Quick summary: Our recommendation is to use eToro to short Chainlink. 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 LINK, 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!
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 Chainlink 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 cryptocurrency exchange
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 Chainlink
Now for the actual shorting:
- Starting off at the search bar at the top, find Chainlink 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 Chainlink and click on “Open Trade”.
Once you’re ready to close the trade, hopefully when the value of Chainlink has dropped, go to your Portfolio, find the Chainlink 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 Chainlink!
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.
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 Chainlink on Binance?
Yes, you can short Chainlink on Binance. They have over 300 cryptocurrencies on offer and specialise in the crypto market. They also have a great app and competitive fees.
Chainlink is a framework that allows you to create Decentralized Oracle Networks. DONs bring real-world data onto blockchain networks. This allows you to create hybrid smart contracts. These DONs allow for decentralized services like price feeds, proof of reserve, verifiable randomness, keepers, and the possibility to connect to any API.
Its purpose is to ensure that external information (pricing and weather data, event outcomes, etc.), are not lost. as well as off-chain computations such that they are random, automated, fair, and fair. These smart contracts can be fed to on-chain smart devices and are reliable and tamperproof.
Chainlink Oracle Networks are blockchain-agnostic. The native LINK token is used to incentivize node payments and collateral.
Chainlink is an open source protocol that Chainlink Labs (formerly Smart Contract Ltd.) developed. It was created in 2014 by Sergey Nazarov, Steve Ellis and others.
The Chainlink Network launched on Ethereum Mainnet on June 1st 2019, and has since grown to support additional blockchains as well as layer 2 networks such a Polygon network, BSC, Avalanche and Arbitrum.
Before we can dive into the Chainlink Network's functions, it is important to understand the basics behind smart contracts as well as how oracles work.
Smart contracts can be described as programmatic code that executes a specific action based on an event. They are implemented in a blockchain network. Because of the security model behind blockchain networks smart contracts are not able to connect to external systems and can be isolated from the outside world.
An additional piece of infrastructure is needed to solve this problem. This "oracle" relays data from the real-world onto blockchain networks where it can then be used by smart contracts.
Chainlink Network solves this issue by establishing Decentralized Oracle Networks, (DONs), which are a group of independent operators that fetch, validate, validate and deliver real-world data. Each oracle Node can provide different decentralized services to smart contracts.
Smart contract applications needing access to real-world data or off-chain computations can use the Chainlink Network. Data providers also make use of the network to monetize data by selling APIs to smart-contract applications.
Decentralized Finance protocols, which require financial market information, are the most popular use cases. The Chainlink Network has a number of on-chain data sources that can be used for securing tens to billions of dollar. Aave and Synthetix are some examples of integrated applications.