What Does Long Mean?
In the context of cryptocurrency trading, going ‘long’ means buying a cryptocurrency and holding on to it in the hopes its price will rise. If the trader’s prediction is correct, they can sell the cryptocurrency at a higher price and make a profit.
The long strategy is based on the belief that the crypto market will grow in the long run, offering opportunities for gains. It requires patience and a belief in the potential of the chosen cryptocurrency. However, it’s important to note that going long also carries the risk of the asset’s value declining, resulting in losses.
Novice traders should carefully research and analyse the crypto market, considering factors like the project’s fundamentals, market trends, and news updates before deciding to go long on a particular cryptocurrency. It’s also advisable to set a stop-loss order to limit potential losses if the market moves against the trader’s prediction.