When you start figuring out crypto trading, you immediately run into a lot of confusing terms. But there are two expressions you see everywhere—short and long. They’re the foundation of everything a beginner needs to understand.

It turns out these words come from traditional trading, going back to the XIX век (19th century). The first references are recorded in journals from 1852. The logic is simple: long (from English long — long) is a position betting on a rise, which takes time because prices usually grow more slowly. Short (from English short — short) is a bet on a decline, which can play out faster.

Now, to the point. Short and long are two types of positions a trader opens depending on where they think the price will go. Long is simply buying. You believe the asset will increase in value, buy it at the current price, and wait for it to rise. For example, if a token is trading at $100 and you think it will go to $150, you buy, wait, and then sell. Profit is the difference between the entry price and the exit price.

Short is more complicated. Here, you borrow an asset from the exchange, sell it immediately at the current price, and then wait for the price to drop so you can buy it back cheaper and return it to the exchange. Example: you think Bitcoin will fall from $61000 to $59000. You borrow 1 BTC, sell it for $61000, then buy it back for $59000 and return it to the exchange. Your profit is $2000 minus the commission.

In the crypto industry, two more terms are used—bulls and bears. Bulls believe in growth and open longs, while bears bet on a decline and open shorts. They’re like two sides of the same market.

To open short and long, in most cases traders do it through futures—derivative instruments that let you profit from price movement without owning the asset itself. Futures come in perpetual contracts (no expiration date, so you can hold your position as long as you want) and settled contracts (you don’t receive the asset itself; you only get the price difference). Plus, you need to remember about the funding rate—you pay it every few hours to keep the position.

There’s also something called hedging—a way to protect yourself from losses. If you opened a long on two bitcoins but aren’t sure the price will rise, you can open a short at the same time on one bitcoin. If the price goes up, you profit on the long but lose on the short. If it falls, it’s the other way around. In other words, you reduce losses if things go wrong.

But there’s a risk called liquidation. If the price changes sharply and your collateral (margin) isn’t enough, the exchange will simply close your position. First, you’ll get a margin call—an offer to add more collateral. If you don’t, the trade will be closed automatically.

When you use longs, everything is straightforward—it’s like a normal purchase. But shorts are harder: prices can fall unpredictably and quickly. On top of that, most traders use leverage to increase profits, but the same leverage also increases risks. You have to constantly monitor your margin level.

In the end: short and long are tools for making money from any market movement. You choose the direction, open a position, and manage your risk. Futures and derivatives allow you to profit without owning the asset and by using borrowed funds. But remember—big profit comes with big risks.