Just entered crypto, I realize there are two things you need to understand best: trading and holding. In trading, the questions "what is a long" and "what is a short" are what most newbies encounter. Today, I want to share what I’ve learned about this issue.

First is position, which is your stance in the market. Simply put, a position is the state of holding a certain type of cryptocurrency under specific conditions. In the crypto market, positions are mainly divided into two types: long position (buy stance) and short position (sell stance). When you open a long position, you spend money to buy a trading pair and expect to sell it at a higher price to make a profit. Conversely, a short position is when you predict the price will decrease, you short sell and hope to buy back at a lower price.

Regarding long specifically, it’s simply when a trader buys a cryptocurrency pair with the expectation that the price will rise. I usually do this: when I see a pair about to increase, I buy in at multiple price levels instead of investing all my money at once. This helps me get a better average price. Then, when the price actually goes up, I close those long orders and take profit. What is a long short order? Essentially, these are tools that allow traders to profit from both directions of the market.

On the other hand, a short position appears when a trader short sells a currency expecting it to decrease in value. Here, you don’t need to actually own the pair, but use leverage and margin to perform the short sale. When the price drops, you close the short order and profit from the market’s decline.

But the interesting part is market psychology. When most people share the same view, for example, everyone opens longs because they believe the price will go up, there will be a huge buying surge. The exchange rate skyrockets in a very short time because of excessive long positions. The same thing happens with shorts: when too many people short simultaneously, the price plummets rapidly. That’s when you need to understand what long and short orders are not only technically but also psychologically.

I want to emphasize an important point: as long as you haven’t closed a trade, your profit or loss only exists on paper. Therefore, it’s necessary to set stop-losses in each order to avoid unnecessary losses. Open a trade by buying or selling, then close it with the opposite action. All values are calculated and reflected based on the currency in your account.

In summary, understanding what long and short orders are is the first step to trading systematically. They are not only tools to make money but also ways to protect your investment portfolio. If you’re also starting your crypto journey, I hope these insights will be helpful to you.