How To Short 0x (ZRX)

    • James Page

James HeadshotAuthor: James Page - Last Updated on June 28, 2022

Summary: Shorting 0x is pretty straightforward, all you need is a crypto trading platform that allows for short selling. While there are a few exchanges out there that have added the ability to short crypto, our recommendation is to use eToro. They’re well-known, have a global presence, and are trusted by millions of users from 100+ countries.

We’ll be using eToro in our guide, you can sign up with one of the sign-up buttons below.

Global: Sign up with eToro

USA: Sign up with eToro US

0x

Before we get started, let’s quickly explain what shorting is (for those that are new to it). Shorting is the practice of selling a cryptocurrency hoping it will drop in price so you can buy it back later for cheaper… which, if successful, will give you a net profit.

It might sound a bit complex but don’t worry, it’s a lot easier than you might think.

How to Short 0x

Shorting 0x can be done in 4 steps:

  1. Find a crypto exchange
  2. Sign up with the exchange
  3. Fund your account with fiat or crypto
  4. Short 0x

1. Find a cryptocurrency 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 exchange that allows for short selling.

etoro crypto

2. Sign up with the cryptocurrency exchange

Let’s start with creating an account on eToro.

Global: Sign up with eToro

USA: Sign up with eToro US

 

eToro sign up form

The sign-up process is very quick and 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 deposit methods to choose from when depositing funds into your eToro Account. These include a bank transfer, credit card, debit card, PayPal, and more.

4. Short 0x

These are the steps to follow to execute a short sell:

  1. Go to the search bar at the top, find 0x by entering the name.
  2. On the crypto page/section, on the right side, hit the TRADE button to enter the trading interface.
  3. At the top of the trading interface: Click on sell to short the crypto.
  4. Enter the amount for which you want to sell 0x and click on “Open Trade”.

Once you’re ready to close the trade, hopefully when the value of 0x has dropped, go to your Portfolio, find the 0x 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 0x!

Global: Sign up with eToro

USA: Sign up with eToro US

 

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 0x (ZRX)

Aside from eToro, the other major exchange you can use is Binance.

While Binance tends to be a bit more advanced when compared with eToro, they do have a lot more digital assets to trade with.

 

Frequently Asked Questions

Can I short 0x on Binance?

Yes, you can short 0x on Binance. They have over 300 cryptocurrencies on offer, have a decent phone app and a lot of advanced trading features.

About 0x

0x, a protocol that facilitates a frictionless peer to peer exchange of Ethereum assets, is called 0x. The 0x protocol is non-custodial because funds are deposited or withdrawn from the users wallet. It aggregates liquidity pool from multiple projects and uses them to make peer-to-peer transactions more smooth.

It can also be used as a building block by developers who want to add exchange functionality. Through its relayers, developers can integrate 0x into their existing products. 0x's vision aims to allow direct, non custodial wallet trading from wallet to wallet of any ERC-20 tokens on all Ethereum based platforms.

The 0x network revolves about the maker and taker. Maker is the party creating a buy or sale order. While taker fills the order, it is the other party. Currently, 0x supports trading ERC-20-fungible tokens.

Trades can only take place if there is someone who is on the other end of the trade. If the maker already has the desired counter-party, they may directly send them the 0x request. If not, the order is sent to a relayer with the hope of finding a counterparty.

A relayer helps to find, create and fill 0x order. Anyone can build a relayer for 0x and earn fees for each trade it facilitates

Once someone fills out the 0x request, the settlement logic in the protocol's 0x protocol will verify that the maker has a digital signature. This will ensure that all terms of the trade are fulfilled. If everything is in place, tokens will be automatically exchanged between the maker/taker. In the absence of this, the request will not be granted.

ERC-721 Non-fungible Tokens (NFT) are also supported by 0x. This means that there may be a use case for gaming or digital art. Gamers have the option to trade and tokenize their game assets. Artists can also digitize artwork to a NFT, and then turn it into trading products.

0x is not like other decentralized exchanges. It does not store orders on blockchain. Orders are stored off-chain while trade settlements occur only on-chain. Transactions are moved off-chain and there will be less congestion. It would also reduce the cost of operating within the 0x ecosystem.

The actual value transaction is the only part of the transaction that takes place on-chain.

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