Summary: Shorting Loopring 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 Loopring
Shorting Loopring can be done in 4 steps:
- Find a crypto exchange
- Sign up with the exchange
- Fund your account with fiat or crypto
- Short Loopring
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 crypto exchange that allows for short selling.
2. Sign up with the crypto 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 Loopring
These are the steps to follow to execute a short sell:
- Go to the search bar at the top, find Loopring 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 Loopring and click on “Open Trade”.
Once you’re ready to close the trade, hopefully when the value of Loopring has dropped, go to your Portfolio, find the Loopring 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 Loopring!
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 Loopring (LRC)
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 Loopring on Binance?
Yes, you can short Loopring on Binance. They have over 300 cryptocurrencies on offer, have a decent phone app and a lot of advanced trading features.
Loopring is an Ethereum Layer-2 L2 (L2) exchange built on zkRollup. It can be used to create orderbook-based or automated market makers (AMM).
zkRollup allows you to migrate computations off the Ethereum blockchain using an Ethereum L2 scaling method. Loopring protocol does not use the Ethereum blockchain underlying as a data layer or verification layer. Loopring's throughput, at 2,025 trades per minute, is much higher than Ethereum's current 15 transactions/second. It is therefore possible to settle trades at a cost of $0.00015.
Loopring's performance can be used by professional traders and market-makers to implement algorithmic strategies as well as other automated trading robots. This was impossible with any DEX before because it was expensive and slow. Loopring 3.0 is a foundation for orderbook-based DEXs. This makes them commercially feasible. Loopring hopes that non-custodial Exchanges will soon be able outcompete and displace many central counterparts.
Loopring DEX does not work with any L1 dapps, L2 or L2 applications that are not built using zkRollup. To trade, users will need to deposit assets to the L2 blockchain. To use other Ethereum applications, users will need withdraw from the Ethereum L2 chain and then return to the Ethereum mainchain. This will cost users significant gas fees. Loopring DEX has not gained significant traction because of these limitations.