This is a short transcript excerpt from a YouTube video by Ndubuisi 'Andy' Egwim explaining how short selling works in cryptocurrency. He gives a simple numeric example (borrowing at $50, buying back at $1) to illustrate profit from a collapse, describes prior inability to short stocks safely, and recounts that he shorted crypto successfully using about 5% of his funds while cautioning against repeating the strategy.
So let's say when I borrow it, just to throw out numbers, if I borrow it at $50, and when it becomes worthless, everyone realizes is worthless, I've already sold the amount I borrowed, then I can buy it back at $1, whatever it is. That's called short selling. I've known about it for years, but I've never been able to do it in the stock market, because I know that if you do it with a company that is really doing well and their price keeps going up, it can go broke, because you have to buy it at whatever price it is to cover your shots. But in crypto, I managed to do that successfully. I don't think I should do it again just because I don't think I should be gambling my son's inheritance. But I did it with money that I put aside, maybe like 5%. The way I approach crypto is this.
