Quick summary: Our recommendation is to use eToro to short REN. 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 REN, 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 REN 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 REN 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 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 REN
Now for the actual shorting:
- Starting off at the search bar at the top, find REN 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 REN and click on “Open Trade”.
Once you’re ready to close the trade, hopefully when the value of REN has dropped, go to your Portfolio, find the REN 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 REN!
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 REN (REN)
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 REN on Binance?
Yes, you can short REN on Binance. They have over 300 cryptocurrencies on offer and specialise in the crypto market. They also have a great app and competitive fees.
Ren Protocol allows users to send tokens across multiple blockchains using a trustless protocol. RenVM, Ren’s core product, is focused upon building an interoperability platform for Decentralized Financing (DeFi).
It was once known as Republic Protocol. A "darkpool" is an exchange in which financial assets first match and then trade on an order books that is private.
REN tokens were initially used to pay transactional fees. However, they were also used by Darknodes as a bond. In 2019, the protocol changed its name and focused on DeFi interoperability. Since then, REN has been primarily used to fund Darknodes. Darknodes operate in the same way as a validator node on a proof-of stake blockchain.
RenVM brings liquidity to the Ethereum network, DeFi sector and other sectors. At the moment, there is a lot bitcoin sitting in users' wallets without earning any returns. RenVM allows users to exchange their bitcoin for an equivalent ERC-20 token.
This ERC-20 token, which represents bitcoin, is known as "renBTC" and can be used to access many DeFi applications that include trading, lending, borrowing, and lending.
The Ren virtual machine RenVM, is what makes up the Ren network. The RenVM, a network of Darknodes computers that act as facilitators in order to facilitate transactions generated by users, is made up of the Ren virtual machine RenVM. Darknodes provide their storage, computing power, and network bandwidth to power the RenVM.
One must own 100,000 REN in collateral to be eligible for Darknode status. Darknode entities are entitled to a percentage of the transaction fees earned during the swap. The fees are paid using the cryptocurrency being traded.
It will cost users money to exchange bitcoin for renBTC. Darknode facilitators will receive a portion. Bitcoin is used to pay the fees.
The Ren protocol does not require users to complete a KYC process in order to swap bitcoin for RenBTC. BitGo (the centralized custodian provider behind Wrapped Bitcoin) requires users to go through KYC if they want to wrap their Bitcoin into WBTC.
BitGo has the private keys to all bitcoin wallets. This automatically makes BitGo a point of failure. REN on the other hand, bitcoin is kept in a distributed network of Darknodes under the Ren protocol. That helps reduce the risk of becoming a central point.
BitGo must be trusted to store bitcoin safely and to honor users' redemption requests. Users do not need to worry about the Ren protocol as there is no authority to stop them from minting and redeeming their bitcoin.