Home > How to Short Crypto in 2025: A Guide for Crypto Traders !? > How to Short Crypto in 2025: A Guide for Crypto Traders !?
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Written by Larry Jones
Hi, I'm Larry Jones, an Financial Management graduate from Franklin University, where I focused on Finance. With a deep passion for trading and investing, I've immersed myself in the dynamic world of financial markets. Currently, I dedicate my time to trading while also educating others about the exciting opportunities in cryptocurrencies. Through my experience and expertise, I aim to make complex financial concepts accessible to everyone. Whether you're a seasoned trader or new to the world of investing, my goal is to provide you with valuable insights and practical knowledge to help you navigate the world of cryptocurrencies with confidence.
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This article has been reviewed by crypto market experts at SCM to ensure all the content, sources, and claims adhere to the highest standards of accuracy and reliability.
Last Updated on January 29, 2025
MEXC is a prominent exchange platform in the cryptocurrency market, known for its user-friendly interface and extensive range of trading options.
Shorting on MEXC allows you to benefit from anticipated price drops in various cryptocurrencies.
In this step-by-step guide, you’ll learn how to set up your account, use margin or futures trading, and manage risks effectively, helping you navigate the MEXC platform and capitalize on market downturns in 2025.
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To start shorting on MEXC, you’ll first need to create an account and fund it with the necessary assets for trading.
Begin by registering on the MEXC website or using the mobile app.
Tap the user icon and select Sign Up. You have the option to sign up using either your email or mobile number.
Once entered, click Next and complete the puzzle verification.
To finalize your registration, you’ll need to complete identity verification.
This involves uploading a government-issued ID and proof of residence. Follow the on-screen prompts to upload these documents and verify your identity. Once verified, your account will be ready for deposits and trading.
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With your account set up, deposit funds to start trading. MEXC supports multiple cryptocurrencies for deposits, including BTC, ETH, and USDT.
Log in to your account and navigate to the Wallets section in the top right corner. Select Deposit and choose your desired cryptocurrency.
Deposit methods include bank transfer, credit/debit card, and internal transfers within MEXC, which typically have no fees.
Follow the on-screen instructions to complete your deposit. Ensure that you transfer enough assets to cover your planned trades and any associated fees.
Once your funds are credited to your MEXC account, you are ready to begin trading, including opening short positions.
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Step 1: Activate Margin Trading
Log in to your MEXC account. Navigate to Trade and switch to Margin Trading.
Step 2: Transfer Funds to Margin Account
Use the Transfer function to move funds from your spot wallet to your margin wallet.
Step 3: Borrow Funds
Select the cryptocurrency you wish to borrow (e.g., BTC) and specify the amount. Confirm the borrowing process.
Step 4: Enter a Short Position
Choose the trading pair (e.g., BTC/USDT). Select the order type (limit, market) and set the leverage (up to 10x). Execute the short sell order by clicking Sell/Short.
Step 5: Manage the Position
Monitor your open positions and adjust take profit/stop loss orders to manage risk.
Step 6: Close the Position
Close the position using a market or limit order. Ensure you repay the borrowed funds along with any interest.
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Step 1: Open a MEXC Futures Account
Step 2: Fund the Account
Step 3: Navigate to MEXC Futures
Step 4: Enter a Short Trade
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Applying theoretical knowledge to real-world scenarios can solidify your understanding of shorting futures on MEXC. Here are two in-depth examples showing how you can execute a successful short trade and manage risks effectively.
Imagine you short BTC when its price is $10,000 utilizing 10x leverage. With 10x leverage, you control a position worth $100,000 while only putting up $10,000 as margin.
Prices drop to $8,000. You decide to close your position and buy back the BTC. This results in a profit of $2,000 per BTC ($10,000 – $8,000).
Leverage enhances gains but also increases risk if the market moves against you. Always use leverage cautiously.
Action | Price | Amount | Value | Result |
---|---|---|---|---|
Short BTC | $10,000 | 10 BTC | $100,000 | Open |
Buy back (close short) | $8,000 | 10 BTC | $80,000 | $20,000 |
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Managing risk is critical in futures trading. Use stop-loss orders to prevent significant losses during market volatility.
For instance, you short ETH at $5,000 with a stop-loss set at 5,500. If ETH’s price climbs to $5,500, the stop-loss triggers and closes the trade, saving you from further losses.
A stop-loss can save your capital in volatile markets, providing a safety net. Setting take-profit orders alongside stop-loss orders can help lock in gains while managing risks efficiently.
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Understanding how to short sell on MEXC involves several steps, from initiating a trade to closing it. Below, you will find answers to common queries that can guide you through the process.
First, log in to your MEXC account and navigate to the [Wallets] section. Transfer the desired amount of USDT from your spot account to your margin account. Select the cryptocurrency you intend to short and decide on the leverage ratio. Place a sell order once you have set your parameters.
Go to the [Futures] section on MEXC’s website. Transfer assets to your futures account. Within the interface, select the desired contract type (e.g., BTC USD perpetual). Set up your leverage, and place a sell order to initiate a short position. Ensure you have a strategy in place for stop loss and take profit settings.
Yes, you can hedge positions on MEXC. One way to do this is by holding both long and short positions simultaneously. This can be done by opening separate positions in USDT-M or Coin-M perpetual futures. It helps in minimizing risk, especially during volatile market conditions.
To close a short position, navigate to your active positions in the [Futures] section. You can choose to either manually close the position by buying back the cryptocurrency you shorted or set a take profit/stop loss order. Ensure the transaction is confirmed to finalize the position closure.
Shorting on MEXC presents a unique opportunity to profit from declining cryptocurrency prices. Traders can achieve substantial returns by correctly identifying market trends and leveraging the platform’s features.
Before diving into live trading, practicing on a demo account is advisable. This allows you to familiarize yourself with the mechanics of shorting without risking actual funds.
Careful risk management is essential. Use tools like Take Profit and Stop Loss to protect your positions. Educate yourself continuously through resources provided by MEXC and remain vigilant to market changes.
These steps allow you to position yourself for more informed and safer trading on the platform.
Hi, I'm Larry Jones, an Financial Management graduate from Franklin University, where I focused on Finance. With a deep passion for trading and investing, I've immersed myself in the dynamic world of financial markets. Currently, I dedicate my time to trading while also educating others about the exciting opportunities in cryptocurrencies. Through my experience and expertise, I aim to make complex financial concepts accessible to everyone. Whether you're a seasoned trader or new to the world of investing, my goal is to provide you with valuable insights and practical knowledge to help you navigate the world of cryptocurrencies with confidence.
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