by Hodler Ash 
What Does Going Long Mean In Crypto Trading ?
Cryptocurrency might be a very confusing thing for beginners because a lot of terms are used in the market that the people who have some knowledge about cryptocurrencies would only understand. Basically, there are many traders of the cryptocurrency and once one of the traders buy an asset for a long term, it means that the specific trader has huge faith in that particular asset and he/she would willingly be going long with it. The main thing that they are analysed before putting a large amount of faith in a particular asset is the potential to have a rise in price.
Whenever you listen to a trader saying that they are taking to a long position, the immediate implication is that they are buying an asset for a long term. Again, going long does not necessarily mean that the asset is supposed to be held by you forever. There are different strategies for different kinds of assets (coins) and a person can even go long as a day trader as well. It all depends on the type of the asset and that is what the basic unpredictability of the cryptocurrency market is all about. Strategizing and analysing is very necessary before going long in Crypto trading.
The Time Limit For Going Long In Crypto Trading
Honestly, there is no real time limit when you are opting for going long. A person can actually hold an asset for as long as he wants but can also sell it the day after. As already mentioned, the day traders can take cryptocurrency long positions too. They basically interchange this term with buying and one should not confuse between the two.
As an active trader, there are chances that a person would go along with an assets for a few weeks or even months. Capitalising on the market trends and latest news is what matters at the end of the day because analysing that, you would know if you should sell your asset at this point of time or will the price of the asset go up in the near future and you should keep it with you for now.
While calculating potential profits, if you are a trader who trades on margin, you should be aware of the interest on the coins that you have to bear. If you are buying in return of cash however, you should not worry about any interest that you have to pay but the only problem is that the capital would be locked up for a long period of time.
Going Long is actually helping a lot of Crypto traders specifically when the market trends a positive at this point of time. There are benefits of a reduced tax rate as well which appreciates the long positions.
How To Open Long Position In Crypto ?
There is no specific process for opening long position in crypto, it is as simple as just buying any cryptocurrency. If you are buying it with margin, you should be a little more aware of the risks you are taking because you also have to pay the interest. On the other hand, if you are buying with cash, capitalising on your investment is easier and it makes sense why people often go long cryptocurrencies they have bought using cash.
When Should One Close Long Position ?
A lot of strategy and analysing is required for knowing the perfect time one should close it but generally, it should be closed when you believe that it reached the potential you thought it would reach. That is when the risks are minimum for a trader and it is completely justifiable to close it that time. Waiting for too long might just result in hefty losses which is not what one would want.
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