Long the market with RSK Sovryn Bitcoin DeFi sidechain.

Many will tell you that options are a terrible thing in the cryptomarket because exchanges can liquidate your position in a flash. Centralized exchanges can see your trades and probably actively play against their users. A centralized exchange can dump the market without even using real money since they are the house they can print money on their exchange market to liquidate their users.

Now enters decentralized exchanges like Sovryn and many others, your trades will be visible as a whole because of the nature of some blockchains or sidechains where every transaction is visible. Still, you won't be liquidated by fake money if someone sees that the market is over-leverage and going long for too long, and an opportunity to short the market may appear. Your position will get liquidated, but it will be normal market conditions on a plain field this time. In the case of centralized exchanges, you don't know if your business is being fair or not. Binance has been accused of playing against their customers; obviously, they will deny it, but they can do whatever they want because it is a centralized exchange with a centralized database that the public has no access to.

In the case of Sovryn and many other DeFi platforms, the trades are visible because of the nature of blockchains, at least those without privacy, like Monero.

Now opening and closing short and long positions is possible in Sovryn, the new Bitcoin DeFi sidechain and the fees are somehow high. You will be looking to pay at least 0.0002 to 0.0003BTC to open a position, but if you long a token like SOV, you will only need an initial capital of no more than 0.005BTC. I opened my position by utilizing some of my read and noise cash tips, and I used Lightning Network to transfer from SmartBCH to RSK.

Even when transaction fees are not cheap with Sovryn, it is still possible to do it if the user is willing to save up some funds and utilize a custodian like the Wallet of Satoshi. At the same time, you exchange from BCH to LN, which should only last for no more than 30 minutes, and your funds will only sit with the custodian for a short time, and WoS lets you create a wallet without the need to input your email, so your identity remains protected, but not your IP. The exchange from BCH to LN will know your IP address, and WoS will also know your IP address. You don't need an ID or register as long as you live outside certain jurisdictions.

You can long SOV as I did, and my initial capital was only 0.0007BTC, 0.0002 to pay opening fees, and 0.0002 to buy the asset, and I have left in around 0.0003rBTC to close my position once I decide that the market has gone long enough.

With such high fees, it doesn't make sense only to invest 0.0007 or $35.08, but if that is all you have. You think the price can't go down from where you are opening your position, and it could be an even more fantastic opportunity if your pocket is your reason. Still, a network that offers longs and shorts at a much lower fee will always be welcomed, in my opinion.

Bitcoin cash has always been cheap to use, and I expect SmartBCH short and long positions to have a minimal fee so that people with as little as $2 can participate and use the DeFi tools; the only thing that worries me a little bit is the ponzinomics that all the dexes that currently exist have. All dexes tokens have inflation without limits, and that could become a market condition not suitable for SmartBCH nor Bitcoin Cash unless someone else decides to create a dex that has a token that has a somewhat limited supply. And who knows, maybe shorting ponzinomics dexes will become a new cheap thing to do within the SmartBCH ecosystem.