Exploring 5 Ways to Short XRP—and What You Need to Know First

Jakarta, Pintu News – Want to profit when the price of XRP (XRP) drops? Shorting could be just the strategy you need. Shorting, or selling an asset at a high price with the hope of buying it back at a lower price, is a popular way for traders to profit in volatile crypto markets.

However, this strategy is also high-risk and requires a great deal of understanding. In this article, we’ll discuss 5 ways to short XRP that you can learn, along with the important things you should know before trying it.

Choose a platform that provides short features, such as Pintu Futures

The first step to shorting XRP is to choose a platform that supports short-selling through derivative contracts. Not all exchanges provide this facility, especially for highly volatile assets like XRP. Therefore, it is important for traders to choose a platform with sufficient liquidity and a reliable risk management system.

Read also: Crypto Investing for Beginners in 2026: Tips and Tricks!

One of the platforms available in Indonesia is Pintu Futures, which allows users to open long or short positions on various crypto assets, including XRP.

Through futures contracts, traders can speculate on a decline in the price of XRP without actually owning the asset directly. This is an ideal solution for those looking to capitalize on opportunities from downward price movements.

Understanding the Basics of Crypto Shorting

Before going further into the shorting strategy in crypto, it is important to first understand what “shorting” an asset means. Shorting-or short selling-isa trading strategy used when an investor expects the price of an asset to fall.

Unlike the long strategy (buying an asset and selling it later when the price rises), shorting involves borrowing an asset to sell at the current market price, with the hope of buying it back at a lower price. It is this price difference that is a potential profit for the trader.

In general, the process of shorting cryptocurrencies involves the following steps:

• Borrowing Assets: Traders borrow a certain amount of cryptocurrency from a loan provider or exchange, usually charged a certain fee for this facility.
• Selling Assets: Borrowed cryptocurrencies are instantly sold on the market at the current price.
• Waiting for a Price Drop: Traders wait for the price of the cryptocurrency to drop, ideally well below the price at the time of the first sale.
• Buying Back the Asset: Once the price drops as expected, the trader buys back the asset from the market.
• Returning Borrowed Assets: The trader then returns the borrowed cryptocurrency to the lender or exchange, closing the short position.
• Determining Profit or Loss: Profit or loss is calculated as the difference between the initial selling price and the repurchase price, minus any costs that may be incurred during the shorting process.

This strategy offers profit opportunities when the market is down, but it also carries a high risk, especially in the highly volatile crypto market.

Understand and Manage Risk Well

Short-selling XRP carries different risks compared to buying the asset outright. When buying, the maximum loss that can occur is only the amount of your initial capital. However, when going short, the potential loss can be unlimited if the price of XRP continues to move up.

To mitigate the risks when shorting XRP, there are some risk management measures that need to be implemented:

• Limit the use of leverage to keep risk exposure under control
• Use the stop-loss feature to limit potential losses
• Adjust position size to your risk tolerance level
• Monitor market conditions regularly and consistently
• Apply trailing stops to secure profits already made
• Diversify trading positions to reduce centralized risk

While these measures can help manage risk, it’s important to remember that risk cannot be completely eliminated-especially in the crypto market which is known to be highly volatile.

Use Leverage Wisely

Leverage is a facility that allows traders to gain a much larger market exposure compared to the amount of funds a trader deposits to open a position.

Leverage works by using collateral funds, called margin, to give you access to the full value of the asset being traded. You only need to deposit a fraction of the total value of the position, while the rest is lent by the platform provider.

Read also: 5 Ways to Short Memecoins, Here’s What You Need to Know!

The ratio between your total exposure and your deposited margin is called the leverage ratio. This ratio can vary depending on the type of instrument being traded and the risk profile of each trader. Therefore, it is important to use leverage wisely, because while it can magnify potential profits, it can also magnify potential losses.

Portfolio Diversification

One of the most important tips in crypto investing is to diversify your portfolio. Diversification is not a new concept in the investment world-it’s a basic principle of managing money wisely. Its purpose is to protect your portfolio from market uncertainties and is an important part of your risk management strategy.

Simply investing in XRP may not be enough if you want to take full advantage of the innovations in the crypto market. By spreading your investments across other digital assets, you have the opportunity to capitalize on the growth of different sectors within the crypto ecosystem.

A diversification strategy can also help you achieve your long-term investment goals. Besides potentially reducing the risk of large losses, diversification gives you exposure to more crypto assets.

On average, diversified portfolios tend to have lower volatility and more stable returns than portfolios containing only 1 crypto asset.

So, how can you diversify your crypto portfolio? You can consider other assets such as tokens of solid blockchain projects, stocks of technology companies involved in crypto, and crypto ETFs. However, keep in mind that all forms of investment come with their own risks, including stocks and other derivatives.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Coinmetro. Shorting Cryptocurrencies: An Insider’s Guide to Profit & Risk. Accessed on January 23, 2026
• Dragon. Crypto Tips. Accessed on January 23, 2026