Summary: Shorting IOTA is pretty straightforward, all you need is a crypto 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.
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 IOTA
Shorting IOTA can be done in 4 steps:
1. Find a crypto 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 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 IOTA
These are the steps to follow to execute a short sell:
- Go to the search bar at the top, find IOTA 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 IOTA and click on “Open Trade”.
Once you’re ready to close the trade, hopefully when the value of IOTA has dropped, go to your Portfolio, find the IOTA 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 IOTA!
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 IOTA (MIOTA)
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 IOTA on Binance?
Yes, you can short IOTA on Binance. They have over 300 cryptocurrencies on offer, have a decent phone app and a lot of advanced trading features.
IOTA is a distributed ledger designed for the Internet of Things. It is the first ledger that supports microtransactions, as well as secure data transfers. Quantum proof. IOTA is an innovative, open-source distributed ledger. The Tangle, a quantum-proof protocol it uses, is able to provide unique features such zero fees, infinite scale, fast transactions, secure transfer of data, and many other benefits. IOTA serves as the backbone of Internet-of-Things.
IOTA is an open-source cryptocurrency that doesn't charge transaction fees or require miners to be processed transactions. It does however require some computation power to submit transaction. This makes IOTA perfect for machines to use for currency and distributed communication protocol on the Internet of Things. IOTA exists to solve some of the biggest problems in Blockchain technology. It is primarily designed to address the following: the bigger the blockchain (such Bitcoin), it the slower, more expensive and more restrictive it is to actually transfer funds.
Another problem with Blockchain is its size. As more Blocks get added, the Blockchain becomes longer, which means that fewer computers can mine it. BTC is currently over 150GB and ETH is also over 150GB. If the volume of BTC increased tenfold, only a few computers would be capable of mining it. These make them highly centralized (the top 2 Bitcoin mining pool own 56% of the total hashing ability).