Quick summary: Our recommendation is to use eToro to short Avalanche. They have the most popular cryptocurrencies on offer, great support, and have an easy system for shorting cryptocurrencies in general.
While there are a lot of options out there for buying AVAX, 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 Avalanche 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 Avalanche can be done in 4 easy steps:
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 exchange
Let’s start with just signing up with eToro.
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 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 Avalanche
Now for the actual shorting:
- Starting off at the search bar at the top, find Avalanche 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 Avalanche and click on “Open Trade”.
Once you’re ready to close the trade, hopefully when the value of Avalanche has dropped, go to your Portfolio, find the Avalanche 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 Avalanche!
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 Avalanche (AVAX)
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 Avalanche on Binance?
Yes, you can short Avalanche on Binance. They have over 300 cryptocurrencies on offer and specialise in the crypto market. They also have a great app and competitive fees.
Ava Labs created the Avalanche Blockchain to solve common blockchain issues such as congestion and high fees. This platform uses three blockchains rather than the traditional one. Each blockchain was specifically designed to accomplish vital tasks within Avalanche's ecosystem. It is not possible to rely on just one of them to complete them all.
Avalanche is able to accomplish three essential elements of an efficient and strong blockchain: security, decentralization and scalability by splitting these tasks up among the three.
Avalanche's unique structure is what gives this platform its many benefits. The three-blockchain solution addresses common problems with blockchains.
Interoperability means the ability to trade and interact using other cryptocurrency forms and data from different platforms. Avalanche's blockchain is a common platform that allows for the creation and sharing of different subnets. This makes it highly interoperable. This structure allows multiple blockchains to communicate with one another, share data, and enable them to interoperate.
This is possible only on a few blockchains. This is possible only with third-party tokens. It's not possible to get consistent throughput without time compromises. Avalanche's interoperable nature makes it possible to improve its decentralized finance environment (DeFi).
Interoperability gives you another advantage: Scalability. Most other blockchains are not scaleable, and many of the ones that are do not have scaling functionality. It is an issue that has been well documented for older blockchain models.
As an example, take Bitcoin (BTC). To complete each transaction, you need enormous amounts of energy and computing resources. Ethereum is a slower platform, processing only 15 transactions per second. These limitations make scaling blockchains difficult.
Avalanche was designed to address this issue and has more validators than any other network. It also boasts speeds of up to 4,500 transactions per minute (TPS). Avalanche's blockchains can be scaled infinitely, thanks to this. This is possible because of its three-blockchain system, interoperability with multiple Blockchains, and decentralization.
Newer developers and users are concerned about usability. It is important to know how easy it is for them to implement the system in different applications. Avalanche has been proven to be very user-friendly, both for casual traders and dApp developers.
Avalanche's system for blockchain allows any user or organization to deploy their L1 or L2 blockchains. They can create them for private (permissioned) or public (permissionless) use-cases. It is combined with a powerful proof-of stake consensus mechanism, which creates a stable, distributed, and powerful platform that any developer can use to build upon.
The thriving ecosystem that supports it is proof of its viability -- many products have already been developed on the blockchain, including Pangolin, Prosper and Securitize. There are also hundreds of projects planned for the coming year. Each of these dApps is able to run on its own independent blockchain, hosted on Avalanche. This gives developers complete control over how their dApps function and are secured.