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Volatility and price changes are two things crypto traders bank on when it comes to gaining profit in the crypto space. However, success in trading requires careful technical and price analysis. With technical analysis, a trader can predict the rise or fall of a crypto asset and trade them. Shorting is a form of trading where a trader profits from the fall of a crypto asset's price. In other words, shorting means selling an asset at a high price with speculation that the price will go lower, then buying the asset back at that lower price. Shorting a crypto asset like Dogecoin is a highly profitable trading style, especially since the price of a cryptocurrency will not always go up. Therefore, it allows traders to profit off 'what goes up must come down.' Apart from this, Dogecoin has great price swings that have profited traders over the years. Shorting an asset is possible on several Centralized Exchanges and crypto brokerage platforms. For this guide, we'll be shorting Dogecoin on the Binance exchange. You can short Dogecoin on Binance via futures trading or Margin trading. Steps to Short Dogecoin on Binance via Futures Trading The easiest way to short an asset on Binance is via futures trading. Futures trading on Binance allows traders to have access to a wide range of trading and analytical tools to execute trade swiftly. To short Dogecoin on Binance with futures trading, all you have to do is fund your Futures wallet with USDT and execute your short order. Here's how to short Dogecoin on Binance Log in to your Binance Account Fund your account with USDT Transfer USDT to Futures wallet Open Futures account Open a position to ‘sell’ the amount of Dogecoin you want to short 1. Log in to your Binance Account Go to Binance.com on your web browser. If you have a Binance account, simply access your account by tapping the LOG IN button on the top right corner of the homepage. Alternatively, you can download the Binance app from your mobile app store for Android or iOS devices. Input your email and login password and complete CAPTCHA verification. Continue by completing 2FA verifications. However, if you're a new user, you need to register a new account with the Binance exchange. To do this, tap GET STARTED on the homepage. You can sign up with your email address or phone number. On the sign-up page, provide one of them and choose a strong password. Verify your sign-up details by providing the verification code sent to your inbox. Once you're done, log in to your account with your details and complete 2FA verification. After gaining access to your Binance account, you can increase your account limits and gain access to full features by completing the KYC process. For the KYC process, you must provide your full details and submit government-issued documents to verify them. To verify your account, tap your profile icon on the top right corner of your Binance app. Click on the UNVERIFIED badge in front of your Binance Account info. This should refer you to a verification page on your web browser. Here, complete your personal details and submit your identity document. Snap a selfie to verify that the picture on the ID document is yours. 2. Fund your account with USDT After setting up a new account, fund your Binance with USDT. Dogecoin is available as DOGE/USDT on Binance Futures Trading. You can skip this step if you already have USDT in your wallet. To buy USDT, switch to Binance LITE by tapping on your profile icon and toggling the Binance Lite button. On Binance Lite, click the Exchange button represented by two arrows in the middle part of the lower navigation bar. Click BUY and choose USDT from the crypto list. Input the amount of USDT you want to buy and tap BUY. On the payment interface, choose a payment method and click CONFIRM. Supply payment details and confirm the transaction. Once the transaction has been approved, USDT tokens will reflect in Spot Wallet. You can check it by clicking the Wallet icon in the lower right part of the home screen. 3. Transfer USDT to Futures wallet Any asset you want to trade in Futures Trading must be in your Futures wallet. However, since the USDT you bought is automatically stored in the Spot wallet, you need to move the asset to the Futures wallet. To move your USDT to Futures wallet, toggle the Binance Lite button in the Profile menu to switch to Binance Pro. On Binance Pro, click WALLETS from the lower navigation bar. In your wallet overview, you will see every asset available in each of your wallets. Under WALLETS, go to SPOTS > Transfer to transfer your assets. On the asset transfer page, choose Spot in the first field and USD-M FUTURES in the second field. Select USDT as the asset you want to transfer and input the amount of USDT you want to transfer. Finally, tap CONFIRM TRANSFER. Your asset should be in FUTURES WALLET by now. You can check at Wallets > Futures. 4. Open Futures account Once you've funded your Futures Wallet, it's time to open a Future account on Binance and short Dogecoin. Go to Futures in the lower navigation bar. To start trading Futures, you need to watch the video tutorial and complete Futures Quiz. After completing the Quiz, change your trading pair to DOGE/USDT from the asset menu. Search for the pair and select it from the results. 5. Open a position to ‘sell’ the amount of Dogecoin you want to short Before you execute a short position, ensure you set up the necessary features. On the top part of the trading interface, you can choose to trade in Cross or Isolated mode. When you trade in Cross mode, all positions you open under a cryptocurrency will be merged. Therefore, if there is liquidation, all the positions or orders will be canceled out. However, in Isolated mode, orders for the same assets are opened independently without merging. Liquidation also affects the positions independently. Also, set your trading leverage. Leverage helps you maximize profit. However, ensure you don't overleverage so you won't risk asset liquidation. To short Dogecoin, switch to SELL. Change your order type from LIMIT to Market. Finally, input the amount of DOGE you want to short. The final cost of your order will be estimated just above the SELL button. Once you're satisfied with everything, tap SELL. For good risk management, you should put stop loss and take profit limits in place. Stop Loss allows you to get out of the market in case the price is going in the opposite direction. It is used to minimize loss and, at worst, asset liquidation. Take Profit is used to get out of the market once the price reaches a favorable point. It allows traders to take their profit and close position without actively staying on the market. Steps to Short Dogecoin on Binance with Margin trading In Margin trading, traders can profit off-price differences even if they don't have money to buy the asset. All they need to do is borrow the coin, trade with it, repay their debt from the proceedings and keep the profit. However, like futures trading, margin trading is a high-risk and high-reward investment. Meanwhile, sound technical analysis is important. To short Ethereum on Binance Margin, you need to activate your Binance Margin account, then provide collateral in USDT. Your collateral will determine the amount of ETH you can borrow. After borrowing, short ETH on Binance Margin. Once you realize profit from the trade, repay the ETH you borrowed and get your USDT collateral back. Here's how to Short Dogecoin on Binance via Margin trading. Activate Margin Account Set up your Margin trading account Provide collateral Borrow Dogecoin Execute your short order Repay the asset you borrowed 1. Activate Margin Account Log in to your Binance app and fund your account with USDT, following the steps used in Futures Trading. After funding your wallet, go to Trade and switch to Margin from the trading menu. Once you're in Margin, you must activate your Margin trading account by watching a video tutorial and completing Margin Quiz. Once you're done with the Quiz, your Margin trading account will be activated, and you cab start shorting Dogecoin. 2. Set up your Margin trading account After activating your Margin account, you need to set up an account for trading Dogecoin. Under Trade > Margin, select DOGE/USDT from the trading pair list. Once you've picked a trading pair, you can go ahead with the presets. From your trading interface, select Cross or Isolated Margin mode. For Cross Margin, only one margin is shared across a trading pair. Therefore, other margins are added up to an existing position for a pair. On the other hand, each margin in the Isolated Margin is independent of other margins. 3. Provide Collateral An important step in Margin trading is providing collateral. Since you're borrowing an asset for trading, you must provide collateral by transferring USDT to your Margin Account. You can fund your account with USDT by following the steps in Futures Trading. To provide collateral, click the ellipsis on the upper part of the Margin trading interface. Then choose Transfer from the option. On the transfer page, select Spot trading in the first field and the type of Margin (Cross or Isolated) you want to trade in the second one. Input the amount of Dogecoin you want to transfer and tap CONFIRM TRANSFER. 4. Borrow Dogecoin Once you've added collateral to your Margin Account, you can now borrow and short Dogecoin. The amount of DOGE you can borrow on Binance depends on the volume of the collateral you provided and your borrowing limit. The borrowing limit depends on traders' VIP level in Margin trading. Go back to Trade > Margin. Select Cross or Isolated mode and click BORROW. Check and approve the Terms and Conditions of the process. Input the amount of DOGE you want to borrow and tap CONFIRM BORROW. 5. Execute your short order Shorting Dogecoin with Margin trading is simple. You're selling high, buying back at a lower price, and keeping the profit. In the Margin trading interface, switch to SELL. Input the target entry price and enter the amount of DOGE you want to short. Once the price hits the entry, your order will be approved. 6. Repay the asset you borrowed After executing and profiting off the short trade, you must repay the debt so that you can retrieve your collateral and keep the profit. To repay assets on Margin trading, go back to Trade > Margin. On the trading interface, click the ellipsis and select REPAY from the options. You can now buy the asset back at a lower price and keep the profit. Conclusion Shorting with futures trade or even margin trading can be very risky. Therefore, adequate knowledge of price analysis is important. A good tip for succeeding in this trading strategy is cutting your coat according to your size. Ensure you're not risking more than you can lose. Leverage is another way of maximizing your profit. It is also a quick way to liquidate your asset. Using leverage is generally a subjective decision. However, it is advisable to use low to average leverage on an asset. The bottom line is that crypto trading is usually risky. For one, its volatility can be dangerous for assets. Also, it is impossible to predict future market value or price movements. Therefore, it is important to do research and have adequate risk management and a proper trading plan in place to trade assets in futures or margins. How To Mine Dogecoin on iPhone? How to Stake Babydoge? (Step By Step Guide)

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