Quick summary: Our recommendation is to use eToro to short Bancor. 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 BNT, 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 Bancor 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 Bancor can be done in 4 easy steps:
1. Choose a cryptocurrency 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 crypto trading platform
Let’s start with just signing up with eToro.
The sign-up process is very quick, 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 Bancor
Now for the actual shorting:
- Starting off at the search bar at the top, find Bancor 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 Bancor and click on “Open Trade”.
Once you’re ready to close the trade, hopefully when the value of Bancor has dropped, go to your Portfolio, find the Bancor 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 Bancor!
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.
Affiliate Disclosure: This site is supported by its users. We may receive commissions for purchases made through the links on our site. This does not impact our reviews, guides or comparisons.
Where to Short Bancor (BNT)
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 Bancor on Binance?
Yes, you can short Bancor on Binance. They have over 300 cryptocurrencies on offer and specialise in the crypto market. They also have a great app and competitive fees.
Bancor is the only Decentralized Staking Protocol that allows you earn money with single-token exposure, and full protection from permanent loss. Bancor, which was launched in 2017, was the first DeFi protocol.
It currently generates millions in deposits each month and offers up 60% APR on tokens such as ETH. Bancor DAO, a decentralized autonomous entity owned by the community, is Bancor.
BNT is the protocol token used by the network. The protocol's token allows traders and investors to contribute liquidity to the pool pools. Anyone can provide liquidity to the pools. If liquidity providers provide liquidity to a pool they can receive fees for trades through that pool. Liquidity providers receive pool tokens, which represent their share of liquidity and fees. They also get Liquidity Mining rewards.
The Bancor Network Token is elastic. It's created and burned tokens by the protocol to maintain trading liquidity in Bancor pool. Protocol-owned trading liquidity generates swap fees from trading volume. As such, the protocol becomes more BNT. The protocol's new balance in BNT is then exchanged for pool tokens, when LPs have staked the equivalent amount. The protocol's swap fees mean that more BNT is eventually burned than it initially supplied. The surplus BNT is then burned in order to offset any permanent loss and reduce the overall supply of BNT.
Bancor is one the longest-running and best audited crypto projects. It has received outstanding ratings from top auditors like Certik and PeckShield. DeFiSafety in 2021 gave Bancor one of its highest safety scores (96%)