# Long vs Short: The Ultimate Comparison of Two Ways to Make Money

In the crypto market, you cannot avoid these two concepts. Let's clarify them.

**Long (Go Long) = Bet on Rise**

The simplest operation: Buy → Wait for the price to rise → Sell to make a profit. For example, if you buy 1 BTC for $20,000 and it rises to $25,000, you sell and make a guaranteed profit of $5,000. This is called long. What about the risk? You can only lose your principal; if the price drops to zero, you will lose everything, but you won’t owe the exchange any money.

**Short = Bet on a decline**

This is a bit more complicated: Borrow coins from the exchange → Sell at a high price → Wait for it to drop → Buy back at a low price → Return to the exchange. For example, borrow 10 shares of company stock ($100/share), sell them all for $1,000. After that, the stock price drops to $80, you $800 buy back 10 shares to return, making a profit of $200.

**But there is a pitfall here**: The losses from a short position are unlimited. If the price of the coin rises sharply instead of falling, your losses could far exceed your initial investment. This is why many people say that shorting is more dangerous than going long — once you misjudge the direction, the speed of bankruptcy can be frightening.

**Summary**: Long is the traditional investment logic, where the maximum loss is the principal; Short is a leveraged game, where the risk is magnified. Beginners should be cautious when playing Short.