Long is a position where an asset is bought and held for a long time, with the expectation of an increase in price in the future.
On the short position, on the contrary, the asset is bought at the current price and sold immediately. Usually, a “short” position is opened when they expect the price to fall in the near future.
How to use a Short position correctly?
◾️ It is worth shorting those assets with which you are familiar, as well as those that already have a good market capitalization.
◾️ You need to sell the asset as soon as possible, otherwise you will incur losses.
◾️ It is worth opening a short position if and only when you see a drop in cryptocurrency from the top 20, and your calculations show that this is not a price correction, but a trend reversal.
◾️ Practice on a demo account before going short, even if you are a trader with impressive experience.
Remember that trading in shorts is only effective when the market behaves predictably.
How to use a long position correctly?
Unlike a short position, a long position is much easier. You just need to buy an asset when the bears can reduce its price as much as possible. It is rare to do this, but when, for example, BTC costs about 6,000, as it was in March this year, this is very excellent timing for buying a coin.
The long position algorithm is extremely simple:
◾️ Buy an asset at a low price
◾️ You are waiting for the asset price to go up
◾️ Sell an asset when its price is several times more expensive
◾️ Profit!
A short position is more suitable for traders who are excellent at feeling the market, counting charts, and have sufficient trading experience, as well as those who use margin trading, since you can make excellent capital on shorts in a fairly short period of time.
A long position is ideal for beginners or those who are not used to spending a lot of time on the exchange.
Using the Cryptology exchange, you can open both long and short positions as easily and quickly as possible, and with the help of our technical analysis tools, trading on shorts will be more effective for you.