Quick summary: Our recommendation is to use eToro to short Universal Market Access. 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 UMA, 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 Universal Market Access 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 Universal Market Access 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 trading platform
Let’s start with just signing up with eToro.
The sign-up process is very easy and quick, 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 Universal Market Access
Now for the actual shorting:
- Starting off at the search bar at the top, find Universal Market Access 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 Universal Market Access and click on “Open Trade”.
Once you’re ready to close the trade, hopefully when the value of Universal Market Access has dropped, go to your Portfolio, find the Universal Market Access 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 Universal Market Access!
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 Universal Market Access (UMA)
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 Universal Market Access on Binance?
Yes, you can short Universal Market Access 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 Universal Market Access
UMA, also known as Universal Market Access (UMA), is a protocol that allows the creation of synthetic assets based in the Ethereum (ETH) Blockchain. UMA was first launched in December 2018.
Synthetic assets can be defined as assets that are different from their underlying assets, but have the same value. UMA enables users to design and implement self-executing and self-enforcing financial contract secured by economic incentives. They can also run them on Ethereum’s blockchain.
UMA allows counterparties digitize and automate all real-world financial derivatives like futures, contracts of differences (CFDs), and total return swaps. It allows the creation of self-fulfilling derivatives contracts that are based on digital assets such as cryptocurrencies.
Universal Market Access is the main idea behind it. By developing a protocol that allows the creation of financial assets and contracts on the blockchain, it seeks democratically and decentralize financial derivatives markets.
High barriers to entry are present in traditional financial markets. They include regulations and custody requirements. This can make it difficult for individuals to participate in them. It can be difficult for investors and traders to participate in markets that are not part of their local financial system. This blocks the creation of an inclusive global market for financial services and limits participation to those institutions who can afford legal and due diligence.
UMA contracts, by contrast, are built on Ethereum's Blockchain. Because of its permissionless nature, any user can create, run, and trade digital derivatives from any location in the world. This is crucial for emerging economies, which are often far from mature financial institutions, and force local market participants into relative isolation.