Short Position
Betting an asset's price will fall — borrowing to sell high and buy back lower, with theoretically unlimited risk.
Going short profits when an asset’s price falls: you borrow the asset, sell it at the current price, and aim to buy it back cheaper to return it, keeping the difference. In crypto this is usually done via perpetual futures rather than literal borrowing.
Shorting carries an asymmetry that makes it hazardous: a long’s loss is capped at 100% (price to zero), but a short’s loss is theoretically unlimited, since price can rise indefinitely. Crowded shorts also risk a short squeeze. Shorting serves hedging and market efficiency, but its risk profile makes it a tool for disciplined traders, not a casual bet against a rally.