A Full Guide ▷ How To Short Cryptocurrencies Cryptocurrency Trading | Short-selling Cryptocurrency at CAPEX

Cryptocurrency trading is the speculation of crypto price changes via a CFD account or buying and selling digital coins via swapping. This virtual coin trading includes methods such as shorting/longing to get efficient returns.

However, we at CAPEX take cryptocurrency trading to an advanced level. Trading with us brings the leverage of over 2100 instruments from ETFs, cryptocurrencies, operations, CFDs, among others.

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We, at CAPEX, want to help you get the best of your CFD trading experience with any of the instruments we offer. To that end, we provide you with a fully-featured demo trading platform that lets you use all the features of the live trading platform without any financial risk.

When you open an account with us, you receive access to a secondary demo account with virtual money that you can use to put our platform to test and try new strategies. Your demo account is the best way to practice all that you can learn in the CAPEX Academy, our online trading school, safely and without risking your real capital, so when you start trading at CAPEX with real money, you are more prepared than ever to make the best decisions.

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Short sell with crypto CFDs

Nowadays, the threat of cyber criminals is at its peak with online wallets and exchanges at risk as well. Storing your cryptocurrencies is the biggest challenge as storing in an offline medium contradicts the whole idea of quick transactions and trading.

With us at CAPEX, you no longer have to worry about storing your Bitcoin or other cryptocurrencies. We, at CAPEX, now offer CFD trading on cryptocurrencies. Our robust and intuitive platform simplifies trading, and you can also easily set stop-loss orders to prevent huge losses. To make it even effortless, we are available on Desktop(Mac, Windows) and mobile(iOS, Android) with a variety of advanced tools and features.

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What is long vs. short cryptocurrency strategy?

The longing position of cryptocurrencies is the process of buying cryptos like Ethereum, etc., and holding it with the expectation of a rise in price in the future. While going long, one thing to keep in mind is that to get any significant return on the digital assets invested might take months or years.

What is the opposite?

Shorting cryptocurrency is the process of selling cryptos when the market value is relatively high and then repurchasing it at a lower rate, thereby making a profit. This shorting position includes certain trading policies such as binary options, futures trading, etc. Using these techniques, traders usually make a profit even from tiny price shifts.

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Why choose to long/short cryptocurrency?

To short position on any cryptocurrency when the prices are high and exchanging it at the verge of a crash is an efficient strategy to make a profit. During the 2018 crash of Bitcoins, early traders who took short positions on bitcoins at $20,000 and long positions on bitcoins when they were of $1,000 value made real long-term profits. Either of the crypto strategies, when applied cleverly, can return great value despite the high risks.

Additionally, with the advent of CFD platforms like CAPEX, you no longer have to own any cryptocurrencies to short them. For example, consider a Cryptocurrency valued at $100 per token, and you expect it to dip. Through the CAPEX CFD platform, you can short-sell, say 100 units on this token, and get a profit of 100 times the dip in its value.

The takeaway

In this volatile investment market, longing/shorting cryptos takes place throughout the year. This strategy of making a profit at the rise or fall of prices is better when used together. A smart trader identifies when and which currencies are undervalued and overvalued. Now let’s move on to how to short cryptocurrencies.

How to long cryptocurrencies in trading?

When you long cryptocurrencies, you essentially bet that the price will increase. If it does, you’ll profit. It is a more direct approach to investments in cryptocurrencies. The long position on cryptos is to ‘buy at low and sell at high’ strategy. Whether to go long or short on a cryptocurrency, an account with any cryptocurrency is first required.

Sounds simple right? Not so fast, Cryptocurrency prices can very well drop after you long it. A dip will force you to either sell at a loss or hope that it will recover. With CAPEX, you don’t need a crypto wallet! You don’t have to worry about safeguarding your assets. Users can concentrate on trading; CFDs work on price assumptions and don’t require ownership of the particular asset.

Methods of longing cryptocurrencies

Long term trading techniques focus on investing in large-time frames. The two important long-term trading strategies are:

  • Technical Analysis
  • Fundamental Analysis

Trade CFDs on cryptocurrencies at CAPEX

CAPEX CFDs on cryptocurrencies takes advantage of both the incline and decline of top tokens like Bitcoin, Litecoin, Bitcoin Cash, Ethereum in this volatile crypto market. With CAPEX, traders have access to the trading market even if there is high uncertainty of asset value declining or inclining because of their advanced crypto instruments.

How to short cryptocurrency in trading?

Shorting cryptocurrencies is considered to be a bit complex as compared to longing. This strategy includes the plan of not buying but borrowing coins when the asset value is low. You need to follow technical trading strategies to short sell cryptocurrencies. A Short position on trading is played with high capital.

Say, Bitcoin price is set at $15,000 market value per coin. This borrowed amount can be paid back when the market value is lower, e.g. $10,000, resulting in a $5,000 profit per coin. One of the easiest ways to short sell cryptocurrencies is through CFDs like in CAPEX, the best online broker for cryptocurrencies.

Methods of shorting cryptocurrencies

The four basic cryptocurrency trading strategies are:

  • Margin trading: Margin Trading includes borrowing any virtual coins from the broker and trading them later. So, it is borrowing and selling cryptocurrencies at a high market price and repaying the broker at a lower market value. Of course, things may go otherwise, and traders may suffer huge losses.
  • Future trading: Future contracts make traders buy cryptocurrencies at a fixed rate on a particular date. In this trading, traders speculate the value of an asset at a specific period in the future. At that point, they can sell the contract and make a profit out of it. However, this whole process is intuitive, and things may go in the opposite direction. Also, future crypto trading is not as popular as CFDs.
  • Direct short selling: This is a direct way of buying short and selling high. In the case of DSS, no borrowing of assets or signing any contract is done. The trader buys Cryptocurrency at a standard rate and sells them when the market value seems inflated. They invest that profit by buying coins when they are undervalued, increasing their investment through those market variations.
  • CFDs: Contracts for Difference are considered to be the mainstream way of investing in any cryptocurrency. In CFD platforms like CAPEX, you can profit by betting on the prices/values of any particular crypto to either incline or go low. In the case of CFDs, no borrowing, buying or selling of assets is done. The trader signs the contract, bets and allows the market to decide the rest.


How to get started?

After learning how to short cryptocurrencies, the question arises – how to start the trading journey?

Whether to go long or short on crypto trading, the first step you may take is to register with a crypto exchange platform. You might also require registration with a wallet to store the Cryptocurrency. However, using the approach of CFDs eliminates these and makes the whole process much easier.

We are one of the best CFD exchanges globally, with a straightforward signup process. The first step is to register on the CAPEX.com website. You can create the account by entering the details such as phone number, age, email address, password, etc.

The second step is to get access to CFD trading through CAPEX, and you can achieve that by passing an evaluation test. Lastly, document submission and verification is carried out, and the door to trading is finally opened.

Crypto trading at CAPEX

We are a brokerage abode that offers a wide range of tradable crypto CFDs and other assets to its users. Our goal at CAPEX is to provide a wide range of resources to the investors for them to have access to the best trading expertise.

Established in 2016, we have since amassed over 13 million trades worldwide with a volume of $138 billion. Crypto CFD trading with CAPEX allows the traders to have access to top tokens provided by crypto-market capitalization. We at CAPEX charge no commission to its traders for trading on CAPEX and provide the best DRC (direct regulatory compliance) benefits while trading CFDs. We also use trading software such as MetaTrader and our CAPEX WebTrader to provide enhanced UI performance, better technical solutions, and standard regulations.




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In cryptocurrency trading, two important things are to be considered. Firstly, a proper understanding of CFDs and their usage; secondly, willingness or not to take risks on the probability of losing money. The major risk of shorting currency is the possible risk of the virtual price value never going down.

For longing cryptos, the possible risk of losing is high/equivalent to its initial investment, whereas in shorting, the potential risk of losing depends on the price rise. In case the price goes impeccably high, then the trading position ends up getting closed by the trader or the exchange.

How to control this risk?

We offer risk tolerance for both long/short trading. A few risk control strategies are resource allocation, stop losses, position sizing method, and trading software. However, CFDs still possess a risk of rapid money loss due to borrowed capital, especially if you lack the composure and patience—this where we at CAPEX differ from other CFD traders by providing the CAPEX Academy to hone your trading skills. You can also practice trading with demo account on CAPEX to get a firsthand understanding of the process.

Conclusion – Learn to short cryptocurrencies at CAPEX

Cryptocurrency trading is a vast field spanning strategies to make profits. It is a well-known fact that the crypto market is a volatile one, and the uncertainty of gains and losses is always lingering around. So, proper knowledge of trading and technical analysis is a must before starting with cryptos.

With CAPEX, every trader gets an in-depth understanding of the trading market. We at CAPEX equip you with long-term decision-making skills and the right tools to try out both bearish and bullish trading approaches. Now that you’ve learned how to short cryptocurrencies, join us at CAPEX and test your knowledge.

How To Short Cryptocurrencies – FAQ

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👌Is it safe to invest in cryptocurrency?
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