After seeing some selling pressure at the beginning of the year, the crypto market has made a sharp comeback this month. While this is a good sign that the market is moving in the right direction, it also presents a good opportunity for short sellers. Here’s what you need to know:
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As most coins rise, they are now poised for a pullback, giving short-sellers an opportunity to earn money in the process.
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Furthermore, there are still some weaknesses in this recovery and it would not be a surprise if we step back a bit.
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But before you short sell, understand that you will be putting yourself at unlimited risk.
If you are looking for some good crypto assets for short sale, the following is a simple list to consider:
Ethereum (ETH)
Ethereum (ETH) It is one of the main coins in the market, second only to bitcoin. Following the January drop, ETH has gained almost 20% in value over the past 7 days and crossed the crucial $3,000 mark.
Data Source: Tradingview
But we are starting to see the coin lose that momentum. A pullback is well on the cards and as such, short-sellers can find good entry points and ride the downward wave for some decent profits.
Uniswap (UNI)
Uniswap (UNI) One of the leading decentralized exchange protocols in the market. The native token UNI is performing relatively well, gaining 15% over the past 7 days.
In most cases, when major crypto assets like ETH and BTC have weakness, smaller coins like the UNI fall further. This gives you a good chance to make some profits with shorting.
There are also some other coins you can consider. These include Gala (GALA), Shiba Inu (SHIB) and others. Make sure you use proper capital management to avoid serious risk.