The most effective way to profit when the crypto market is falling is to open a short position on Binance Futures.

The concept of a short position can be summarized as follows:

For example, let’s say we have $100 and want to open a short position on SUI with 10x leverage.

If SUI’s price drops by 10%, our profit would be 10% × 10 = 100%, meaning our $100 would grow to $200.

If we use 5x leverage and the price drops by 10%, our profit would be 10% × 5 = 50%, so our $100 would become $150.

If we use 20x leverage and the price drops by 50%, our profit would be 50% × 20 = 1,000%, meaning our $100 would increase to $1,000.

Of course, if the price goes up instead of down when we open a short position, we could lose all of our funds. That’s why it’s important to be very cautious when trading with leverage.

For example, we have $500.

A bad news about the market came out, and you think the market will go down.

You chose a coin, opened a short position on it, and the coin dropped by 30%.

What happens then?

$500

2x leverage: 30% × 2 = 60%, which is $300

3x leverage: 30% × 3 = 90%, which is $450

5x leverage: 30% × 5 = 150%, which is $750

10x leverage: 30% × 10 = 300%, which is $1,500

20x leverage: 30% × 20 = 600%, which is $3,000

50x leverage: 30% × 50 = 1,500%, which is $7,500 profit.

Example: Book Seller

Imagine you are a book seller, and you think the price of a popular book will drop soon.

1.Currently, the price of the book is $100.

2.You borrow the book from another seller and immediately sell it for $100.

3.A few weeks later, the price of the book drops to $70.

4.You now buy the book back for $70 and return it to the seller you borrowed it from.

5.The difference is your profit: $100 – $70 = $30 profit.

How to open a short position on Binance Futures.

Enter Futures.

Select a coin.

Choose leverage.

Enter the amount.

Click on the Short option.

If you have never used futures before, you can read other guides and learn step by step.

If you don’t have a Binance account, you can benefit from the discounted commission link.