The post How to Short Crypto on Coinbase? appeared on BitcoinEthereumNews.com.

 You’ve probably heard that Coinbase allows margin trading, which gives traders the ability to short cryptocurrencies. Well, that used to be true, but it isn’t anymore. So, can you short on Coinbase? Absolutely. However, it requires a very specific set of steps.  You must also ask yourself: Do you have an effective risk management strategy in place? Shorting can yield amazing profits, but it can also cause significant losses. Let’s get you set up for potential profits while minimizing unnecessary exposure to market volatilities. Short crypto on Coinbase Key highlights: Shorting crypto on Coinbase isn’t available through margin trading anymore; it’s done via futures trading, which is not available 24/7. Shorting on Coinbase requires specific steps, including setting up an account and accessing futures trading via the Advanced Trade section. After depositing funds, you need to select the cryptocurrency you expect to drop in price, then choose the ‘Sell | Short” option. We suggest you apply stop-loss orders in your trading strategy to cap losses and manage risk effectively.  Different Ways to Short Crypto For any trader worth his salt, it’s absolutely vital to fully understand the concept of shorting in crypto markets. It’s a strategy that can turn drops in price into profit opportunities.  When you short crypto, you’re essentially betting against a particular cryptocurrency, expecting its price to drop. It offers an opportunity to profit from falling prices. This can serve as a hedge against downturns in the market. Let’s take a look at some of the main methods of shorting crypto assets: Short-Selling Short-selling is probably the most traditional way of shorting, i.e., profiting from an asset dropping in price. Here’s the mechanics:  First, you borrow a specific amount of an asset from a broker (in this case, Coinbase). You then sell these assets, pretty much immediately. …

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Filed under: News - @ July 18, 2024 1:28 pm