Cryptocurrency is a volatile asset, and its prices and rates fluctuate within the blink of an eye. As a result, you can get huge profits in one moment and lose all the money the next. So, is there any way to secure yourself from the losses through advanced strategy?
One such way is shorting Cryptocurrency. The concept of shorting was first used for the stock market, where you’ll sell some assets, considering buying them again at a lower price. The same you can do with Cryptocurrency assets. However, to fully utilize this advanced strategy, one has to have an in-depth understanding of the Crypto market and derivatives to earn massive profits.
Here’s a list of the 5 Best Brokers for Shorting Cryptocurrencies (Rated & Reviewed) 2022:
There are several brokers to do so where you can put your hopes. You can use these platforms to sell your Bitcoins or Ethereum considering buying them again when the market goes down at a lower price and hence enjoying the profits. So, let’s look at some reliable brokers for shorting Cryptocurrencies.
ByBit helps novice as well as expert traders to earn profits through shorting Cryptocurrencies.
It is an excellent platform of Crypto exchanges that offers high trading volume at maximum liquidity. You can easily start by searching for the BTC/USD trading pair interface. Next, you will be required to choose between cross-margin or isolated margin. Afterward, tap on ‘transfer’ to send your collateral to the exchange.
Once you have entered the system, you can kick off automatic borrowing and set up an auto-repay order. ByBit is one of the best brokers for shorting Cryptocurrencies in 2022 due to its unique features.
- Offers 100x leverage on Bitcoin and 50x on other currencies
- Relatively low trading fees
- Mobile app feature available
- Short-term insurance facility available
- Not accessible to US, China, and Singapore and many other countries.
- Very risky Crypto derivatives
Our second option is:
Binance is a Crypto shorting platform with robust customer support.
Another one of the best brokers for shorting Cryptocurrencies is Binance. You can use this platform in three ways to short Bitcoin or any cryptocurrency. The first method is joining the Binance Margin Trading platform by opening a margin account. Then, you simply need to head to your preferred market pair, like BTC/BUSD or BTC/USDT.
The second way is to use Binance Futures and choose between perpetual or quarterly futures contracts. The third method of shorting on Binance Options is compatible with iOS and Android users. Margin Trading on Binance is an excellent choice as you gain access to exotic trading pairs. Traders can utilize the performance of two digital assets instead of one.
Moreover, Binance allows it used to invest multiple assets as collateral to borrow leverage in the cross-margin mode. As a result, margin traders on the platform can even benefit from the arbitrage opportunities.
- Minimal to low trading fees
- Over 350 Cryptocurrencies are available
- Advanced transaction features
- Fantastic Security Team
- Excellent customer service support
- Not many paired derivatives
- Requires KYC (if you want to be anonymouse, ByBit is your best choice)
KuCoin is the best short Cryptocurrency platform because of its low deposit fees.
The KuCoin platform offers five shorting options, making it another of the best brokers for shorting Cryptocurrencies. These methods are KuCoin spot trading, KuCoin margin trading, KuCoin futures, leveraged Tokens, and KuCoin Futures Grid Trading Bot. Spot traders can short cryptocurrencies already present in their portfolio.
Margin trading is better suited to experienced traders to increase their exposure. They can use a small amount of money to make multiple investments of the same size.
The leverage tokens method is brilliant as it has no liquidation risk. You use perpetual tokens without an expiry date and negative price. KuCoin also offers a trading bot for both newbies and experienced traders. This feature will help you increase profits while reducing your time and energy.
KuCoin is highly recommended in the list of the best brokers for shorting Cryptocurrencies due to its low trading fees and no deposit fee.
- Wide selection of tradable Cryptocurrencies and paired derivatives
- Volume discounts are available
- It has 700+ coins and 20+ global communities
- High security
- Non-insured funds which are banked on the trading platforms
- Beginners may face some difficulties due to high functionality level
Huobi is a secure platform for shorting Cryptocurrencies.
This platform is another top choice for the best brokers for shorting Cryptocurrencies, as it is a compelling choice for expert Crypto traders and investors. Huobi offers one of the deepest liquidity in popular trading pairs, such as ETH/USDT and BTC/USDT.
The platform users can trade over 500 Cryptocurrencies on the exchange. After depositing funds, the opportunities include high yields like double and triple-digit yields on a range of Cryptocurrencies.
You can join the VIP account for increased benefits. Huobi aims to offer its Crypto shorting options through a regulated entity to provide excellent security for its users.
- User-friendly website
- Comprehensive mobile app for both iOS and Android users
- Leveraged and marginal trading
- Not ideal for beginners due to its high technical features
- Low withdrawal limits
Bitfinex is a versatile Crypto trading platform best for shorting Cryptocurrencies.
Bitfinex is an excellent and reliable Crypto shorting platform. The main reason is that the group only accepts bank wire and other Cryptos as funding methods. Nevertheless, Bitfinex is a popular exchange choice as it is compatible with more than 170 cryptocurrency variants.
The platform has high liquidity with relatively low fees of up to only 0.2% when actively shorting or trading. It supports advanced investment and trading options such as margin trading, derivatives, and advanced order types. New users who want to get into shorting Crypto can explore the platform with no-risk paper trading.
Bitfinex is very convenient to use as you can browse the user-friendly mobile app.
- Strategic trading techniques
- High security with advanced APIs, two-factor authentication, and withdrawal protection
- No insurance available
- Not very beginner-friendly
Aspiring, rising, and experienced traders can benefit from the volatile digital currency market by shorting Crypto effectively. With fluctuating regulations and new tokens emerging now and then, the prices are often unstable, making it a perfect ground to plan your effective shorting game plan.
Shorting even through the best platforms can be risky, like any strategy related to Cryptocurrencies. The two main risks are price risk and regulatory risk. Therefore, you need to educate yourself on only shorting rules.
Pick one of the best brokers for shorting Cryptocurrencies from our list above and reap the benefits of liquidity today.