How To Short Decentraland (MANA)

    • James Page

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

Summary: Shorting Decentraland 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.

Global: Sign up with eToro

USA: Sign up with eToro US

Decentraland

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 Decentraland

Shorting Decentraland can be done in 4 steps:

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

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 cryptocurrency trading platform that allows for short selling.

etoro crypto

2. Sign up with the cryptocurrency trading platform

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 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 Decentraland

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

  1. Go to the search bar at the top, find Decentraland 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 Decentraland and click on “Open Trade”.

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

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 Decentraland (MANA)

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 Decentraland on Binance?

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

About Decentraland

MANA refers the Decentraland native currency. It is an ERC-20 token, powered by Ethereum. MANA can be used by users to purchase LAND or pay for goods, services and other items in Decentraland. MANA token can purchased at various centralized and decentralized exchanges as well as swap services.

Decentraland uses the term LAND to refer to a parcel on land in the virtual 3D world. LAND token (NFT), powered by Ethereum blockchain, is a non-fundigble token. Any LAND that users purchase can be made permanent as all land titles can traceable via the blockchain. Users would then be able to control any 3D scenes built on the LAND. In order to combine parcels of different land into larger estates, you can combine them. You can also buy LAND from secondary markets, such as OpenSea or Marketplace.

MANA is an ERC-20 token, so you can store it anywhere that supports Ethereum. Trezor, or Ledger, are both good hardware wallets to protect your funds. Metamask and MyEtherWallet are good options if you want to interact with Decentraland smart-contracts.

Decentraland was created for content creators as well as businesses and individuals looking for new creative mediums, business opportunities or sources of entertainment.

The Decentraland Gameworld is divided into 90.601 individual parcels (or "Metaverse") of LAND. Each parcel has an ERC-721 non-fungible token. Each LAND is 16m x 16,m (256 m) in size and can be found at any coordinate in the Metaverse.

While LAND holders have the freedom to transform their plots into anything they like, a large portion of the Metaverse has been divided into districts. Each district is different in size and theme. These districts were created by crowdsales for MANA tokens. Parcels of LAND in these areas cannot be traded.

Aetheria -- cyberpunk-themed Aetheria -- is the largest district, with a total 8,008 Land as of January 2021.

Decentraland, which is also among the increasing number of projects using a Decentralized Autonomous Organization (DAO), for governance decisions, is not alone. MANAtoker holders can propose and vote on Decentraland's policy updates, upcoming LAND auction details, and what content is allowed in the Metaverse.

Decentraland is a great place to express your creativity. Many Decentraland users monetize LAND by leasing, advertising, or paying for experiences. Decentraland users also earn income by selling their items on the Decentraland market for MANA tokens.

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