Can you short Crypto Assets? Gate teaches you how to profit from market falls!

In Crypto Assets investment, most people are used to buying in anticipation of a rise (go long), but when the market falls, profits can also be made through shorting. Shorting refers to the operation of selling an asset borrowed in anticipation that the price of a certain Crypto Asset will fall, and then buying it back at a lower price to return it, thereby earning the difference.

In Crypto Assets investment, most people are used to buying in anticipation of a rise (go long), but when the market falls, profits can also be made through shorting. Shorting refers to the operation of borrowing an asset to sell when expecting the price of a certain Crypto Asset to fall, and then buying it back at a lower price to return it, thus earning the price difference.

The shorting mechanism in traditional finance has matured, and in the crypto world, with exchanges like Gate introducing perpetual contracts and leveraged trading, ordinary investors can also conveniently use shorting tools.

###01 When is it suitable to short Crypto Assets?

Shorting is not applicable at all times; it requires an accurate judgment of market trends. The following market conditions are usually suitable for considering shorting operations:

When the market experiences macro negative news, increased regulatory pressure, or major platform crises, coin prices often plummet, making it an important time for shorting.

When technical analysis indicators show a fall signal, such as when the coin price breaks through important support levels, the moving average forms a "death cross," or trading volume continues to shrink, it may indicate the formation of a downward trend.

After the market experiences a rapid rise, a pullback occurs due to profit-taking. For example, on September 22, 2025, ASTER fell 14.45% in a single day after a previous rapid rise, precisely because large holders took profits.

The market or leading coins suddenly weaken. For example, when Bitcoin or Ethereum starts to fall, it often drags the entire market down.

###02 How to short Crypto Assets? Three methods explained in detail

####contract trading

Open a short position on platforms that support contract trading like Gate, directly shorting the specified coin. By selecting a leverage multiplier, you can amplify your profits (while the risks will also increase). For example, using 2x leverage, if the coin price falls by 5%, the actual profit would be 10%.

Gate has recently launched perpetual contracts such as TRADOORUSDT, ASTERUSDT, and STBLUSDT, supporting 1 to 20 times leverage for go long and shorting operations.

####borrow coin sell (leverage trading)

Borrow a certain Crypto Asset through the platform, sell it immediately on the spot market, and wait for the coin price to fall before buying it back at a lower price to return to the platform. This method is relatively simple to operate, with controllable risks, suitable for medium to short-term trading.

For example, if you borrow ETH and sell it at the current price, let's say $1,600. If the price falls to $1,550, buying back ETH at this price to return to the platform, the $50 difference per ETH is the profit (after deducting related fees).

####buy put options

A put option gives the holder the right to sell an asset at a set price before a specified date. This is a more advanced shorting method suitable for investors with a certain level of trading experience.

###03 How to perform shorting operations on Gate?

####spot margin shorting

First, you need to top up the margin wallet from the spot account. Then, in the trading section, select "Margin" and choose the trading pair you want to shorting (e.g., ETHUSDT).

Select the margin type (cross or isolated), focus on the "sell" section. Choose the order type (limit or market), select "borrow", and then specify the selling price and the quantity to borrow. After the order is executed, the platform will credit the borrowed assets to the account and sell them immediately.

####perpetual contract shorting

Shorting in the futures market is more direct than margin trading in the spot market. There is no need to borrow assets or repay loans, as these mechanisms are integrated into the contract itself.

When shorting, simply display the required contracts, select the margin type and leverage, specify the order type, and then click "Open Short." If the market falls and your prediction is correct, wait for the price to reach the target before closing the position.

###04 Shorting Strategies and Risk Management

Successful shorting trades require strict discipline and risk control:

Using a stop-loss order is essential. Opening a shorting position without protection is extremely risky—the Crypto Assets market is highly volatile and trends can reverse quickly.

Avoid using excessive leverage. High leverage means high risk, especially for beginners, so start with the smallest leverage possible.

Control your emotions. Fear and greed are the main enemies in trading. Stay rational and do not shorting based on rumors - verify, analyze, and then decide.

Diversify your investments. Avoid putting all your funds into a single shorting trade; diversification can reduce overall risk.

###Market Trends and Shorting Opportunities on September 22, 2025

According to CoinMarketCap data, on September 22, 2025, the overall cryptocurrency market showed signs of adjustment, with most coins experiencing varying degrees of fall.

The top five coins with the largest fall on the day are:

1. ASTER (Aster): Price $1.37 | fall -14.45% ⚠️
2. MYX (MYX Finance): Price $9.57 | Fall -10.05% ⚠️
3. SPX (SPX6900): Price $1.11 | Fall -9.87% ⚠️
4. PUMP (Pump.fun): Price $0.63 | Fall -9.74% ⚠️
5. AERO (Aerodrome Finance): Price $1.09 | fall -9.65% ⚠️

The fall of these coins is largely related to technical adjustments after significant previous rises, profit-taking, and a shift in market sentiment. For shorters, identifying coins that have previously risen too much and show signs of weakness is key.

At the same time, the market is not without opportunities, the top five coins with the highest daily rise are:

1. DEXE (DeXe): Price $11.16 | Rise +9.38%
2. WLFI (World Liberty Financial): Price $0.23 | Rise +4.21%
3. ATH (Aethir): Price $0.62 | Rise +3.82%
4. IP (Story): Price $13.35 | Rise +3.35%
5. KAIA (Kaia): Price $0.15 | rise +0.76

The rise of strong coins may overshadow the weaknesses of other coins, providing potential opportunities for shorting.

###06 Common Shorting Pitfalls and How to Avoid Them

Many beginners often fall into misconceptions due to insufficient understanding when they first attempt shorting:

Excessive use of high leverage: harboring the illusion of "doubling overnight" and blindly using 10x or 20x leverage, resulting in forced liquidation as soon as the coin price slightly rebounds.

Frequent short-term trading: Entering and exiting the market too frequently can easily erode profits due to fees, and it is also difficult to grasp stable trends.

Ignoring stop-loss settings: Not setting a stop-loss price level can lead to significant losses once the market moves in the opposite direction.

Market judgment error: shorting at the top area, the market may have already completed the falling cycle and entered a range or even a rebound.

To avoid these issues, it is recommended that beginners start practicing with small positions, low leverage, and clear take-profit and stop-loss levels, gradually establishing a trading rhythm and strategy that suits them.

###Future Outlook

Shorting provides a way to profit from market declines, but it requires learning, preparation, and calculation. For beginners, Gate offers a relatively simple entry point, starting with traditional spot trading before attempting margin trading and shorting.

No matter which method you choose, remember: using stop-loss, avoiding high leverage, controlling emotions, and relying on your own research are key. In the highly volatile Crypto Assets market, risk management is always the top priority.

The shorting mechanism in traditional finance has matured, and in the world of Crypto Assets, with exchanges like Gate launching perpetual contracts and leveraged trading, ordinary investors can also conveniently use shorting tools.

###01 When is it suitable to short Crypto Assets?

Shorting is not applicable at all times; it requires an accurate judgment of market trends. The following market conditions are usually suitable for considering shorting operations:

When the market experiences macro negative news, increased regulatory pressure, or major platform crises, coin prices often plummet, making it an important time for shorting.

Technical analysis indicators signal a fall when the coin price breaks through important support levels, when moving averages form a "death cross," or when trading volume continues to shrink, which may indicate the formation of a downward trend.

After the market experiences a rapid rise, a pullback occurs due to profit-taking. For example, on September 22, 2025, ASTER fell 14.45% in a single day after a previous rapid rise, precisely because large holders took profits.

The market or leading coins suddenly turn weak. For example, when Bitcoin or Ethereum shows a fall, it often drags the entire market down.

###02 How to short Crypto Assets? Three methods explained in detail

####contract trading

Open a short position on platforms like Gate that support contract trading, directly shorting the specified coin. By choosing the leverage multiple, you can amplify your profits (while the risks will also increase). For example, using 2x leverage, if the coin price falls by 5%, the actual profit will be 10%.

Gate has recently launched perpetual contracts such as TRADOORUSDT, ASTERUSDT, and STBLUSDT, supporting go long and shorting operations with leverage from 1 to 20 times.

####borrow coin sell (leverage trading)

Borrow a certain Crypto Asset through the platform, sell it immediately on the spot market, and wait for the coin price to fall before buying it back at a lower price to return to the platform. This method is relatively simple to operate, with controllable risks, and is suitable for medium to short-term trading.

For example, if you borrow ETH and sell it at the current price, let's say $1,600. If the price falls to $1,550, buying back ETH at this price to return to the platform, the $50 difference per ETH is the profit (after deducting related fees).

####buy put options

Put options give the holder the right to sell an asset at a set price before a specific date. This is a more advanced shorting method, suitable for investors with some trading experience.

###03 How to perform shorting operations on Gate?

####spot margin shorting

First, you need to top up the margin wallet from the spot account. Then, in the trading section, select "Margin" and choose the trading pair you want to shorting (e.g., ETHUSDT).

Select the margin type (cross or isolated), focus on the "sell" section. Choose the order type (limit or market), select "borrow", and then specify the selling price and the quantity to borrow. After the order is executed, the platform will credit the borrowed assets to the account and sell them immediately.

####perpetual contract shorting

Shorting in the futures market is more direct than spot margin operations. There is no need to borrow assets or repay loans, as these mechanisms are integrated into the contract itself.

When shorting, simply display the required contracts, select the margin type and leverage, specify the order type, and then click "Open Short". If the market falls and the prediction is correct, wait for the price to reach the target and close the position.

###04 Shorting Strategies and Risk Management

Successful shorting trades require strict discipline and risk control:

Using a stop-loss order is essential. Opening a short position without protection is extremely risky— the crypto market is highly volatile and trends can reverse quickly.

Avoid using excessive leverage. High leverage means high risk, especially for beginners, so start with the smallest leverage possible.

Control your emotions. Fear and greed are the main enemies in trading. Stay rational and do not shorting based on rumors - verify, analyze, and then decide.

Diversify your investments. Avoid putting all your funds into a single shorting trade; diversification can reduce overall risk.

###Market Trends and Shorting Opportunities on September 22, 2025

According to CoinMarketCap data, on September 22, 2025, the overall cryptocurrency market showed signs of adjustment, with most coins experiencing varying degrees of fall.

The top five coins with the largest fall on the day are:

1. ASTER (Aster): Price $1.37 | fall -14.45% ⚠️
2. MYX (MYX Finance): Price $9.57 | Fall -10.05% ⚠️
3. SPX (SPX6900): Price $1.11 | Fall -9.87% ⚠️
4. PUMP (Pump.fun): Price $0.63 | Fall -9.74% ⚠️
5. AERO (Aerodrome Finance): Price $1.09 | fall -9.65% ⚠️

The fall of these coins is largely related to technical corrections after significant previous rises, profit-taking, and a shift in market sentiment. For shorters, identifying these coins that have risen too much previously and show signs of weakness is key.

At the same time, the market is not without opportunities, the top five coins with the highest daily rise are:

1. DEXE (DeXe): Price $11.16 | Rise +9.38%
2. WLFI (World Liberty Financial): Price $0.23 | Rise +4.21%
3. ATH (Aethir): Price $0.62 | rise +3.82%
4. IP (Story): Price $13.35 | Rise +3.35%
5. KAIA (Kaia): Price $0.15 | rise +0.76

The rise of strong coins may overshadow the weaknesses of other coins, providing potential opportunities for shorting.

###06 Common Shorting Pitfalls and How to Avoid Them

Many beginners often fall into misconceptions due to insufficient understanding when they first attempt shorting:

Excessive use of high leverage: harboring the illusion of "doubling overnight" and blindly using 10x or 20x leverage, resulting in forced liquidation as soon as the coin price slightly rebounds.

Frequent short-term trading: Entering and exiting the market too frequently can easily erode profits due to fees, and it is also difficult to grasp stable trends.

Ignoring stop-loss settings: Not setting a stop-loss price will result in significant losses if the market moves in the opposite direction.

Market judgment error: shorting at the top area, the market may have already completed the falling cycle and entered a range or even a rebound.

To avoid these issues, it is recommended that beginners start practicing with small positions, low leverage, and clear take-profit and stop-loss levels, gradually establishing a trading rhythm and strategy that suits them.

###Future Outlook

Shorting trades provide a way to profit from market falls, but require learning, preparation, and calculation. For beginners, Gate offers a relatively easy way to get started, beginning with traditional spot trading, and then trying margin trading and shorting operations.

No matter which method you choose, remember: using stop-loss, avoiding high leverage, controlling emotions, and relying on your own research are key. In the highly volatile Crypto Assets market, risk management is always the top priority.