Summary: Shorting REN 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.
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 REN
Shorting REN can be done in 4 steps:
1. Find a cryptocurrency 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 cryptocurrency trading platform
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 REN
These are the steps to follow to execute a short sell:
- Go to the search bar at the top, find REN 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 REN and click on “Open Trade”.
Once you’re ready to close the trade, hopefully when the value of REN has dropped, go to your Portfolio, find the REN 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 REN!
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 REN (REN)
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 REN on Binance?
Yes, you can short REN on Binance. They have over 300 cryptocurrencies on offer, have a decent phone app and a lot of advanced trading features.
Ren Protocol is an anonymous and trustless protocol that allows users the ability to transfer tokens across various blockchains. RenVM, Ren's core product focuses on the development of an interoperability system for Decentralized Financial (DeFi)
It was originally known as Republic Protocol. A "darkpool" exchange is one in which financial assets have been first matched, then traded on a private order book.
REN tokens were used originally to pay for transactional fee and then used as a bond by Darknodes. In 2019, the protocol was rebranded to focus on DeFi interoperability. Since then, REN was primarily used as a bond to run Darknodes. Darknodes function in the same manner as validator nodes on a proofof stake blockchain.
RenVM provides liquidity, which is one of the biggest benefits for the Ethereum network. Currently, many bitcoin are sitting in user's wallets with no returns. RenVM offers a value-exchange bridge that allows users convert their bitcoin to an ERC-20 token equivalent.
This ERC-20 token for bitcoin is called "renBTC". It can then used on a wide range of DeFi apps on Ethereum. These include features such as lending and borrowing and trading.
RenVM is the Ren virtual machine. The RenVM is a group of computers called Darknodes. They act as facilitators and help users complete their transactions. Darknodes, in particular, contribute their network bandwidth and computational power to the RenVM.
Darknode entities must have 100,000 REN collateral in order to qualify. Darknode entities get a portion from the transaction fees that are collected during the swap. The fees are paid as cryptocurrency.
Swapping bitcoin to RenBTC will incur a fee, and Darknode facilitators will be entitled to a percentage of the fees. Transaction fees are paid in bitcoin.
To swap bitcoin for RenBTC, users don't have to go through KYC. BitGo, the centralized custodian behind Wrapped Bitcoin (WBTC), requires that all users who wish wrap their bitcoin into WBTC undergo KYC.
BitGo holds all the private keys for the bitcoin wallets. That automatically makes them a center point of failure. REN has bitcoin kept in a decentralized network made up of Darknodes. This reduces the chance of being a failure point.
BitGo stores bitcoins safely and honors redemption requests. Users must trust BitGo completely. Users do not have to worry as much about it than the Ren protocol. BitGo has no authority to stop users minting or redeeming bitcoin.