How To Short Kyber Network (KNC)

    • James Page

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

Summary: Shorting Kyber Network is pretty straightforward, all you need is a crypto broker 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

Kyber Network

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 Kyber Network

Shorting Kyber Network can be done in 4 steps:

  1. Find a cryptocurrency trading platform
  2. Sign up with the exchange
  3. Fund your account with fiat or crypto
  4. Short Kyber Network

1. Find a crypto 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 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 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 Kyber Network

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

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

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

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 Kyber Network (KNC)

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 Kyber Network on Binance?

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

About Kyber Network

Kyber Network is an integrated hub of liquidity protocols. This aggregates liquidity from many sources to enable secure and immediate transactions on any Decentralized Application (DApp). Kyber Network's primary goal is to provide DeFi DApps, Decentralized Exchanges (DEXs), and other users with easy access to liquidity pool that offers the best rates.

All transactions made by Kyber are on-chain. They can also be easily verified via any Ethereum blockexplorer. Kyber allows projects to build on top of the protocol. This allows them to take advantage of all of the services, such as instant settlement, liquidity aggregation and a customizable business plan.

Kyber aims to resolve the liquidity issue in decentralized finance by allowing developers the ability to build products or services without worrying about liquidity.

The Kyber Network Crystal, or KNC token, is a utility token that "glues together different stakeholders" in Kyber's eco-system. Tokenholders of KyberNet Crystal (KNC), can stake their tokens on the KyberDAO to help regulate the platform and vote for important proposals. In addition, they will be able to earn staking reward in Ethereum (ETH), which comes from trading fees.

Kyber Network allows anyone to instantly swap tokens, without the need for a third-party like a centralized exchange. Kyber's unique architecture allows developers to easily integrate it with other blockchain-based protocols.

DeFi can be used for many purposes. Each liquidity protocol has its own unique set of requirements. Kyber's liquidity Hub architecture allows developers and other market participants to quickly invent new protocols and integrate them into the overall Kyber Network.

Kyber DMM was the world's premier dynamic market maker protocol (DMM), and it was launched in April 2021. Kyber DMM (the next-generation AMM) is designed to adapt to market conditions in order to maximise earnings and optimise fees. They will be able support pools with high amplification factor, which means that for the same liquidity pool and trade volume, slippage could be 100x (or even more) higher than standard AMMs. The amplification strategy of liquidity providers will determine how they maximize their capital. They can also earn much higher fees relative their contribution, while takers could enjoy very low slippage.

Kyber 3.0 Liquidity Hub will launch the first of many new liquidity options, Kyber MMM.

KNC token holders play a key role in the Kyber eco-system, helping to decide new growth opportunities and value-capture options. KNC holders have the ability to vote on key proposals via KyberDAO. Kyber's community, which includes developers from all walks of DeFi, is substantial.

Kyber's 100% on-chain design ensures that transparency and verifiability are maintained. The platform claims to have the largest global liquidity hub.

Kyber, as an ERC-20 token (electronic revenue token), is built upon and secured by Ethereum blockchain. Kyber employs a comprehensive trust and security system that protects users against exchanges or administrators misbehaving. These security measures are implemented at both the protocol- and smart contract levels.

Chainsecurity was one of several security firms and researchers that audited the platform. They determined that it is safe and free from any vulnerabilities.

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