Quick summary: Our recommendation is to use eToro to short Algorand. They have the most popular cryptocurrencies on offer, great support, and have an easy system for shorting cryptocurrencies in general.

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Algorand

While there are a lot of options out there for buying ALGO, shorting is a different story. Luckily for us here in Australia, we do have a few crypto brokers and exchanges that allow for CFDs and shorting.

One of those brokers is eToro, which we’ll be using for this guide. Let’s get started!

How to Short Algorand in Australia

A quick recap first on what shorting actually is: The main objective of shorting or short selling is to make a profit (of course). The idea is to sell a stock/cryptocurrency hoping it will drop in value so you can buy it back later for cheaper, thus creating a net profit.

Shorting Algorand can be done in 4 easy steps:

  1. Choose a crypto broker or exchange
  2. Create an account
  3. Fund your account
  4. Short Algorand

1. Choose a crypto exchange

As mentioned before, for this guide we’ll be using eToro as they offer the ability to short the most common cryptocurrencies.

You can, of course, use any other crypto broker to follow along, they all work very similarly.

2. Create an account on the cryptocurrency trading platform

Let’s start with just signing up with eToro.

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The sign-up process is very quick and easy, as is the verification that needs to be completed afterwards so you can get started.

3. Funding your eToro account

Next is funding your account. You have several options when it comes to depositing AUD into your eToro Account. These include a bank transfer, credit card, debit card, PayPal, and more.

4. Short Algorand

Now for the actual shorting:

  • Starting off at the search bar at the top, find Algorand by entering the name or symbol.
  • Then on the crypto page/section, on the right side, hit the TRADE button to enter the trading interface.
  • At the top of the trading interface: Click on sell to short sell the stock.
  • Enter the amount for which you want to sell Algorand and click on “Open Trade”.

Once you’re ready to close the trade, hopefully when the value of Algorand has dropped, go to your Portfolio, find the Algorand trade, and click on the red cross to close the trade.

If your assumption/prediction was right, then the profit will be added to your account after closing the trade. If you were wrong on the other hand, you’ll incur a loss which will be debited from your eToro account.

Congratulations, now you know how to short Algorand!

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Disclaimer: Trading, investing, and dealing with digital and cryptocurrencies might involve a lot of risks. Their prices are volatile and performance is unpredictable. Their past performance is no guarantee of future performance.

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Where to Short Algorand (ALGO)

Aside from eToro, the other major exchange you can use is Binance.

While Binance tends to be a bit more complex compared to eToro, they do have more cryptocurrencies on offer.

Frequently Asked Questions

Can I short Algorand on Binance?

Yes, you can short Algorand on Binance. They have over 300 cryptocurrencies on offer and specialise in the crypto market. They also have a great app and competitive fees.

About Algorand

Algorand is an autonomous, decentralized, blockchain-based network which supports a wide variety of applications. These systems are reliable, scalable, efficient and secure. This is what you need to be able to use them in the real world. Algorand can support computations that require reliable performance guarantees, in order to establish new forms trust.

Algorand's mainnet went live in June 2019. It was able handle nearly 1 million transactions daily as of December 2020. Here are the Algorand transaction metrics. Algorand’s initial coin offering was (ICO) held June 2019. The Algorand price was $2.4 per token.

Silvio Micali is a professor of computing science at the Massachusetts Institute of Technology. He also founded Algorand. He was the recipient of the Turing Award in 2012 for his fundamental contributions towards the theory, practice, and theory of secure two party computation, electronic money, and blockchain protocols. This makes him one the leading creators and users of crypto worldwide.

Algorand was developed to speed up transactions, and improve efficiency. It was designed to address the slow transaction speeds of Bitcoin and other Blockchains. Algorand's design allows for lower transaction fees as well as no mining (like Bitcoin’s energy-intensive process). It is based on a permissionless, pure proof-ofstake (PoS), Blockchain protocol.

Algorand Foundation announced a $10M grant of Applied Blockchain for the development of the London Bridge. The trustless bridge, which will bring Ethereum compatibility to Algorand's blockchain, was unveiled on February 17, 2022. Algorand is struggling to attract liquidity to the ecosystem despite promises of low cost transactions and low latency. Algorand could connect to Ethereum via a bridge, as it has the strongest DApp ecosystem. This would enable them to attract more liquidity. Algorand Foundation plans to verify other chains using Alogrand's smart contract. They will do this by incorporating state evidences in the form Compact Certificates into their Algorand Consensus. The foundation's goal will be to eventually consolidate the DeFi ecosystem on Algorand.

Algorand's blockchain protocol is permissionless and pure proof of-stake. In contrast to proof-ofwork (PoW), which require that the root block be validated by random-selected validators (using computing resources), the Algorand blockchain is a pure proof of-stake approach. The validators know each other and agree to the next block to create a new one.

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