Summary: Shorting Fantom 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 Fantom
Shorting Fantom can be done in 4 steps:
- Find a cryptocurrency trading platform
- Sign up with the exchange
- Fund your account with fiat or crypto
- Short Fantom
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 cryptocurrency 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 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 Fantom
These are the steps to follow to execute a short sell:
- Go to the search bar at the top, find Fantom 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 Fantom and click on “Open Trade”.
Once you’re ready to close the trade, hopefully when the value of Fantom has dropped, go to your Portfolio, find the Fantom 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 Fantom!
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 Fantom (FTM)
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 Fantom on Binance?
Yes, you can short Fantom on Binance. They have over 300 cryptocurrencies on offer, have a decent phone app and a lot of advanced trading features.
Fantom (directed acyclic-graph smart contract platform) provides decentralized financing (DeFi), services for developers using its bespoke consensus algorithm.
Fantom will be working with FTM as its in-house token to solve problems with smart-contract platforms. Specifically, transaction speed. Developers claim that they can reduce it to less than 2 seconds.
The Fantom Foundation was founded in 2018. It oversees Fantom's product offering.
Fantom is an open-source, decentralized smart platform for DApps. Fantom was created to address the shortcomings of the previous generation of blockchains, as well as balance three key components: security and scalability. The project features a number of tools to help simplify the process of integrating existing apps, as well as a detailed staking reward scheme and built-in DeFi indicators.
Fantom is Layer-1 blockchain. It uses a scratch-built consensus mechanism, Lachesis, and an independent consensus level, Lachesis, in order to facilitate DeFi, and related services, on the basis smart contracts. Lachesis offers security for additional layers, including Opera, Fantom’s EVM compliant smart contract chain. "Grant compatibility between all transaction entities around the world" is the long-standing goal of the project.
Fantom's greatest strengths include its ability to process thousands of transactions per second. Transactions are settled in just 1-2 seconds. And the transaction costs are fractions of one cent. Fantom has a higher scalability, but at a lower rate.
The ecosystem is built around two main technologies: Opera and Lachesis protocol.
The core consensus layer for the Fantom network is the Lachesis protocol. It provides transaction speed and security.
Lachesis uses an aBFT consensus algorithm that uses a direct acyclic grid (DAG). It works as follows: The network can process data at different times. However, the network filters the participants and allows only one-third to be processed.
Fantom’s Asynchronous Byzantine Fiault Tolerant aBFT Proof-of Stake (PoS), consensus system maintains efficiency of the entire network. Its design ensures maximum security and speed. The PoS mechanism is a leaderless phenomenon, there are no leaders and participants. Anyone can join or leave the network of nodes at any time.
Lachesis' key attributes include: asynchronousness, leaderlessness and Byzantine fault-tolerant.
Opera, on the other hand, is Fantom’s mainnet deployment platform. Opera also serves as an application development layer. Fantom provides a full range of smart contract capabilities through EVM integration with Solidity programming support. This allows users the ability to seamlessly interact and communicate with Ethereum platforms, while also maintaining Fantom's transaction efficiency.
Opera follows a PoS model, with leaderless validators. This is because validators don't determine which blocks are valid.
Fantom offers a quick, secure, and affordable payment platform. This allows you to make secure payments quickly and at minimal cost. Fantom also supports on-chain governance. The tokens can be used to vote (one token equals one voting). One of the features is that users can choose to agree or disagree on a scale between 0 and 4.
FTM is Fantom’s native utility PoS token. It powers the ecosystem and can be used for payments and network fees. FTM provides the backbone to transactions and allows fees collection and staking activities. The user rewards it represents are also part of FTM.