Currency speculation terminology, what is long and what is short

Going "long" in cryptocurrency trading involves: 1. Buying an asset in anticipation of its price rising; 2. Holding the asset until it reaches the target price; 3. Selling the asset and making a profit. "Short selling" involves: 1. Borrowing an asset and selling it; 2. Buying the asset back after the price drops; 3. Paying back the loan and making a profit.

What is Long

In cryptocurrency trading, “going long” is a trading strategy where traders predict Asset prices will increase and actions will be taken accordingly. Specifically, "going long" involves the following steps:

• Buying an asset: Traders purchase a specific amount of a cryptocurrency in the expectation that its value will increase.
• Hold Assets: Traders keep the purchased cryptocurrency until its value reaches the desired target or the trend reverses.
• Selling Assets: When an asset reaches a target price or traders believe the price will fall, they sell their cryptocurrency holdings in order to make a profit.

What is short selling

In contrast, "shorting" is a trading strategy in which traders predict that the price of an asset will fall and act accordingly. Specifically, "shorting" involves the following steps:

• Borrowing Assets: A trader borrows a specific amount of cryptocurrency from an exchange or other trader.
• Selling Assets: Traders immediately sell borrowed cryptocurrency, expecting its value to fall.
• Buying Assets: After an asset drops in value, traders buy back the borrowed cryptocurrency using the lower price.
• Repay the loan: Traders use the bought-back cryptocurrency to repay the borrowed cryptocurrency and receive a profit on the price difference.

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