Quick summary: Our recommendation is to use eToro to short Solana. 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 SOL, 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 Solana 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 Solana can be done in 4 easy steps:
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 exchange
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 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 Solana
Now for the actual shorting:
- Starting off at the search bar at the top, find Solana 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 Solana and click on “Open Trade”.
Once you’re ready to close the trade, hopefully when the value of Solana has dropped, go to your Portfolio, find the Solana 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 Solana!
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 Solana (SOL)
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 Solana on Binance?
Yes, you can short Solana on Binance. They have over 300 cryptocurrencies on offer and specialise in the crypto market. They also have a great app and competitive fees.
Solana crypto is an extremely high-throughput cryptocurrency based on the Proof of History consensus and Proof of Stake consensus. Solana is a blockchain infrastructure for modern internet applications, and was developed by a team made up of networking engineers.
Solana was started by Anatoly Yakovenko and four other co-founders.
Anatoly Yankovenko wrote and published a whitepaper in November 2017 on Proof of History. Proof of history is a concept used to keep the time between computers on a network in sync. This allows for scaling of the number of transactions.
Greg Fitzgerald, Anatoly’s colleague at Qualcomm, was part of the project. He suggested and wrote the Proof of History codebase using the Rust programming languages.
Shortly after Stephen Akridge and Raj Gokal joined, the four of them incorporated the new blockchain network Solana together in 2018.
Solana is a general purpose, blockchain like Ethereum. It uses Rust as the technical foundation. This allows developers to write applications using Rust rather than Solidity or Vyper. The Solana ecosystem offers end-user applications such as decentralized finance, non-fungible tokens, marketplaces, games and many more.
One of the most notable features is its scalability. Solana can process over 700,000.00 transactions per second. Its high throughput ability appeals to high frequency traders. This is a trend that has been led by FTX Research, Alameda Research, and Alameda Research.
SOL is Solana’s native currency. Solana (SOL), which is the native currency of Solana, is used for payment fees and staking to support the network.
In 2021, the Solana crypto price saw an astronomical increase. Solana was able to gain a large market share due to multichain adoption and the increased use of DeFi and NFT. The technical underlying was attractive to developers and they started creating dapps such As Star Atlas, Mercurial Orca Saber, Saber and many more. As a way of attracting liquidity and activities to the network, Yield Farming on Solana was popularized shortly thereafter. It remains to see if Solana's ecosystem of dapps capture market share by 2022.
Solana's performance has been great, but the network experienced some problems on September 15th 2021. The outages lasted 16 hours. A reset was coordinated by the Solana team, node operators, and network administrators to bring back the network.