Cryptocurrencies are increasing in popularity as many people started to invest in digital currencies. There are various exchanges available on the internet to trade different cryptocurrencies. But many newcomers are struggling hard to trade cryptocurrencies due to many terms. It is hard for beginners to learn about all terms. While long and short positions are two major terms in cryptocurrency investments. A crypto stats use these terms to analyze the crypto value. Like the price of any stock, cryptocurrency has value. Traders should go long when the price of the cryptocurrency is expected to increase. When the price of the cryptocurrency reduces, then traders should go short.
Long position in cryptocurrency:
If you follow the daily chart and crypto stats, then you could know that when the price will increase. It is essential that you should be very active in learning the news about cryptocurrencies regularly. Alternatively, you have to check the various tools that help you to analyze the various fluctuations in the market. You should go long only if you are sure that the price will go up. Otherwise, you will end up going against the market. Going long is the most common way among investors when they choose brokers.
Short position in cryptocurrency:
You also hear about the sort position that is exactly opposite to the long position. When going short, you actually know that the price of the coin is going to drop. On the contrary, it is even possible to make money while the price of the coin is falling. As an investor, you can buy the coin that is going to drop in a few weeks and sell them in exchange. Later, you could buy the same coin in exchange. It is the best way to make huge profits. There are several exchanges like BitMEX that allow you to go long or short. It helps you to anticipate a rising or falling trend.
Hence, these are two positions in cryptocurrency that you should know if you want to stay ahead in the market. Therefore, learn more about the positions before you begin to invest.