What is Longing (Long Position)? – Bittime

Professional traders often carry out a Longing strategy (Long position) in cryptocurrency trading. In this article we will discuss this topic further, read in full!

Understanding Longing (Long Position) in Crypto:

Longing in a crypto context indicates anticipation of an increase in the value of a particular cryptocurrency. Basically, if you expect the value of Bitcoin to increase over a certain period, you engage in “longing” by buying it.

This approach reflects bullish sentiment, with traders anticipating significant profits by holding the coin. Professional traders generally adopt this strategy when the market is preparing for or maintaining a bullish trend, a practice also found in other asset classes such as stocks and securities.

Shorting vs. Longing dalam Crypto

The terms “shorting” and “longing” encompass a trader's beliefs about the potential increase or decrease in the value of a cryptocurrency. Although these terms seem simple, they play a fundamental role in shaping trading activities.

In a short position, the trader anticipates a decline in the price of the cryptocurrency from a certain point and sells, adopting a “short” stance. In contrast, in a long position, the trader predicts an upward price movement from a certain point and chooses to buy the coin/token, or “go long.”

It is important to note that traders can utilize derivatives exchanges to go long or short on cryptocurrencies without directly engaging in spot market transactions.

Long and Short Market Dynamics

In a bull market, characterized by an overall rise in prices, long positions tend to dominate as traders aim to capitalize on an uptrend. Conversely, bearish markets witness an increase in short positions, reflecting a shared anticipation of a price decline. However, keep in mind that these trends are observational and may vary.

Experienced traders often use a strategic approach, buying during market dips and selling when prices spike. However, engaging in positions such as these, especially in the Futures markets, carries a risk of liquidation, requiring thorough research and analysis before engaging in such a venture.

Strategic Time to Open a Long Position

For crypto traders, the ideal scenario to go long is when upward price movement is anticipated. Proper timing and accurate decision making are essential, guided by technical analysis carried out by experts.

Traders can also incorporate fundamental analysis, actively participate in social media platforms, join crypto expert communities, and keep up with crypto news to assess market sentiment before making a final decision.

Many exchanges and trading platforms offer the opportunity to go long or short on cryptocurrencies. Outside of the spot market, Futures markets on platforms such as Binance facilitate both positions, attracting millions of traders who engage in these transactions every day.

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DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates