When a bearish swing is anticipated, potential gains can be sought by short selling Bitcoin and other cryptoassets. On ByBit, traders may implement shorts using both spot and derivatives venues, for example on BTC or ETH. In what follows, multiple ByBit pathways to short exposure are explained in detail with simple illustrations.
Is short selling available on ByBit?
Yes, when a trader expects the coin’s price to fall, ByBit allows them to short Bitcoin. Besides selling the asset directly, additional approaches can express a short view on cryptos; examples include the methods listed below:
- Direct Short Selling. True to its name, this tactic places a sell order for the asset on ByBit’s cash market at a chosen price after a drop has occurred, intending to repurchase later; on the platform, it remains the most common route.
- Margin Trading. As an extension of spot, this tool lets users borrow capital from ByBit to scale position size and short at the live quote, with interest due when the trade is closed. ByBit’s margin trading exchange supports up to five-times margin on BTC, USDT, USDC, and DAI.
- Futures Markets. ByBit’s derivatives board lists USDT and USDC perpetuals that permit shorting assets such as Bitcoin, Ethereum, and Cardano; positions can be collateralized with USDT or USDC and geared up to one hundred times.
- Crypto Put Options. Via ByBit’s crypto options trading platform, traders can open put options to short-sell on ByBit without risking the underlying coins; instead of shorting immediately, a put can be used and then exercised or sold on a predetermined date. Profit comes if the underlying moves lower, and while the asset itself isn’t lost on liquidation, the option premium can be.
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Short on ByBit with Margin: step-by-step
1. Sign in or create a new ByBit account
Begin by registering through the website or mobile app: on the homepage, tap “Sign Up,” then supply a valid email, set a strong password, and add a referral code if applicable. Tick the consent box and choose “Create Account.” Alternatively, a ByBit trading account may be opened using a mobile number, for example when email access isn’t available.
2. Add funds
Complete ByBit’s identity verification and fund the account using the “Deposit” button at the lower-right of the margin screen. Funding methods include cryptocurrencies and fiat card payments via “ByBit Express” and “One-click Buy.” Deposits carry no fees on ByBit, and balances usually arrive within minutes, subject to network conditions.
3. Enable the margin account
Before trading on margin, ByBit requires activation. Users must read the information about shorting on ByBit and acknowledge the risks of this strategy; after consenting to the terms, margin functionality becomes available.
4. Obtain borrowed capital
Next, borrow the assets needed to execute the plan using the Crypto Loans feature. To access it, click the “Finance” menu at the top and pick “Crypto Loans” from the dropdown; for instance, you could borrow USDT against BTC as collateral.
Enter the desired loan size, specify collateral, and choose a term from roughly one week up to six months, then press “Borrow Now.”
5. Move the loan to the margin wallet
Borrowed funds typically arrive in the ByBit spot account automatically. Use the “Transfer” option beside the “Deposit” button at the bottom of the margin interface to move assets into the margin wallet.
6. Initiate the short trade
To short Bitcoin or another asset, complete the order ticket on the right: pick “Margin” for up to five-times leverage, or select “Spot” to sell without leverage. Three order styles are available in the Margin market—limit, market, and conditional—and take-profit/stop-loss (TP/SL) can be preset; for example, a conditional order may trigger when support breaks.
Press “Short,” provide the order price and quantity, and confirm using “Sell/Short.”
7. Settle the loan
Once positions are closed, repay the borrowed amount plus accrued interest via the “Borrowing & Repayment” button near the bottom; choose Repay, input the figure, and finalize the payment.
Short on ByBit with Futures: quick guide
To short crypto with ByBit futures, carry out the steps below.
1. Set up a ByBit account
Create your ByBit profile on web or mobile by selecting “Sign Up” or “Create Account,” following the same onboarding flow used earlier, now intended for derivatives access.
2. Fund your ByBit derivatives wallet
No KYC is required by ByBit, so users can deposit BTC, USDT, or USDC into the derivatives wallet. Navigate to the derivatives trading page and click “Deposit.”
3. Pick a derivatives contract type
ByBit offers three contract categories for shorting exposure: inverse perpetual, USDT and USDC perpetual, and inverse Futures (also called coin‑margined Futures).
- USDT/USDC Perpetual futures contract: pricing tracks a base asset like BTC or ETH, while settlement occurs in USDT or USDC; holding the base coin isn’t necessary—stablecoin collateral is sufficient.
- Inverse Futures (coin‑margined) settle in the underlying asset and include a fixed expiration or settlement date for the contract.
- Inverse Perpetual contract is quoted in USD and settled in the underlying asset, which the investor must hold; listings include BTC‑USD, EOS‑USD, XRP‑USD, and ETH‑USD, and these contracts have no expiry.
Select a contract and then choose margin mode—cross or isolated. In cross margin, collateral is shared across all open positions, whereas isolated margin ring‑fences collateral for a single trade, aiding risk management. ByBit supports leverage up to one hundred times, though actual limits can vary by the cryptocurrency being shorted.
4. Submit the sell order
Pick an order type—market, limit, or conditional—enter price and size in the right‑hand ticket, and click “Sell/Short” to initiate a short position amid volatility.
Can traders make money short selling on ByBit?
Shorting on ByBit or similar platforms can be lucrative, but it is generally best for seasoned traders who can research and form well‑supported views. It also suits active participants seeking short‑term outcomes with higher risk tolerance; long‑term investors may prefer steadier ByBit options instead, such as a simple accumulation plan.
Fees for shorting on ByBit
Short positions on ByBit incur charges under a maker–taker model. The ByBit shorting fees are outlined below:
- A flat USDC Options trading fee of 0.03% (three hundredths of a percent).
- USDC perpetual contracts: 0.01% maker and 0.06% taker fees (one hundredth and six hundredths, respectively).
- USDT and inverse contracts: 0.01% maker and 0.06% taker.
- For non‑VIP users, a flat 0.1% maker–taker fee applies on spot.
- Hourly interest accrual of 0.02% across a full 24‑hour day.
- Daily interest charged at 0.02% per day.
Common questions
Is it possible to hold long and short at the same time on ByBit?
Yes. ByBit supports running both long and short positions concurrently using margin or derivatives products.
In ByBit, what do buy long and sell short mean?
Buying long on ByBit refers to taking a coin on loan at a lower price from the exchange and later selling at a higher price for profit during a bull phase, while selling short represents the opposite stance.
