What is long position in cryptocurrency trading?
A long position is a position taken by an investor or trader that expects a rise in the value of an asset at a later date. An increase in the crypto price would indicate that it could be sold for a profit, while future price declines could potentially generate losses. With a long position, investors anticipate a bullish movement in cryptocurrency prices. The popular saying “buy low sell high” could be used to describe the long position.
The decision whether to take a long position or not should be based on signals and conclusions generated with the application of different analytical methods and tools. When investors go long or open a long position with specific crypto or token, they buy the underlying assets or a derivative instrument associated with the asset.