It’s a question that many investors are asking – can you short crypto in the US? The short answer is: yes, you can! But it’s not quite as simple as shorting traditional stocks or other assets. Here’s what you need to know.
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What is Shorting?
In case you’re not familiar with the term, “shorting” refers to the practice of selling an asset that you don’t actually own, with the hope of being able to buy it back at a lower price in the future.
This allows you to profit from a decrease in the asset’s value.
How to Short Crypto in the US
So, how can you short crypto in the US? Here are a few options:
1. Use a Crypto Exchange
One option is to use a crypto exchange that offers short selling. Not all exchanges allow you to short sell, so you’ll need to do your research to find one that does. Some popular exchanges that offer short selling options include Bitfinex, Kraken, and Binance.
At coinesper.com, we’ve got a favorite exchange we work closely with that we’d recommend – more on this one later!
2. Use a Derivatives Exchange
Another option is to use a derivatives exchange, such as BitMEX or Deribit, which offer futures contracts and options that allow you to speculate on the price of crypto without actually owning it.
3. Use a Margin Account
If you have a margin account with a broker that offers cryptocurrency trading, you may be able to short crypto through that account. Keep in mind that margin accounts can be risky, as you’ll be borrowing money to make your trade, and you could end up owing more than you originally invested if the trade doesn’t go your way.
Are There Any Risks to Shorting Crypto?
As with any investment, there are risks to shorting crypto. For one thing, the cryptocurrency market is highly volatile, so the price of a particular coin can fluctuate wildly in a short period of time.
This means that there’s always a risk of losing money when you short crypto.
Additionally, some exchanges and brokers that allow short selling may have high fees or require a high minimum investment, which can make it expensive to short crypto.
Why Short with Coinmetro in the US
If you’re looking to go long or short on crypto in the US, an exchange we recommend is Coinmetro.
Here’s why:
Lowest Fees in Crypto for US Clients
Coinmetro is not the average crypto exchange who charges outrageous fees to retail clients.
You’ll find that Coinmetro beats ALL the big players in the industry.
With the addition of trading fee rebates, you simply cannot find another exchange with a better structure than Coinmetro!
Funding Options
Don’t ever miss a dip again! Users are able to INSTANTLY fund their Coinmetro accounts with USD through ACH transfers.
This is done through Plaid integration.
Plaid is a very well known and trusted third party which allows you to login to your bank through the Coinmetro interface, so you do not have to leave the exchange to make a deposit. It’s so simple!
They also provide the option for WIRE transfers, including international transfers via SWIFT, in case your bank does not support ACH just yet.
Trading Pairs
Coinmetro have become THE fiat on/off ramp for the US Dollar (“The most wonderful piece of paper in the world.” -Ron Swanson).
Coinmetro offers trading pairs for the most commonly traded cryptos as well as exciting, lesser known assets they believe have a bright future ahead.
If you’d like to give Coinmetro a shot, click the image below:
Customer Service You Deserve
Coinmetro strive to offer the best customer service in the industry, going above and beyond to ensure their clients are happy using the products and services on offer.
They respond to customer support tickers on a live chat in under two minutes on average.
This is unheard of in most industries these days. Banks and especially cryptocurrency exchanges are notorious for poor and slow service.
Coinmetro knows the importance of being quick to respond with accurate information in a friendly and professional manner.
Check out their reviews on Trustpilot.
If you’re planning on Buying Crypto in the US, look no further than Coinmetro.
CoinMetro is fully registered in the US
The cryptocurrency space is still something of a “wild west” with far too many bad actors.
At CoinMetro, they are distinguishing themselves as leaders of compliance around the world.
They work with regulators and during thier recent fundraising event, Coinmetro registered with the SEC in the US so they could allow accredited investors from the US into the securities offering.
As part of the United States Department of the Treasury, the Financial Crimes Enforcement Network exists to combat illicit use & money laundering.
This is important for national security and it is something that Coinmetro takes very seriously.
As a note, they are currently unable to serve residents in HI, WA or NY.
They are looking to acquire the relevant licenses in the near future to ensure all states get access to use Coinmetro.
Final Thoughts
It’s definitely possible to short crypto in the US, and there are a few different options available to you. Whether you choose to use a crypto exchange, a derivatives exchange, or a margin account, you’ll have the opportunity to profit from a decrease in the value of cryptocurrency. Just be sure to do your research and understand the risks before diving in
