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

Sign up with eToro

Uniswap

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

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

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.

Sign 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 Uniswap

Now for the actual shorting:

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

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

Sign up with eToro

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 Uniswap (UNI)

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 Uniswap on Binance?

Yes, you can short Uniswap 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 Uniswap

UNI is the governance token used by Uniswap. UNI was launched on 16 September 2020 by an airdrop to all users who interacted with the protocol, either by exchanging tokens or providing liquidity.

Token holders of the UNI token can take part in the governance of this protocol. A governance vote can decide key decisions like the use of the treasury and future upgrades.

Uniswap (decentralized exchange) allows users to swap ERC-20 tokens with another ERC-20 token directly without the use of a centralized intermediary. Trader don't have to deposit tokens on exchanges and are not exposed to security risks associated with centralized exchanges.

Metamask is an Ethereum wallet that allows users to instantly start trading tokens. Users can swap tokens without the need for an orderbook. This works by using an Automated Market Maker. Liquidity Providers (LP), deposit tokens to the smart contract. This liquidity then provides a price quotation to traders, without relying any professional market makers. The protocol's liquidity providers are paid 0.3% in trading fees.

Hayden Adams was the one who founded the protocol. Hayden Adams, the protocol's founder, was most inspired by the technology described first by Vitalik Anderin (ETHN co-founder).

An AMM uses pricing algorithms to price assets. Uniswap employs the "x*y=k” formula to price assets. The formula is as follows: x is the amount one token has in its liquidity pool, and y is the amount the other asset. k is a fixed constant. Uniswap maintains a 50/50 ratio between the assets.

Uniswap was the first to popularize the AMM model. Many other crypto protocols also started using the AMM due its innovative and distributed features. Impermanent losses are the greatest setback for the AMM Model.

Impermanent loss refers to the opportunity cost of transferring two crypto assets into a liquidity fund instead of holding them separately outside the pool. Impermanent losses occur when one token's value changes in relation to the other. The impermanent losses will increase the more significant the change.

Related Posts: