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Bitcoin to Paypal - Sell Bitcoins through your PayPal account? Is Shorting Crypto Legal? Yes, shorting Crypto is legal. You can short Crypto using any cryptocurrency exchange/broker available in the US. Yes, you can short in cryptocurrencies markets making profits when the markets are going down. Short selling Bitcoin allows you to benefit from drops in Bitcoin's price. This post explains how to short Bitcoin in 3 different ways.