Quick summary: Our recommendation is to use eToro to short Terra 2.0. 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 LUNA2, 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 Terra 2.0 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 Terra 2.0 can be done in 4 easy steps:
1. Choose a crypto exchange
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.
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 Terra 2.0
Now for the actual shorting:
- Starting off at the search bar at the top, find Terra 2.0 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 Terra 2.0 and click on “Open Trade”.
Once you’re ready to close the trade, hopefully when the value of Terra 2.0 has dropped, go to your Portfolio, find the Terra 2.0 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 Terra 2.0!
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 Terra 2.0 (LUNA2)
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 Terra 2.0 on Binance?
Yes, you can short Terra 2.0 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 Terra 2.0
Terra (LUNA), a public-blockchain protocol that was developed from Terra Classic, is Terra (LUNA). Terra Classic houses the algorithmic stablecoin TerraClassicUSD. It is now renamed LUNC token collateralized UST. The UST crashed in a banking run in May 2022. The launch of a new network led to the devaluation of LUNA to almost zero, and Terra Classic and Terra were born. Here is a complete breakdown of the Terra crash.
Terra Classic was created in January 2018. The blockchain was released in April 2019. It attempted to combine the price stability and wide adoption of fiat currencies with the censorship-resistance of Bitcoin (BTC) and offer fast and affordable settlements through its UST stablecoin. Terra Classic offered stablecoins based on the U.S. dollar and South Korean won as well as the International Monetary Fund's Special Drawing Rights (or other currencies).
Terra Classic is still alive and well, and the Terra blockchain will carry on the legacy without the UST stabilitycoin. It will continue building with the help from the LUNA group dubbed "LUNAtics" to improve the UX and UI which brought Terra Classic up second place in total valued locked (TVL). Terra is the preferred platform for many DApps.
Do Kwon, Daniel Shin, and Terra were founded in January 2018. The project was created by Do Kwon and Daniel Shin to encourage the rapid adoption and use of blockchain technology and cryptocurrency. It is centered on price stability as well as usability. Kwon was appointed CEO of Terraform Labs. Terra is a company that Kwon founded.
Shin founded and ran Ticket Monster, also known as TMON, a major South Korean ecommerce platform. Shin later co-founded Fast Track Asia which is a startup incubator that helps entrepreneurs create fully functional businesses.
Kwon founded Anyfi and was its CEO. This startup provides wireless mesh networking solutions. He is also a Microsoft and Apple software engineer.
Do Kwon devised a revival strategy after Terra Classic fell apart. It eventually led Terra Classic to be forked. Binance founder Changpeng Zhao and Vitalik Yeterin criticised his plans, as did disgruntled UST investor investors. His proposal was approved by the Terra Classic community, which hard forked into Terra Blockchain on May 27, 2022.
Terra will continue operating without its algorithmic stabilizecoin UST. This aims to preserve Terra's ecosystem of hundreds of developers who work on various decentralized applications. Luna Classic holders, holders, residual UST holders as well as essential Terra Classic app developer will all be eligible to receive the LUNA token. Terra Foundation Labs wallet was taken out by Terra to make Terra a community-owned chain.