Long or short assets
Unlock your capital's full potential
Using Money markets to long or short assets
- 1.Long Position: To go long on an asset, you can borrow a stablecoin, such as USDC or DAI, using your cryptocurrency as collateral. You can then use the borrowed stablecoin to acquire the asset you want to hold long. If the price of the asset increases over time, you can sell it for a profit and then repay the stablecoin loan.
- 2.Short Position: To short an asset, you can borrow the asset using your cryptocurrency as collateral. You can then sell the borrowed asset on the market, hoping to re-acquire at a lower future valuation. If the asset's price decreases, you can buy it back at a lower price, return the borrowed asset, and keep the difference as profit.
This is not financial advice, and it's important to research and fully understand the risks involved before participating in DeFi money markets.
Last modified 1mo ago