Cryptocurrency trading has become increasingly accessible, and platforms like Binance have empowered global investors to trade digital assets with ease. This comprehensive guide walks you through the essentials of using Binance — from buying crypto with TWD to leveraging USDT perpetual contracts to short Bitcoin (BTC) and other major cryptocurrencies like Ethereum (ETH), Litecoin (LTC), and Ripple (XRP).
Whether you're new to crypto or looking to refine your trading strategy, this article covers everything you need to know about spot trading, leveraged positions, risk management, and more — all while focusing on real-world usability and safety.
Why Binance Is the World’s Leading Crypto Exchange
Founded in 2017, Binance has rapidly grown into the largest cryptocurrency exchange by trading volume, serving over 90 million registered users and processing over $76 billion in 24-hour volume. It stands out for its:
- Wide range of tradable assets (600+ cryptocurrencies)
- Low trading fees with discounts for BNB holders
- High liquidity across markets
- Strong security protocols including two-factor authentication (2FA)
- Dedicated multilingual customer support
Binance supports fiat on-ramps for multiple currencies, including TWD (New Taiwan Dollar), making it highly accessible for users in Taiwan and beyond. You can deposit funds via credit card, bank transfer, or peer-to-peer (P2P) C2C trading.
💡 Regulatory compliance: Binance operates regulated subsidiaries in Singapore, Dubai, Malta, South Korea, and the U.S., ensuring adherence to local financial laws.
👉 Start trading securely on a trusted global platform today.
How to Buy Cryptocurrency with TWD on Binance
Before entering leveraged trades, you’ll need to fund your account. Here are two reliable ways to buy crypto using TWD:
1. Credit Card Purchase
You can instantly buy BTC, USDT, ETH, and several other coins using Visa or MasterCard. The maximum single transaction is approximately NT$16,000, though some banks (e.g., Citibank) may block such transactions due to policy restrictions.
Steps:
- Log in to Binance.com/tw
- Click “Buy Crypto” > “Credit/Debit Card”
- Select TWD as your currency and choose USDT or BTC
- Enter amount and complete verification
This method is fast but includes processing fees.
2. P2P (C2C) Trading
For larger amounts or lower fees, use Binance’s C2C marketplace. Here, individual sellers accept payments via LINE Pay, Jko Pay, or local bank transfers in exchange for USDT or BTC.
Advantages:
- No credit card fees
- Higher transaction limits
- Flexible payment methods
After purchase, funds are held in escrow until confirmation — enhancing security.
👉 Discover how easy it is to start earning from market movements — even when prices fall.
Understanding Short Selling in Crypto Markets
Shorting, or short selling, means betting that an asset’s price will drop. Instead of buying first (going "long"), you sell first and aim to buy back later at a lower price.
In traditional finance, this involves borrowing shares. In crypto, exchanges like Binance allow you to open leveraged short positions without owning the underlying asset — thanks to perpetual futures contracts.
For example:
- Bitcoin is trading at $60,000
- You open a short position predicting it will fall
- Price drops to $55,000 — you close the trade and profit $5,000 per BTC (minus fees)
This strategy is especially valuable during bear markets or corrections.
What Is a USDT-Margined Perpetual Contract?
A USDT-margined perpetual contract lets you trade crypto derivatives priced and settled in Tether (USDT) — a stablecoin pegged 1:1 to the U.S. dollar.
Key Advantages:
- No need to own BTC to short it
- Profits and losses calculated in stable USDT
- Avoid holding volatile assets during downturns
- Up to 125x leverage available
- No expiry date (unlike quarterly futures)
Compared to coin-margined contracts (which require holding BTC as collateral), USDT contracts offer greater flexibility and reduce exposure to asset depreciation.
Step-by-Step: How to Short Bitcoin on Binance Using USDT Contracts
Follow these steps carefully to execute a short trade:
Step 1: Access the Futures Trading Interface
- Log in to your Binance account
- Go to “Derivatives” > “USDT-Margined Contracts”
Ensure your identity verification (KYC) is complete.
Step 2: Transfer Funds
Move USDT from your spot wallet to your futures wallet:
- Navigate to Wallet > Transfer > Between Accounts
- Select “Spot” → “USDT-Margin Futures”
Only transferred funds can be used for contract trading.
Step 3: Choose the BTC/USDT Perpetual Pair
Search for “BTC/USDT” and select the perpetual contract (not quarterly). This allows indefinite holding without settlement concerns.
Step 4: Open a Short Position
- Set leverage (recommended: ≤20x for beginners)
Choose order type:
- Limit Order: Sell at a specific price
- Market Order: Instant execution at current price
- Click “Sell” (this opens a short position)
Example: Selling 1 BTC at $60,000 expecting a decline.
Step 5: Monitor Your Position
Key metrics in your position panel include:
- Entry Price: Your opening level
- Leverage: Amplifies gains and losses
- Margin Ratio: Lower = safer; reaches 100% at liquidation
- Liquidation Price: If reached, your position closes automatically
- Unrealized PnL: Live profit/loss estimate
Keep an eye on funding rates — paid every 8 hours depending on market sentiment.
Step 6: Set Take-Profit & Stop-Loss Orders
Protect your capital:
- Take-Profit: Automatically closes the trade when desired profit is reached
- Stop-Loss: Limits losses if price reverses unexpectedly
For shorts, set stop-loss above entry price (e.g., +5%) to guard against bullish news spikes.
Click the settings icon next to your position to configure these orders.
Frequently Asked Questions (FAQs)
Q: Can I short Bitcoin without using leverage?
A: Yes, but profits are smaller. Leverage amplifies returns — and risks. Start with 5x–10x if you're new.
Q: What happens if my position gets liquidated?
A: When your margin ratio hits 100%, Binance auto-closes the trade to prevent negative balances. You lose only the margin used.
Q: Is shorting legal and safe on Binance?
A: Yes. Binance is a regulated platform offering secure contract trading. However, high volatility means high risk — never invest more than you can afford to lose.
Q: Can I short other cryptocurrencies besides Bitcoin?
A: Absolutely. Binance supports USDT-margined shorts on ETH, LTC, XRP, BNB, DOT, and dozens more.
Q: Are there overnight fees for holding short positions?
A: Yes. Funding fees are exchanged every 8 hours between longs and shorts. Sometimes you earn them; sometimes you pay — depends on market bias.
Q: How do I withdraw profits from futures trading?
A: Transfer funds back from “Futures Wallet” to “Spot Wallet,” then withdraw via P2P or crypto transfer.
Final Tips for Safe & Profitable Trading
- Always use stop-loss orders
- Avoid max leverage (125x); start small
- Diversify across multiple assets
- Stay updated on macroeconomic news affecting crypto
- Use technical analysis tools (RSI, MACD, support/resistance levels)
Remember: While shorting offers profit potential in falling markets, crypto’s extreme volatility demands caution. Only trade with risk capital.
👉 Maximize your opportunities in both rising and falling markets with advanced trading tools.
Conclusion
Binance provides one of the most powerful environments for crypto trading — supporting everything from simple spot purchases with TWD to sophisticated leveraged shorts via USDT perpetual contracts. By understanding how margin trading works and applying sound risk management practices, traders can capitalize on downward price movements just as effectively as upward ones.
Whether you're hedging existing holdings or speculating on market trends, mastering the art of short selling unlocks new dimensions in your investment strategy.
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