LendaBit.com is a P2P lending platform that helps match lenders with potential borrowers. Considering the fact that the crypto market is rather volatile, many crypto holders turn to short selling cryptocurrencies. The core principle of short selling is to take a crypto loan (for instance, in BTC) for a short period of time, sell the obtained amount at a higher price and wait for the price to decline.

On LendaBit.com, the minimum loan term is one day, but the platform users can choose any borrowing period to their liking – one, two or three weeks, a month and so on. By obtaining a loan in BTC, the borrower can take advantage of price fluctuations, avoid heavy taxation and buy more crypto or convert assets into fiat. Below is a detailed example of how to benefit from short selling on the LendaBit.com platform:

1. Login to your account.

2. Choose the “Borrow” option.

3. In the Borrowing Dashboard, please navigate to Make A Loan Request.

NOTE: All platform users can use Loan Calculator to boost operations or ask ELAINNE (Personal Assistant) in case of any queries.

4. For instance, you can apply for 1 BTC secured by USDT collateral (in this case, the amount of collateral will be 7200 USDT to reach the initial 50% LTV ratio – see Loan Terms and Benchmarks) for a period of 1 month.

5. When a lender agrees to lend the requested loan amount, the deal is closed.

6. Now the borrower is ready to withdraw the funds to his/her personal wallet address.

7. Afterward, the borrower sells BTC at the current price by using the services of any crypto exchange and waits for the price to go down. When the value of BTC goes down, the borrower can repurchase back BTC at a much lower price, make a profit and repay the loan.

8. As a result, the total difference between buy and sell prices is your actual profit!

However, it is worth noting that downward movements on the crypto market are much steeper and shorter in comparison to upward ones. Therefore, short selling cryptocurrencies can be profitable but risky. As a rule, it is a short-time strategy where the market player acts quickly and at the right moment.

LendaBit.com offers its clients attractive and affordable rates and terms, renders the Affiliate Program for lenders and borrowers and promotes discounts on a regular basis. Follow the latest news posted on the official LendaBit.com’s blog because there are a lot of interesting updates to come!