After seeing some selling pressure at the start of the year, the crypto market has rebounded sharply this month. While this is a good sign the market is headed in the right direction, it also presents a good opportunity for short sellers to get in. Here is what you need to know:
As most coins surge, they are now primed for a pullback, giving short-sellers the chance to earn in the process.
Besides, there are still some weaknesses in this recovery and as such, it won’t be a surprise if we retreat slightly.
But before you short sell, understand that you will be exposing yourself to unlimited risk.
In case you are looking for some decent crypto assets to short sell, the following is a simple list to consider:
Ethereum (ETH) is one of the main coins in the market only second to Bitcoin. After the January decline, ETH has added nearly 20% in value over the last 7 days and has crossed over the crucial $3000 mark.
Data Source: Tradingview
But we are starting to see the coin lose much of that momentum. A pullback is well on the cards and as such, short-sellers can find decent entry points and ride the downward wave for some decent profits.
Uniswap (UNI) is one of the leading decentralised exchange protocols in the market. The native token UNI has been performing relatively well, surging by a whopping 15% in the last 7 days.
In most cases, when there is weakness in the main crypto assets like ETH and BTC, smaller coins like UNI tend to fall further. This gives you a decent chance to earn some profits with shorting.
There are also a few other coins you can consider. They include Gala (GALA), Shiba Inu (SHIB), and others. Make sure you use proper capital management though to avoid serious risk.
The post The best altcoins to short-sell after February rally in the crypto market appeared first on Coin Journal.