Quick summary: Our recommendation is to use eToro to short Filecoin. 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 FIL, 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 Filecoin 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 Filecoin can be done in 4 easy steps:
1. Choose a crypto 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 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 Filecoin
Now for the actual shorting:
- Starting off at the search bar at the top, find Filecoin 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 Filecoin and click on “Open Trade”.
Once you’re ready to close the trade, hopefully when the value of Filecoin has dropped, go to your Portfolio, find the Filecoin 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 Filecoin!
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 Filecoin (FIL)
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 Filecoin on Binance?
Yes, you can short Filecoin on Binance. They have over 300 cryptocurrencies on offer and specialise in the crypto market. They also have a great app and competitive fees.
Filecoin, a decentralized storage network, is built on the Interplanetary File Storage Protocol (IPFS). It is intended to convert unused storage across the globe into an efficient storage marketplace for users who want to pay low cost storage. Its goal is to ensure file storage that is both permanent and distributed across all web sites. Contrast this with centralized cloud storage solutions like Amazon Web Services, Google Cloud or Dropbox. These private companies store data on their servers.
Filecoin (FIL) or simply Filecoin is the currency for the decentralized storage network. Filecoin is the currency that customers will use to access storage. Filecoin will pay nodes that provide storage services to the network.
IPFS stands as Interplanetary File Storage. Protocol Labs has developed a peer to peer storage and file system protocol. Once a file has been uploaded to the IPFS network it is given a unique signature. Multiple nodes may host a part or all of the file. Anyone with access to the address can request these files via the unique signature. Any nodes can store copies of the file. This gives the file resilience and its availability on the internet. Many people consider IPFS to be equally important than Bram Cohen's Bittorrent Protocol.
The Filecoin initial coin offer (ICO) price began at $1 and was increased by $1 each $40 million raised. A cap of $6 per token is reached. The ICO took effect on August 10th 2017, and the Filecoin Team have raised over $200,000,000 in funding.
Juan Benet started Filecoin in Protocol Labs.
Filecoin is not a blockchain network. It is specialized in network storage.