If you want to hedge your position against a point in the future, you need to use a margin trading platform to long and short popular cryptocurrencies.
But I prefer to short rather going long crypto using futures market and options contracts.
Many exchanges have this feature where you can open a margin position on exchanges such as Bitfinex, Robinhood, eToro, and many other CFD brokers.
But as per my experience where I have traded crypto and crypto CFDs for shorting using margin, I have shortlisted the following proprietary crypto exchanges which you can adhere to.
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Best Crypto Exchanges That Allow Shorting In 2023
The best way to short is through margin trading, and when margin trades are used wisely, they can prove to be highly profitable instruments but, if abused, can magnify your losses.
- ByBit [100X Leverage Crypto Exchange: Best Overall]
- BingX [100x Leverage & No KYC]
- Bitget [up to 100x on its Futures contracts]
- Phemex [20x Leverage]
- MEXC [100x leverage on Futures platform]
- Binance [20x Leverage On Bitcoin]
- Stormgain [Bonus Of $25 ]
- PrimeXBT [70% Joining Bonus]
- BitMEX
- BaseFEX
- Kraken– 1x to 5x leverage
- CEX.io
- Poloniex
- KuCoin
- Delta.Exchange
- eToro- Stock Markets ETF is also available
Let us understand the key features each offers where you can make a purchase.
1. Bybit
Bybit is one of the fastest-growing cryptocurrency exchanges, founded in March 2018 under the parent company Bybit Fintech Limited.
Its trading fee is structured on a maker/taker model, -0.01%/0.03%.
KYC regulations have been changed recently on the website, and any new accounts that have been created need to do a basic level of KYC.
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It offers 15 fiat currencies and contract trading in Inverse perpetual contracts, Perpetual contracts, and Inverse futures contracts.
Bybit allows up to 100x leverage trading on Bitcoin and 50x on other currencies, with 2 modes. Cross mode, where the exchange decides the margin, and Isolated mode, where you can decide the leverage and leverage means borrowing.
Its trading engine can handle an average trading volume of a whopping 100K TPS and offers 24×7 multilingual assistance. Bybit is not currently available in the US to short-sell.
2. BingX
BingX works as your one-stop solution for all your crypto trading needs. The exchange offers spot, derivatives, and crypto copy trading services.
Founded in 2018, the exchange now offers you access to 530 different crypto trades and 548 trading pairs. Also, it is known for listing new and unique tokens frequently.
The exchange is also packed with several advanced trading tools and offers you maximum leverage of 150x for both perpetual and standard futures contracts.
If we talk about the trading fees, BingX has one of the cheapest rates in the industry.
For spot markets, it charges you a flat rate of 0.1% for both maker and taker fees. For perpetual and standard futures, it charges you a maker and taker fee of 0.0200% and 0.0500%, respectively.
The exchange also doesn’t require you to complete KYC to start trading. Without verifying your account, you can deposit/withdraw and place trades.
With more than 5 million registered users, BingX performs exceptionally well in multiple factors. It also offers you access to several security features to help you protect your account.
Finally, BingX also offers you 24/7 customer support and offers help through multiple support channels. Plus, it has a quicker response time.
3. Phemex
Next up is this Singapore-based cryptocurrency exchange, started by 8 ex-Morgan Stanley executives in 2017. It enables both spot trading and margin trading.
Phemex allows 15 leading cryptocurrencies to take short positions on. It allows 100x leverage on BTCUSD and 50x on the other contracts.
It is one of the fastest trading platforms executing 300K TPS and has a simplified trading interface.
Phemex also follows the maker/taker trading fee module being 0.01%/0.06%. Phemex is one of the platforms that need a user to undergo KYC mandatorily before using the exchange.
It has dedicated 24×7 customer service. Phemex is currently restricted in some of the states in the US.
4. Bitget – Navigating Crypto Shorting Made Easy
Established in 2018, Bitget has grown into a renowned crypto exchange that supports shorting crypto. With a strong presence in over 40 countries, Bitget caters to a large and diverse user base, making it a top contender in 2023.
What sets Bitget apart is its commitment to variety.
It supports a range of cryptocurrencies for trading and offers futures contracts for those interested in shorting crypto. Whether you want short positions on Bitcoin, Ethereum, or altcoins, you have plenty of options.
One of Bitget’s defining features is providing up to 100x leverage on select trading pairs. This allows traders to amplify potential profits, although it also increases risk.
The platform boasts a user-friendly trading interface that’s suited to both novices and experienced traders. Plus, Bitget provides educational resources to help users understand the intricacies of a short position.
With competitive trading fees of 0.02%/0.06%, mandatory KYC requirements, and a focus on security, Bitget ensures a safe and affordable trading environment.
In summary, Bitget is a potent platform for shorting Bitcoin in 2023.
5. MEXC – Your Go-To Platform for Crypto Short Selling
Established in 2018, MEXC Global has swiftly carved out a reputation as a reliable cryptocurrency day trading platform.
Their diverse offerings include the ability to margin trade and futures contracts, which are perfect for traders who want to benefit from price drops.
One notable feature is MEXC’s extensive selection of cryptocurrencies, which allows traders to short-sell numerous digital assets.
Whether you want to short Bitcoin, Ethereum, or lesser-known coins, MEXC has you covered.
The platform provides leverage up to 100x on certain trading pairs, which could significantly boost your potential profits from your leveraged positions if you have the right prediction.
MEXC’s intuitive interface and comprehensive educational resources make it easy to start shortening crypto.
MEXC charges competitive trading fees of 0%/0.01%, making it a cost-effective choice for frequent traders and sometimes overnight rollover fees also.
For KYC, a lot of the platform is not usable, so it might be a good idea to take some time out and complete it. Plus, it prioritizes user security with robust measures in place to protect your assets.
In a nutshell, MEXC Global is a robust choice to short Bitcoin in 2023, thanks to its comprehensive crypto offerings and user-friendly platform.
6. StormGain – Short Selling Made Simple
Established in 2019, Stormgain has quickly become a go-to platform for crypto short selling. This user-friendly exchange offers dedicated functionality for shorting, enabling traders to profit from declining markets.
Its risk management tools and demo account make it an appealing choice, particularly for those new to short selling.
Offering up to 200x leverage on select crypto pairs, Stormgain empowers traders to capitalize on small price shifts of the underlying asset.
Transparent about fees, Stormgain charges a maker/taker fee of 0.4% for opening a long or short position. For on-the-go trading, their fully functional mobile app ensures you never miss a trading opportunity.
The trading platform is subject to mandatory KYC procedures if you want to be able to use it at all.
In a nutshell, Stormgain is a global crypto derivatives exchange that offers a simplified trading platform, an efficient approach to crypto short selling, ideal for anyone seeking to leverage market volatility, no matter the next market price or direction.
7. Binance
Next on the list is the Binance exchange, the world’s largest exchange in the daily trading volume of cryptocurrencies and heavily regulated exchange.
Founded in 2017 and registered in the Cayman Islands by the creator of high-frequency trading software, Changpeng Zhao.
Binance also follows the maker/taker trading fee module, 0.0108%/0.027%. The exchange allows a 10% discount on trading fees on USDT-margined contracts and to users who pay trading fees using BNB tokens.
Binance Futures allows up to 100x leverage and gets a daily trading volume of over $60 billion. There is also the option for traders to use Binance Margin trading if they favor borrowing funds from the crypto exchange.
Although KYC is mandatory, It provides best-in-class liquidity; you can short sell when you think the price of Bitcoin is about to fall or a long position when you think the price is about to increase, trading in USDT margin perpetual futures contract, COIN-M Futures-the token margined futures contract with or without expiry, and trading options.
Binance’s customer service has three options: to submit a ticket, ask basic questions via chat, or reach out via Twitter. However, the US version is limited and has run into regulatory trouble in the country.
Read our guide on Bybit vs Binance Futures to know which is better for you.
8. PrimeXBT
Next on the list is PrimeXBT, an Africa-based trading platform. It allows up to 100x leverage on all trading pairs with an average monthly trading volume of $545 million, executing 12K TPS and charging 0.05% of cryptocurrency trading fees.
You can start trading on PrimeXBT with only an Email ID, giving you complete access to their advanced trading features.
While the other platforms go for KYC, PrimeXBT doesn’t require it; instead, they have something called CDD.
Customer Due Diligence (CDD) is done only when the terms and conditions of the platform are violated, imposing restrictions. As soon as the CDD is carried out successfully, all the trade restrictions are then revoked immediately.
There is a lot of attention given to the security of customer information, with 24×7 committed customer support always available.
You are charged a flat fee of 0.0.5% on all types of trades.
The crypto exchange PrimeXBT is not accessible in 14 countries, including the USA. You can check our article on Best Crypto Margin Trading Exchanges for the USA for options.
9. Kraken
Kraken is a US-based crypto exchange founded in 2011. Crypto margin trading allows up to 5x leverage on Kraken.
You can trade in a variety of altcoins on Kraken. BTC, BCH, ETH, ETC, REP, XRP, and XMR, trading against BTC, USD, ETH, and EUR.
It also provides you with a demo account before you open a position with your real funds. Where you can experiment and improvise your trading strategies like arbitrage.
Fees on the platform start from 0.02%/0.05%, and Its access levels are divided into 4 categories: starter, express, intermediate, and pro versions; complete KYC is mandatory for the Pro version only.
Kraken also accepts Canadian dollars and Euros and provides cold storage for digital currency holders.
They also constitute a 24×7 customer support with a chat window.
10. Poloniex
Poloniex was launched in October 2013 in the USA and was later sold to Circle Internet Financial Limited, a mobile payment platform, in 2018. It offers relatively low fees and many cryptocurrencies to trade in.
Poloniex allows up to 20x leverage; for level 1 and level 2 traders, you can trade for 10+ cryptocurrency pairs but only in BTC. It allows lending, crypto margin trading, and futures trading products.
The standard trading fee, regardless of your 30-day trading volume, is based on the maker/taker module, 0.015%/0.05%.
Poloniex credits 10,000 USDT as demo money after signing up on the platform. Verification here is on a level basis; level 1 allows limited access, and level 2 unlocks all the features. You can withdraw up to around $10,000 daily from the crypto exchange without KYC.
It has a 24×7 enabled chat box feature, which has received reputable customer feedback. Users can also withdraw their funds anytime.
11. KuCoin – Shorting Made Accessible
KuCoin, established in 2017, is a favorite among the crypto trading community looking to sell short.
It supports many cryptocurrencies, making it perfect for those seeking crypto margin trading or taking a short position on an underlying asset.
Its Margin Trading feature allows users to borrow funds to short crypto, creating the potential to profit from the lower price, volatility, and downward market trends. With leverage up to 100x available, advanced traders can boost their short position exposure on select pairs.
The fees on the platform, when you execute trades, are done in a maker/taker model and are charged at 0.02%/0.06%.
KYC has been mandatory on the platform since 2018, and Level 2 of KYC will allow you to withdraw up to 200 BTC every 24 hours.
KuCoin’s user-friendly interface and comprehensive educational resources cater to both experienced traders and beginners exploring shorting.
The platform also offers a mobile app, keeping you connected to the market 24/7.
Fees on KuCoin are relatively low, making it a cost-effective choice for short sellers. Moreover, its secure and stable infrastructure helps ensure a smooth trading experience.
All in all, KuCoin’s robust shorting capabilities, paired with a vast selection of cryptocurrencies, make it a top choice for shorting the volatile market in 2023.
12. Delta Exchange – A Home for Crypto Short Sellers
Delta Exchange is a haven for crypto shorting enthusiasts.
It started operations in 2018 and has been growing steadily ever since, mainly due to its dedicated offerings for futures and options trading.
A major plus is Delta Exchange’s extensive support for various cryptocurrencies. It allows short positions on a wide range of crypto assets, providing ample opportunities to profit from market downturns.
The platform provides leverage up to 100x on select trading pairs, offering the chance to amplify potential profits.
Whether you’re an institutional trader or a newcomer, the user-friendly interface and detailed educational materials make navigating the world of shorting seamless.
Delta Exchange charges competitive trading fees of 0.02%/0.05% in the maker/taker model, which makes it a cost-friendly choice for traders.
Any new users will not be able to use the platform until they complete the KYC procedures. The platform’s security infrastructure is also robust, ensuring a safe and smooth trading experience.
In sum, Delta Exchange is a standout platform for short selling in 2023 due to its strong futures and options offerings and extensive crypto asset support.
Now that we have got to know about the various trading platforms to short sell, the question arises
Is shorting crypto illegal? Time to Clear the Air
No siree! Shorting crypto isn’t illegal, but it sure is surrounded by lots of regulation and caution.
Here’s the deal – when you short an asset, you’re basically betting that its price will go down.
In the crypto world, this usually involves borrowing the asset, selling it at the current price, and then buying it back when the underlying asset’s price drops.
While this might sound like a shady business to some, it’s actually a common strategy in financial markets and is completely legal, provided you’re using a regulated platform and following the rules of your jurisdiction.
Now, here’s where it gets a bit tricky. Some countries have regulations that limit or even prohibit short-selling, while others don’t.
So, whether you’re in the US, the UK, India, or Timbuktu, it’s crucial to check with local regulations before you dive headfirst into shorting crypto.
Just remember, shorting can be a high-risk strategy, particularly in the volatile crypto market.
Prices can skyrocket just as quickly as they can plummet, and if they rise when you’ve bet on them falling, you could be facing some significant losses. So, always do your homework and understand the risks before you start shorting.
Stay savvy, traders!
Can You Short Crypto in the US?
You betcha! Shorting crypto in the United States is absolutely possible. Despite the regulatory landscape being somewhat stricter than in other regions, there are several ways you can go about it.
1. Crypto Exchanges: Many reputable crypto exchanges operating in the US, like Kraken and Coinbase Pro, offer futures contracts or margin trading, allowing users to borrow assets to sell them short. Just be aware that there are risk factors and minimum account requirements to consider.
2. Crypto Derivatives: Platforms like the Chicago Mercantile Exchange (CME) offer Bitcoin futures contracts that you can leverage to short-sell Bitcoin. But you gotta remember, these are typically more suitable for professional traders due to the high contract values.
3. Inverse ETFs: While not as direct as the above methods, you can use inverse ETFs that track Bitcoin prices. When Bitcoin prices fall, these ETFs rise, effectively allowing you to profit from a bear market.
Before diving into the short-selling world, ensure you’ve got a clear understanding of the risks involved and always trade responsibly.
Remember, the crypto market is notoriously volatile, and while shorting can bring substantial profits, it can also lead to significant losses if the market doesn’t swing your way. Stay safe, folks!
Which is the Best Exchange to Short Bitcoin?
Bybit is, so far, the best exchange for shorting Bitcoin. We went through all of its highlighting features in the list also.
The exchange is ranked consistently among the top 5 exchanges by trading volume for a reason, with over 2 million registered users.
Depositing Bitcoin is very easy in Bybit; scan the QR code or copy the unique deposit address as a destination. It also allows buying BTC with a variety of credit or debit cards via a variety of Fiat Gateway partners.
You can hold, trade, stake, and earn Bitcoin on the platform’s mobile and desktop applications anywhere on the go.
And the 100x leverage allows a tremendous amount of boost to your investments if you understand leveraged trading and risk management.
ByBit Offer: Get upto $30,000 Bonus on your First Deposit using this link to sign up. |
To conclude
Shorting is an amazing way to turn a losing game into a supreme victory.
When you short via margin trading, you can maximize your profits using the leverage and borrowed funds that the exchanges provide.
Which we think is the best way to gain loads of profits with margin and futures trading on a small investment.
Additionally, they also offer features like ‘Take Profit’ and ‘Stop Loss’ to help you limit the losses on your trading platform.
Well, of course, research derivatives markets carefully before investing and enjoy the benefits of shorting.
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