Upbit contract shorting tutorial

On Upbit, shorting cryptocurrencies through perpetual contracts involves borrowing a cryptocurrency to sell it, betting on its price decline, and potentially using leverage to amplify gains or losses.

Nov 07, 2024 at 07:24 pm

Upbit, South Korea's largest cryptocurrency exchange, allows users to short cryptocurrencies through its perpetual contracts market. This tutorial will guide you through the steps involved in shorting a cryptocurrency on Upbit.

How to Short Cryptocurrencies On Upbit Perpetual Contract

Step 1: Create an Account on Upbit

To create an account on Upbit, visit the official website and click on "Sign Up". You will be asked to provide your email address, password, and phone number. You will also need to agree to the terms of service.

Step 2: Verify Your Identity

Once you have created an account, you will need to verify your identity. This process typically involves submitting a government-issued ID and a selfie. Upbit may also ask you to provide additional information, such as proof of address.

Step 3: Deposit Funds into Your Account

To short cryptocurrencies on Upbit, you will need to deposit funds into your account. Upbit supports a variety of deposit methods, including bank wire transfer, credit card, and cryptocurrency.

Step 4: Open a Perpetual Contract Position

To open a perpetual contract position, click on the "Contracts" tab in the Upbit interface. Then, select the cryptocurrency pair that you want to short.

• You will be presented with a chart of the cryptocurrency pair's price. Below the chart, you will see a section labeled "Order".
• To short the cryptocurrency, enter the amount of the cryptocurrency that you want to borrow.
• Once you have entered the amount of cryptocurrency you want to borrow, click on the "Sell" button.
• You will be presented with a confirmation window. Click on the "Confirm" button to open the position.

Step 5: Close Your Position

To close your position, click on the "Contracts" tab in the Upbit interface. Then, select the cryptocurrency pair that you are shorting.

• You will see a list of your open positions. Click on the "Close" button next to the position that you want to close.
• You will be presented with a confirmation window. Click on the "Confirm" button to close the position.

Step 6: Withdraw Your Funds

Once you have closed your position, you can withdraw your funds from Upbit. To do this, click on the "Wallet" tab in the Upbit interface. Then, click on the "Withdraw" button.

• You will be asked to select the cryptocurrency that you want to withdraw. Enter the amount of cryptocurrency that you want to withdraw and the address of the wallet that you want to withdraw to.
• Once you have entered the required information, click on the "Withdraw" button.

Additional Information

• When you short a cryptocurrency, you are borrowing the cryptocurrency from another user in order to sell it. This means that you are betting that the price of the cryptocurrency will go down. If the price of the cryptocurrency goes up, you will have to buy back the cryptocurrency at a higher price in order to close your position. This can result in a loss.
• The perpetual contract market is a leveraged market. This means that you can borrow more cryptocurrency than you have in your account. This can increase your potential profits, but it can also increase your risk of loss.
• It is important to understand the risks involved in shorting cryptocurrencies before you start trading. You should only trade with an amount of money that you can afford to lose.