Investment strategies play a very important role in deciding whether you will incur a loss or gain profits. Seeing your crypto assets losing their value is absolutely a nightmare.
But when this happens you can still make huge profits when you speculate it and make the right strategy. Yes, you guessed that right, we are talking about Shorting.
Now, let us straight away jump into the list of best crypto exchanges that allow shorting in 2022.
Best Exchanges to Short Bitcoin In 2022
The best way to short is through margin trading and when used wisely, they can prove to be highly profitable instruments.
So here are the best exchanges to do so.
Let us understand the key features that each of them offers.
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, 0.025%/0.075%.
KYC structure is in a level format.
- Lv.0: With no KYC, you will have a daily withdrawal limit of 2BTC.
- LV.1: Requires identification proof, facial recognition screening and a daily withdrawal limit of 50 BTC
- LV.2: Requires specific details, with a 100 BTC daily withdrawal limit.
It offers 15 fiat currencies and contract trading in:
Inverse perpetual contracts: BTCUSD, ETHUSD, XRPUSD, and EOSUSD
Perpetual contracts: BTCUSDT, ETHUSDT, BCHLINK, LINKUSDT, LTCUSDT, XTZUSDT, ADAUSDT, DOTUSDT, UNIUSDT
Inverse futures contract: BTCUSD quarterly.
Bybit allows up to 100x leverage 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.
Its engine is capable of a whopping 100K TPS and offers 24×7, multilingual assistance. Bybit is not currently available in the US to short sell.
Next up is FTX, a Bahamian crypto trading platform, incorporated in Antigua and Barbuda, and founded in the year 2019. It supports a staggering 300 cryptocurrencies to trade in but only some major coins are available for short selling.
Following a multi-tiered trading fee structure based on the last 30-day trading volume.
Initially, less than $2,000,000 (Tier-1), the maker is 0.020% and the taker is 0.070%. It allows up to 20x leverage depending on the position size.
The fees here can be reduced (up to 60%) depending on the FTT tokens you hold in the exchange.
FTX allows 150+ perpetual and quarterly futures.
KYC Verification on FTX is on a tiered structure basis. Where Tier 1 unlocks a daily $2000 limit, with no crypto deposit limit but you cannot withdraw or deposit any fiat currencies. Whereas, Tier 2 unlocks all the features.
It includes leveraged tokens, BTC options, MOVE contracts, and leveraged tokens to help you speculate better.
FTX has almost all order types, an efficient and secure trading engine with impressive customer service. However, FTX. US offers limited features than its global platform for US traders.
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 short trade, including BTC, ETH, DOGE, etc. It allows 100x leverage on BTCUSD and 50x on the other contracts.
It is one of the fastest trading platforms executing 300K TPS. Phemex also follows the maker/taker trading fee module being, 0.025%/0.075%.
It has dedicated 24×7 customer service. Phemex is currently restricted in some of the states in the US but overall available
Next on the list is PrimeXBT an Africa based exchange. Offers short selling in BTCUSD, ETHUSD, LTCUSD, EOSUSD, ETHBTC, LTCBTC and EOSBTC.
It allows up to 100x leverage on all trading pairs with an average trading volume of $545 million, executing 12K TPS and charges 0.05% of trading fees for cryptocurrencies.
You can start trading on PrimeXBT with only an Email ID giving you complete access to their 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’s information with 24×7 committed customer support always available.
PrimeXBT is not accessible in 14 countries including the USA.
Kraken is a US-based crypto exchange, founded in 2011. It allows up to 5x leverage.
You can trade in a variety of altcoins in 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 investing your real funds. Where you can experiment and improvise your trading strategies.
Its access levels are divided into 4 categories, starter, express, intermediate and pro versions, however complete KYC is mandatory for the Pro version only.
Kraken also accepts Canadian dollars, and Euros as well as provides cold storage for digital currency holders.
They also constitute a 24×7 customer support with a chat window and best in class liquidity.
Next on the list is the Binance exchange, the world’s largest exchange in the daily trading volume of cryptocurrencies. 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, 0.02%/0.04%. The exchange allows a 10% discount on trading fees on USDT- margined contracts and to users who pay trading fees using BNB tokens.
Binance allows up to 50x leverage and gets a daily trading volume of over $60 billion. KYC is mandatory. It provides best-in-class liquidity, you can short portions in the derivatives segment, trading in USDT margin perpetual futures, COIN-M Futures-the token margined futures contract with or without expiry and Vanilla options.
Customer service has three options, to submit a ticket, ask basic questions via chat or reach out via Twitter. But the US version is limited and has run into regulatory trouble in various countries.
Poloniex was launched in October 2013 in the USA and was then later sold to Circle Internet Financial Limited, a mobile payment platform in 2018. It offers low fees and a large number of 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, margin and futures trading products.
The standard trading fee regardless of your 30-day trading volume is based on the maker/taker module, 0.01%/0.02%.
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 got reputable customer feedback. Users can also liquidate their funds anytime.
Now that we have got to know about the various trading platforms to short sell, the question arises.
Is there a way to Short Crypto in the US?
Yes, Kraken. We know that there are many regulations imposed on shorting crypto in the US, because of which there are limited exchanges accessible. And we saw in the list that even those exchanges offer limited options to trade.
Kraken is an exchange solely built to aid short selling in the US. It allows US traders to short by following the regulations there.
It does so by allowing only those users to trade who meet a specific requirement, called Eligible Contract Participant (ECP). It is a self-certification provided to US clients, which is recommended under US laws and in turn, allows Kraken to short crypto freely.
Let us now discuss the best bitcoin-specific short-selling platform.
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, simply 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 application anywhere on the go. And the 100x leverage allows a tremendous amount of boost to your investments.
Shorting is an amazing way through which one can turn a losing game into a supreme victory. When you short via margin trading, you can maximise your profits using the leverage that the exchanges provide. Which we think is the best way to gain loads of profits with a small investment.
Additionally, they also offer features like ‘take price’ and ‘stop loss’ to help you limit the losses.
Well, of course, research carefully before investing and enjoy the benefits of shorting.
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