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Shorting
A short is a bet that the price will fall. You can be wrong by more than you planned, because a rising price has no neat ceiling.
The bet
You borrow the asset, sell it, and hope to buy it back cheaper. The difference is the hope. Fees and the borrow cost eat it the whole time you wait.
The cost of being wrong
If the price rises, the buy-back costs more. A short squeeze is other people doing that at once. The loss can grow past the money you first posted if the venue lets the position run.
Do not short because a crowd is angry at a coin. Anger is not a price.
Check yourself
Is the most you can lose on a short limited to your first stake?
Not always. A rise can demand more margin, or close you at a much worse price.
After this you can include the borrow cost and an ugly rise in the hope, before you call a fall easy.
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