Is alt season back? And a guide on shorting coins on Binance

With the dramatic pump in the price of Bitcoin from $7400 to $10500 recently, the entire crypto market has lit up. And since many people partially attributed this latest move to news coming out of China, Chinese coins such as NEO has pumped hard following the Bitcoin action. This has now spilt over to most of the crypto market with a sea of green throughout most altcoins. This leads to the question, is the long awaited alt season back?

Shorting on Binance

With the crazy action of Bitcoin, NEO and ONT over recent days, I have been thinking of shorting these coins after the huge pumps. And so I have been playing with the margin trading feature on Binance.

To my delight, I found that with the margin feature, you are able to borrow from a large range of top coins, up to 2X the amount you deposit. This means that even if you didn't own any NEO and ONT, you could borrow some NEO and ONT to sell these coins and then buy back when it is lower. This is a simple way I've discovered that you can try to short these top coins when it pumps.

How to borrow coins for shorting on Binance

Transfer funds from Exchange account to Margin account
Tap on the borrow button and select the coin you want to borrow and short
Sell the borrowed coins at the price you want to short
Buy it back wehn you are happy with your profit
Return your borrowed funds

Obviously, shorting and trading is risky business, so don't put in more than you're willing to lose. Especially trading on borrowed funds and on margin is even more risky. So play around with small amounts before you make any large trades.

Let's hope this new excitement in the crypto markets continues and look forward to seeing the start of a new alt season.

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