Let's find out Longing (Long Position) meaning, definition in crypto, what is Longing (Long Position), and all other detailed facts.
Longing is a market position that investors take when they buy a cryptocurrency or any other asset for a lower price and wait until it goes up to sell it. It is considered to be a bullish market strategy adopted by professional traders who expect an asset to significantly rise in value and lead to major gains for holding onto it for an extended period.
Taking up long positions originated in the traditional markets and is practiced in the trade of stocks, securities, and other assets. However, long and short positions are important in the crypto trade, particularly given the volatility of cryptocurrencies.
Crypto traders adopt a long position if they detect that the price of the asset will be increasing. They rely on technical analysis done by market experts to confirm their predictions. Basic analysis on social media platforms within crypto communities, as well as updates on the market situation in the news, can also help predict price trends.
Some cryptocurrency holders may accidentally go into long positions as they forget that they even hold Bitcoin (BTC) or other digital assets.
Short and long positions can be exploited even without owning any cryptocurrency. Such an option is possible on derivative platforms by making use of options and futures. As the crypto markets matured these contract options started gaining popularity.
Traders use KYC-abiding crypto exchange platforms to place long or short positions on cryptocurrencies. They are able to hold their positions on spot or futures markets. Binance and Coinbase are among the most popular crypto exchanges with millions of users participating in the trades daily.
Long vs. Short Position in Crypto
Longing and shorting are terms used to describe two opposing market positions. Whether a trader is longing or shorting their crypto asset depends on whether they expect its value to rise or fall in the future. In essence, longing and shorting describes the fundamentals of trading.
Cryptocurrency trading has borrowed some terminology from traditional markets. Traders that take up a short position expect the value of the asset to decrease from a certain time point and sell it for a lower price. If a trader expects the value of the asset to go up, the position of waiting to sell it is known as longing or going long.
Cryptocurrency traders and investors prefer long over short positions. It’s mainly because they’re afraid to miss out on exploiting the rising crypto prices.
Additionally, cryptocurrency traders often take a long position because of major developments in blockchain technology and virtual currencies. For instance, Bitcoin overtook its previous all-time high in November 2020.
During this time, PayPal started providing a new crypto-specific service. It allowed traders to buy and sell various cryptocurrencies such as Bitcoin, Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH), to name a few.
Furthermore, there was a rise in investing in cryptocurrencies which was mainly influenced by sudden institutional interest. Some investors used their digital assets to hedge against stock market volatility.
Traders are able to take up long or short positions on cryptocurrency by using derivatives exchanges. In this case, traders do not have to buy or sell the assets on spot markets.
If the market is following a bullish trend, the traders will take on more long positions than short ones as they aim to make a profit from the price increase. Bearish market trends point towards an increase in short positions.
Professional traders often buy the dip and wait for the prices to go back up to sell it again. However, taking such positions can pose the risk of liquidation, particularly for traders involved in the futures market. It is highly recommended for traders to do diligent research before taking up risky market positions.
FAQs
Going long generally means buying shares in a company with the expectation that they will rise in value and can be sold for a profit (buy low, sell high). With options, a long position constitutes being the buyer in a trade. For example, if you buy a call option, you'll be long that option.
How does longing work? ›
Longing, also known as "going long" or "buying long", is one of the most common forms of trading and involves purchasing an asset with the belief that its price will go up in the future. For example, a trader will purchase 1 bitcoin (BTC) at $20,000, betting that the price of BTC will rise.
What is the difference between long position and short position in cryptocurrency? ›
In cryptocurrency trading, a long position is initiated by purchasing an asset with the expectation that its price will increase, whereas a short position is initiated by selling an asset (typically a borrowed one) with the expectation that its price will decrease.
How does longing crypto work? ›
One of the key strategies that traders use to profit from crypto is longing and shorting. Longing a crypto asset involves buying it in the hopes that its price will increase, while shorting involves selling it with the expectation that its price will decrease.
What is the meaning of longing in simple words? ›
: a strong desire especially for something unattainable : craving.
What does it mean when you are longing? ›
A longing describes an unfulfilled desire. The days might feel long as long as you are longing to see someone you love, if that person is far away. You might be longing for your mother's home-made chicken soup, if you are sick and far from home.
Is longing positive or negative? ›
People who occasionally yearn for something that is out of reach, may not experience it as a very negative emotion. However, if the desired thing is of crucial importance for their happiness and there seems virtually no chance that they will ever attain it, the experience will likely be very negative.
What is a longing personality? ›
Life longings (Sehnsucht)—defined as intense desires for ideal states of life that are remote or unattainable—reflect individuals' search for happiness and meaning and their struggle to cope with losses and unrealizable wishes.
What emotion is longing? ›
Longing is mainly a blend of the (primary) emotions of love or happiness and sadness or depression, but different kinds of longing can also involve other primary, secondary, and higher order emotions.
Why is it called long and short position? ›
The distinction between going long and going short is brief but important: Being long a stock means that you own it and will profit if the stock rises. Being short a stock means that you have a negative position in the stock and will profit if the stock falls.
Investors maintain “long” security positions in the expectation that the stock will rise in value in the future. The opposite of a “long” position is a “short” position. A "short" position is generally the sale of a stock you do not own. Investors who sell short believe the price of the stock will decrease in value.
How long can you hold a short position in crypto? ›
This is the opposite of a traditional long position where an investor hopes to profit from rising prices. There is no time limit on how long a short sale can or cannot be open for.
What is longing BTC? ›
Longing is a market position that investors take when they buy a cryptocurrency or any other asset for a lower price and wait until it goes up to sell it.
How do police track crypto? ›
Blockchain intelligence helps organizations answer these questions. Using it, law enforcement agencies identify criminal entities by examining on-chain activity like the movement of stolen or laundered crypto.
How do 3x long tokens work? ›
For example, if a trader purchases a 3x long Bitcoin leveraged token, and Bitcoin's price goes up by 5%, the leveraged token will increase in value by 15%. Conversely, if Bitcoin's price drops by 5%, the leveraged token will decrease in value by 15%.
What does it mean to be longing for a place? ›
noun. strong, persistent desire or craving, especially for something unattainable or distant: filled with longing for home.
What does yearning position mean? ›
Yearner. In the yearner position, a sleeper looks like they are reaching or yearning for something. Their legs and arms are both outstretched, like in the log position. The difference is that instead of being by their sides, their arms extend forward. If you sleep in the yearner position and experience shoulder pain.
What does just longing mean? ›
strong, persistent desire or craving, esp. for something unattainable or distant.
What is the difference between a position and a holding? ›
Difference between holdings and positions – Quick summary
Holdings include the different assets you own in your Demat account. These may be stocks, bonds, ETFs, etc. Conversely, positions represent your active trades that are currently open and yet to be settled. This may include intraday or derivative transactions.
