In today's digital currency market, going long or short on Bitcoin has become a hot topic among investors. What risks and opportunities are hidden behind this operation? Let's explore it in depth.

In the financial field, going long and going short are two completely different trading strategies. Going long refers to the behavior of investors who believe that the price of an asset will rise in the future, so they buy the asset to make a profit; while going short refers to the operation of investors who are bearish on an asset, borrowing the asset to sell it, and then buying it back after the price falls to make a profit. In the Bitcoin market, going long or short on Bitcoin is also one of the common means used by investors.

Going long on Bitcoin means believing that the price of Bitcoin will rise. Investors will directly purchase Bitcoin or futures contracts to participate in the market in the hope of future price growth. This strategy is suitable for investors who are optimistic about the potential development prospects of Bitcoin. They believe that Bitcoin will become the leader in the digital currency field in the future and bring rich returns on investment.

On the contrary, shorting Bitcoin is a bearish operation. Investors borrow Bitcoin to sell it, and then buy it back to return the borrowed Bitcoin after the price falls to make a profit. This strategy is suitable for investors who believe that the price of Bitcoin will fall. They may think that there is a bubble in the Bitcoin market, or that it is affected by external factors, causing the price to fall.

In addition to speculative operations, long and short Bitcoin can also be used to hedge risks. The Bitcoin market fluctuates greatly, and investors holding Bitcoin assets face the risk of price fluctuations. Through short operations, this risk can be hedged to a certain extent and their investment can be protected.

In general, long and short Bitcoin is a complex and challenging trading strategy that requires investors to stay alert in the market, rationally analyze market trends, and make correct decisions. Only through continuous learning and practice can we better grasp the pulse of the market and obtain a stable return on investment.

In the digital currency market, both the long and short strategies of Bitcoin have their own advantages and disadvantages. Investors should carefully choose the trading method that suits them according to their own risk tolerance and understanding of the market. Whether it is long or short, you need to be cautious and invest rationally to obtain long-term and stable investment returns in the digital currency market. I hope every investor can overcome difficulties in the digital currency market and obtain ideal investment returns.

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Note: The above exchange logo is the official website registration link, and the text is the APP download link.

In fact, most investors have heard about long and short from the stock market. In fact, in the digital currency market, long and short are also common investment strategies. That is to say, when it comes to Bitcoin futures contracts, even if the investment strategy is exaggerated, it is actually the same in the end. In summary, it is long and short on Bitcoin. So, what does long and short on Bitcoin mean? Below, the editor of the currency circle will give you a popular explanation of what long and short on Bitcoin mean?

 What does long and short on Bitcoin mean?

1. Long

It refers to the investment operation carried out by investors when judging that the future market price will rise. The specific operation method is that investors buy a certain amount according to the current market price and wait. When the market price rises, close the position and sell it. The income mainly comes from the difference between buying and closing the position.

Before opening a position, we can find the contract calculator to make a prediction in advance. Assume: The current market reasonable price is 8920USDT. I select the direction of the calculator, select 20 times the leverage, enter the number of positions to be opened as 30, and then enter the price I will open as 8920. Finally, enter the predicted point of the market price after the rise. For example, I plan to close the position and sell when it rises to 9000 points. After starting the calculation, my estimated profit will be as shown in the figure below for reference.

2. Short selling

It refers to the operation performed by investors when it is judged that the future market price will fall. The specific operation method is that investors sell a certain amount of short selling according to the current market price and wait. When the market price rises, close the position and buy again. The profit obtained mainly comes from the difference between selling and closing the position.

As shown in the figure below:

The current market reasonable price is 8911. I think there will be a small decline in the future. I want to open a sell/short
bearish order. Then I open the calculator, choose short, enter the leverage I choose, the number of open positions, the current market price of the open position, and finally enter the expected closing price after the short position, and the estimated profit of the position will pop up for reference.

 Is it better to go long or short Bitcoin?

"Shorting" is a way to make a profit in the process of falling investment prices. If you short an asset and the investment price falls, you will gain profits. Generally speaking, the lower the price falls, the more profit you will make in the transaction.

For example: If a person shorts Bitcoin at $10,000, if the price of Bitcoin falls to $6,000, then the person will make a profit of $4,000; but if the price of Bitcoin rises to $12,000, then the person will lose $2,000.

Shorting is often riskier than "going long". Because if you short, the potential loss is theoretically unlimited, while the potential profit is limited. Going long is exactly the opposite.

Since asset prices cannot be lower than zero, even in the case of a sharp drop, the profit obtained by shorting is limited. On the contrary, if the investor makes a wrong judgment and the price of a shorted asset rises, it will result in a loss. Moreover, since assets can theoretically rise indefinitely, investors may also theoretically lose unlimited funds. This is an extreme example, but it does illustrate the risks of shorting investments.

Shorting refers to selling positions, which can also be called leverage, selling a certain type of currency, and looking up. Going long: Going long refers to long positions, which can also be called bullish positions, and buying a certain type of currency, and looking down.

1. Going long means that it is estimated that the future trend will rise, so buy contracts, and after the price rises in the future, sell the contracts at a high price. Get a net profit. Going short means that it is estimated that the future trend will fall, so sell contracts, and after the price falls in the future, buy contracts at a low price. Get a net profit.

2. For hedging:
Going long means avoiding or hedging the risk of cost expansion caused by future price increases, and locking in costs in advance. Short selling means avoiding or hedging the risk of profit reduction caused by future price declines, and locking profits in advance.

In general, long: long refers to long positions, which can also be called bullish, also known as long positions. Buy a certain type of currency, bearish. Short selling refers to selling positions, which can also be called leverage, selling a certain type of currency, bullish.

The above is the relevant content of what Bitcoin long and short selling mean. As we all know, in terms of speculation, long means that it is estimated that the future trend will rise, so buy contracts, and after the price rises in the future, sell contracts at a sky-high price to obtain net profits. Short selling means that it is estimated that the future trend will fall, so sell contracts, and after the price falls in the future, buy contracts at a low price to obtain net profits. In addition, in terms of hedging, long means avoiding or hedging the risk of product cost expansion caused by future price increases, and locking costs in advance. Short selling means avoiding or hedging the risk of profit reduction caused by future price declines, and locking profits in advance.

In actual operation, long and short Bitcoin requires investors to have a relatively accurate judgment and keen insight into the market. The Bitcoin market fluctuates greatly, and the price is affected by many factors. Investors need to keep an eye on market dynamics and adjust their trading strategies in a timely manner. At the same time, there are certain risks in long and short operations. Market fluctuations may cause investors to lose money, so investors need to have a strong sense of risk and fund management capabilities.