How to short bitcoin on Coinbase?

Learn how to short bitcoin on Coinbase here.




For the expert crypto investors who want to trade on digital crypto exchanges, there are various platforms offering a “physical” short selling on margin. These platforms that allow users to short bitcoin include Bitfinex, Coinbase Pro, Kraken and Poloniex.
When shorting bitcoin on Coinbase Pro, previously known as GDAX, it functions the same way as short selling bitcoin using the CFDs. The only difference is that you will receive your profits in BTC instead of fiat currencies.
When short selling on Coinbase Pro, the investor sells bitcoin that they don’t own. In order to do that, they will need to borrow bitcoin from the margin lenders on the Coinbase for the period of the open position. When the investor closes out the bitcoin short, they will lose or gain the difference from there they sold and where they’re buying back, deducting the margin lending fee.