna hold USD or the underlying asset when you're not in a trade. So for example, if I'm trading using USDT, when I'm not in the trade, if the price of Bitcoin goes up or down, my money stays exactly where it is. If I'm using the inverse contracts, that means that I'm using the coin itself collateral. So my money stays in invested within that coin even if I'm not in a trade. So if the price of Bitcoin goes up or down, that affects the overall value of my account that's sitting there even if I'm not in trade. So what I'm currently doing right now, I'm using inverse contracts. I have my funds within the underlying asset because we're pretty much at a very strong support right now. I do believe even though we still have about a year or so before I think we start, we begin to get into the next bull market, I do feel like we're at a strong support and prices can potentially go up higher. So if the value of Bitcoin goes up, my overall account value goes up. If you're in the opposite side of this coin and you think that Bitcoin can still go lower, a lot of people are saying that it can go to 15,000, 13, 12, 10, then you probably wanna be in USD. So if the price of Bitcoin goes down, if you're not in a trade, the value of your account stays exactly where it is. If you're in a trade, then obviously you make profits. And now finally, let's talk about opening up your trade. So at first glance here, this could seem very complicated. There's a lot of different things that you do need to know of, that you need to learn about, that you need to pay attention to when opening up your first short sell trade. So the first thing you wanna pay attention to is the leverage that you are using in this account. It can be under isolated or cross. I recommend using isolated, especially when first starting out. And I recommend your leverage to be probably under 10X. I would recommend 5X and lower until you're consistently profitable. Leverage does not make you more profit. Leverage alone will not make you more profit. What leverage will do is make you do more of what you do consistently. So if you're a losing trader long-term, you're going to lose more money by using higher leverage. So to start off, you wanna be using very low leverage. I recommend probably two to 3X start there. And then as you gain more experience, more confidence, you can start going up to five to as high as 10. I recommend probably staying within there once you're a consistent and profitable trader. Once you start going above it, it starts getting more into basically gambling at that point. You can see here that a little note comes out saying that the leverage is too high. There's a high risk of immediate liquidation. So just be careful with this guys. The next thing you're gonna wanna note is the type of order that you're doing is going to be a limit or market order. A limit order is an order to buy or sell at a given price or better. And a market order will immediately fill your order at the best available price from the order book. So that means it could be anything. Like you don't really have exact control of the exact price that you want at that point. And then a conditional order is activated only when the trigger price is reached. And you can use these conditional orders for take profit, stop loss, and breakout trading purposes. This is probably my favorite order type to use. So here we're going to use the conditional order. The first thing you need to use is figure out what's your trigger price. This means the order will trigger at this specific price. So if I was currently looking to open up a short order, I would take a look at my chart and figure out where would be the right spot to open up that area by finding a support and resistance zone. So just kind of looking at it right here, we can clearly see a support here in the green area in a resistance up here where this red line is. So this would tell me that a good high probability area to set up some short orders would be either up here. That's around $25,000 or on a break below this green zone here. So the lowest price, the next thing I would do is look for the lowest price. The low here is about 17,567. We can also see here that we have a Fibonacci level right here. That's sitting just about $18,000. So if Bitcoin broke below this level, that would probably be a good spot for a potential short sell. So knowing that I'm gonna set up two different areas to enter to trigger a short sell. The first area is going to be below $18,000. So let's set it up around $17,000. Give it a little space. You don't wanna be at $17,999 because it could easily be in that zone, hit it and then jump right back up. So we'll give it a little space. We have the option here for last index or mark. I usually go with index. Last means that as soon as the price touches $17,900, it will trigger. Index means as soon as the average price in the order book is at that price, then it will trigger. I rather the average price because sometimes prices could just touch it and then jump right back up. So again, I don't want the fake outs. I'm trying to avoid fake outs as much as possible. So I'm giving it a little bit of room and I'm setting it up as index to get that average price. Again, longterm, this helps a ton out. The next decision we need to make is whether we wanna set it up as a limit order or as a market order. Remember, as a limit, you set up the specific price that you want your order filled and as a market order, it triggers instantly at the best available price. Because this trade here would be a breakdown trade, where we break down from a level, if we set it up as a limit, there's a high chance that at $17,900, there's not enough orders to get our position filled. And what happens in that scenario, our position is not filled and we miss out on those profits if the price falls really, really fast. So on a market order, once the trigger price is reached, it's going to trigger the order at the best price available at the time, which guarantees us that our order gets filled. So I much rather do that. Now for the purposes of this video, I'm just going to hit 10% of the current value that I have in here right now, which is $21 fake dollar. By the way, I'm using the testnet on Bybit. If you guys look up here, you can see this as testnet.bybit.com. That means that here you can practice with fake money. But for you guys to know exactly what your position size or order size should be for each trade that you're making, I created an entire video on this right here called How to Calculate Position Size Properly, Trading Bitcoin with Leverage. I recommend you guys to watch that. I'll put the link for that right here on this video. So once we've done that, to keep it simple and keep this video as short as possible, we're just going to hit sell short with TP stop loss. That's TP stands for take profit, SL for stop loss. There's other ways to do this where you can break it down into multiple orders. I go a lot deeper in details on that in these videos right here that you guys can check out on my Trading for Beginners playlist. I have this Bybit tutorial for beginners. I have two different ones, and I even have a Bybit mobile tutorial on exactly how to set up these trades. So I recommend you guys check that out. Again, posting up the links for those on here. So for now, we're just going to say that we want to take profit and close out our entire position at let's say 25% profit, which would be 17,463 as you guys can see there. It'll do the math for you and it's calculating using your leverage. So if you change your leverage here, let's say 5X and confirm, you see that now 25% profit means that the price would be at 17,047. So it's taking your leverage into account. And let's say our stop loss, we're going to set it up at 5%, that would be $18,080. That's a little tight so it'll probably go a little bit bigger, 15%, 18,453. That's fine for these example purposes. Once you have done all of that, you're not going to hit buy or slash long. You're going to be hitting sell slash short. You'll see a confirmation here. It tells you your trigger price, order price, your quantity, which is $19, your order value, estimated liquidation price, take profit, stop loss, your leverage and how good the order is for. So you just confirm it and your order is now submitted successfully. So you can hit here and you'll see that it says conditional order or you can actually edit this order. So it's pretty cool. You can edit all the different things that it has here as long as it hasn't triggered you. And you could also move your order here. So for example, if you want to move this order a little bit lower, you can. Now it's given me some sort of errors. We are on the test net so it doesn't work as well as the actual platform. Now let's say that we want to set up the second order at $25,000. Remember we pointed that out as a resistance area. So we will go up here, put in $25,000. So we're keeping that part the same. Same leverage, same type of order conditional. What changes here is the trigger price, keeping it on index. Now here's our next change. And instead of market, here we want to actually set it up as a limit order. The reason why when we're buying at a resistance, we want the price that we're setting. We don't really care for a market order. So I don't want this order to fail until it's at the exact trigger price that I want. So when selecting limit order, you have to set the exact price you want. So let's say we put again, 25,000. We're just gonna set it up again as 10% of the account value. And again, sell short with take profit stop loss, hit 25% for take profit, 15 for stop loss. And again, open it as a sell slash short position confirm. And you now have both your orders set up here. And they will also show on the chart as well. Now I'm not currently in any short positions that I can show you guys, but here are some short trades that I have taken in my private group where we have made some nice profits. This was back when Bitcoin broke below $28,000. Very similar order where we entered on the trade below 28,000. You can see our position size, our liquidation price, the value of the order in our profit here. On this one we made a pretty quick $1,600, 160% profit. Here's another one. This one is on Ethereum where we entered a short sell position when we broke below $2,000. You can see with a basically $50 drop we made a quick $1,000 profit on that move. Again, another one here. This one we entered on a breakdown below $32,000. At the time $32,000 was a very strong support. And we're able to make a nice profit here as the value of Bitcoin dropped. Same thing with Ethereum. We saw a breakdown below a strong support and opened up a trade, made a nice profit on the way down. So as you guys can see, short selling during a bear market can be very, very profitable, just as profitable as going long in a bull market. Now with all that being said, if you guys want to know exactly what trades I'm taking every single day in real time, then you need to get into my mentorship trading program. In this group I share every single trade that I take with my complete trading plan. In this example here, you can see that we took a short swing trade on Ethereum. We had two different entries, one at $1635 and one at $1665. We set our stop loss at $1,700 using an index. Remember that's the average price rather than the last price. And we had our take profits set at three different spots, $1,600, $1,575 and $1,525, risking a total of one to 2% of our account size. I listed the exact reasons why I was taking this trade with a chart here showing exactly what I thought was going to happen. As you guys can see, we hit our first take profit, our second take profit and our third take profit all within the same day. I teach you guys how to trade the right way, how to use leverage and how to use the correct position size with of course the right risks so that you never have to worry about blowing up your account again. Now there are limited spots so if you do want to join my mentorship training program make sure that you go down to the description below and sign up, which will give you access to our private Discord. Now before you go, make sure to smash the subscribe button and subscribe to the channel if you haven't done so yet. Also drop a comment, let me know what other type of videos you guys want to see. And you should probably watch this video right here next where I show you guys five different outcoins that you need to be buying right now which you can potentially do up to a 5x in possibly the next few months. So just go ahead, click this video right here. I'll see you guys on the next one. As always, peace and love.