Quick summary: Our recommendation is to use eToro to short Cardano. 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 ADA, 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 Cardano 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 Cardano can be done in 4 easy steps:
1. Choose a cryptocurrency trading platform
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 easy and 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 Cardano
Now for the actual shorting:
- Starting off at the search bar at the top, find Cardano 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 Cardano and click on “Open Trade”.
Once you’re ready to close the trade, hopefully when the value of Cardano has dropped, go to your Portfolio, find the Cardano 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 Cardano!
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 Cardano (ADA)
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 Cardano on Binance?
Yes, you can short Cardano on Binance. They have over 300 cryptocurrencies on offer and specialise in the crypto market. They also have a great app and competitive fees.
Cardano is also the first protocol that incorporates Ouroboros' groundbreaking proof of stake algorithm. Cardano was created by the IOHK team through a "first principles" approach. It was based on peer reviewed academic research.
This collaboration resulted in the first cryptocurrency based on Haskell code. It is an industrial strength product that provides the resilience needed for mission-critical system, such as securing investment.
Cardano's multilayer protocol has advanced functions and a settlement layer that can be elegantly linked to the control layer. The unit of account will be assigned to the settlement layer, while smart contracts will be used by the control layer. Smart contracts will allow for identity recognition, which will assist in compliance (and blacklisting).
The protocol is intended to protect privacy rights and take into consideration the needs of regulators. Cardano is the pioneering protocol for cryptocurrency that balances these needs in a nuanced, effective manner.
It is also designed to allow upgrades through soft forks. This allows the system to be flexible to meet changing needs and to evolve rapidly when necessary. To ensure sustainability, a treasury is being installed.
Cardano is open-source and patent free. Cardano's ecosystem is optimized for efficiency, scalability and will grow to be the largest cryptocurrency ever built.
Bitcoin was originally created as a way for individuals and businesses to transact anonymously without being under the control of governments and banks. While this provides privacy for financial transactions, which is a fundamental right of every individual, full anonymity could be detrimental. Today, most blockchain projects aim to either promote privacy or regulation. We believe that our blockchain must "square the circle" by ensuring the right combination of privacy protection and regulation control to be globally effective.
Every blockchain project is equipped with a token that has value, also known as a cryptocurrency. Ada is the Cardano blockchain's cryptocurrency. Ada can be used to send money between friends, buy goods or services, deposit funds on an Exchange, or make an application. Ada is required for settlement layer transfers. You can either acquire Ada from an exchange or own it. It will also serve as the native token for applications that are built on the computation layer.