The current bear market is seeing Chinese miners increasingly shorting their positions on crypto. Chinese miners are reportedly the biggest short sellers both in the country and abroad.
The increased short selling has been precipitated by severe crypto market decline all through 2018. New age miners are therefore hedging their coins in order to mitigate against market risks.
Crypto miners had been enjoying large profits before as evidenced by Chinese miner, Jin Xin, who revealed that the profits he had made from his first two months of mining back in 2017 had surpassed his 3 years’ worth of profits in other businesses.
The current bear market has been hard on miners who have had to deal with reduced profits. Mining equipment is currently being disposed of at low prices due to the market slump. Chinese miner Jin went on to explain how he has managed to survive the current bear market by saying; “If I mine 30 tokens in the next month, while its price may continue to fall by another 10 percent according to the current trend, I shall place a short order on the exchange to sell them at current price but deliver one month later.”
The speculation on markets recovering next year may put a smile on miner’s faces once more but all that remains to be seen.
I am a crypto enthusiast based in Nairobi Kenya, who loves investing, research writing, reading, fitness, African food, and soccer.
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