The best exchange to short crypto is the one with a good variety of coins and good functionality.
A lot of new and more experienced traders are asking the same question, where can I short crypto?
Since I’ve been trading for many years and I know where to do it, I will pass on my knowledge in this article and make a review of the top 5 exchanges I know.
Can you short crypto on any exchange?
No, you can’t. It has to be a cryptocurrency exchange that allows margin trading. These exchanges might be hard to find, and for beginner traders, it’s difficult to know where to look.
The second question I get asked is, how do you short crypto?
The answer to this is very straight forward. It’s not more difficult to short the market than it is to buy the market. There is some kind of mystery behind the term and today I’m going to make everything crystal clear. All supported cryptocurrencies to short sell will be listed for each crypto exchange as well.
I will go through the top 5 crypto trading platforms that allow you to short cryptocurrency. There will also be a step by step guide how to short crypto for each exchange.
No matter if you are an experienced trader or just starting out, this review will bring value to you. If you are in a hurry, check the exchange comparison table below. I recommend that you read through the review before you start shorting.
Best Exchanges to short Crypto compared
Where can I short crypto?
I was considering many exchanges before I wrote this article. There are many crypto platforms the allow you to short crypto, but not all of them are that good.
The exchanges I’ve listed in this article is in my opinion the best ones. Some of them have very good trading interfaces, there are a lot of coins to trade and they are also trusted exchanges. I would not recommend trading on any crypto platform without any kind of reputation.
For example Binance. Most traders have heard of Binance and that’s because it has a good reputation. I would say that Prime XBT and ByBit and the lesser-known platforms in this exchange review. I’ve used these exchanges for a while and that’s why I now recommend you use them.
The best exchanges to short crypto are:
As you will see throughout the review, all of these platforms have something special about them. Bitmex for example will provide you with a lot more leverage than any other cryptocurrency platform. KuCoin has over 250 coins supported for trading.
Not all of which you can short sell, but there are a lot of cryptocurrencies on the exchange. Binance has in my opinion one of the best trading interfaces on the market and that’s why it’s on the list.
ByBit is tagging along with Bitmex and is also offering very high levels of leverage on altcoins.
No matter what you are looking for the exchanges I’ve chosen will serve you well in many ways.
Can you short Crypto on Binance?
Yes it’s possible to short crypto on Binance.
There are however a few steps you need to take before you start short-selling coins on Binance. Keep reading and you will find information about this in the Binance section of this review.
Traders also ask if you can short-sell on Coinbase and the answer is, No you can’t. I would love for Coinbase to add this feature in the future because I feel very comfortable trading on Coinbase.
For now, we are sticking with these exchanges and if there are any changes in the future I will be sure to add them.
1. Prime XBT – Best Exchange to short Crypto
Supported cryptocurrencies to short on Prime XBT
Prime XBT supports short trading in 5 cryptocurrencies at the moment.
I think this list of coins will increase over time as this trading platform is steadily increasing in popularity.
As I mentioned before, to be able to short-sell crypto on an exchange, there has to be margin trading involved.
On Prime XBT you will enjoy up to 100x leverage on all cryptocurrencies:
These are some of the most popular coins on the market and they are providing high levels ove leverage in all of them.
For some traders I would not recommend trading with 100x leverage since it takes a lot of skill to manage entries.
Especially since the crypto market is so volatile. It’s easy to get stopped out with the tight risk limits.
However, if you are an experienced trader you will benefit greatly from this high level of leverage.
Once I learned how much leverage I was comfortable trading with I started making more steady gains while trading these altcoins.
Short sell trading fees on Prime XBT
The fees for short selling cryptocurrencies on Prime XBT is 0.05%
I wanted to show you the fees on every exchange for short selling cryptocurrency.
Many people are asking, can you short-sell crypto with the same fees?
The answer is yes.
The fees doesn’t change depending on which direction your trade is.
Let’s take a look at the fee table for Prime XBT and I will explain.
Prime XBT has a 0.05% taker trading fee.
This means that you are paying this fee when ever you are using a market order, long or short.
It’s called a taker fee because you are taking orders from the order book when you use market orders.
Most traders use market orders and that’s why they show this fee structure.
One think to keep in mind though.
When you are using leverage, the fees increases.
The fee is still 0.05% but if you are trading bigger positions it will calculate 0.05% of the new position size.
How to short crypto on Prime XBT – Step by step guide
So how do you short crypto on Prime XBT?
(you need to deposit funds before doing this)
- Visit the exchange!
- In the top left corner of the first page, click the Trade button.
- On the left side choose your cryptocurrency.
- On top of the chart click Sell.
- Choose your position size and stop loss + take profit, then click Send Order.
Now you know how to short-sell cryoto on Prime XBT.
It’s not more diffucult than opening a normal position.
Once you get used to the leverage on Prime XBT there is some serious money to be made.
I’ve made good profits on my best positions on Prime XBT from shorting Bitcoin.
If you would like to trade on Prime XBT, click here to visit the exchange.
2. KuCoin – Best Exchange to short Crypto
Supported cryptocurrencies to short on KuCoin
There are over 250 cryptocurrencies on KuCoin and you can short 15.
Here are all cryptocurrencies you can short sell on KuCoin:
Every cryptocurrency that has a the “10x” symbol can be traded with margin on KuCoin.
This means that you can use up to 10x leverage when you are trading the cryptocurrency.
10x leverage means that you can trade 10 times bigger positions.
If your trading account is 1000$ and you trade with 10x leverage.
You can trade 10.000$ position sizes.
It’s not more complicated than that.
Short sell trading fees on KuCoin
As I mentioned earlier, the fees for short-selling on any crypto exchange will not change from the standard fees.
The standard fees for short-selling cryptocurrencies on KuCoin is 0.10%
Here is the fee table from the exchange.
Keep in mind that there are ways to reduce your trading fee while shorting crypto on KuCoin.
If you increase your monthly trading volume they will automatically reduce your fees.
You can also reduce your fees by owning their native cryptocurrency KCS.
The only thing you need to do is own the cryptocurrency and they will automatically reduce your trading fees.
The more you own, the lower the fees.
This is a very good reason to start trading on KuCoin.
If you are a very active cryptocurrency day trader or a heavy swing trader you need to have your fees reduced to not be eaten up by the exchanges.
KuCoin will definitely make your life easier on this part.
How to short crypto on KuCoin – Step by step guide
Now, how do you short crypto on KuCoin?
(before you do this you need to open your margin account, click here to see how it’s done)
- Visit the exchange!
- On the first page, hover over the Trade button in the top left corner.
- Click Margin.
- On the left side of the trading interface, choose cryptocurrency.
- Select your position size, your stop-loss order and click Sell.
Not more difficult than that, this is why we like KuCoin.
It’s a centralized exchange that knows what traders want.
We are not interested in messy interfaces with unclear directions.
KuCoin keeps it simple and I hope it will stay like this for ever.
I’ve made some decent gains on their margin trading platform during this winter and it’s mainly thanks to the volatility of the market.
If you would like to trade on KuCoin, click here to visit the exchange.
3. Binance – Best Exchange to short Cryptocurrency
Supported cryptocurrencies to short on Binance
Binance is a centralized cryptocurrency exchange and they currently support trading in 180+ and support short selling in 24 cryptocurrencies.
Here is a full list of all supported cryptocurrencies to short-sell on Binance:
Here is a snap shot from a blog post from the 31 December 2019.
This is the latest post from the exchange but I’m sure they’ve already added a few new coins.
I will check for updates and add the new coins as they come up.
Short sell trading fees on Binance
The basic trading fee for short selling on Binance is 0.10%.
This is the same fee for any new trader on the platform, this is where you start.
Take a look at this fee table.
You start out at 0.10% and the more trading volume you have each month, the lower your trading fee gets.
If you trade big enough you can reach a trading fee of 0.04%.
They are almost at forex spreads.
This is very good if you are planning on trading with a lot of leverage or very often.
Binance is offering 125x leverage on their Bitcoin futures.
So it really helps to keep the trading costs low.
How to short crypto on Binance – Step by step guide
So, how do you short-sell crypto on Binance?
- Visit the exchange!
- On the first page, hover over the Derivatives button at the top of the screen.
- Click Futures.
- In the top left corner, hover over the “ticker symbol” for the trading pair and choose cryptocurrency.
- In the top right corner of the futures trading interface, choose your leverage, trading size and click Short.
You’ve now succesfully shorted your first cryptocurrency on Binance.
Not very difficult.
Binance is very popular because they have added many coins to their futures trading platform.
I use it alot if I want high levels of leverage on my Bitcoin trades.
It’s very difficult to trade with 125x leverage but when you hit the right trade, you can make a small fortune.
If you would like to trade on Binance, click here to visit the exchange.
4. Bitmex – Best Exchange to short Crypto
Supported cryptocurrencies to short on Bitmex
Today Bitmex supports short selling in 8 cryptocurrencies.
Here is a full list of all cryptocurrencies available to short-sell on Bitmex:
The reason why you would like to use Bitmex might not be for obivious reasons.
They don’t have the longest list of supported coins.
However, they do have something that not many other exchanges have.
They support short selling in cryptocurrencies with very high leverage.
From 20x up to 50x leverage on Ethereum.
This has made Bitmex very popular in the latest years.
If you know how to trade crypto with leverage you can make good money by using a lot of leverage
Short sell trading fees on Bitmex
The fee to short-sell cryptocurrencies on Bitmex is 0.25%.
The fee to short-sell Bitcoin is 0.075%.
Take a look at this fee table where you can see both the trading fees and the leverage for each coin.
What’s so special about this fee table is that there is a huge difference between the Maker Fee and the Taker Fee.
So, what’s the difference between a Maker Fee and a Taker Fee in crypto?
The answer is very simple.
You either take orders from the order book (taker), or you make orders in the order book (maker).
When you use market orders to trade crypto you are taking orders from the order book.
When you use limit orders you are making orders for the order book.
Did you see the difference?
Market order = Taker
Limit order = Maker
Good, but why is there a difference in the fee structure for these two?
Cryptocurrency exchanges want to have a lot of volume trading their platform for various reasons.
So they will reward traders for adding orders to the order book.
In the case of Bitmex you can see that there is a – symbol infront of the number.
This means that you will actually earn money from beein a market maker.
If you use limit orders, you will get a rebate from the exchange it self.
How to short crypto on Bitmex – Step by step guide
Now, how do you short crypto on Bitmex?
- Visit the exchange!
- On the first page at the top of the screen, choose your cryptocurrency.
- On the left side, enter the position size and your stop loss, then click Short.
That’ all it takes for you to start trading the crypto market on the short side on Bitmex.
Now, of course, you need to create and account and fund it before of course.
I’ve been trading on Bitmex for a couple of years and I always choose this platform when I want to short-sell Ethereum with high leverage.
If you would like to trade on Bitmex, click here to visit the exchange.
5. ByBit – Best Exchange to short Crypto
Supported cryptocurrencies to short on ByBit
As of writing this article, ByBit supports 4 cryptocurrencies to short-sell.
Here is the full list of available cryptocurrencies to short-sell on ByBit:
This is certainly not the longest list of coins in this review but there is something else that’s special about ByBit.
You see, ByBit offers 50x leverage on all three altcoins and 100x leverage on Bitcoin.
There is a very nice leverage bar that you can adjust to your preferred level on the trading interfaces.
Here is an example from EOS leverage trading.
You simply drag the dot along the bar and your leverage is instantyl changed.
That’s a very nice feature.
It makes it very easy to change the leverage on the go as you see the market change.
Sometimes the crypto market wont let you trade with 50x leverage and you need to either cut your position size, stop trading or reduce your leverage.
This tool comes in very handy when trading altcoins.
Short sell trading fees on ByBit
The fee for short selling crypto on ByBit is 0.075%.
Here is a fee table with the leverage included.
That’s the lowest trading fees so far in this review.
And remember that this is the standard fee for trading.
There is no need to increase your monthly trading volume or anything.
You simply get on to the exchange and trade, that’s it.
One more thing to mention about the trading fees for short-selling on ByBit is that you can get rebated here aswell.
As you see, there is a – symbol infront of the number of the Maker Rebate.
This means that if you use limit orders on ByBit, the exchange will pay you for providing liquity to the order book.
Very good if you are running market making strategies.
How to short crypto on ByBit – Step by step guide
So, how do you short-sell crypto on ByBit?
- Visit the exchange!
- On the first page in the top left corner, hover over the Trade button and click Inverse Perpetual.
- Inside the trading interface at the top of the page, choose cryptocurrency.
- On the right side of the interface, choose leverage and position size, then click Short.
You are now officially a short seller on ByBit.
Very straight forward and not complicated at all.
Now you can start learning the other side of the market.
If you can catch the market on the downside with 50x leverage you stand to make a small fortune on ByBit.
If you would like to trade on ByBit, click here to visit the exchange.
The best exchange to short crypto is hard to find if you have nothing to compare it to.
In this review I’ve selected 5 of the absolutely top exchanges that I know has a good reputation, good trading interfaces and very low trading fees.
No matter if you are going with a lot of size, if you swing trade or if you are scalper, I know these exchanges will serve you well.
I recommend that you read throuh the whole review before choosing your exchange.
They all have a few different features that you might like.
If the market is in a free fall and you are in a hurry to start shorting, check the compare table at the top and pick your favourit.
The answer is no, you can’t short Crypto on Coinbase.