Summary: Shorting Ethereum Name Service 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 Name Service
Shorting Ethereum Name Service can be done in 4 steps:
- Find a crypto trading platform
- Sign up with the exchange
- Fund your account with fiat or crypto
- Short Ethereum Name Service
1. Find a cryptocurrency 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 exchange that allows for short selling.
2. Sign up with the cryptocurrency exchange
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 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 Ethereum Name Service
These are the steps to follow to execute a short sell:
- Go to the search bar at the top, find Ethereum Name Service 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 Name Service and click on “Open Trade”.
Once you’re ready to close the trade, hopefully when the value of Ethereum Name Service has dropped, go to your Portfolio, find the Ethereum Name Service 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 Name Service!
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 Name Service (ENS)
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 Name Service on Binance?
Yes, you can short Ethereum Name Service on Binance. They have over 300 cryptocurrencies on offer, have a decent phone app and a lot of advanced trading features.
About Ethereum Name Service
Ethereum Name Service (ENS), a distributed open-source and extensible naming platform based on Ethereum blockchain. ENS converts human readable Ethereum address like john.eth into machine-readable Alphanumeric codes that you know from wallets, like Metamask. You can also reverse-convert - associate metadata and machine-readable address with human-readable Ethereum accounts
The Ethereum Name Service was created to make Ethereum's web accessible and more easily understandable for human beings. It works in the same way as the Internet Domain Name Service. ENS is also based on a system that uses dot-separated hierarchical name domains. Domain owners can fully control their subdomains.
ENS began with a retroactive airdrop, which was a huge success. It rewarded users for having registered addresses before it launched its token. It was however criticised by its director, Operations, for posting homophobic tweets in February 2022.
Ethereum Name Service provides a unique value proposition. It is the first service that transfers Domain Name Service (DNS) to the decentralized Web3.
ENS does not exist as a company. It is an open source project and calls itself "an Open Public Utility that Belongs to the Company." It aims at becoming an infrastructure that is as essential to Web3's success as the DNS. ENS doesn't have a single point-of-failure thanks to blockchain technology. Additionally, it is more secure than ever and is more censorship-resistant.
ENS aims for overcoming the barriers to mass adoption of blockchain technologies. Instead of using lengthy, complicated alphanumeric codes which are difficult to read and understand, users can access any crypto or NFT by following a simple link. This simplifies the user interface and makes blockchain technology more accessible.
ENS runs on Ethereum. The proof-of work consensus mechanism secures the Ethereum blockchain. Miners must mine new Ether to ensure that ENS can function. A group of decentralized, independent nodes validates transactions and ensures that the Ethereum blockchain is secure. ENS is not susceptible to hacking due to its decentralized nature. It has over 10,000 nodes securing it.
Ethereum Name Service has also partnered up with trust wallets, Coinbase Wallet, Trust Wallet and My Crypto, among others.