What Is a Long Position?
A long position refers to an investment strategy where an investor acquires cryptocurrency with the expectation that its price will increase in the future, allowing them to sell the asset at a profit.
A long position is the opposite of a short position, where traders anticipate a decline in the value of a digital asset and employ strategies to capitalize on this downward movement.
In some cases, individuals may find themselves in a long position unintentionally, such as when they forget about owning a particular cryptocurrency for an extended period and later discover its increased value.
Long and Short Positions
Long and short positions can be executed without physically owning the cryptocurrency through derivative platforms that offer financial instruments like options and futures.
These instruments have gained popularity as the crypto markets have matured.
Long positions are more commonly taken by investors and cryptocurrency traders compared to short positions.
This is often driven by the desire to benefit from bullish market conditions and the fear of missing out (FOMO).
Going Long in Cryptocurrency
When indicators suggest an upcoming price increase, market participants can buy their chosen cryptocurrency on an exchange.
Major developments and positive news in the blockchain and digital asset space also contribute to the decision to go long.
This milestone, combined with increased institutional interest and the perception of digital assets as a hedge against stock market volatility, attracted many traders to cryptocurrencies.