Tips for Using Long Positions to Make Money from Crypto Trading

Bittime - One way to make money or profit from crypto trading is to use a long position . In this article, we will learn how to buy crypto cheaply, hold it firmly, and enjoy the increase in value of our investment.

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What is Long and Short Trading? 

Long and short trading are two strategies frequently used by crypto traders.

Trading long means buying crypto with the hope that its price will rise in the future, both in the short and long term.

Trading short means selling crypto in the hope that the price will fall, so you can buy it back at a cheaper price.

What Is a Long Position in Crypto? 

Long position is a term used to state that we own crypto. If we say “I'm long on bitcoin,” it means we own bitcoin and believe the price will rise.

Long positions can be taken at any time, as long as we have the capital to buy the crypto we want.

Differences between Short and Long Positions in Crypto Trading 

Short and long positions have different goals. Short positions aim to profit from falling crypto prices. Long positions aim to profit from rising crypto prices. We can choose one of the positions according to our analysis and predictions of the market.

We can also trade crypto without having to own the crypto. The way to do this is to use derivatives, such as futures, options, and contracts for difference. With derivatives, we can profit from crypto price movements without having to buy or sell them directly.

Also read:

How to Recognize and Take Advantage of Long Patterns in Crypto Trading?

Long pattern is a chart pattern that shows that crypto prices are in an uptrend. This pattern is usually formed after the crypto price experiences a temporary correction or decline, and then continues its increase. This pattern can be a cup and handle, ascending triangle, symmetrical triangle, or other patterns that indicate that the crypto price will break through the resistance level and reach a higher level.

To recognize and utilize long patterns in crypto trading, we need to take the following steps:

Identify Chart Patterns

Perform technical analysis to identify chart patterns that are being formed. We can use technical indicators, such as moving averages, RSI, Bollinger bands, or others, to help us determine the direction and strength of the trend, as well as important support and resistance levels.

Determine the Stop Loss Target

Determine the price target and appropriate stop loss. The price target is the price level that we expect the crypto to reach after breaking out of the chart pattern. Stop loss is a price level that we determine to limit losses if the price moves contrary to our predictions. We can use mathematical calculations, such as Fibonacci retracement, or psychological levels, such as round numbers, to determine rational price targets and stop losses.

Open a Long Position Appropriately

Open a long position at the right time. When we see that the crypto price has broken through the chart pattern and is showing a bullish signal, we can buy the crypto with an amount that suits our capital and risk management. We can also use leverage, if available, to increase our profit potential, but must also be careful of greater risks.

Close Long Positions Appropriately

Closing long positions at the right time. When we see that the crypto price has reached the price target we specified, or shows a bearish signal indicating a reversal, we can sell the crypto and take profit. We can also use a trailing stop, if available, to protect our profits and let the cryptocurrency move higher.

Conclusion 

Trading long is one way to profit from crypto. To be able to trade long successfully, we must always follow market developments, conduct in-depth research, and be ready to make the right decisions when we see opportunities.

That way, we can become successful long-term crypto traders. Hopefully this article is useful for those of you who want to improve your trading skills and achieve consistent profits from the dynamic world of crypto.

How to Buy Crypto on Bittime

You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime , make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.

Also Read:

What is Day Trading?

What Are Futures?

Get to know the term long in cryptocurrency

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.