How To Short Universal Market Access (UMA)

    • James Page

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

Summary: Shorting Universal Market Access 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.

Global: Sign up with eToro

USA: Sign up with eToro US

Universal Market Access

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 Universal Market Access

Shorting Universal Market Access can be done in 4 steps:

  1. Find a crypto exchange
  2. Sign up with the exchange
  3. Fund your account with fiat or crypto
  4. Short Universal Market Access

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 broker that allows for short selling.

etoro crypto

2. Sign up with the crypto exchange

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 quick and 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 Universal Market Access

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

  1. Go to the search bar at the top, find Universal Market Access 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 Universal Market Access and click on “Open Trade”.

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

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 Universal Market Access (UMA)

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 Universal Market Access on Binance?

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

About Universal Market Access

UMA, which stands for Universal Market Access, allows you to create synthetic assets based on Ethereum (ETH). UMA launched in December 2018.

Synthetic assets refer to assets that are not based on real assets, but which have the same or similar value. UMA allows users to create self-executing, self enforcing financial transactions secured by economic incentive and run them on Ethereum’s Blockchain.

UMA allows counterparties, in essence, to digitize, automate, and automate any real world financial derivatives. This includes futures, contracts-for-different (CFDs), total return Swaps, and futures. It also allows for the creation self-fulfilling derivatives contracts based upon digital assets, such as other cryptocurrencies.

Universal Market Access's core idea is reflected in the name. It has developed a protocol for creating synthetic assets on the blockchain and financial contracts. This protocol aims to decentralize and democratically distribute the financial derivatives marketplace.

The traditional financial market has high barriers to entry, such as regulations and custody requirements. This tends to prevent people from taking part. It is often difficult for potential traders and investors to invest in markets outside their own financial system. This makes it difficult for a truly global financial market to emerge and limits participation only to those institutions that are able and willing to pay the legal fees and do the due diligence.

UMA Contracts, on the contrary, are based upon Ethereum's blockchain. Its permissionless nature permits anyone to create, run, trade and manage digitized derivatives online from anywhere in any part of the world. This accessibility is vital for emerging economies across the globe where financial institutions are often far removed from maturity and local market participants are forced into relative isolation.

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