Bitvavo has launched a short selling feature, described as ‘vente à découvert sur les cryptomonnaies avec Bitvavo’, which enables users to sell cryptocurrencies short on the Bitvavo platform. As an example provided by the platform, Bitvavo lends 0.01 BTC against a €1,000 guarantee to facilitate a short position. The feature is accessible through the Bitvavo mobile application and through Bitvavo Pro (Web), where the platform presents the short-selling functionality within its user interfaces.
Bitvavo’s short selling feature involves lending cryptocurrencies to users to sell them at the current market price. For instance, Bitvavo lends 0.01 BTC to a user who provides a €1,000 guarantee. This allows the user to immediately sell the borrowed cryptocurrency, anticipating a decrease in its value. When the price of Bitcoin drops to €90,000, the user can buy back the 0.01 BTC for €900, securing a gross profit of €100, which constitutes a 10% return. Conversely, if the Bitcoin price climbs to €110,000, the user must repurchase the Bitcoin at a higher price, resulting in a loss that is deducted from the initial €1,000 guarantee.
The short selling process on Bitvavo is designed to be intuitive, ensuring that users can navigate it easily, whether on the mobile application or through Bitvavo Pro on the Web. This user-friendly approach helps facilitate the execution of short selling transactions without complexity. Before engaging in short selling, users are required to complete a brief quiz to ensure their understanding of the associated mechanisms and risks, providing an added layer of user education.
Bitvavo has implemented several user protection measures for its short selling feature on cryptocurrencies. A key requirement is that users complete a short quiz prior to initiating any short selling transactions. This quiz is designed to ensure users have a solid understanding of the mechanisms and risks involved in short selling.
Bitvavo emphasizes that the product has been developed with a focus on user protection, acknowledging that short selling carries greater risks compared to traditional buying methods. The platform highlights the process as intuitive on both mobile and the Bitvavo Pro web interface, making it accessible to a wide range of users.
Bitvavo’s approach aims to combine ease of use with essential user education, helping users navigate the complexities of short selling effectively.
Bitvavo Pro (Web) provides direct access to the platform’s short selling functionality. The Pro interface includes graphical tools and charts adapted for short selling activities. The web interface is presented as intuitive, facilitating execution and monitoring of short positions within Bitvavo Pro.
Bitvavo has introduced a short selling feature for cryptocurrencies and presents the product with an emphasis on user protection and education, including a required short knowledge quiz before trading. The feature is available on the Bitvavo mobile application and on desktop via Bitvavo Pro (Web), and the platform describes the interface as intuitive across these environments.
