I heard in stocks, this is called shorting. But i read if you short, you could lose a huge amount of money. Could you do this with bitcoin? Example my thoughts were hey its the holidays, so most likely ppl will withdraw money and thus btc drops. So i figure around now, btc price would drop.
shorting is just a form of trading ,When you feel like the market is going to drop you sell your holdings and wait for a certain entry to buy back . that way if yhe market goes up again you will profit although the price could be the same as the one you sold at .
The opposite of this is going long ,When you buy and wait for the prices to go up. This is good when the momentum of the market is bullish and could make you way more money then shorting.