How to short Bitcoin in 2023

We’ll cover how to short sell Bitcoin, some places it can be done, and what risks to keep in mind.

Can You Short Bitcoin?

Yes, it is possible to short Bitcoin. Shorting Bitcoin is effectively the same as shorting a stock, as an investor is making a bet that the asset will lose value.

Medium Brush Stroke

Perhaps the most straightforward way to short Bitcoin would be to create an account on a crypto exchange that offers this feature.

Shorting Bitcoin on Exchanges

Shorting Bitcoin with Futures Contracts

A futures contract is an agreement between two parties to buy or sell something at a certain price on a specific date.

Medium Brush Stroke

Options are similar to futures in that they are both forms of derivatives — financial instruments that derive their value from an underlying asset.

Shorting Bitcoin with Options Contracts

SWIPE UP NOW TO READ MORE!

Finding a financial advisor doesn’t have to be hard. SmartAsset’s free quiz matches you with fiduciary financial advisors in your area or who serve your area. If you are ready to be matched with financial advisors that can help you achieve your financial goals, take the quiz now.