5 Best Exchanges to Short Crypto in the USA in 2025
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Based on our research, CoinFutures is the best exchange to short crypto in the US. This platform lets you trade 18 crypto futures contracts with up to 1000x leverage. Moreover, there are no KYC requirements, and the exchange is fully available in the USA.
To find the best platform for shorting crypto in the States, we tested more than 30 crypto exchanges, basing our methodology on their availability in the US, trading and security features, and compliance with regulations. In this guide, you’ll also learn how crypto shorting works and what the main benefits and risks of opening a short position are.
- In This Article
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- 1. CoinFutures - Overall the Best Exchange to Short Crypto in the US
- 2. Gemini - Best Exchange to Go Short on Perpetual Futures
- 3. WEEX - Best Exchange for Experienced Traders
- 4. Coinbase - Best Exchange to Short Crypto in the US for Beginners
- 5. Kraken - Best Exchange to Short Crypto in the US on the Go
- In This Article
-
- 1. CoinFutures - Overall the Best Exchange to Short Crypto in the US
- 2. Gemini - Best Exchange to Go Short on Perpetual Futures
- 3. WEEX - Best Exchange for Experienced Traders
- 4. Coinbase - Best Exchange to Short Crypto in the US for Beginners
- 5. Kraken - Best Exchange to Short Crypto in the US on the Go
- Show Full Guide
Best Crypto Futures & Options Trading Platform
- Trade crypto futures & options with up to 1000x leverage
- No KYC requirements and instant withdrawals
- Low trading fees and deep liquidity
The Top 5 Crypto Exchanges to Short Bitcoin in the USA Compared
Take a look at our table to see how our top-rated exchanges compare with each other.
| Exchange | Coins Available in the US | Maximum Leverage | USD Deposits | Best For |
| CoinFutures | 18 | 1,000x | Bank wire, credit/debit card, Google/Apple Pay | The overall best exchange to short crypto in the US |
| Gemini | 25 | 100x | ACH and wire transfers | Perpetual futures |
| WEEX | 900+ | 400x | No | Experienced traders |
| Coinbase | Bitcoin and Ethereum | 10x | ACH bank transfers, Fedwire, SWIFT | Beginners |
| Kraken | 350+ | 50x | ACH (Plaid), PayPal, debit cards, and Fedwire | Mobile users |
The Best US Crypto Exchanges for Shorting Reviewed
In the following segment, we’ll review each of the above-mentioned exchanges in detail to help you find the one that suits you best.
1. CoinFutures – Overall the Best Exchange to Short Crypto in the US
CoinFutures is one of the best crypto trading leverage platforms that lets you trade simulated crypto futures with up to 1000x leverage. CoinFutures uses a gamified approach to trading. On that note, its algorithmic systems simulate real crypto volatility, which means you can test different trading strategies without real financial risk. Moreover, you won’t have to use order books, crypto wallets, or go through KYC verification.
CoinFutures currently supports 18 cryptocurrencies for trading simulated futures contracts. These include BTC, ETH, SOL, BNB, AVAX, TRX, LTC, ADA, LINK, HYPE, POL, XRP, DOGE, WIF, SPX, PENGU, TRUMP, and FARTCOIN. To start trading, select one of the listed cryptocurrencies, tap the Down button if you think its price will drop, and set a leverage. Monitor the live price chart and wait for the coin to reach your predicted price. You can also cash out at any point.
The minimum margin requirement stands at 0.1% of the total trade size, which means that you’ll be able to open a $1,000 position with just $1. You can also set stop-loss and take-profit orders to manage risks and avoid large losses. The platform is compatible with Windows, macOS, and Android phones. However, there’s no official iOS app.
CoinFutures Key Takeaways
- Built-in ROI calculator: You can use the calculator to estimate your potential returns.
- Auto cash out feature: Once the conditions are met, your position will close automatically.
- Real-time leaderboard: You can track your performance against other traders.
Pros
- Supports trading simulated futures contracts
- Up to 1000x leverage
- No KYC requirements
- Cash out at any time
- Practice crypto shorting without risking real money
Cons
- No official iOS app
2. Gemini – Best Exchange to Go Short on Perpetual Futures
Gemini is a crypto exchange that’s available in all 50 US states. You can use it to trade 25 perpetual contracts, including BTC/GUSD, BNB/GUSD, DOGE/GUSD, ETH/GUSD, SHIB/GUSD, and SOL/GUSD with up to 100x leverage. You can also use USDT, BTC, ETH, and GUSD as collateral to trade derivatives. The maker and taker fees start from 0.02% and 0.07%, respectively.
As you can see, all perpetual contracts are denominated in Gemini Dollars – a US dollar-backed stablecoin. Is this good? Yes and no. Namely, GUSD runs on the Ethereum blockchain, which lets you track all your transactions. On the other hand, GUSD has lower liquidity than USDT or USDC, which can lead to potential slippage. Gemini also supports tokenized stocks. However, this option is not available in the US.
Gemini’s standout product is ActiveTrader. This platform is tailored for active and professional traders. You can use it to view trading options on 100 trading pairs across 70+ cryptocurrencies, as well as trade and monitor two markets simultaneously.
Gemini Key Takeaways
- Trade short perpetual contracts: Trade perpetuals with up to 100x leverage with no expiry date. You can also use USDT, BTC, ETH, and GUSD as collateral.
- ActiveTrader: This advanced trading dashboard is tailored for active traders. You can use it to trade and monitor two markets simultaneously.
- Gemini Clearing: This feature lets you settle a trade outside the order book.
Pros
- Available in all 50 US states
- Up to 100x leverage
- Basic and advanced trading dashboard
Cons
- Supports only 25 perpetual contracts
- All perpetual contracts are denominated in Gemini Dollars
- No tokenized stocks in the US
3. WEEX – Best Exchange for Experienced Traders
WEEX is a crypto exchange suitable for experienced traders as it supports over 900 coins across 1,700+ trading pairs and provides up to 400x leverage on USDT-M futures contracts. You can also take advantage of its Trigger Order feature to automate your buy/sell points, i.e., to set them in advance. You can choose between two types of trigger prices – market price (latest execution price) and mark price (reasonable mark price).
Experienced traders can use advanced order types to improve their trading strategies. These include Good Till Cancelled (GTC), Immediate Or Cancel (IOC), Fill Or Kill (FOK), Post Only, and Take Profit orders. We also liked the WEEX Futures Pro feature, which provides access to advanced charting tools and real-time market data.
WEEX offers competitive trading fees for futures that stand at 0.02% for makers and 0.08% for takers. However, if you hold the native token, WXT, you can reduce the fees by up to 70%, depending on your VIP level. You can also test the platform via its demo trading mode. On the downside, WEEX doesn’t support USD deposits. Plus, you won’t be able to use its services if you’re a resident of Arkansas or Georgia.
WEEX Key Takeaways
- Trigger Order: Automate your trades based on predefined market conditions.
- WEEX Futures Pro: Gain access to advanced charting tools and real-time market data.
- Demo trading mode: Practice trading USDT-M futures using simulated funds.
Pros
- Supports over 900 available coins
- Up to 400x leverage on USDT-M futures contracts
- Advanced trading orders
- No KYC requirement
Cons
- Doesn’t support USD deposits
- Not available in Georgia and Arkansas
4. Coinbase – Best Exchange to Short Crypto in the US for Beginners
Coinbase is one of the best crypto exchanges for beginners for newbie US traders who want to start trading perpetual futures. The platform lets you trade CFTC-regulated perpetual futures via Coinbase Financial Markets (CFM). At the time of writing, you can trade nano Bitcoin Perpetual Futures (BTC-PERP) and nano Ether Perpetual Futures (ETH-PERP) with up to 10x leverage.
A nano BTC perps contract represents 1/100th of a Bitcoin, while a nano ETH perps contract represents 1/10th of an Ether, which lets you open short positions with lower capital. Moreover, these contracts come with low trading fees – 0.02% per contract.
Coinbase is recognized for its beginner-friendly interface and its Learn platform, where you can find crypto guides, practical tips, and tutorials. Please note that the maximum number of contracts (positions) is dependent on your tier, which may be limiting for some users. For example, if you are a Tier 1 user, you won’t be able to hold more than 100 BTC-PERP contracts.
Coinbase Key Takeaways
- Regulated trading environment: You can trade CFTC perpetual futures via Coinbase Financial Markets (CFM). Coinbase Financial Markets is regulated by the Commodity Futures Trading Commission and the National Futures Association.
- Contracts with no monthly expiration dates: Coinbase’s perpetual futures contracts come with a five-year expiration date.
- Availability: All legal residents of the US with a valid US address and a SSN/ITIN number are eligible to trade CFTC-regulated perpetual futures.
Pros
- Trade CFTC-regulated perpetual futures via Coinbase Financial Markets (CFM)
- Low trading fees
- Beginner-friendly interface
- Nano-sized contracts
Cons
- Supports only nano BTC-PERP and nano ETH-PERP futures
- Hit-or-miss customer support
- No demo trading option
5. Kraken – Best Exchange to Short Crypto in the US on the Go
Kraken is recognized as one of the best US-based crypto exchanges. This platform lets you trade 350+ USD linear perpetual futures, 100+ multi-collateral futures contracts, and FX perpetual futures with up to 50x leverage. You’ll be charged between 0.1% and 0.5% to open a position, depending on the margin pair, which is quite low compared to the competition. What’s more, the perpetual futures contracts come with a maximum order size of $5,000,000.
Kraken offers two mobile apps – Kraken and Kraken Pro. The former enables you to trade crypto, while the latter allows you to trade 300+ perpetual futures and fixed-maturity contracts on the go with multiple collateral and payout options. You’ll also gain access to 150+ margin-enabled markets. The Kraken app is compatible with Android and iOS devices and desktop computers (Windows, Mac, and Linux). However, if you use the desktop app, you won’t be able to fund your account.
At the time of writing, Kraken Derivatives US only offers market data for CME Group cryptocurrency futures (BTC, MBT, ETH, MET, GSOL, MSL), which is a bit of a letdown. What’s more, we noticed that Kraken doesn’t support USDS futures.
Kraken Key Takeaways
- Multiple trading options: Trade 350+ USD linear perpetual futures, 100+ multi-collateral futures contracts, and FX perpetual futures with up to 50x leverage.
- Collateral currency: You can use 40+ cryptocurrencies and 6 fiat currencies as collateral for margin trading.
- Two mobile apps: Kraken has two official apps, Kraken and Kraken Pro. The former gives you access to the exchange’s spot market, while the latter lets you trade 300+ perpetual futures and fixed-maturity contracts with multiple collateral and payout options.
Pros
- Supports USD linear perpetual futures, multi-collateral futures, and FX perpetual futures
- Low commission rates
- Perpetual futures contracts come with a high maximum order size
Cons
- Only offers market data for CME Group cryptocurrency futures
- Kraken doesn’t provide its services to New York and Maine residents
- No support for USDS futures
What is Short Selling in Crypto?
Short selling is a strategy that includes profiting from declining cryptocurrency prices. I.e., you’ll sell crptos at their current market price and re-purchase them when their value drops. However, you won’t be buying coins. Instead, you’ll be borrowing them from crypto exchanges. This means that you’ll keep the difference between the token’s sale and purchase price once you return the borrowed amount.
How Does Crypto Shorting Work?
Crypto shorting includes borrowing a cryptocurrency from a crypto exchange, selling it at its current market price, and monitoring its performance. Once its price drops, you’ll re-purchase it, return the borrowed amount, and profit from the price difference (minus interest and fees).
For example, let’s say you want to short Bitcoin. You decide to borrow 1 BTC and sell it at its current price of $100,000. Now, let’s say its price drops to $90,000. If you re-purchase it, your profit will amount to $10,000.
Given that short selling includes borrowing funds from exchanges, you’ll need to provide collateral. I.e., you’ll have to lock up a certain amount of cash, stablecoins, or other cryptocurrency to open a short position. This i your initial margin. The amount of your initial margin depends on the leverage. Higher leverage enables you to open a bigger position than your initial margin.
This is why crypto exchanges support multiple order types and risk management tools, such as stop‑loss orders that automatically close your position if the price goes against you and take‑profit orders that close your position once it reaches a predetermined price.
Best Ways to Short Crypto in the US
Finding the best exchange to short crypto in the US legally is not an easy task due to regulatory constraints. This means that your options will be limited to crypto futures, margin trading, contracts for difference (CFDs), put options, and short Bitcoin ETFs. We discuss these methods in more detail in the following segment.
Crypto Futures
Futures contracts let you buy/sell a specific cryptocurrency at a predetermined price on a predetermined date in the future. US investors can trade two types of futures – delivery and perpetual. Delivery futures expire on a specific date in the future, while perpetual futures come without an expiration date. This means that you’ll be able to close your position whenever you want.
Crypto futures contracts are settled in stablecoins like USDT, USDC, and USDS, and fiat currencies like USD. You can also invest in pre-market perpetuals. This allows you to speculate on the price changes of new cryptocurrencies before they get listed on crypto exchanges. Some of the best crypto futures trading platforms include CoinFutures, OKX, and Gemini.
Margin Trading
Margin trading includes borrowing funds from crypto exchanges to increase your position, that is, to control a larger position than your initial margin. For example, if your initial margin is $100, and you set the leverage to 10x, you’ll control a position worth $1,000. Keep in mind that you’ll have to maintain the margin. If the margin level falls below a predetermined threshold, you’ll receive a margin call and your position will be closed.
Some of the best crypto margin trading exchanges include CoinFutures and Kraken.
Put Options
A put option gives you the right to sell a cryptocurrency at a specific price on (or before) a set expiration date. However, you won’t be obliged to do that. I.e., if its value drops below the predetermined price, you’ll be able to sell it at a higher price.
However, if its value rises above the predetermined price, you can let the option expire. That way, you’ll only lose the initial premium paid. Take a look at our in-depth guide to the best crypto options trading platforms to find the right exchange for you.
Contracts for Difference (CFDs)
A Contract for Difference or CFD is a financial derivative that allows you to speculate on short-term price movements of cryptocurrencies without owning them. I.e., you won’t have to borrow crypto from exchanges, sell it, and then re-purchase it again. Instead, you’ll get paid the difference if its price drops.
CFDs offer high leverage, they usually have no expiration date, and they are executed in cash. You can also use them to speculate on price changes of ETFs, stock indices, and commodity futures. CFDs are popular among traders who wish to profit from short-term price fluctuations. Keep in mind that CFDs are not regulated by the US authorities.
Short Bitcoin ETFs
You can short Bitcoin by investing in inverse Bitcoin exchange-traded funds, such as the ProShares Short Bitcoin Strategy ETF (BITI). These types of ETFs are designed to profit from BTC’s price declines. Inverse Bitcoin ETFs are suitable for experienced investors.
However, they are not ideal for long-term holding due to their high volatility.
What are the Benefits of Crypto Short Selling
Now that you’ve seen our best exchange to short crypto in the US list and learned how to short crypto, let’s discuss the main benefits of short selling:
- Profit from pull-backs: As you know, the crypto market is highly volatile, which makes it susceptible to massive price swings. Short selling enables you to realize gains even during a bearish market.
- Hedge against potential losses: For example, if you hold Ethereum on spot and you believe that its price will drop in the short term, you can open a short position in Ethereum futures to offset potential losses.
- Reduce exposure to individual asset risks: I.e., you can diversify your portfolio by holding both short and long positions. You can be bullish on one asset and bearish on another. For example, you can open a long position on ETH and a short position on BTC. If the value of both coins drops, your short position on BTC helps you offset the losses on your long position on ETH.
Risks and Challenges of Crypto Shorting
Shorting crypto comes with certain risks that you must be aware of. When you open a short position, you’re betting that the price of your cryptocurrency will fall. However, if its value goes up, your losses can be unlimited. Why? Because, unlike long positions, where the maximum price drop is 100%, short positions don’t have an upper limit. I.e., there’s no cap on how much a coin’s value can increase.
For example, you decide to borrow $20,000 to open a short position on BTC. However, if the price of BTC doesn’t drop but rises to $30,000, you’ll have to pay back $10,000 to close your position. If the price increases to $50,000, you’ll have to pay back $30,000, etc. In short, there’s no upper limit to how much the prices of cryptos can go, which means that there’s no upper limit to your potential losses.
Shorting crypto involves borrowing tokens from cryptocurrency exchanges, which increases your costs. Namely, besides paying fees to open and close your position, you’ll also have to cover interest and funding rates. Moreover, using higher leverage can increase your potential losses. For example, if the market goes against you and the value of your collateral is not enough to cover your potential losses, you may receive a margin call. If you’re not able to meet the margin call, the exchange will close your position, that is, sell your assets to cover your debt.
Shorting crypto requires constant market monitoring, which makes it suitable only for advanced short-term traders.
Best Practices When Shorting Crypto
Shorting crypto is an advanced trading strategy that involves understanding the crypto market, or rather, its sentiment. It requires quick reactions and constant monitoring of market trends. Moreover, to avoid potential losses, you need to plan your entry and exit strategies. Here’s what to consider when shorting crypto:
- Picking a strategy: You can use several methods to short cryptocurrencies, from trading futures and options to trading with margin. Choose a strategy that best suits your trading style and that aligns with your finances, risk tolerance, and time horizon. For example, if you believe that the price of your token will drop over a longer period of time, choose margin trading. If you think that the price of your token will drop within a few hours or days, opt for futures.
- Avoiding liquidation (over-leveraging): As mentioned before, higher leverage equals higher potential losses. This is why you should use lower leverage. For example, a position with a 5x leverage is less likely to be liquidated than one with a 100x leverage.
- Following the news: Staying up to date with crypto regulations and events that may impact the crypto market is of key importance. For example, BTC halving events are associated with significant price increases. On the other hand, after the SEC filed a lawsuit against Binance and Coinbase in 2023, crypto prices experienced a drastic decline. For example, SAND’s price fell from $0.59 to $0.39, while ADA’s value fell from $0.38 to $0.27.
- Being aware of the current market trend: Monitoring market sentiment will enable you to estimate when it’s a good time to open a short position. Avoid going short during bullish markets, when cryptocurrency prices tend to go up, to avoid potential losses. You should also use technical analysis tools, such as Moving Averages and Bollinger Bands, to identify market trends and potential entry and exit points.
Methodology: How We Tested and Reviewed The Best Exchanges for Short Selling in the US
To find the best exchange to short crypto in the US, we used strict criteria that included hands-on testing and a detailed analysis of their trading and security features. We also made sure that the aforementioned exchanges are available in the US and that they comply with crypto regulations.
Availability in the US (30%)
All exchanges on our list offer their trading services and products to US residents. However, due to regulatory restrictions, some exchanges won’t be available in certain states. For example, OKX is not available in Kentucky, New York, Texas, American Samoa, Guam, Northern Mariana Islands, and the U.S. Virgin Islands. Furthermore, WEEX is not available in Georgia and Arkansas, while Kraken doesn’t provide its services to New York and Maine residents.
With that in mind, we ranked platforms that offer US residents the ability to short crypto without major restrictions higher on the list.
Trading Features (30%)
There are many trading methods that will enable you to open short positions in the US. These usually include trading futures (perps) and options, as well as trading with margin. We covered exchanges that support a wide range of trading options, from trading simulated futures contracts to trading USDT, USDC, and USD-margined futures, pre-market perpetuals, and options.
We also included platforms that support USDT-M futures contracts, CFTC-regulated perpetual futures, USD linear perpetual futures, multi-collateral futures contracts, and FX perpetual futures.
Security (20%)
While shorting crypto comes with the risk of price slippage, trading on an exchange that doesn’t use advanced security features comes with much higher risks, such as losing your funds due to hacks and phishing attacks. This is why our list includes crypto exchanges that utilize multi-layered security features, such as AI-powered threat detection, cold storage, 2FA, SSL encryption, and multi-approval withdrawals.
Compliance with Regulations (20%)
The best exchange to short crypto in the US must be registered or licensed in the US. This is the only way it can legally support services that enable crypto shorting. Moreover, US-based crypto exchanges must be regulated by agencies like CFTC, NFA, and FinCEN.
With that in mind, our list contains exchanges that comply with the US regulations. For example, Coinbase, Kraken, WEEX, and OKX are licensed as Money Services Businesses with FinCEN, while Gemini is regulated under the New York State Department of Financial Services (NYDFS).
Conclusion – What is the Best Exchange to Short Crypto in the USA?
Crypto shorting is an advanced trading strategy that includes borrowing digital assets from a crypto exchange, selling them at their current market price, and re-purchasing them once their value drops. This means that you’ll profit from their price difference. However, due to regulatory restrictions, US traders will have limited options when shorting crypto. I.e., they’ll be able to short crypto via futures, options, and margin trading.
Based on our research, CoinFutures is the best exchange to short crypto in the US. Why? Because it will enable you to trade crypto futures with up to 1000x leverage. Thanks to its algorithmic systems that simulate real crypto volatility, you can test different trading strategies without real financial risk. Moreover, you’ll be able to set stop-loss and take-profit orders to manage risks, use its built-in ROI calculator to estimate your potential returns, and cash out at any point.
Visit CoinFuturesFAQs
Why don’t most exchanges offer crypto short selling in the US?
Can you short crypto in the USA on Coinbase?
Can you short crypto without leverage?
Is shorting illegal in the US?
References
- Commodity Futures Trading Commission (CFTC)
- What is Hedging? (Coinbase)
- Money Services Business Definition (FinCEN)
- Understanding Leverage Trading in Crypto (Coinbase)
- Effect Of The SEC’s Lawsuit On Cryptocurrency Prices (Coingecko)
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