New methods of trading in short positions: What is relevant in 2024?

Short selling is a trading strategy in which a trader earns money from a drop in the price of an asset. With the development of technology and new trends in the cryptocurrency market, trading methods in “shorts” are becoming more complex and interesting. In 2024, several new approaches and trends have emerged that help traders profit from falling prices.

1. Shorting through derivatives and futures
   With the increasing popularity of futures markets on platforms such as Binance Futures, Bybit and FTX, traders are able to open short positions using leverage. This increases the potential profit, but also carries increased risks.

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A new trend: Complex strategies with a combination of futures and options became popular in 2024. Traders use futures options to hedge risks or open high-yield short positions.
2. Arbitrage short trades
Traditional arbitrage has received a new impetus with the advent of algorithms for shorting. This allows traders to use price discrepancies not only for purchases, but also for short positions. For example, you can sell an asset for a long time on one exchange, while simultaneously opening a short position on another platform where the price is higher, profiting from this discrepancy.

A new trend: Algorithmic arbitrage bots that are looking for shorting opportunities on several exchanges. Such solutions are already being used on Kraken, Binance and KuCoin.
3. DeFi strategies and shorting through decentralized protocols
Decentralized Finance (DeFi) has opened up new opportunities for shorting through protocols like Aave and Compound. Users can borrow assets against collateral and sell them in anticipation of a lower price, after which they can buy back cheaper.

A new trend: In 2024, staking shorts became popular, where users take assets pledged for staking (for example, ETH 2.0), sell them, and then buy them back cheaper to make a profit, while retaining the right to staking rewards.
4. Automated shortbots
Automated trading systems are becoming more and more in demand. In 2024, bots powered by artificial intelligence analyze markets in real time, opening and closing short positions depending on market dynamics.

A new trend is the integration of AI bots with machine learning tools. These systems are trained on historical data to predict possible market falls and open short positions automatically.
5. Shorting using news and social media
Today, the market is moving not only under the influence of economic indicators, but also due to trends in social networks and media. Platforms like Twitter (X), Reddit and TikTok play a huge role in changing market sentiment. Tools that track news and social trends help traders to open short positions in advance in the wake of negative expectations.

A new trend: In 2024, based on the analysis of social media, many signals and platforms appeared that help traders open short positions on volatile assets such as Dogecoin, XRP and Shiba Inu.
Conclusion
Short-term strategies in 2024 have become more sophisticated and technologically advanced due to the integration of automation, news and social media analysis, as well as DeFi protocols. To successfully short this year, traders use derivatives, arbitrage and DeFi solutions, as well as actively use algorithmic systems to find ideal entries into short positions.