Summary: Shorting Bancor is pretty straightforward, all you need is a crypto 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 Bancor
Shorting Bancor can be done in 4 steps:
- Find a cryptocurrency trading platform
- Sign up with the exchange
- Fund your account with fiat or crypto
- Short Bancor
1. Find 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 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 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 Bancor
These are the steps to follow to execute a short sell:
- Go to the search bar at the top, find Bancor 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 Bancor and click on “Open Trade”.
Once you’re ready to close the trade, hopefully when the value of Bancor has dropped, go to your Portfolio, find the Bancor 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 Bancor!
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 Bancor (BNT)
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 Bancor on Binance?
Yes, you can short Bancor on Binance. They have over 300 cryptocurrencies on offer, have a decent phone app and a lot of advanced trading features.
Bancor is a decentralized staking protocol which allows you to earn money without having to expose your single token and offers full protection against permanent loss. Bancor was established in 2017 as the first DeFi Protocol.
It today generates millions of fees per month for depositors. They can get up to 60% APR with tokens like ETH and WBTC. Bancor DAO (decentralized autonomous organization) is owned by its community.
BNT, the Bancor Network Token, is the protocol token. The protocol's token lets traders provide liquidity for the pool available on the network. Anyone can contribute liquidity. Fees are available for trades that pass through a pool if liquidity providers add liquidity to the pool. Liquidity providers in the pool will be awarded pool tokens. These tokens are for their share of liquidity, fees and Liquidity Mining reward.
Bancor Network Token (BNT), which is a token of the Bancor Network, has an elastic supply. It can be minted and burned to ensure that trading liquidity levels are maintained in Bancor's pools. Protocol-owned trading liquidity makes swap fees from trading volume. The protocol thus becomes more BNT. The protocol's balance of BNT will be burned to make way for pool tokens. LPs can stake the same amount of their BNT. Because of swap fees, more BNT will be burned than originally supplied by the protocol. To offset the impermanent loss cost, the excess BNT is then burnt to reduce the overall supply.
Bancor is a crypto project that has been around for the longest time and is heavily audited. This project has received excellent ratings from leading auditors, such as Certik and PeckShield. DeFiSafety awarded Bancor the highest safety score (96%) in 2021.