How To Short Curve (CRV)
- James Page
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Author: James Page - Last Updated on June 28, 2022
Summary: Shorting Curve 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 Curve
Shorting Curve can be done in 4 steps:
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 exchange that allows for short selling.
2. Sign up with the crypto trading platform
Let’s start with creating an account on 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 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 Curve
These are the steps to follow to execute a short sell:
- Go to the search bar at the top, find Curve 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 Curve and click on “Open Trade”.
Once you’re ready to close the trade, hopefully when the value of Curve has dropped, go to your Portfolio, find the Curve 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 Curve!
Disclaimer:Â 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:Â 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 Curve (CRV)
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 Curve on Binance?
Yes, you can short Curve on Binance. They have over 300 cryptocurrencies on offer, have a decent phone app and a lot of advanced trading features.
About Curve
Curve Finance is a Decentralised Exchange (DEX) based Automated Market Maker (AMM), similar to Uniswap. Unlike Uniswap however, it is primarily focused on swapping assets that have the same value. This is important in the DeFi environment, where there are many wrapped tokens or synthetic tokens that mimic the price for the real asset.
3CRV, for example, is a stablecoin-based pool made up of DAI (USDT) and USDC. The pool's ratio will depend on market demand. The user will receive a higher share of the pool if they deposit a coin with a lower ratio. It is possible to arbitrage if the ratio tilts heavily towards one of your coins.
Curve Finance also supports yield-bearing tokens. Yearn Finance, for example, collaborated to release yUSDT, USDT, yUSDC and the yTUSD pools. The Curve pool will provide both the yield-bearing tokens as well as the swap fees to its users. In addition to the yield farming benefits in the form CRV tokens the liquidity providers of Curve pool actually have three sources.
Curve gained significant attention after it was made an AMM to trade stablecoins.
DAO token and CRV token launched, bringing in additional profit. This is due to CRV's use as governance tool, and users are given it based upon their liquidity commitment and length.
Curve's longevity is assured by its DeFi trading boom. AMMs turn over large amounts of liquidity, and the associated user profit.
Curve can be used by anyone who is involved in DeFi activities, such as liquidity mining or yield farming. Curve also caters for those who are looking to maximize their returns without taking on risk by holding notionally stablecoins.
The platform is profitable by charging a small amount to liquidity providers.
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