Guide
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Long and short in crypto: making money when prices go up and down
What going long or short on cryptocurrencies means, how shorting works, and the risks involved.
Long: the classic bet
Going long means buying hoping the price will go up. The maximum risk is losing what you invested.
Short: profiting from the drop
Going short significa vendere prima e ricomprare dopo, più in basso. In pratica l'exchange ti presta la moneta: la vendi a 100, il prezzo scende a 90, la ricompri e restituisci il prestito. La differenza (meno commissioni e interessi) è il guadagno.
The risks of shorting
- The theoretical loss has no limit: the price can go up much higher than it can go down.
- Margin and interest: shorting requires a margin account, with financing costs as long as the position remains open.
- Liquidation: se il prezzo sale troppo, l'exchange chiude la posizione in automatico.
When it makes sense
When the trend is clearly downward, shorting allows you to trade even in red markets. But it must always be used with stop loss and with small amounts.
In short
Long and short are two sides of the same coin. Shorting is powerful but riskier: learn first with minimal amounts or in demo mode.