Quick summary: Our recommendation is to use eToro to short Polkadot. They have the most popular cryptocurrencies on offer, great support, and have an easy system for shorting cryptocurrencies in general.

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Polkadot

While there are a lot of options out there for buying DOT, 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 Polkadot 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 Polkadot can be done in 4 easy steps:

  1. Choose a crypto broker or exchange
  2. Create an account
  3. Fund your account
  4. Short Polkadot

1. Choose a cryptocurrency 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.

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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 eToro 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 Polkadot

Now for the actual shorting:

  • Starting off at the search bar at the top, find Polkadot 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 Polkadot and click on “Open Trade”.

Once you’re ready to close the trade, hopefully when the value of Polkadot has dropped, go to your Portfolio, find the Polkadot 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 Polkadot!

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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 Polkadot (DOT)

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 Polkadot on Binance?

Yes, you can short Polkadot 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 Polkadot

Polkadot is an Open-Source sharded multichain Protocol that connects and protects a network, of specialized Blockchains. This allows cross-chain transfer for any type of asset or data, not just tokens. Polkadot is a platform for decentralized internets of blockchains. Also known as Web3.

Polkadot, a layer 0 metaprotocol, is used to describe a format that allows for the creation of a network with layer 1 blockchains called parachains (parallel networks). Polkadot can also be used as a metaprotocol to autonomously and forklessly update its codebase using on-chain governance, according to its token holder community.

Polkadot offers a foundation for a decentralized web that is controlled by its users. This allows the creation and maintenance of new applications, institutions, or services to be simplified.

The Polkadot protocol is able to connect public and privately owned chains, permissionless network oracles and future technology. It allows these independent blockchains (explained further below) to trustlessly share transactions and information through the Polkadot Relay Chain.

Polkadot’s native DOT token serves 3 clear purposes: operations and security, network governance, bonding tokens, and connecting parachains.

Polkadot can process multiple transactions on different chains simultaneously ("parachains"), because it is a sharded multichain system. This parallel processing power enhances scalability.

Substrate framework makes it easy to create custom blockchains. Substrate blockchains also make it easy to connect to Polkadot’s network. The network allows for sharing information and functionality among participants. It is flexible and adaptable. Polkadot is able to be upgraded automatically without the need of a fork, in order to implement new features and remove bugs.

The network features a highly developed user-driven governance system, where token holders can vote on how it is run. Polkadot lets teams customize their own governance system to suit their evolving needs. All roles are performed by validators, nominators, and collators to ensure the security and maintenance of the network and eliminate bad behavior.

Polkadot concluded its first Parachain auctions at the end 2021. Parachain auctions used an unpermissioned candle-auction system. The auction ends at random and the winning bid is the highest.

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