Profit when Bitcoin's price falls. Learn the different methods, understand the risks, and master shorting strategies for bear markets.
Shorting is betting that an asset's price will go down. When you short Bitcoin, you profit when the price falls.
You buy Bitcoin hoping the price goes UP. If BTC rises from $50,000 to $55,000, you profit.
You "sell" Bitcoin hoping the price goes DOWN. If BTC falls from $50,000 to $45,000, you profit.
See how leverage affects your profits and liquidation price.
Compare different methods and choose the one that suits your experience level.
Step-by-step guide using perpetual futures (most popular method).
Sign up with a futures-enabled exchange
Binance and OKX both offer perpetual futures with up to 125x leverage. Use code TRADEOFF20 for 20% fee discount.
Move funds from spot to futures account
Transfer USDT or other collateral to your futures wallet. This is free and instant.
Choose BTC/USDT perpetual contract
Look for "BTCUSDT Perp" or similar. Perpetual contracts have no expiry date.
Choose your leverage level carefully
Start with 2-5x leverage. Higher leverage = higher risk of liquidation. You can always increase later.
Click "Sell/Short" to open position
Enter the amount and click "Open Short". Your position profits when BTC price goes down.
ALWAYS set a stop loss order
Set stop loss above entry price. This automatically closes your position if price moves against you.
Shorting has unlimited loss potential. When you buy Bitcoin, you can only lose 100% (if it goes to zero). When you short, losses are theoretically unlimited because the price can rise infinitely.
Use code TRADEOFF20 for 20% off trading fees on Binance and OKX.