The concept of long and short is simple and easy to understand. The basic principle behind Crypto Trading is necessary for every trader. Long and short positions are the two potential price directions that are required to ensure a good profit.
Traders who go long in the market expect the price of the currency to rise from a certain point. On the other hand, traders who go short expect the currency price to fall from the entry point.
Buying and selling are basically for spot trades. You can go long and short on a cryptocurrency without actually buying or selling it. This is only possible if your cryptocurrency exchange platform offers future options and other derivative products.
In other words, going long and short reflects whether a trader believes a cryptocurrency is going to go up or down. If going long, then it is equivalent to buying the cryptocurrency or opening a long position. On the other hand, going short is equivalent to selling the cryptocurrency.
It is said that more long positions are seen than short positions in a bull market, as there are more investors who want to profit from the price fluctuation. If a market is bearish, short positions generally outnumber long positions.
With the code CRYPTOTICKER2022 you get 50% discount in all the tickets
Berlinverse 2022 - 2 days of Web3, NFTs, Art/ Generative Art & Metaverse
Conclusion about Crypto Trading
When you enter into these derivatives, you actually get good exposure to the world of cryptocurrencies through long and short positions, but without owning or trading a particular cryptocurrency.
These are just observations and not strict rules to follow, as expert traders and investors buy on dips and sell at high prices. Experts sell when the price tests resistance levels and open long positions when the price pulls back.
Recommended posts
-
Shiba Inu Price Prediction: How High can SHIB Price reach by 2030? -
Everything You Need To Know About A Crypto CFD Broker - Twitter Fact-Checks: Is ROBINHOOD restricting Crypto Withdrawals?
-
Can Shiba Inu Price Reach 10 Cents? -
Bitcoin Price: How to Potentially Make Profit Using Scalping Strategy? -
Cryptocurrency Trading Strategies for Newcomers -
StormGain Introduces Internet Computer (ICP) Trading At 0% Commission
-
Cardano Price Prediction – How High can Cardano reach by 2030? -
How to Trade Bitcoin During Christmas?
- After GameStop fiasco, retail traders target Cryptos – Why is DOGECOIN up 470%
-
BIGGEST Shiba Inu Prediction: How High can SHiB reach before 2023?
-
How to Become a Successful Trader – 5 Steps to Follow -
Crypto Trading Or Crypto Investing? - XRP Price Prediction – How is Ripple STILL ALIVE? UP 50% in 7 days
- How To Make Money Trading The Bear Flag
- Shiba Inu Price is about to Increase because of THIS indicator!
-
Can Ethereum Crash to 1000 $ still? YES, Here’s Why!
You might also like
More from Crypto
What is DJED Crypto? Here’s a Quick Brief on Cardano Stablecoin
What is DJED crypto? What does a stablecoin release mean for Cardano? In this article, we explain everything about DJED …
Understanding Crypto Types – Which Crypto is the BEST?
In this article, we will be looking into the different crypto types in the cryptocurrency market and some examples of …
Cardano Price Prediction – How High can ADA Price reach by 2025?
How far can Cardano rise by 2025? Let's take a look at Cardano price prediction in this article.
