Today’s cryptocurrency prices: Check rates of Bitcoin, Ethereum, Cardano, XRP |What is short selling in stock market? Why isn’t it illegal?


Botcoin has lost 0.5% in the last 24 hours, trading at $23,795.33. It is 4.8% up compared to last week.The second most popular token, Ethereum, has dropped 1.0% from yesterday and is trading at $1,708.93. From the previous week, it is up 11.2%.The market capitalization of Bitcoin and Ethereum stands at $454.69 billion and $204.88 billion, respectively.


What are the prices of other popular cryptocurrencies today?

BNB is trading at $291.21, which is 4.6% up from yesterday and a 10.9% rise from last week.The XRP is currently trading at $0.33 after falling 2.2% in the last 24 hours. It is 2.5% up from last week.Finally, Cardano and Dogecoin are trading at $0.55 (down 2.7%) and $0.066 (down 3.2%), respectively.

Other tokens

Solana is up by 3.3% since last week

Solana, Polka Dot, Shiba Inu, and Polygon are currently trading at $41.90 (down 3.4%), $8.32 (up 2.1%), $0.000011 (down 3.7%), and $0.99 (down 4.1%), respectively.Based on the weekly chart, Solana has risen by 3.3%, while Polka Dot has gained 13.9%.In the last seven days, Shiba Inu has lost 0.2% of its value, whereas Polygon is 9.1% up.


Check out today’s top 5 gainers

Looking at the 24-hour movement, the top five gainers are Yearn Finance, Internet Computer, Ravencoin, Bitcoin Gold, and Filecoin. They are trading at $11,000.21 (up 25.32%), $8.68 (up 15.36%), $0.033 (up 10.72%), $34.09 (up 10.24%), and $6.54 (up 7.78%), respectively.

Stable tokens

What is going on with popular stablecoins today?

A stablecoin is a cryptocurrency with extremely low volatility. Its value is connected to a real-world asset such as fiat currency or gold.Some of the popular tokens, Thether, USD Coin, and Binance, are trading at $1 (flat), $1 (flat), and $1 (up 0.2%), respectively. Meanwhile, the Terra Classic is listed at $0.000099 (down 2.31%).


Today’s top 5 losers

The biggest losers of the day are Ethereum Classic, Synthetix, Arweave, Curve DAO Token, and THORChain. They are trading at $39.51 (down 10.05%), $3.78 (down 9.10%), $13.65 (down 6.69%), $1.43 (down 6.24%), and $2.69 (down 5.82%), respectively.


These are the top 3 cryptocurrency spot exchanges

Based on traffic, liquidity, trading volumes, and confidence in the legitimacy of trading volumes, Binance, FTX, and Coinbase Exchange are the top three cryptocurrency spot exchanges.Binance and FTX had a 24-hour volume of $21.26 billion (up 6.71%) and $2.75 billion (up 10.16%), respectively. Coinbase Exchange’s volume was $2.2 billion, which is up 22% from yesterday.


Here are today’s leading DeFi tokens

DeFi or decentralized finance refers to global, peer-to-peer financial services on public blockchains.Dai, Avalanche, Uniswap, Wrapped Bitcoin, and Chainlink are among the most popular DeFi tokens. They are trading at $0.99 (up 0.06%), $24.26 (up 0.79%), $8.88 (up 0.94%), $23,776.95 (up 0.14%), and $7.82 (up 1.27%), respectively.


Take a look at the top 5 NFT tokens today

Non-fungible tokens or NFTs are cryptocurrencies that cannot be exchanged for one another like other tokens due to their lack of fungibility.Among the popular NFT tokens are ApeCoin, Flow, Decentraland, The Sandbox, and Axie Infinity. They are currently trading at $6.65 (up 0.54%), $1.90 (up 1.05%), $0.99 (up 0.84%), $1.33 (up 0.98%), and $19.30 (flat), respectively.

Market outlook

Total cryptocurrency market capitalization for today

The current global crypto market cap is $1.1 trillion, a 0.33% increase over the last day. The total crypto market volume over the last 24 hours is $100.32 billion, which marks a 4.21% increase.The global crypto market cap was $896.76 billion last month, while three months ago, the total capitalization stood at $1.76 trillion.

What is short selling in stock market? Why isn’t it illegal?

Have you sold something before you owned it in real life? Well, this is legally allowed in the stock market, but with a catch: you have to buy it back on the same day, irrespective of the price. 

Rohini was a happy, educated 26-year-old, who had just made about Rs 2 lakh when the stock market crashed recently. Her parents thought she was bluffing because they could not believe that one could make this kind of money, especially during a market crash.  

Rohini’s father, Biju, on the other hand, was a total stock-averse person, who had worked hard all his life (and still not made enough money). Biju had lost his fortune in the 2008 stock market crash and had decided to stay away from the market since then. He had bought some stocks first, nurtured it, and when he was about to sell them, the market took it all away, leaving him in losses.

Since normally one could only make money when they buy a share at a lower price and sell them at a higher price later, Biju could never think of investing money when the market was bleeding and prices were falling every second day. It was impossible for him.

Rohini’s surprised. She asked curiously: ”Dad, who told you that you could only buy a share first and only sell them later?” 

Her dad cross-questioned her: ”Rohini, how can you sell something first when you don’t own it in the first place?”

Though the normal practice in our lives is to buy something (home, gold, stocks, etc) first and then sell it off later, this only becomes profitable for us when the prices are rising over a period of time. If you do this when the prices are falling, you will obviously end up with losses. So how does one make money when the prices are falling?

Well, in the stock market, you can always make money, by short selling.

How does short selling work? 

Here’s how Rohini did it: As the rupee value was sinking and foreign investors were withdrawing funds from the stock market, Rohini knew that the stock prices would crash. So she decided to opt for intraday trading every day for the next few days. (This is also known as Margin Intraday Trading or MIS)

She would start her trading period by selling some stocks every morning at 10 am and buying them back later at 2 pm. So as the market crashed every hour, she would sell at a higher price first and square off the position by buying at a lower price later. At the end of the day, there were zero shares in her portfolio but more profits in the bank.  

But how can you sell something that you don’t have

 Well, the government and the governing bodies (SEBI in India) allow investors to sell something they don’t have, only if they can buy it back on the same day via intraday trading. So it’s legally allowed. You can use this to hedge your portfolio or make money during a financial crisis since prices always fall during those times.   

How does this reflect? 

So, say when you sell 10 stocks first, your broker shows your position as ” – 10”. When you eventually buy back the same stock the same day, your broker shows it as ”+ 10”, thus leaving zero balance at the end of every trade.     

What if you short sell but don’t buy it back? Say you sold 10 shares at Rs 100 and expected the prices to come down to say Rs 80 later on. But instead of coming down to Rs 80, the prices went up to Rs 110 or fell to Rs 90. You did not buy back those shares. Now what? Well, if you don’t manually buy it back, the system automatically does it for you. Some brokers automatically set their systems to square off transactions at 3.10 or 3.20 pm, even though the market is open till 3.30 pm. 

A unique situation: Say you sold 10 shares first and you have been waiting to buy back these shares, but the stock has hit something called ”an upper circuit”. This means that the stock price has hit the maximum and now you cannot buy any shares because no one wants to sell them. There are only buyers for this stock. 

So how does one buy back shares when there are no sellers? Here your shares will be auctioned in an auction market between 3.30 pm to 4 pm by your brokers. Brokers will buy shares on your behalf at the available price and honour the contract. 

But beware:  Short selling can put you in terrible losses.

When you buy a stock say for 350 bucks, the maximum you can lose is only what you have put in the stock ie 350 or less. But when you sell your stocks first for say Rs 350, your benefits are limited to Rs 350 only. Now since stock prices can go up limitlessly, so can your losses. Ask Tesla short sellers who can tell you about their crores of short selling losses.

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