Summary: Shorting Algorand is pretty straightforward, all you need is a cryptocurrency 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.
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 Algorand
Shorting Algorand can be done in 4 steps:
- Find a crypto exchange
- Sign up with the exchange
- Fund your account with fiat or crypto
- Short Algorand
1. Find 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 trading platform that allows for short selling.
2. Sign up with the cryptocurrency exchange
Let’s start with creating an account on 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 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 Algorand
These are the steps to follow to execute a short sell:
- Go to the search bar at the top, find Algorand by entering the name.
- 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 the crypto.
- Enter the amount for which you want to sell Algorand and click on “Open Trade”.
Once you’re ready to close the trade, hopefully when the value of Algorand has dropped, go to your Portfolio, find the Algorand 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 Algorand!
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 Algorand (ALGO)
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 Algorand on Binance?
Yes, you can short Algorand on Binance. They have over 300 cryptocurrencies on offer, have a decent phone app and a lot of advanced trading features.
Algorand supports a broad range of applications and is self-sustaining, decentralized and blockchain-based. These systems can be used to create effective applications in the real-world. Algorand will be able to support computations that have to provide reliable performance guarantees. This will allow us create new forms and trust.
Algorand's mainnet, which was live in June 2019, was able to process almost 1,000,000 transactions per day until December 2020. The Algorand transaction data can be viewed by clicking here. Algorand's initial coin offer (ICO) took place in June 2019. Algorand was priced at $2.4 per token.
Silvio Micali was a professor of Computer Science at the Massachusetts Institute of Technology. He received the Turing Award (2012) for his fundamental contributions and ideas to secure two-party computing, electronic cash, and other blockchain protocols. This makes him one among the top creators of crypto around the globe.
Algorand is a technology that speeds up transactions and increases efficiency. This was in response to the slow transaction time of Bitcoin and other cryptocurrency blockchains. Algorand uses a permissionless and pure proof of-of-stake blockchain protocol to ensure that transaction fees are low, as well fewer mining costs.
Algorand Foundation announced a grant of $10M to Applied Blockchain on Feb. 17, 2022. This grant will be used to develop the London Bridge. It is a trustless bridge that will bring Ethereum compatibility back to the Algorand Blockchain. Algorand has struggled with liquidity, despite its promise of low cost transactions, low latency or high scalability. Algorand can connect to Ethereum through a bridge. Ethereum has the strongest DApp ecosystem. Algorand Foundation long-term goal is to allow verification of other chains to be performed on Alogrand’s smart contracts. By incorporating stateproofs in compact certificates into the Algorand Consensus, the foundation aims at ensuring that all chain transactions are verified using Alogrand's smart cards. The foundation is working towards the establishment of the DeFi ecosystem at Algorand.
Algorand Blockchain is a pure proof-ofstake, permissionless blockchain protocol. Instead of proof-ofwork (PoW), where each root block must be validated randomly using computing power, in pure proof–of-stake all validators are connected and can only agree on the next one to create a block.