Summary: Shorting API3 is pretty straightforward, all you need is a cryptocurrency exchange 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 API3
Shorting API3 can be done in 4 steps:
- Find a cryptocurrency exchange
- Sign up with the exchange
- Fund your account with fiat or crypto
- Short API3
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 crypto exchange
Let’s start with creating an account on eToro.
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 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 API3
These are the steps to follow to execute a short sell:
- Go to the search bar at the top, find API3 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 API3 and click on “Open Trade”.
Once you’re ready to close the trade, hopefully when the value of API3 has dropped, go to your Portfolio, find the API3 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 API3!
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 API3 (API3)
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 API3 on Binance?
Yes, you can short API3 on Binance. They have over 300 cryptocurrencies on offer, have a decent phone app and a lot of advanced trading features.
Smart contracts can often have difficulty accessing reliable data. But application programming interfaces, or APIs, have been touted to be a solution.
API3's stated goal allows decentralized APIs to build, manage and monetize at scales. As blockchain technology becomes more prominent in the economy -- including decentralized finance and supply-chain management -- the team behind API3 believes it is crucial for smart contracts provide "timely and reliable real-world information."
In September 2020, API3 released its whitepaper. This document addressed the most significant problem in APIs right now: connectivity. Smart contracts cannot connect directly to APIs at this time, leading to an explosion in popularity for Oracles.
Although this solution has helped some degree, the industry continues to struggle with the "Blockchain Oracle Problem." Oracles is a type middleware that sits between APIs smart contracts. It increases costs and centralization. API3 will solve this problem, allowing API providers and their nodes to operate independently.
API3's Token went live in December after a token auction that raised millions of dollars.
API3 has been brought to life by three people. Heikki vanttinen is the first and most prominent person to have written extensively about API3 and the goals it aims to achieve. Vanttinen is the former founder and CEO of CLC Group. This blockchain lab develops real-world connected smart contracts for a more trustless future. He was also chief marketing officer at Zippie. Zippie's mobile operating system aims to make blockchain technology mainstream.
There are many projects that use blockchain and crypto to bring new technology to established industries, such as finance and real-estate. API3's mission to address some of the challenges that have arisen within the blockchain industry is one of the most striking aspects.
APIs are important because they supply blockchains and off-chain information. Without it, decentralized ledgers wouldn’t be able to determine how much each coin should be worth.
Vanttinen explained why API3 was unique by explaining how decentralized APIs could "provide superior information transparency all the way up to the factual levels of data source," compared with existing decentralized oracles which do not consider data source APIs to be within their scope.
Airnode is lightweight, robust middleware created to make API3 a reality. It is easy to deploy and reduce transaction fees.