How to Short Crypto in 2025 – How it Works, Tips, and the Best Platforms to Use

If you’re new to shorting crypto, there are pros and cons to consider. In this guide, we’ll go over how to short crypto as a beginner, the best places to do it, and a few tips to help you get started and reduce risk.

Although generally considered high risk, shorting crypto can deliver profits when crypto prices drop. And using the right crypto trading platforms can further boost your short-selling experience by making shorting easier and more cost-effective.

To help you choose the right option for your needs, we reviewed Margex, MEXC, OKX, and other top crypto providers in 2025. Read on to see how these exchanges can help you short crypto.

The Best Platforms for Shorting Crypto at a Glance

Before we look at each provider in more detail, here’s an overview of the top picks for shorting crypto and what makes each one unique:

1. Margex — ‘MP Shield’ to Protect Against Price Spikes and Market Manipulation
2. MEXC — Affordable Futures with Zero Maker Fees and Low Taker Fees
3. OKX — Low-Fee Short Selling via Futures Contracts and Margin Trading
4. BloFin — Advanced Analytics and Custom Alerts for Data-Driven Shorting
5. Binance — Top-Liquidity Crypto Exchange with Beginner-Friendly Trading Features
6. ByBit — Ultra-Fast Matching Engine for Near Real-Time Data and Minimal Slippage

The Best Crypto Short Selling Apps in 2025 Reviewed

Below, we’ll take a closer look at the top exchanges for shorting crypto to help you find the best option for your needs.

1. Margex – ‘MP Shield’ to Protect Against Price Spikes and Market Manipulation

Margex supports a wide range of cryptocurrencies for crypto short selling, including popular cryptocurrencies like Ethereum ($ETH), Bitcoin ($BTC), and Ripple ($XRP). But the platform mainly stands out thanks to its MP Shield technology.

This is a proprietary security measure that protects you against sudden price spikes. Rather than relying on a single liquidity source, this system aggregates liquidity from various crypto exchanges, making it less likely for prices to be affected by a single bad actor.

Thanks to this, Margex provides a more stable trading environment for shorting, ensuring short positions are protected against market swings that could lead to significant losses.

Margex also uses AI to detect suspicious activity like spoofing (placing large orders to simulate market demand or supply, before cancelling them) and wash trading (buying and selling the same asset simultaneously to inflate trading volume).

You also get comprehensive risk management features, like automated trade orders, to minimize potential losses when shorting.

The customizable stop-loss orders automatically close a short position when the price reaches a set level, letting you choose exactly how much you’re willing to risk.

Take-profit orders close your position when prices reach a specified profit target. This avoids the risk of holding onto funds for too long, which could see your profits fall.

What’s more, the platform offers competitive fees of 0.019% (maker) and 0.060% (taker). Funding fees are also reasonable at around 0.12%. Note that the actual funding fee will depend on your order size, market volatility, and your Longs/Shorts ratio.

For added ease of mind, Margex also has robust security features, including 2FA account locks, withdrawal whitelisting, and cold storage for client funds. This ensures your crypto is safe, even in the unlikely event of a data breach or platform hack.

VISIT THE OFFICIAL MARGEX WEBSITE

2. MEXC – Affordable Futures with Zero Maker Fees and Low Taker Fees

If you’re planning on high-volume short-selling, you can take advantage of MEXC’s zero maker fees and competitive 0.02% taker fees to maximize profit and reduce costs.

The platform also offers high leverage of up to 500x on some futures contracts (like BTC or ETH/USDT perpetuals). This further enables short sellers to maximize potential profits and makes MEXC one of the best crypto futures trading platforms.

Beyond Bitcoin and Ethereum, MEXC supports a wide range of other cryptocurrencies for short trading, including Solana ($SOL), Avalanche ($AVAX), and even meme coins like Pepe ($PEPE).

The platform is also user-friendly and easy to navigate on Windows, iOS, or Android devices, which makes it ideal for traders new to crypto exchanges.

The handy smartphone apps make it quick and convenient to monitor positions on the go. You can execute trades wherever you are, while the platform’s customizable price alerts let you make on-the-spot decisions even when you’re away from home.

MEXC isn’t just convenient, though, but also security-focused. The platform has multiple failsafes in place to protect your assets, including 2FA authentication, cold asset storage, and SSL encryption.

Withdrawal whitelisting is another feature you’ll love. This allows you to pre-approve wallet addresses for withdrawals, an added layer of security against hackers and phishing attacks.

VISIT THE OFFICIAL MEXC WEBSITE

3. OKX – Low-Fee Short Selling via Futures Contracts and Margin Trading

OKX offers several ways to short sell, including margin trading and perpetual swaps (futures without an expiration date).

With perpetual swaps, there’s no need to borrow crypto assets, so you enjoy fast and flexible shorting. Margin trading leverages borrowed funds, letting you short spot assets with direct exposure.

Fees are also competitive and settled within $USDT, Futures fees range from 0.02% (maker) to 0.05% (taker). Because the exchange has a tiered system, you could also get trading discounts. Your fees could go as low as 0.05% (maker) and 0.015% (taker), depending on your tier.

As for what assets you get, OKX supports over 500 trading pairs and a vast range of cryptocurrencies for short selling crypto. Examples include Bitcoin ($BTC) and Ethereum ($ETH), as well as Cardano ($ADA), Tron ($TRX), and Dogecoin ($DOGE).

Seasoned traders will appreciate OKX’s indispensable order automations like stop-loss and take-profit orders, plus generous leverage of up to 100%. However, the platform is beginner-friendly too.

The OKX Wallet app on iOS and Android devices is very straightforward and intuitive, with clean labels and easy-to-follow explanations for its features. With the app on hand, you can check market data and trade on the go from anywhere.

Plus, when it comes to security, OKX’s wallet is open-source. Its code is available for developers to review and report issues or weaknesses, making it easier to identify security vulnerabilities and bugs ahead of time.

Beyond the centralized OKX exchange, the wallet also has a Web3 section for DEX trading. You can quickly switch between the CEX and DEX sections, so you’ll be getting a two-for-one deal — futures trading on the CEX, and broad DeFi compatibility on one of the best decentralized exchanges.

Keeping your account secure is a breeze, too, thanks to Multi-Factor Authentication (MFA). This includes various options such as email verification, biometrics, and an authenticator app.

VISIT THE OFFICIAL OKX WEBSITE

4. BloFin – Advanced Analytics and Custom Alerts for Data-Driven Shorting

BloFin distinguishes itself from competitors with its advanced analytics. This feature provides a granular overview of funding rates and enables you to spot deep patterns and trends. Thanks to this, you get indispensable information for making smart decisions.

You’ll be better equipped to decide when to open and close trades — perfect for shorting during periods of high volatility. You can also set customizable liquidation alerts, which will help you avoid unexpected liquidations when prices move against your bet.

Furthermore, the platform offers risk management tools, like advanced trigger and trailing stop orders.

Trigger orders are crucial for limiting losses or protecting your profits if prices move against you. With trailing stop orders, you can lock in profits as the price moves, but also automate your exit in case of a price reversal.

Then there are the competitive fees to consider, with maker fees of 0.0200% and taker fees of 0.0600% that won’t cut into your profits. And for high-risk traders looking for big moves, BloFin also has leverage of up to 150x, depending on the crypto pair you choose.

Because security is a major consideration when storing your money with centralized exchanges, you’ll also be happy to learn that BloFin uses Fireblocks for secure cold storage management.

Fireblocks secures digital assets with features like institutional-grade cold wallet technology and advanced encryption, meaning your crypto is shielded from online threats like platform hacks or breaches.

The provider also helps BloFin ensure faster asset transfers, making it easy to move and withdraw your crypto.

VISIT THE OFFICIAL BLOFIN WEBSITE

5. Binance – Top-Liquidity Crypto Exchange with Beginner-Friendly Trading Features

Binance appeals to both experienced traders and those new to shorting crypto due to its user-friendly interface and support for over 400 cryptocurrencies. It’s also the #1 exchange by trading volume, so you’ll enjoy unbeatable liquidity, more pairs, and smoother trading.

For those who like to tailor their risk exposure, Binance offers flexible margin options for risk management.

Cross margin mode can mitigate liquidation risks by using your total available account balance to support all your active positions. This larger margin pool can absorb losses across trades, making it harder for your position to get liquidated. However, you’d also put more funds at risk.

Isolated margin mode, on the other hand, enables targeted shorting strategies by letting you set a fixed margin for each position. This limits your risk to a single trade of your choice, so the rest of your balance stays untouched even if your trade gets liquidated.

You can also trade futures flexibly with Binance, as the platform allows you to short crypto with either margin trading or futures contracts.

For those who would rather not borrow assets for trading, futures contracts are ideal. These also have maker and taker fees set at 0.0750% for regular users (with variable VIP tier fees).

The platform also has various futures trading bots, including a futures grid bot and a spot DCA bot for bearish markets.

When it comes to security, Binance features robust failsafes to protect your account. These include the innovative option to set up an anti-phishing code — a unique set of numbers and letters to be included in every legitimate Binance email you receive.

There’s also wallet address whitelisting to protect your assets from unauthorized withdrawals.

VISIT THE OFFICIAL BINANCE WEBSITE

6. ByBit – Ultra-Fast Matching Engine for near Real-Time Data and Minimal Slippage

ByBit has an ultra-fast matching engine that delivers near real-time market data round the clock. This speedy processing minimizes slippage and ensures your orders are executed as close as possible to the intended price.

For those who want to short crypto without borrowing assets, ByBit also focuses on derivatives trading, with various futures contracts. The offer includes not only the regular perpetuals and expiry options, but also inverse futures.

Because you don’t actually need to own the asset, you can short for lower costs. And thanks to inverse futures, you can settle your profits or losses without stablecoins or fiat.

And because the platform supports 650+ cryptocurrencies, including Ethereum, XRP, and various other top altcoins, you’ll have plenty of options to choose from.

ByBit’s unique Smart Leverage features also offers up to 200x leverage to maximize gains while also mitigating liquidation risks. Unlike in the case of traditional futures, Smart Leverage ensures your position won’t be liquidated before a specified settlement time.

Finally, another point to recommend ByBit is its very high liquidity. It’s the world’s second-largest crypto exchange, with a 24h trading volume typically above $2.5B.

This ensures you’ll always be able to buy or sell assets quickly, without causing major price fluctuations. That’s good news for short sellers, as timing is critical to lock in profits when shorting crypto.

VISIT THE OFFICIAL BYBIT WEBSITE

What Does It Mean to Short Crypto?

Shorting crypto, also called ‘selling short,’ is a trading strategy where you sell crypto (usually borrowed) at a high price, waiting for the price to drop. Then, you buy it back at a lower price, pocketing the difference as profit.

If you’re unaware of how to short cryptocurrency, this might sound confusing, as it’s the opposite order of how trading usually works (buying low and selling high). But, essentially, you use this strategy when you want to profit from a decline in a cryptocurrency’s price.

The difference between the initial selling price and the lower repurchase price is your profit, though you’ll need to factor in any interest or fees.

Note that there are several methods to short-sell crypto, including margin trading and options trading. It’s also possible to short crypto without borrowing assets via derivatives trading, like futures contracts.

Short Position vs Long Position – What’s the Difference?

Shorting crypto is also known as taking a short position when trading, while going long is also known as taking a long position.

The main difference between short and long positions in crypto is that with a short position, your goal is to profit from a decrease in the price of the cryptocurrency you’re trading. With a long position, you aim to profit from a price increase.

The table below shows the trading goals and the main risks for both short and long positions, as well as an overview of how each works:

Benefits and Risks of Shorting Crypto

Shorting crypto has its benefits, though selling short is generally seen as a high-risk strategy. Here are the main pros and cons of shorting crypto:

Benefits of Crypto Shorting

✅ Takes advantage of volatility: You can capitalize on wild swings, especially when an asset is overbought. Shorting after a price hike means nice gains once the price corrects.

✅ More flexible trading: Traders no longer need to wait for rising markets to make a profit, as shorting lets you profit in bearish markets too.

✅ Protecting your portfolio: Shorting works as a hedging tool if your crypto dumps, but it still has long-term potential. This way, you offset your asset’s short-term depreciation.

✅ Banking higher gains on minor price drops (if using leverage): Leverage can help you get significantly greater gains on minor drops compared to using your own capital.

✅ Quicker potential profits: Shorting is a good option for day trading and for those who don’t just want to HODL.

Risks of Crypto Shorting

❌ Unlimited loss potential: If prices keep rising, losses can go up exponentially because you’ll have to rebuy the coins at a higher price, unlike with long positions.

❌ Highly volatile market: Cryptocurrency is unpredictable, with huge swings going either way. When crypto prices pump unexpectedly, you’re also at a risk of short squeezes.

❌ Borrowing fees: Because short selling often means borrowing crypto, fees will be involved. This could limit profits or lead to losses as the fees stack over time.

Please note that nothing in this article constitutes financial advice. We always recommend you do your due diligence and carry out your own research before making investment decisions.

How to Short Sell Crypto Like a Pro – Different Methods & Tools

Shorting crypto can potentially lead to serious gains, but it is also incredibly risky. Being well-informed can help reduce risk and ensure you’re choosing the right option for you.

Below, we’ll introduce you to the most common shorting methods and tools to help you get started.

Margin Trading

Margin trading can be used for both long and short positions.

When used for shorting, margin trading lets you borrow crypto from the exchange as you’re betting on the price decreasing. You can sell what you bought immediately, then buy the crypto back at a lower price. You return what you borrowed, but keep the profit.

When you go long on margin, that involves:

• Borrowing money from an exchange to buy more crypto,
• Betting on the price rising,
• Selling the crypto at the higher price,
• Returning what you borrowed to the exchange.

Anything left over is your profit.

Futures Contracts

Shorting with futures contracts involves betting that the price of cryptocurrency will fall. You don’t need to own the cryptocurrency in this case. You can just open a futures contract to ‘sell’ it at the crypto’s current price.

If the price falls as expected, you ‘buy back’ a new contract at the lower price. The difference between what you sold it for and what you bought it back for becomes your profit.

Options Trading

Using options trading as a shorting method usually requires buying ‘put options.’ These options enable you to sell underlying assets at a specified price, known as the ‘strike price,’ by an agreed date.

If the asset price drops below the strike price, you can buy it at the reduced price and ‘put’ it, meaning sell it, for the higher strike price, thereby increasing the value of your put option.

The other way to use options trading is via short call options. With this method, you sell a third party the right to purchase assets from you for a specified price.

In this case, you’ll make a profit when the price of the asset remains lower than the strike price. However, if the price of the asset rises substantially, short calls can be extremely risky.

Technical Analysis Indicators

Technical analysis indicators are one of the best ways to research the market before you start short selling. That’s because identifying signals such as downward trends, price breakouts, and resistance levels can assist you with shorting strategically, not just relying on hearsay.

Identifying these indicators involves looking at things like price patterns, trading volumes, and other on-chain metrics to predict which cryptocurrencies you should short.

For price patterns, keep your eyes peeled for a ‘head and shoulders’ pattern. This chart pattern involves three peaks, the ‘head’ being the highest, with the ‘shoulders’ marking the two lower peaks. The ‘neckline’ is the chart line connecting the lowest points after each shoulder.

Spotting a break below the neckline — especially when there’s increased trading volume — is often a good indicator of a substantial downtrend and an upcoming price drop.

Bearish divergence is also worth looking out for when analyzing trading volumes.

This occurs when the price of a crypto rises to new highs, but a momentum indicator, like the RSI or MACD, makes lower highs. This mismatch infirms the upward trend and could suggest a potential price drop ahead.

On-Chain Data Trackers

On-chain data trackers are a natural extension of technical analysis indicators. They’re the tools used to research the indicators, and they help you analyze trends to predict which assets to short.

These tools analyze transaction data that’s publicly available, looking at metrics like supply distribution, transaction volume, and holder activity to identify potential shorting opportunities.

You might want to consider Nansen, which offers insights into NFT trends, DeFi activity, and token flows. Glassnode is another popular tool, known for its pioneering metrics and deep coverage of Bitcoin, Ethereum, and blue-chip assets.

How to Pick the Best Platform to Short Crypto

When choosing the best platform to short crypto, there are a few important factors to keep in mind. Here are the main things to consider:

• Cryptocurrency support: Not all platforms support the same tokens, so if you plan on shorting with a specific asset, it’s vital to double-check.
• Fees and interest: Fees impact your profit, so the lower they are, the better. And with varying maker and taker fees (and other costs) between exchanges, VIP-tiered discounts become invaluable.
• Trust and safety: Choosing a reputable platform with a positive track record is a must. Newer platforms may not have the best liquidity, reserves, or security features, so opting for established platforms like Margex or Binance is ideal.
• Liquidity: High liquidity means minimal price slippage when trading. This price stability also reduces the risk of short squeezes, because it’s harder for whales to manipulate crypto prices. So, look for exchanges with high trading volumes.
• Ease of use: Some platforms may be packed with advanced features, but they could also make short selling unnecessarily complicated. If you’re new to crypto and short selling, look for options that are user-friendly and simple to navigate.
• Risk management: Take-profit and stop-loss orders are two risk management features to look out for if you want to be quick on capping losses or maximizing profits. It’s also good to look out for adjustable leverage to suit your risk appetite.
• Deposits and withdrawals: Look for platforms with various withdrawal and deposit methods to suit your needs. Consider any fees that could eat into your profits. Short processing times are also critical for optimal trade execution.

Considering all these factors makes it easier to choose the best platform for shorting for your specific needs. Our recommendations also take into account all of the above details, making them a good starting point for trading crypto.

Tips for Managing Risks

Short selling is inherently risky, but there are some things you can do to manage that risk. Beyond just choosing the right platform and getting comfortable with technical and fundamental analysis, here are some more tips to help you short cryptocurrency with minimal downsides:

• Use stop-loss orders to automatically close a trade when the price dumps to a specific level. This lets you control how much you’re willing to risk, and the losses you’re comfortable with.

• Practice shorting with demo trading to test your short-selling skills without risking your money. It’s offered by most platforms, and it’s beginner-friendly.

• Rather than shorting one crypto, diversify with multiple coins to spread your risk. If one trade ends on a loss, others may still perform as expected, balancing out potential dips.

• Don’t use high leverage, as it increases your risk, and you could see greater losses and a risk of liquidation, especially during sudden price swings.

• Use take-profit orders to automatically close a position when prices reach a pre-set target. This minimizes profit losses if you’ve been holding your trade open for too long.

How to Short Crypto — Takeaways

If you’re new to shorting crypto or if you just wanted to find out more about how it works, we hope this guide has helped you.

There’s no denying that shorting crypto is risky, but you can mitigate some of these risks by choosing the best platform.

Using a trusted, reputable exchange, like Margex, is key for reducing shorting risk. Thanks to features like adjustable leverage, stop-loss and take-profit orders, and demo trading, top platforms let you adjust your strategy and choose a risk level you’re comfortable with.

We also recommend thoroughly researching the cryptocurrencies you plan to short, to ensure you’re making data-driven decisions and maximizing your chances of a successful trade.

VISIT THE OFFICIAL MARGEX WEBSITE

Please note that nothing in this article constitutes financial advice. Always conduct your own thorough research before you start short selling.

FAQs

1. How do you short crypto?

Shorting crypto, also known as selling short, involves selling high and buying low. You borrow money from an exchange to purchase crypto, wait for it to appreciate in value, and sell it at a profit. Then, you buy it back later at a lower price to return what you borrowed, but keep the difference as profit.

2. Can you short crypto?

Yes, you can short crypto, typically via centralized exchanges; you’ll need to complete KYC verification, though. Note that shorting crypto is different from shorting stocks. Shorting crypto is typically done via derivatives and is subject to high volatility.

3. Where can I short crypto?

You can short crypto on most centralized exchanges, like Binance or Margex, or via decentralized exchanges such as Aave.

4. What’s the best platform to short crypto?

There’s no such thing as the ‘best’ platform for shorting crypto. The choice comes down to personal preference. However, if you’re new to shorting crypto, Margex is one of the most accessible options. It’s a trusted platform with great security, and it offers competitive trading fees, TP/SL orders, and built-in protection against price manipulation and volatility.