Quick summary: Our recommendation is to use eToro to short Loopring. 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 LRC, 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 Loopring 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 Loopring 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 cryptocurrency exchange
Let’s start with just signing up with eToro.
The sign-up process is very quick and 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 Loopring
Now for the actual shorting:
- Starting off at the search bar at the top, find Loopring 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 Loopring and click on “Open Trade”.
Once you’re ready to close the trade, hopefully when the value of Loopring has dropped, go to your Portfolio, find the Loopring 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 Loopring!
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.
Where to Short Loopring (LRC)
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 Loopring on Binance?
Yes, you can short Loopring on Binance. They have over 300 cryptocurrencies on offer and specialise in the crypto market. They also have a great app and competitive fees.
Loopring (Decentralized Exchange) is built on the Ethereum Layer-2 solution called zkRollup. It offers both an orderbook-based as well as automated market maker (AMM)-based exchanges.
zkRollup is an Ethereum-based L2 scaling solution that moves computations off of the blockchain. Loopring protocol only uses Ethereum's underlying blockchain as a verification layer and data layer. Loopring's transaction throughput can reach 2,025 transactions per sec, which is more than the 15 transactions per sec Ethereum currently has. As a result, the cost per trade settlement for Loopring is only $0.00015
Loopring's performance allows professional traders and market makers the ability to use algorithmic strategies and other automated bots. This was previously impossible on any DEX, as it was slow and expensive. Loopring 3.0 allows orderbook-based DEXs to be commercially viable. Loopring anticipates that non-custodial DEXs will begin to compete and displace many centralized counterparts.
Loopring DEX can't be used in conjunction with other L1 and L2 apps that aren't built on zkRollup. Before trading, users must deposit their assets to L2 chains. Users who wish to use other Ethereum apps will need to withdraw from L2 chain back into the Ethereum main chain. This will result in significant gas charges. Loopring DEX is still struggling to gain traction due to these limitations.