Summary: Shorting Terra 2.0 is pretty straightforward, all you need is a crypto 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 Terra 2.0
Shorting Terra 2.0 can be done in 4 steps:
- Find a crypto trading platform
- Sign up with the exchange
- Fund your account with fiat or crypto
- Short Terra 2.0
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 trading platform 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 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 Terra 2.0
These are the steps to follow to execute a short sell:
- Go to the search bar at the top, find Terra 2.0 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 Terra 2.0 and click on “Open Trade”.
Once you’re ready to close the trade, hopefully when the value of Terra 2.0 has dropped, go to your Portfolio, find the Terra 2.0 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 Terra 2.0!
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 Terra 2.0 (LUNA2)
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 Terra 2.0 on Binance?
Yes, you can short Terra 2.0 on Binance. They have over 300 cryptocurrencies on offer, have a decent phone app and a lot of advanced trading features.
About Terra 2.0
Terra (LUNA), a publicly accessible blockchain protocol, emerged from Terra Classic. Terra Classic is where you will find the algorithmic stablecoin TerraClassicUSD. It's now renamed LUNC token collateralized UST. This coin crashed in a financial crisis in May 2022. It brought LUNA down to almost zero and led the launch of a brand new chain, Terra Classic. The Terra crash is described in detail here.
Terra Classic was launched in January 2018, with the blockchain being launched in April 2019. It attempted to combine the price stability and wide adoption of fiat currencies with the censorship-resistance of Bitcoin (BTC) and offer fast and affordable settlements through its UST stablecoin. Terra Classic offered stablecoins tied to the U.S.dollar, South Korean won and Mongolian tugrik as well the International Monetary Fund’s Special Drawing Rights group of currencies.
Terra Classic continues to be a legacy with its Terra blockchain without the UST stabilizecoin. It will continue growing with the help and support of the LUNA Community, dubbed "LUNAtics", and improve the UX/UI world-class UX that took Terra Classic to second place in total worth locked (TVL). Terra will continue to support many DApps.
Do Kwon & Daniel Shin created Terra in January 2018. The idea for Terra was to accelerate the adoption of blockchain technology. Kwon became the CEO of Terraform Labs. Terra was founded by Kwon.
Shin co-founded and was responsible for TMON (a South Korean e-commerce platform). Fast Track Asia was later founded by Shin. It is a startup incubator which helps entrepreneurs build fully functional businesses.
Kwon has previously been the CEO and founder of Anyfi (a startup that provides decentralized wireless mesh networking solutions). He was also a Microsoft and Apple Software Engineer.
Do Kwon, who was responsible for the fall of Terra Classic, devised a plan to revive the company that led eventually to Terra Classic being split. Binance founder Changpeng Zhao, Vitalik Anderin, and disgruntled UST Investors criticised him for his plans. His proposal was accepted by Terra Classic and voted in effect. Terra Classic's Terra blockchain was hard forked on May 27, 2022.
Terra will continue with its algorithmic stablecoin, UST. It aims to preserve Terra ecosystem which has hundreds of developers working in different decentralized apps. Luna Classic holders, holders, residual UST holder and essential Terra Classic developers will receive the LUNA token. Terra Foundation Labs was removed from Terra's wallet to facilitate the airdrop, which made Terra a completely community-owned chain.