Best sites for Bitcoin shorting

Shorting Bitcoin

You want to know more about shorting itcoin, but don’t know where to start? Then you’re right here. Below you will find more information about what it is, how it works and what the best different bitcoin shorting platforms are to start with.

Bitcoin

Discover the best bitcoin future trading platforms.

BTC Futures

Etoro bitcoin logo

Etoro

Clear interface & Multiple futures traded

To Etoro

Plus500 bitcoin

Plus500

The most user-friendly platform.

To Plus500

Bitmex

Bitvavo

Bitmex is one of the most well-known trading platforms.

To Bitmex

Kraken

BTCdirect

One of the better crypto futures platforms.

To Kraken

Binance

Binance is the most widely used exchange worldwide.

To Binance

Deribit

Deribit

Futures Trading platform from the Netherlands.

To Deribit

In recent years, many traders have discovered that there are different ways to make money with Bitcoin. Of course, they can invest, buy, and sell, or do micro jobs, but there are other methods. One of these methods is shorting Bitcoin. What is that exactly? And how do you do that? In this article, we’ll take a closer look at the technology behind shorting Bitcoin.

What is Bitcoin shorting?

Bitcoin shorting is the process of selling the crypt currency with the hope that its value will drop and you can buy it back for a lower price. By doing this, traders earn the profit from the difference in market price. In other words, you can make money by hoping that the value of the currency will decrease. You can also let a crypto trading bot do this for you.

For Bitcoin’s short selling, the adage is: “Buy low, and sell it for a high price”. Basically, you borrow the coins with the idea of returning them later. You sell the coins at the current market price, knowing that the Bitcoin will be worth less later. When the prices drop, you buy the coins back and give them back to the person who lent them to you. What you earn now is the profit from the price difference: the difference in price between selling and buying back.

The difference in price can be profit, but also loss. That’s why this technique is only sensible if you really believe that the prices are going down. That’s why there are big chances to make huge profits in this volatile market, but you can also make big losses. That’s why caution is always advised when applying these kinds of techniques.

bitcoin shorting

Bitcoin shorting platform

To shorten Bitoin, you need to use a crypto trading platform, where you can place the short sell order. The trading platform will then sell the BTC tokens from its own stock on your behalf so that you can pay them back later. If you sell 12 Bitcoin, you will also have to return them later, regardless of whether the price goes up or down. 12 coins are and remain 12 coins.

If the price goes down, it’s much easier to return these 12 coins. But, it’s not without risk. If the price rises, you have to pay much more to be able to return the coins. Therefore, first read the rules and regulations of the company or person from whom you borrow the coins.

Plus500

To invest in Bitcoin, you first need to set up a digital wallet on a smartphone or other electronic device that allows users to purchase digital Bitcoin online. In principle, it is not possible to go short on Plus500, but there are other ways to make money.

One option is to trade CFDs on Bitcoin. A CFD stands for ‘Contract For Difference’: a financial product that allows you to take advantage of a rise or fall in the price of an underlying product. You don’t buy the product itself, you don’t become the owner, you just buy a contract. This way you still shorten without becoming the owner of the currency yourself.

Plus500 allows you to make transactions in the buying and selling direction. A high level of liquidity is ensured by the use of real-time price feeds from the major exchanges. You can buy CFDs at Plus500 at any time, including weekends. Please note that CFDs may be temporarily unavailable on Sundays.

Bitmex

To shorten Bitcoin, you need to enter an order in Bitmex. This works with a limit order on this platform. As soon as the price reaches the level you entered for an order, the order is executed immediately. For example, you can buy the coins at a certain value, but you can also sell them. At Bitmex, it’s very simple: just turn the green and red buttons.

In the trading screen of Bitmex at Quantity you’ll fill in the amount of BTC and you’ll put a limit price on it. This is the price with which we’re going to open the position. You’ll then sell at a moment when the price is set on a certain quantity, and buy back the coins at the moment when the price is set on a certain quantity. Of course, the trick is to buy back the coins when the price is lower than what you sold them for. This is how you make a profit and short your Bitcoin at Bitmex.

Etoro

To short sell at eToro Bitcoin, go to the trading platform and open a trade. You will see a screen with the options ‘SELL’ or ‘BUY’. If you go to ‘SELL’ to sell your coins, you open the position as a short sell position. As soon as the price goes down, you sell your Bitcoin. It’s worth remembering that the ‘SELL’ function at eToro does not sell out of your portfolio, but opens a new position if it is short.

As on all other trading platforms, prices on eToro have a spread. This means that the SELL and BUY prices are different. The buy price is usually higher. Therefore, when closing a short position, first check the buy price on the platform. This is the price you receive when you close.

As soon as you open a position, it will appear in your portfolio as ‘SELL’. If you add a short sell to your Bitcoin trading and trading toolbox, you will be able to make a profit, even if the markets fall.

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