What do "long" and "short" mean in cryptocurrency trading?

The terms "long" and "short" often confuse beginners. Let's break them down. Simple and clear.

Where the terms "short" and "long" came from

It seems that these words appeared a long time ago. They were mentioned in The Merchant's Magazine back in 1852. "Long" (long) got its name due to the duration — positions on the rise are usually held longer. "Short" (short)? Declines happen faster. Trades are shorter. The logic is simple.

How Long and Short Positions Work in Trading 🔥

Long - you buy, wait for the rise. That's it. Bitcoin costs $102,500. Do you think it will be $110,000? You open a long. You wait. Profit.

Short is a bit more complex. You take an asset. Sell it now. Then buy it back cheaper. Return the loan. The difference is yours. Is Ethereum at $4,800 looking overvalued? You open a short, and the price drops to $4,500. Three hundred from each token goes into your pocket. Minus the fees, of course.

Bulls and bears in the crypto market 🐂🐻

The market is inhabited by two breeds:

• Bulls — believe in rise. Open longs. Push prices up with their horns.
• Bears — are waiting for a collapse. They are shorting. They are pushing the market down.

From here, "bull market" ( rising ) and "bear market" ( falling ). September 2025, Bitcoin is already above $100,000. Where to next? Opinions are divided. It is not entirely clear whether the bull run will continue or the bears will make a comeback 🌕

Hedging risks through opposite positions

Hedging is like insurance. You have 2 BTC in a long position. It's a bit scary. The market is unstable. What to do? You open a short position on 1 BTC.

At a rise to $110,000 you will earn: (2-1) × ($110,000 - $102,500) = $7,500

When falling to $95,000: (2-1) × ($95,000 - $102,500) = -$7,500

Less profit. But also less risk. Compromise.

Futures as the primary instrument for longs and shorts

Perpetual futures are the main weapon of traders. Their features:

• No expiration date. Keep it forever if you want.
• You receive money, not the asset itself.
• Sometimes you pay a financing fee. Such rent is for the borrowed funds.

How to avoid liquidation 💥

Liquidation is a trader's nightmare. The position is forcibly closed. The deposit shrinks. Here's how to avoid this:

• Less leverage. Seriously.
• Stop-losses are your friends.
• Keep a reserve in the account.
• Keep an eye on the positions. Constantly.

Pros and Cons of Longs and Shorts

Long:

• Clearer for the brain
• The profit can be huge

• You have to wait longer.

Short:

• You can earn during a crisis
• Falls are often faster than rises

• Some kind of black magic for beginners
• Risky. Losses can be unlimited.

Conclusion

Understood long and short positions — ready for any weather in the market 🔥 Bullish trend or bearish crash — there is always a way to make a profit. The main thing is not to forget about risk management. After all, cryptocurrencies have a tendency to surprise. Sometimes quite unpleasantly.