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TheAble

Another possible problem is that it keeps going up, no?

Browntoa

Made this assumption about a share , ended up having to hold them for 2 years just to break even .

It's basically gambling , prepare to lose everything

HansOndabush

Dogecoin +25% today. Doesn't seem a good short candidate to me. Logically it does but crypto has no logic at the moment, all hype and emotion.

Grenage

Shorting is risky at the best of time; something that can go up many multiples due to a silly tweet is asking for trouble.

RolandFlagg

I'm all for a bit of risky investments. I have Bitcoin. I have SMT. I have tech funds (QQQ, IITU, L&G Tech), but I don't put money into the market I need anytime soon. I have a very long term approach.
Shorting a crypto is pure gambling.

Malthusian

 - Dogecoin doesn't have much going on in terms of technology. Other than being a meme e.g. Elon Musk making funny tweets about Shiba Inu dogs, there isn't much to get excited about.

That's one more thing to get excited about than there is about Bitcoin. I promise I'm not bashing Bitcoin (this time). They're the same technology, they have all the same advantages and disadvantages, but Dogecoin has a funny picture of a dog which Bitcoin doesn't.

If you buy any asset long your downside is limited (to how much you invested) and your upside is unlimited. If you short an asset, your upside is limited (the maximum gain is 100%, if the asset becomes worthless) and your downside is unlimited.

And having decided that you want to take a punt on something with potentially unlimited losses, you're picking something that recently went up by 320% at the whims of memelords, where there's nothing stopping it doing so again, and again?

FirstTimeSolo

I don't think you can short crypto in the UK. 

steampowered

lardellion said:

What are reasons that shorting Dogecoin could be a terrible idea?

The risk you are taking is that, if the price of Dogecoin continues to increase, by shorting it you will lose money, and could end up losing far more than your initial investment.

[Deleted User]

There is no limit on the amount of dog coins that can be created (unlike others). Buy £10 and not a penny more unless you are prepared to lose it all.

kuratowski

The problem is that OP wants to short the coin, so they could lose a lot more than £10.