What is the best exchange to short crypto on?
If you want to short a cryptocurrency, you must use a digital asset exchange that offers derivatives trading. In Australia, many reputable cryptocurrency investing platforms exist, including Bybit and Binance. Bybit is the best futures trading platform in the world and one of the only ones to offer 100x leverage. It supports many trading types, including USDT & USDC Perpetual, Inverse contracts and more.
How to short Bitcoin and Crypto in Australia
The best way to short cryptocurrencies like Bitcoin and Ethereum is through Bybit. On Bybit, you can deposit AUD via multiple methods, including credit/debit card, bank transfer, POLi, Google Pay and more.
Aussie investors can short crypto with this simple guide:
- Sign up to Bybit with your e-mail address and create a password.
- Deposit Australian dollars through the 'Buy Crypto' tab and buy Bitcoin.
- Go to the 'Derivatives' tab, open USDT Perpetual, and select 'BTC/USDT'.
- Select 'Isolated' and choose the amount of leverage you want to use on your short.
- Enter the amount of BTC you want to use and click 'Open Short'.
Are there risks to shorting cryptocurrencies?
Yes, opening short or long positions with any cryptocurrency besides USDC or USDT (as they are pegged to the US dollar) is extremely risky. Selling short is risky in any type of investment asset, but it can be particularly dangerous with digital assets like Ethereum or Bitcoin, which have been proven to be highly volatile.
What are the fees involved in shorting crypto?
When you use the Bybit platform, it is an affordable and transparent experience to short crypto. Bybit offers the lowest trading fees in the world with a competitive makers/takers rebate. Refer to the list below for a quick overview of the exchanges fees:
- Deposit Fees: Free for Australian investors.
- Withdrawal Fees: Vary between $1 - $5AUD.
- Futures Maker/Taker rebate: 0.01% Maker Fee and 0.06% Taker Fee.
Can I short Bitcoin on CoinSpot?
No, unfortunately, CoinSpot does not offer futures/derivatives trading on its platform; therefore you cannot open long or short positions. CoinSpot has yet to announce whether or not they plan to add a futures trading option on its exchange. However, it is unlikely that they will add this feature in the foreseeable future.
Shorting cryptocurrencies can be extremely risky; however, it is possible to minimise your risk by using a reputable futures trading platform like Bybit. Bybit offers competitive fees and 100x leverage on its products. Before opening any positions, ensure you understand all the risks associated with shorting cryptocurrencies. To learn more about Bybit, you can read our detailed Bybit Review.