In this article we will also look at what Bitcoin long positions are and how they are made to help you financially benefit from the price increases of cryptocurrencies.
Bitcoin is the world’s leading constituent cryptocurrency, which offers money from trading and is considered the best cryptocurrency for investment purposes. However, Bitcoin is high-risk and highly profitable.
If you have Bitcoin as an investor and you think that Bitcoin will grow in value in the future according to your market analysis, you can benefit greatly by longing your Bitcoins.
What Is Bitcoin Long?
Longing in Bitcoin refers to an investment method where you can make money by folding as the price of Bitcoin increases. By combining the bitcoins you have and the bitcoins you borrow, you can open the bitcoin Guild. The purpose of Bitcoin long is to sell the bitcoin you buy at a higher value. Whatever the outcome of this transaction, you will be returning the bitcoins you borrowed when your trade closes.
To sell bitcoin by long, it is very important to know the basics of Bitcoin long sale:
Analyze the market before you long bitcoin.
Examine past events that triggered large purchases.
Check cryptocurrency regulations in key countries.
Follow current events that benefit the price.
How To Make Bitcoin Long?
Choose the size of your trade. (E.g. 1 Bitcoin)
Select the leverage ratio you want to use.
Choose the price to enter the Long position. When your order is complete, you will receive Bitcoin at this price.
If the price goes up, you close your position, sell your Bitcoins and make a profit. If the price falls, you sell your Bitcoins at a loss.
By selling your bitcoin directly to a person or at a higher value than you buy on the Bitcoin exchange, you easily make a profit and earn extra profit margin when you buy back your cryptocurrencies when the price rises.
For example, you opened 1 BTC long with the Bitcoin price of 10 thousand dollars and 10 times the leverage. A thousand dollars will be taken from your account and the remaining 9 thousand dollars will be borrowed from the stock market.
The price of Bitcoin went up to $11k and you closed your position. You returned the bitcoin you borrowed for $9k and you earned a thousand dollars from the long transaction because 1 BTC was $11k. Within this thousand dollars are taken Trade transaction fees and a small amount of interest. After these transactions are completed, the remaining money is entirely your profit.
