Quick summary: Our recommendation is to use eToro to short Ethereum Name Service. 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 ENS, 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 Name Service 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 Name Service 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 exchange
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 Ethereum Name Service
Now for the actual shorting:
- Starting off at the search bar at the top, find Ethereum Name Service 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 Name Service and click on “Open Trade”.
Once you’re ready to close the trade, hopefully when the value of Ethereum Name Service has dropped, go to your Portfolio, find the Ethereum Name Service 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 Name Service!
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 Name Service (ENS)
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 Name Service on Binance?
Yes, you can short Ethereum Name Service 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 Name Service
Ethereum Name Service is a distributed and open extensible naming system based upon the Ethereum blockchain. ENS converts human readable Ethereum addresses, such as john.eth, into machine-readable alphanumeric codifications you can access from wallets like Metamask. Reverse conversion is possible, where machine-readable addresses are associated with metadata.
The Ethereum Name Service aims to make Ethereum-based webs easier to understand and access for people. It is similar to how the Internet Domain Name Service makes the web more accessible. ENS, like DNS, uses a system with dot-separated hierarchical domains called domains. Domain owners are fully in control of their subdomains.
ENS launched in November 2021, with a very successful retroactive Airdrop. This rewarded users who had registered addresses prior to the token's launch. It was criticised in February 2022 by its director of operations for apparently homophobic tweets.
Ethereum Name Service offers a unique value proposition because it is the first service to transfer the Domain Name Service from the decentralized Web3.
ENS isn't a company. Instead, it is an open-source project. ENS has no single point of failure due to blockchain technology. It is also more secure and censorship resistant.
ENS aims in addressing this problem. Instead of using inconvenient, machine-readable alphanumeric code codes, users will be able to receive any crypto and NFT through a short, easy-to-remember link. This makes blockchain technology easier to use and simplifies the user experience.
ENS runs on Ethereum. This is secured by a Proof-of-Work consensus mechanism that allows miners to mine new Ether. Decentralized nodes verify transactions and secure the Ethereum blockchain. ENS has no single point failure because of the distributed nature of Ethereum and the over 10,000 nodes that secure the network.
Ethereum Name Service is also partnered with various wallets, such as Trust Wallet (Coinbase Wallet), Trust Wallet (My Crypto) and others.