Summary: Shorting Ethereum Classic 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 Ethereum Classic
Shorting Ethereum Classic can be done in 4 steps:
- Find a crypto exchange
- Sign up with the exchange
- Fund your account with fiat or crypto
- Short Ethereum Classic
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.
2. Sign up with the crypto trading platform
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 Ethereum Classic
These are the steps to follow to execute a short sell:
- Go to the search bar at the top, find Ethereum Classic 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 Ethereum Classic and click on “Open Trade”.
Once you’re ready to close the trade, hopefully when the value of Ethereum Classic has dropped, go to your Portfolio, find the Ethereum Classic 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 Ethereum Classic!
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 Ethereum Classic (ETC)
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 Ethereum Classic on Binance?
Yes, you can short Ethereum Classic on Binance. They have over 300 cryptocurrencies on offer, have a decent phone app and a lot of advanced trading features.
About Ethereum Classic
Ethereum Classic (ETC), a hardfork version of Ethereum (ETH), launched in July 2016. Its primary function is to be a smart-contract network with the ability host and support decentralized application (DApps). Its native token is ETC.
Ethereum Classic, which was launched in 2016, has tried to be different from Ethereum. With the two networks' technical roadmaps diverging with time, Ethereum Classic is now a distinct entity.
After a major hacker attack, Ethereum Classic began to preserve the integrity the Ethereum blockchain.
Ethereum Classic is in reality the legacy chain for Ethereum. The true creators of Ethereum Classic are Vitalik Buterin, Gavin Wood and Gavin Wood.
A contentious hardfork on Ethereum took place in July 2016. Participants disagreed over whether to reverse the Blockchain to erase the negative effects of the major hack. This had a negative impact on The DAO, a decentralized autonomous entity (DAO), which had raised approximately $150M in an initial coin listing (ICO) several month earlier.
Ethereum Classic was established as the network that didn't revert the chain. Developers assert that the project has no "official team" and that its "global community is a permissionless "doocracy," in which anyone can take part.
Ethereum Classic's primary purpose is to keep Ethereum blockchain exactly as it was in its original form, without artificially countering DAO hacks.
Its appeal was initially limited to Ethereum's opponents, but it has since gained more support from major investors, including Barry Silbert of Grayscale, an investment firm CEO.
ETC developers are not trying to make the network a business. Users pay transaction fees just like Ethereum. Miners collect these fees based on the work that was done according to the proof-ofwork (PoW).
Ethereum Classic does not plan to become a proofof-stake (PoS), unlike Ethereum. However, many developers continue to work towards future improvements such scaling solutions.