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

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Ripple

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

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

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 trading platform

Let’s start with just signing up with eToro.

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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 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 Ripple

Now for the actual shorting:

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

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

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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.

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 Ripple (XRP)

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 Ripple on Binance?

Yes, you can short Ripple 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 Ripple

Ripple is a private fintech company. It offers a global payment system via RippleNet (also known by RippleNet). RippleNet's payment network is built on Ripple’s consensus ledger, XRP Ledger (also referred to as XRPL). Ripple funded the creation of the open source XRP Ledger.

Ripple, unlike most cryptocurrency, caters to peer-to–peer needs. It was created to connect banks and payment providers to enable real-time settlement expeditions.

Ripple has created the open-source distributed ledger XRP Ledger. XRP is the native cryptocurrency for the XRP Ledger.

XRP transactions are processed through a network consisting of trusted validators on XRP Ledger, as opposed to Bitcoin (BTC), whose transactions are processed using a distributed blockchain whose transactions and security are secured by proof-of work mining.

Ripple transactions are publically recorded on its open-source distributed consensus leadger. This data structure is similar to a blockchain. Each data block in a subsequent data block includes the hash for the previous block. But, it has a different consensus mechanism than Ethereum and Bitcoin. It does not rely upon Proof of Work (PoW). Therefore, there is no mining associated with XRP.

Instead, XRP uses a consensus algorithm known the Ripple protocol Consensus Algorithm. Trusted nodes ensure the integrity of XRPL. For transactions to be accepted by the XRP Ledger, a supermajority must agree on all transactions.

XRPL employs a different set rules known as the Ripple Consensus Protocol Agorithm (RCPA). The RCPA outlines how XRPL can be managed by a network independently operated Ripple validator notdes. Each Ripple transaction must have at least 80% approval from the network.

Anyone can become validator. Ripple however, has a list of validators that can always be trusted. This trusted node list is known as the Unique Node List.

Alice can send 1000 Japanese Yen from Alice to Bob in India if she wants. The JPY can be converted to XRP once it is validated by the network servers. Bob could withdraw the Indian Rupee money once it was validated. Remittances can be made in a matter of seconds.

Ryan Fugger developed RipplePay in 2004, and Ripple was founded for the first time in 2004. Fugger passed it to Jed McCaleb (now Chris Larsen) in 2012 and they co-founded OpenCoin. OpenCoin changed its name to RippleLabs Incorporated in 2013. Ripple Labs changed its name to Ripple Incorporated in 2016. Chris is currently Ripple’s Executive Chairman.

Jed McCaleb was the founder of Mt. Gox, the first Bitcoin trading platform. He had a fallout with Ripple and forked Ripple's codebase to create Stellar. He is currently the Chief Technology Officer of Stellar.

Ripple's current CEO is Brad Garlinghouse.

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