Plain English
Going short means holding a position that profits when the asset price falls. You either borrow the asset, sell it at the current price, and plan to buy it back cheaper — or open a short position via a futures or perpetual contract.
How it actually works
Spot short: borrow the asset (paying a fee), sell it, wait for a price drop, buy it back, return it, keep the difference. Derivative short: open a short position on a futures or perpetual market; the contract pays you when the asset falls. Short positions face theoretically unlimited losses (the asset can keep rising) and require margin management.
What it means for you
For most members, shorting is not a strategy. The math is structurally adverse over long timeframes (assets generally drift up, you pay borrow costs), and the asymmetric loss profile is brutal. Hedging an existing long position with a short is occasionally appropriate; making short bets is not.
We treat shorting as a hedging tool, not a profit center. The structural edge in crypto is long-term ownership of scarce assets — not betting against them.
Educational content only. Not investment, tax, or legal advice.