Quick summary: Our recommendation is to use eToro to short Ethereum Classic. 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 ETC, 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 Ethereum Classic 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 Ethereum Classic can be done in 4 easy steps:
1. Choose a crypto 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, 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 Ethereum Classic
Now for the actual shorting:
- Starting off at the search bar at the top, find Ethereum Classic 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 Ethereum Classic and click on “Open Trade”.
Once you’re ready to close the trade, hopefully when the value of Ethereum Classic has dropped, go to your Portfolio, find the Ethereum Classic 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 Ethereum Classic!
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 Ethereum Classic (ETC)
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 Ethereum Classic on Binance?
Yes, you can short Ethereum Classic 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 Ethereum Classic
Ethereum Classic (ETC), a hardfork of Ethereum, was launched July 2016. It serves the main purpose of a smart contract platform, with the ability support and host decentralized applications (DApps). Its native token is ETC.
Ethereum Classic has been trying to differentiate itself and Ethereum since its inception. The technical roadmaps for the two networks diverge with time.
After a hacking attack that saw 3.6 million ETH stolen, Ethereum Classic set out to restore the integrity and security of the Ethereum blockchain.
Ethereum Classic is, in fact, the legacy blockchain of Ethereum. Its creators are Vitalik Buterin & Gavin Wood, the original Ethereum developers.
In July 2016, Ethereum experienced a hard fork. Participants disagreed on whether to reverse the blockchain and cancel out the impact of a major hack. This resulted in The DAO (a decentralized autonomous organisation (DAO), being affected. It had raised about $150 million through an initial coin offering (ICO), several months before.
Ethereum Classic was created as the network that did not reverse the chain. Developers claim that there is no official team for the project and that the "global development community" is a permissionless "do-ocracy," where everyone can participate.
Ethereum Classic's primary objective is to keep Ethereum blockchain as it was before the DAO hack.
It appealed first to those who didn't agree with Ethereum's response. However, the legacy network now has a larger fan base which includes major investors such as Barry Silbert (CEO of Grayscale investment firm).
ETC is a voluntary organisation and the developers do not plan to make it a commercial entity. Transaction fees for users are the same as Ethereum. Miners get them based on proof-of work (PoW).
Ethereum Classic, unlike Ethereum, has no plans for a proof-of–stake (PoS mining algorithm) conversion. Multiple developers, however, continue to work on future improvements like scaling solutions.