how to short crypto on coinbase

To short crypto on Coinbase, you'll need to create a verified account, enable advanced trading and margin trading, fund your account, select a crypto to short, place a short order, monitor your position, and close it when desired.

Oct 27, 2024 at 01:40 pm

How to Short Crypto on Coinbase

1. Create a Coinbase Account:

• Sign up for a Coinbase account and verify your identity.

2. Enable Advanced Trading:

• Go to "Settings" and select "Trading" tab.
• Turn on "Advanced Trading."

3. Enable Margin Trading:

• Click on "Margin" tab.
• Read and agree to the Margin Trading Agreement.
• Apply for Margin Trading. Once approved, you'll have access to margin funds.

4. Fund Your Account:

• Transfer funds to your Coinbase account to provide collateral for your short positions.

5. Select a Crypto to Short:

• Go to the "Trade" tab and select the crypto you want to short.

6. Place a Short Order:

• Click on "Short" button.
• Enter the amount of crypto you want to short and the price at which you want to exit the position.
• Review and confirm the order.

7. Monitor and Manage Your Short Position:

• Track your short position and manage risk.
• If the market moves in your favor, you'll profit. If it goes against you, you could lose funds.

8. Close Your Short Position:

• When you're ready to close your short position, click on "Short" again.
• Enter the amount of crypto you want to buy back and the price at which you want to exit the position.
• Review and confirm the order.