Can You Short Crypto on Coinbase? A Complete Guide to Short Selling

Crypto traders often wonder if they can actually profit when prices drop, especially on big exchanges like Coinbase. Yes, you can short crypto on Coinbase, but only by using futures trading contracts—not through traditional margin trading. This way, you can bet against a cryptocurrency and maybe pocket some profit if it tanks.

Coinbase lists futures contracts for over 90 cryptocurrencies. If you’re in the U.S., you get access to standard futures on nine major digital assets. The process isn’t quite like shorting stocks. You’ll need to use the Advanced Trade feature and get a handle on how perpetual futures contracts work. These tools let experienced traders hedge their bets or try to make money when markets head south.

Can You Short Crypto on Coinbase?

Yep, you can short crypto on Coinbase, but it’s only through futures trading. The platform offers perpetual futures for more than 90 cryptocurrencies and standard futures for nine specific coins if you’re in the U.S.

Current Shorting Options on Coinbase

Coinbase only lets you short via futures trading. There’s no traditional margin trading for shorts here.

With perpetual futures contracts on over 90 cryptocurrencies, you can hold a short position as long as you want—no expiration dates lurking.

If you’re in the U.S., you can trade standard futures contracts on nine big-name cryptocurrencies. Gold and silver are in the mix too.

Popular trading pairs you can short include:

• BTC/USD (Bitcoin)

• ETH/BTC (Ethereum)

• LTC/USD (Litecoin)

• Other major altcoins

Coinbase runs its futures trading under U.S. regulatory rules. They’re registered with the National Futures Association (NFA), which adds a bit of peace of mind.

Shorting Crypto via Coinbase Advanced and Futures

Coinbase Advanced is where all the futures trading action happens. You can get there on both the mobile app and desktop.

To short, pick your crypto and hit the "Sell | Short" button to start.

You’ll need to set your contract amount and choose your leverage. Leverage options go from mild to wild, depending on how much risk you want to take.

The platform charges taker fees from 0.05% to 0.60%, depending on your 30-day trading volume. Maker fees can be as low as 0.00% if you’re a big-time trader.

If a trade goes against you, liquidation fees kick in at 0.80%. There’s also a minimum $0.20 transaction fee per trade for futures.

Eligibility, Account Setup, and Verification Steps

To open a Coinbase account, you’ll go through the usual sign-up steps. You’ll need to give your personal info and contact details.

For identity verification, upload a government-issued ID. If you want higher trading limits, you might need to send in extra docs.

You can fund your account with crypto deposits or fiat transfers. Most major coins and bank transfers are good to go.

Eligibility requirements look like this:

• 18 or older

  
  

• Government-issued ID

  
  

• Proof of address

  
  

• U.S. residency for standard futures contracts

  
  

Verification usually takes 1-3 business days. Sometimes it takes longer if your docs need extra review.

Shorting Strategies, Tools, and Alternatives

If you want to short crypto successfully, you’ve got to manage your positions and risk carefully. Knowing how leverage works—and comparing what different exchanges offer—can help you squeeze out better returns.

Placing a Short Position and Managing Risk

To short on Coinbase, you’ll use the Advanced trading interface. Pick either perpetual or fixed-term futures, then choose "Sell | Short" instead of "Buy | Long" when you place your order.

Think about risk before you trade. Decide how much you’re willing to lose on a single trade. Most seasoned traders cap it at 1-2% of their total capital per position.

Leverage makes position sizing even more important. Say you use 10x leverage—you only need $100 to control a $1,000 position. But if the market turns, your losses get big, fast.

Margin requirements change depending on the coin and leverage. Bitcoin and Ethereum usually need less margin than smaller altcoins. Coinbase will show you the margin needed when you enter your trade size.

Some traders hedge by shorting futures against their spot holdings. For example, if you own Bitcoin, you can short Bitcoin futures to soften the blow if the price drops. That can help smooth out your portfolio when markets get choppy.

Using Stop-Loss Orders and Leverage

Stop-loss orders are your safety net. Coinbase offers stop-limit orders that trigger if prices hit your chosen level. These can help you dodge huge losses if prices spike the wrong way.

Setting stop-losses is more art than science. Many traders set them 5-10% above their entry price for shorts. If you’re trading something super volatile, you might need to give it more room—or risk getting stopped out too early.

Leverage cranks up both profits and losses. Coinbase offers up to 10x leverage on major coins. The higher the leverage, the less margin you need—but the more you risk getting liquidated.

Leverage Examples:

• 2x leverage: 50% margin requirement

  
  

• 5x leverage: 20% margin requirement

  
  

• 10x leverage: 10% margin requirement

If your account equity drops below the maintenance margin, you’ll get a margin call. You’ll need to add funds or shrink your position. If you don’t, Coinbase will liquidate your position automatically.

Comparison: Coinbase vs. Other Crypto Exchanges

Coinbase gives you limited shorting options compared to those specialized derivatives platforms out there. You’ll find futures and perpetual contracts, but only for major cryptocurrencies. Trading hours sometimes get interrupted by maintenance breaks, which can really throw off your strategy if you’re not watching closely.

Binance brings a wider range of shorting tools to the table. You can pick between isolated and cross-margin modes, and some pairs let you crank leverage up to 125x—definitely not for the faint of heart. Funding rates shift every eight hours for their perpetual contracts, which keeps things interesting (or stressful, depending on your style).

Bybit really leans into derivatives trading, offering up to 100x leverage. You can choose between inverse and linear contracts. If you like tinkering with your trades, you’ll find advanced order types like conditional and trailing stop orders here.

Kraken lets you trade on margin with up to 5x leverage. You can open long or short positions right on the spot markets. Margin requirements usually start at 20% for most pairs, so it’s a bit more conservative.

Key Differences:

• Coinbase: Regulated, limited pairs, lower leverage

  
  

• Binance: High leverage, extensive pairs, complex tools

  
  

• Bybit: Derivatives focus, institutional features

  
  

• Kraken: Spot margin, conservative approach

Honestly, each platform fits different trading styles and comfort levels. If you’re just starting out, you might gravitate toward Coinbase’s simpler interface. More experienced or adventurous traders usually end up choosing platforms with deeper features and riskier options.