What the heck are "go long" and "shorting"? An article that explains it clearly.

In the crypto world, if you've been around long enough, you will often hear the terms “long” and “short.” What does it mean to go long and what does it mean to short? Simply put, it is betting on a rise or betting on a fall.

The core concept is very simple

Go Long: It means buying a coin and selling it after it rises. For example, if Bitcoin is currently 100,000 and you think it will rise to 120,000, then you buy and wait. Profit = Selling price - Buying price.

Shorting: The opposite operation. You think Bitcoin will fall, but you don't have any coins. At this time, you can borrow one BTC from the exchange and sell it immediately at a price of 100,000. When the price really falls to 80,000, you buy it back to return to the exchange. Profit = 100,000 - 80,000 = 20,000 (excluding borrowing fees).

This is why going long is called “long” - because the rise is usually slow and you have to hold it; shorting is called “short” - because the fall is fast and the operation cycle is short.

Quickly master a few concepts

Bull Market vs Bear Market

• Bulls: Those who are bullish, opening long positions, buying to push up prices
• Bears: Those who are bearish, open shorting positions, sell to lower the price.

A bear market is when prices generally fall, while a bull market is the opposite.

Risk Management: Hedging

Go long 2 BTC, but afraid of a crash? You can simultaneously short 1 BTC as insurance.

Assuming BTC rises from 30,000 to 40,000:

• Go long profit: (2-1) × (4-3) = 10,000
• Total profit: 10,000

If BTC falls to 25,000:

• Go long losses and shorting gains offset each other, final loss: (2-1) × (2.5-3) = -5000
• Hedging effect: Loss decreased from 10,000 to 5,000

What is the cost? When making a profit, the gain is also cut in half. So hedging is a balancing act.

Futures contracts make all this possible

In the spot market, you can only buy coins. But in the futures market, you don't need to actually own the assets; you can directly go long or shorting through contracts.

Perpetual Contract: No expiration date, positions can be held indefinitely. A “funding fee” (the price difference between spot and futures) must be paid every few hours.

Futures Contract: Has a fixed expiration date, and at the final settlement, what you receive is not the coin, but the profit margin.

Risk Warning: Leverage and Liquidation

Many people use leverage to amplify their profits. For example, using 10,000 yuan to control a position of 100,000 yuan. It sounds great, but…

Margin call occurs when your margin is insufficient to maintain your position, and the exchange forcibly closes your position. This usually happens during large market fluctuations.

The exchange will first issue a “margin call notification”; if you do not add funds, your position will be automatically sold.

How to avoid it? Learn risk management well, don't place heavy bets, and always pay attention to position size.

Go long vs Shorting: Each has its pitfalls

go long: The logic is simple, just like buying stocks normally, friendly for beginners.

shorting: Logical reversal, easy to misunderstand. Moreover, the falling trend is usually more severe and harder to predict than the rising trend, posing greater risks.

Leverage: It can turn a profit of 10,000 into 100,000, but it can also amplify losses by 10 times. Newbies should definitely avoid it.

Final Words

Go long and shorting are essentially bets on the direction of the market. Futures allow you to participate without actually owning the coin, and you can also amplify your profits through leverage. However, the higher the profit, the greater the risk—this iron rule applies in the crypto world as well.

Mastering position management and learning to cut losses is much more important than pursuing high profits.