The Bybit Card is a Mastercard crypto debit card that offers a seamless way to access and spend your crypto. Learn how you can use it to earn passive income!

Nowadays, the quest for financial freedom has led many to explore 

 stands out as a favored strategy. Unlike active income, whereby you trade time for money, passive income allows you to earn without being actively involved. Imagine a life where your finances grow even as you sleep, travel or spend quality time with loved ones. This dream can be a reality, and the digital revolution, especially in the realm of cryptocurrencies, has made it more attainable than ever.

Introducing the Bybit Card — a groundbreaking financial tool in the crypto space. As the world of cryptocurrency expands, so do the opportunities to earn passive income. The Bybit Card not only simplifies your crypto transactions, but also paves the way for a consistent income stream. But how exactly can one leverage this card to maximize passive earnings? Let's dive deep into the mechanics of the Bybit Card and unveil the secrets to optimizing your financial growth.

 is a Mastercard crypto debit card that offers a seamless way to access and spend your cryptocurrency. It's more than just a card — it's a gateway to integrate cryptocurrency into your daily routine. 

, you can instantly use your Bybit trading gains for purchases and enjoy exclusive perks through the Bybit Card Rewards Program, featuring special offers from partner brands. You can even use it to earn a passive income. 

The card is cost-effective, valid for three years and features auto-renewal for its virtual variant. There are no annual, issuance or account closure fees. However, users will incur a foreign exchange fee and a crypto conversion fee on top of the prevailing Spot rate, 

depending upon the region the user is in.

How to earn passive income with the Bybit Card

With the financial world leaning toward digital solutions, the Bybit Card stands as a beacon for those aiming to earn without constant effort. Let's look at how you can turn your Bybit Card into a passive income powerhouse.

 to introduce the Auto-Savings feature for 

, an automated financial management tool that enables all Bybit Card users to effortlessly earn profits. When activated, this feature automatically invests users' idle assets in Flexible Savings, ensuring they earn profits without hindering card expenditures. 

Based on their preferences, users can easily choose and activate this function for specific coins supported on Flexible Savings to optimize their idle assets for better returns. Your assets remain liquid and can be unstaked anytime, ensuring you benefit from daily earnings without compromising flexibility.

Once you opt into the subscription, selected assets will be invested into Flexible Stakings at 10AM UTC daily. The allocated amount during each execution of the subscription is subject to the maximum or minimum investment amount of Bybit Savings. 

If the required minimum investment amount is met, the funds will be automatically staked in Flexible Savings plans, up to the maximum investment amount. However, if the limit is exceeded or not met, the subscription will fail for that day. You can view the specific purchase limits in the details of each of the corresponding Flexible Staking plans.

How to get started with Bybit Card x Earn

tab on the navigation bar at the top of the Bybit home page, and click on 

button and toggle it to “on.” Once enabled, the transferable balance of your payment crypto asset (shown under 

) in your Funding Account will automatically be used to subscribe to Flexible Savings plans at the next daily interval.

: After reading and agreeing to the Bybit Terms of Services, click on 

If you’d like the selected payment crypto asset and the payment assets staked in Flexible Savings to be deducted for Bybit Card payments, you may activate the 

You can view your successful transactions in your 

Alternatively, you can also find your orders under 

What happens when you disable the Auto-Savings feature?

When you disable the Auto-Savings feature, funds that have been used to subscribe to Flexible Savings plans won’t automatically be available for expenditures. Instead, only the designated fiat and chosen crypto assets in your Funding Account will be used for Bybit Card transactions. 

If you choose to disable the Auto-Savings feature on your Bybit Card, please note the following:

Bybit Card offers a Rewards Program that lets users earn Bybit Card Rewards Points every time they pay with the Bybit Card. Users gain 1 Reward Point for every EUR/USD or 900 ARS spent, 

while users earn 10 Rewards Points for every 5 BRL spent.

 These points can easily be converted into cashback or other rewards through the 

. Some of the rewards include coupons, fee discounts and USDT or BTC bonuses that can be used to cover potential losses incurred by trading on Bybit.

Bybit VIP users get to enjoy Bybit Card VIP privileges, such as 8% APR, higher points accrual on eligible card spending, global lounge access (which can be redeemed using Rewards Points at 50% off), and full rebates on Netflix, Spotify, Prime, ChatGPT and TradingView. 

Events will be held regularly for users to earn rewards. To qualify for the events, you’ll first have to reach the minimum spending amount stipulated in the rules of each event. Keep a lookout on our 

One of the easiest ways to earn passive income with your Bybit Card is through its 

All you need to do is complete the following steps — and you’ll be able to sit back and reap the rewards.

Once you’ve completed the above steps, you’ll qualify to receive 20 USDT, while your referee will receive 10 USDT. 

The Bybit Card offers a comprehensive suite of benefits designed to enhance your financial experience and enable you to earn passive income. The Bybit Card Flexible Savings Auto-Savings feature is a great way to put idle assets to work and provide a sustainable stream of passive income. 

The Rewards Program lets you accumulate points with every purchase, which can be converted into various rewards, including cashback and trading bonuses. The VIP Program amplifies these benefits, providing higher cashback rates for the more discerning spender. Additionally, the Card introduces an element of excitement with regular events, offering exclusive rewards. 

Overall, the Bybit Card's multifaceted rewards and exclusive programs make it a compelling choice for those seeking to maximize their financial benefits in the crypto realm.

The Bybit Card emerges as a beacon of innovation and user-centric benefits. Seamlessly blending transactional utility with a plethora of rewards, it exemplifies Bybit's commitment to delivering value to its users. 

Whether you're a seasoned crypto enthusiast or a newcomer to the crypto realm, the Bybit Card offers a unique blend of convenience, rewards and financial empowerment. As you navigate the future of digital transactions, having a tool like the Bybit Card in your arsenal isn’t just a luxury — it's a strategic advantage. Apply for the Bybit Card and start earning today!

Beginner

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How to use the Bybit Card to earn passive income

What are the key differences between a traditional debit card and a crypto debit card? Find out more in this article and determine which suits you better.

Modern society increasingly focuses on cashless transactions. Being able to pay by scanning a card can make a lot of transactions faster, easier and more secure. However, it brings up some new questions for consumers. How do you pick which card you want to pay with? There are a lot of options, and they all have their pros and cons. Traditional debit cards and crypto debit cards are two of the most popular choices. To find the right option, you'll need to carefully consider your personal budget and preferences.

A traditional debit card is a payment card connected to your bank account. When you use it, it deducts money from your checking account and uses those funds to complete your transaction.

Traditional debit cards usually run on major debit card networks like Mastercard or Visa. In addition to connecting to bank accounts, some debit cards are also prepaid debit cards that connect to a set amount of funds which you added to the card at the time of purchase.

A traditional debit card in Europe generally works by using chip-and-PIN technology. This system stores sensitive information on an embedded computer chip, rather than on a magnetic stripe like with US-issued cards. This ensures greater security and prevents unauthorized access to bank accounts since the data stored on the chip cannot be easily copied or duplicated. 

Additionally, the widespread adoption of 

 in European countries has made it more convenient for users to use a traditional debit card. All one has to do to pay for goods and services is tap their card at an NFC-enabled terminal or reader. This method is much faster and more secure than traditional payment methods since it eliminates the need for entering any type of PIN code.

Benefits and risks of a traditional debit card

Due to the unique way they work, traditional debit cards can be quite useful, but they also come with some potential downsides. Here are a few pros and cons to be aware of.

The main advantage of a debit card is that it is incredibly convenient. Using one is faster than writing a check or counting out cash. Furthermore, major debit card providers are accepted at almost all retailers and online shops.

Many people also like that debit cards are only meant to spend money you currently have deposited in your account. There are fewer transaction fees, because you aren't borrowing money from a lender. Unlike traditional credit cards, you might also find that you're less likely to spend excessively — since you can't automatically borrow thousands.

Debit cards might be convenient, but they can cause problems if fraud occurs. Anyone who gets a hold of your card can easily use it to process transactions with a simple tap against an NFC-enabled terminal, andyou may be required to pay all the fraudulent charges yourself.

Another problem is that your debit card doesn't necessarily quit working just because your bank account doesn't have funds. Depending on how your account is set up, you might be able to overdraw funds and end up with significant overdraft charges.

When should you use a traditional debit card?

Anyone who has funds in a standard bank checking account should have a regular debit card. A debit card makes it fast and easy to get your money out of your account.

It is also a good idea to use a traditional debit card for situations where you want simple, straightforward transactions. Debit cards are especially useful in situations where you can't carry cash or want to pay online.

Ultimately, a traditional debit card is a great tool for day-to-day activities, such as shopping or paying bills.

 is a card that lets you spend crypto in a variety of transactions. The funds for the transactions come from cryptocurrency that is automatically converted to fiat currency.

Just like traditional debit cards, crypto debit cards can be used for in-store and online purchases or for ATM withdrawals, but they're offered through a crypto provider instead of a bank. The card connects to a 

, and the funds you spend from the card are subtracted from the crypto wallet.

From the user's perspective, crypto debit cards work much like any other card. You decide to make in-person or online purchases, and then swipe the card against a machine or enter your card details at an online shop. However, a few additional steps are happening behind the scenes:

Benefits and risks of a crypto debit card

If you're interested in cryptocurrency or decentralized finance (

), a crypto debit card can be very useful. Just keep in mind that they have some unique issues, which people used to traditional cards might not expect.

Crypto debit cards are a great way to perform standard transactions and online purchases, while enjoying the perks of digital currency and decentralized finance. You don't have to sign up for a bank account, and crypto debit cards let you use your cryptocurrency in day-to-day life without a lot of extra steps.

Crypto cards offer some unique chances to make money. Unlike traditional debit cards, most card providers offer crypto rewards to those who use their cards. These crypto rewards are often cryptocurrency tokens that can increase in value over time.

For example, Bybit Card offers up to 10% cashback in BTC, ETH, AVAX and USDC when you spend in five categories: travel, transport, fashion, restaurants and beauty and wellness. New users can enjoy up to $150 and existing users up to $75, all within your first month. You’ll even receive 10% off top brands, such as Netflix, Spotify and ChatGPT. But that’s not all — earn Reward Points for every dollar you spend, which can be accumulated and later converted to USDT or redeemed for exclusive merchandise!

When using crypto debit cards, it's important to be aware of their limitations. Not all nations allow cryptocurrency debit cards or accept crypto payments. You'll need to make sure that the provider you choose is valid in your location.

Keep in mind that your crypto assets are more volatile than fiat currency. Their value shifts, up and down, so the amount of money on your debit card will fluctuate. Unlike a traditional debit card, you'll need to check the value of your crypto before making big purchases.

Another downside is that each transaction comes with some fees. Most crypto debit card providers 

 associated with converting crypto into fiat currency. These foreign exchange fees vary, depending on what country you're in, but they can be a little pricey.

A crypto debit card is a great choice if you own cryptocurrency and want a convenient way of using your funds and earning rewards. With a crypto debit card, you can skip having to sell your cryptocurrency and convert it to fiat currency. The card provider handles all these little details for you while the rest of your cryptocurrency investments continue to grow.

Crypto debit cards are also very helpful if you aren't able to open (or aren't interested in opening) a bank account. They allow you to get a card that you can use electronically without having to deposit any money in a bank.

When considering crypto cards versus traditional debit cards, it's important to remember that there’s a lot of variation among crypto debit cards. Most traditional debit cards are very similar, with just slight differences in fees and rewards. Meanwhile, crypto cards are offered by a lot of different companies, with a lot of different features. Here are a few things to consider when figuring out how to pick the 

 makes it easy to access your crypto savings whenever you want. As Bybit has entered a strategic partnership with Mastercard for the Bybit Card, you’ll be able to spend at over 90 million merchants worldwide. Furthermore, the Bybit Card is EMV® 3-D Secure enabled. This fraud prevention technology allows for consumer authentication during online payments. As such, you can shop online with ease, without worrying about your security being compromised. 

As mentioned previously, Bybit Card offers up to 10% cashback across selected spending categories, along with access to our Rewards Program. Every time you spend with your Bybit Card, you’ll earn Rewards Points that can be redeemed for exclusive rewards to make every transaction even more rewarding.

Want to get even more out of your card? Simply turn on Auto-Savings to earn up to 8% APR on your card balance, growing your crypto while you spend. There are no annual or inactivity fees, and applying for your card is completely free.

The Bybit Card supports a wide range of cryptocurrencies — including BTC, ETH, XRP, TON, USDT, USDC and more — to offer flexibility and highly competitive rates for crypto spenders.

First-time cardholders can also unlock special bonuses as follows:

Traditional debit cards vs. crypto debit cards: The similarities

Still not sure which is right for you? The good news is that these two card types have a lot in common, so both will work well in basic situations.

The two types of cards look almost identical, and can be used in-person or online. They're all standard rectangles of plastic that fit in a wallet, and you can use them all by typing in a number or tapping it against a terminal.

Whether you have crypto debit cards, traditional debit cards or prepaid debit cards, they only work with the money you already have. Unlike a credit card, debit cards don't let you borrow money when you've run out of funds.

Crypto debit cards and traditional debit cards both seem to work automatically. All the digital information gets transferred around at high speeds, so you don't have to wait for transactions to be finalized. They're also very fast and easy to use — as compared to counting out cash or writing a check.

Traditional debit cards vs. crypto debit cards: The differences

Though they have a lot in common, crypto and traditional debit cards aren't identical. To choose the best option for your needs, it can be helpful to consider their differences.

Most crypto debit cards have higher fees than traditional cards. Not only are they more likely to have transaction fees, but they often have foreign exchange fees, too. However, crypto cards compensate by letting crypto holders earn rewards that they couldn't with most traditional debit cards.

The funds that back a traditional debit card are sitting in a bank account, while the funds behind a crypto debit card are digital currencies in a crypto wallet. Due to this difference in funding, traditional debit card balances remain stable, while crypto debit card balances fluctuate as the crypto that backs your card changes in value.

Traditional debit cards are often automatically provided through your bank, so it's fast and easy to set one up if you have a bank account. However, if you don't have a bank account, crypto cards are often easier to set up. You can connect them to any wallet without having to become a bank member.

Which one suits you better — a traditional debit card or a crypto debit card?

You might prefer a traditional debit card if you don't own any crypto, and want to keep things as simple as possible. This type of debit card is convenient, reliable and has low fees. However, any crypto holder can benefit from a crypto debit card. Though it takes a little more effort to set up a crypto card, even beginners can easily figure out the steps. It makes it much easier to cash out your crypto funds, and it also lets you earn neat crypto rewards.

Keep in mind that you don't necessarily have to choose just one or the other. Plenty of people get both, so they can get all the perks of both types of cards. 

Crypto debit cards are an exciting new take on the traditional debit card model. With a crypto card, you can easily turn your crypto assets into real-world products or services. Taking the time to figure out how these unique cards work comes with plenty of advantages. As long as you have a crypto account, it's a good idea to also have a crypto debit card. Try the 

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Traditional debit card vs. crypto debit card: Which one is right for you?

Discover what crypto traders can learn from the stock market — from valuation and risk management to chart patterns and emotion-free, long-term strategies.

It’s been more than 15 years since the first crypto exchange, BitcoinMarket, appeared online, giving a start to the earliest meaningful trades in cryptocurrency. Since then, the crypto market and trading cryptocurrencies have matured significantly, with countless exchanges, 

 (DeFi) protocols and other trading platforms currently supporting the game of buying and selling crypto.

Despite the ongoing maturation process, the crypto market is still vastly different from the stock market. As a relatively young market, crypto has starkly different characteristics from those applicable to the highly mature equities trading environment. Compared to stocks, the crypto market is more volatile and focused on shorter-term trader strategies — just some of the many differences easily observable between the two markets.

Yet, there are many strategies, concepts and principles of the stock market that traders can adopt, in many cases with requisite adjustments, to help them be more successful in the fast-paced, 

 world of cryptocurrency trading. The key here is to differentiate what works for crypto from the world of equities trading — in order to determine what can be adapted and what should remain exclusive to equities. 

Valuation creates anchors in a hype market

One of the key activities for a trader — whether in stocks or crypto — is valuation of the company or project they plan to invest in. This is especially relevant for the crypto market, as it's often driven by hype and unrealistic claims by token issuers.

The stock market has several time-tested valuation methodologies. Two main stock valuation types are used for stocks: absolute and relative. 

Absolute valuation, also known as the estimation of intrinsic value, is based on evaluating the company's fundamental data and records. Popular absolute valuation methods include the 

Relative valuation methods determine the company's value relative to others in the same market segment, particularly in comparison to key competitors. The most popular relative valuation method is the 

Crypto traders deal with a lack of objective and publicly available indicators needed to valuate the project or protocol whose token they plan to buy or sell. One measure they can use to gauge a token’s real-world value is its 

. While this information is handy, it's far from the only component required to establish a cryptocurrency's long-term prospects.

A savvy crypto trader also looks into wider macroeconomic data to estimate the overall market's future direction, sources information on a token's utility functions, reads the project's white paper and researches information on the team and investors behind it — and more.

Many crypto traders adopt high-risk strategies, hoping to earn outsized returns quickly by picking obscure altcoins or using unjustifiably high leverage levels. The result of such strategies is often catastrophic. Instead of dancing on the knife's edge, crypto traders would do well to apply some 

 techniques widely used in the stock market. Some of these proven techniques that crypto traders may adopt include portfolio diversification, placing stop-loss orders and applying risk-to-reward analysis. 

 calls for holding different assets, or even asset classes, that share low or negative correlations. For instance, a 

 (BTC) investor could allocate some of their funds to non-tech equities that usually share low correlations with the cryptocurrency. To easily diversify your investments, you can use 

 multi-asset trader account, which supports trading in different asset classes, including crypto, stocks, gold and forex.

 orders involves specifying certain price points that automatically trigger buy or sell actions for the chosen asset. These orders are a great way to limit your losses and avoid emotional decision-making, a pervasive problem in the crypto market's highly volatile and sentiment-driven environment.

 is based on the ratio of the amount the trader risks to lose by placing an order to the potential gain from it. For instance, if buying an altcoin and holding it for a specified amount of time could earn you $300 in profit but might also result in an estimated $100 loss, the risk-to-reward ratio is 1:3, or 0.33. Naturally, lower ratios are preferable.

Certain risk management measures are also built into Bybit’s 

Lending Pool Auto Repayment Rules, and they specify thresholds at which users with dangerously high borrowing levels receive automatic notifications and have their debts automatically repaid.

Understanding chart patterns in stocks vs. crypto

Stock market traders often use chart patterns to look for indicators, such as support and resistance levels, volume fluctuations, 

 and more. Some of the most fundamental indicators relate to trends, specifically trend continuation and trend reversal patterns. The former helps identify when an uptrend or downtrend is likely to continue, while the latter signals that a trend is changing direction.

Some key trend continuation patterns include the rectangle pattern, rising and descending channels, flags, 

. Among the common trend reversal patterns are the 

, rising and falling wedges and diamonds. Thanks to the established nature of the equities market and consistent behavior by large institutional players, these indicators serve as potentially reliable estimates of future price movements. 

Chart patterns can also be a valuable tool for crypto traders, but their use and interpretation must be adjusted to consider the cryptocurrency market's unique properties. Since the crypto market is open 24/7, volume spikes and patterns can form at odd hours. Due to the lower liquidity of the crypto market (as compared to equities), chart patterns can also be more subtle and unclear, especially for low-cap altcoins. Moreover, the higher volatility in the crypto market means more frequent 

Additionally, due to the much lower presence of institutional players, crypto volume changes may not indicate "smart money" activity but rather sentiment- and hype-driven naive money — i.e., actions of retail investors acting based on impulse or biased information. 

Finally, trends are often of a much shorter nature than in the stock market, due to many of the same factors — high volatility, emotion-driven decisions, susceptibility to hype and the dominance of retail investors.

Patience is what many crypto traders often lack. Many stock traders take their time, waiting for weeks or months to enter or exit positions. They evaluate macroeconomic data, wait for company quarterly reports and aim to spot long-term trends to ride. In contrast, many crypto traders chase short-term quick wins and are gripped by the 

 schemes and investing in coins with unclear potential. 

The patience of a typical stock trader is the best behavioral feature for a crypto trader to adopt. Instead of being driven by emotions such as FOMO, cryptocurrency traders are advised to carefully study crypto token and market fundamentals, waiting for an appropriate moment and investment target to appear. Researching the effect of significant market events — e.g., 

 platforms, changes to major blockchains [such as 

 (PoS)], regulatory changes to crypto in key markets, inflation data updates and interest rate decisions by the US Federal Reserve — will also help traders identify good investment opportunities for long-term success.

The stock market has many valuable tools and concepts that crypto traders can adopt. However, understanding the differences in applying these tools to the cryptocurrency market is crucial. Established company valuation methods may not be easily applied to the crypto market, but looking into key fundamental data related to 

 projects is one useful measure to adopt. 

On the other hand, using certain time-tested risk management tools, such as stop-loss orders and portfolio diversification, is somewhat more directly applicable to crypto trading.

Studying chart patterns is also critical, but many parameters need to be adjusted — as direct application of chart pattern analysis to crypto trading isn't advised. Instead, it’s wise to consider the unusual volume patterns, shorter trends, less clear indicators and more frequent breakouts that are a result of the crypto market's higher volatility, 24/7 trading and lower institutional investor presence. 

Most importantly, patience, emotion-free analysis and long-term planning are what the archetypical crypto trader can choose to adopt from the behavior and habits typical of their stock market counterparts.

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What crypto traders can learn from the stock market

Bybit has become the first major crypto exchange to enable direct trading of global stocks using USDT, offering seamless access to 78 top equities like Apple, Tesla, and Amazon.

The S&P 500 closed nearly flat at +0.03% as markets weighed a U.S. credit downgrade and tariff concerns; futures edged higher ahead of Fed remarks and earnings from Home Depot and Toll Brothers. Gold dipped to $3,230 on modest USD strength, but Moody’s US credit downgrade supported safe-haven demand, limiting losses. The Coindesk Indices, which tracks the broader crypto market, rose 3.67%, with Bitcoin and Ether up 1.57% and 5.11%, in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is AAVE, which rose 21.7% after Aave launched a $150K security competition for its v3 deployment on Aptos via Cantina.

Aave (AAVE), founded in 2017, is a DeFi lending platform offering overcollateralized loans, flash loans, and algorithmic interest rates through smart contracts and liquidity pools. Aave has 

 a $150,000 GHO security competition on Cantina for its v3 deployment on Aptos, rewritten in Move. Running until June 9, the contest invites researchers to review Aave’s updated lending logic, collateral flows, and incentive mechanisms.

Check out the latest prices, charts, and data of 

Bybit has become the first major crypto exchange to enable direct trading of global stocks using USDT, offering seamless access to 78 top equities like Apple, Tesla, and Amazon. Part of its expanded Gold & Forex (MT5) suite, this launch allows users to trade traditional assets—stocks, gold, oil, indices, and forex—without leaving the crypto ecosystem or converting to fiat. Bybit now bridges crypto and traditional markets under one platform, enabling real-time, crypto-native trading across asset classes. 

Yesterday, BTC spot ETFs saw strong inflows of $361.5M, all from non-GBTC funds, while GBTC recorded zero flow.

 its native token, $PROVE, with an initial supply of 1 billion. As an ERC-20 token on Ethereum, $PROVE will be used for payments, staking, governance, and incentivizing provers in the Succinct Prover Network. The supply can expand over time through emissions governed by the community.

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Bybit launches USDT-based stock trading with CFD model on MT5 platform

Trading

Understanding the principles behind long vs. short trading is imperative for every trader. Read all about it here.

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Long or short? That is the question. When it comes to trading, we call long positions the buy orders that are placed by traders who want to benefit from the ascending price of an asset — in this case, cryptocurrencies. On the flip side, short positions are sell orders that are typically placed in

While the concept of long and short is simple, understanding the principles behind long vs. short trading is imperative for every trader.

Long and short positions suggest the two potential directions of the price required to secure a profit. Traders who go long expect the price to go up from a given point. Those who go short hope that the price will decline from the entry point.

Going long is also equivalent to buying the cryptocurrency or opening a long position, while going short is equivalent to selling the cryptocurrency.

In a long position, the crypto trader has purchased a virtual currency and is waiting to sell when its price moves higher. Some traders are inclined to go long more often than going short. We call such traders bulls, as they try to benefit from bullish markets. 

This is especially true for the cryptocurrency market, which is usually headed toward expansion. If you check larger time frames, Bitcoin — the largest digital currency by 

 — has been forming higher highs since its release more than a decade ago.

At the beginning of 2021, it updated the all-time high. This is also true for most virtual currencies, which benefit from general bullishness. Thus, it happens very often that short sellers are trading against the market.

However, even though the crypto market is gradually expanding, it displays major corrections after almost every rally, so there is plenty of room for bearish investors as well. Those who go short are betting against the cryptocurrency, and expect its price to decline.

The concept of long and short positions is universal and works for all markets and assets. Moreover, it can be integrated with hybrid investment products like derivatives, which are tradable instruments that track the price of an underlying asset. 

Thus, derivatives allow you to go long on a given asset without actually owning it. For example, futures exchanges let you leverage the fluctuations in the Bitcoin price without buying or selling the cryptocurrency. You can think of derivatives as a form of betting on the price of an asset.

Traders can mix long and short to create reliable hedging strategies that can minimize potential losses.

Differences in Short vs. Long Positions 

Short and long positions are antagonistic in nature. When a long trade is generating profits, a short trade on the same digital asset is depleting the balance.

Also, the psychology of bulls and bears differs in the sense that bears tend to be more conservative, while bulls like to risk and experience new strategies. However, these are only stereotypes. Short sellers are also taking risks during

As mentioned, short trades are the ones that generate profits when you bet against a cryptocurrency. Generally, when you sell a cryptocurrency, you buy the quote currency, whether it’s fiat or crypto. Thus, if you sell Bitcoin, you buy US dollars, USDT, or any other altcoin or fiat currency.

Traders should go short when they expect the price of a digital currency to go down. For instance, if you are a day trader and feel that the price of Bitcoin will decline during the following days or even weeks, you would be interested in opening a short position. You can either sell Bitcoin for fiat and then buy it at a lower price or go short via futures, options, contracts for difference (CFDs), or other derivatives.

Needless to say, you should first analyze the market and then make a decision. Day traders should rely on both technical and 

 token, you may want to check whether the project is viable, has secured investments from well-known blockchain investors, or perhaps has partnered with well-established firms.

You can check the sentiment on social media and news sites. Besides conducting fundamental analysis, you can analyze the price action itself. You can use indicators and look for chart patterns.

 that anticipate a price correction or downtrend. Some examples of bearish chart patterns are the

, and Triple Tops, among others. As for bearish candles, you should look for the

Some traders prefer to go short when the price of a cryptocurrency breaks below a

. This is especially relevant if the price has been trading within a channel for a while, whether the channel is

Alternatively, you can go short by leveraging the price swings inside the channel itself. Thus, you don’t have to wait for a breakout. Instead, when the price is touching the resistance of a channel, you can go short with the hope that the price will go to test the support level again.

Irrespective of the kind of analysis you prefer, you have to feel confident that the price will decline if you plan to open a short position. Otherwise, you will find yourself trading against the market.

If the market is bullish, traders would be interested in going long. Opening long positions can generate considerable profits during rallies, like the one we saw at the end of 2017 or the current long-term rally that started in November of 2020.

As explained earlier, you should make sure to back your move with reliable market analysis. You can wait until the price breaks above a strong resistance or go long during the ongoing rally with the hope that it will continue for a while.

Another approach preferred by wealthy investors is to simply buy and hold the cryptocurrency. In this case, they are not trading it actively, but simply holding it for months or even years with the expectation that the cryptocurrency will increase in value despite corrections and adjustments.

This strategy requires large deposits and is not suitable for retail traders who seek to speculate on the short-term fluctuations of Bitcoin and altcoins. On a side note, large traders defy current market trends as they buy the dip and sell the rip, meaning that they go long when the price is correcting.

Day traders may wait until the price touches the oversold level of the Relative Strength Index (RSI) or 

Otherwise, buy traders can use chart patterns, such as the Double Bottom, Inverse Head and Shoulders, Ascending Triangle, or Hammer. There are also bullish candlestick patterns, including the Hammer and Dragonfly Doji.

Keep in mind that the cryptocurrency market is not mature compared to foreign exchange or equities. Hence, the technical analysis might not work that well, as the price can often take you by surprise. Still, you should consider all factors that can make a difference in the trend.

The good news for bullish traders is that unlike forex pairs, which have no specific long-term target, digital currencies act like company stocks. They are mostly traded against the US dollar and tend to move higher.

Can I Go Short or Long in All Financial Markets?

Yes. Traders go long and short in all markets. In fact, this is the very definition of trading, so you can’t do otherwise, irrespective of the market.

If you trade derivatives, there are more complex forms of long and short. For example, if you trade options, you use several combinations of long and short.

Options are contracts that give holders the right (but not the obligation) to buy or sell an underlying asset at a predetermined strike price, on a specific date or prior to it. They are quite popular in all financial markets. As a rule, traders use call options to go long and put options to go short.

However, they can also mix these. For example, traders can short-call positions as well as put positions. If you short a call option, you are bearish on the outcome of that specific call option, which is bullish. Therefore, it means you are

 on the price of the underlying asset. In a similar fashion, you can go long on both 

Long and short positions are the essence of trading, and traders strive to understand the forming trends in order to make the right decisions. Still, going long or short is only half of the job, as finding the best entry point is also very important.  

Last but not least, some crypto exchanges provide margin trading, which can greatly amplify the targets of long and short positions. However, you should be aware that the risk when using leverage is higher than when trading with your funds alone. 

The Differences of Long vs. Short Positions in Crypto Trading

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