In this article, we will be covering the topic of basic crypto trading strategies. A well-researched crypto trading strategy goes a long way in ensuring a profitable return. The terms that you’ll see traders throw around very often are “long trading” versus “short trading”.
Here’s the difference between short versus long trading. When long trading, you purchase an asset and keep it until the price is high enough to be sold. Some trading softwares will have a trade entry button that’s labelled “buy” or “long”. These two terms are used interchangeably.
It’s also common to hear a trader say that they’re “going long” to convey their interest in buying an asset.
For example, if you “go long” on 5 Ether for $2,000 each, it would cost you $10,000. Selling all of them at the time when each Ether is priced at $2,500 will get you $12,500 in total, netting you a profit of $2,500 before commissions.
The process of short trading is the opposite of long-basis trade.
The terms “short” and “sell” are used interchangeably.
By using a crypto trading bot like CryptoHero, a trader can implement long and short that will enable you to see how well a basic strategies perform.
