What does long and short mean in crypto trading?

Can you explain the meaning of long and short in crypto trading? How do these terms relate to buying and selling cryptocurrencies?

1 answers
- At BYDFi, we understand the importance of understanding long and short positions in crypto trading. Going long means buying a cryptocurrency with the expectation of its price increasing. This strategy is often used by investors who believe in the long-term potential of a particular cryptocurrency. Going short, on the other hand, involves selling a cryptocurrency with the expectation of its price decreasing. This strategy is often used by traders who want to profit from short-term price declines. It's important to note that going short in crypto trading can be more complex than going long, as it may require borrowing the cryptocurrency from a lender and returning it at a later date. Traders should always carefully consider the risks and potential rewards of both long and short positions before making any trading decisions.
Mar 18, 2022 · 3 years ago
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