A long position is the strategy of trading, in which the investor buys an asset, for example, a cryptocurrency, stock, or commodity, with the assumption that its price will increase over time. By going “long,” one is putting his/her/their money up. If the price goes up, then he/she/they can sell the asset later on at a higher price and make a profit equal to the difference.
In the world of cryptocurrencies, taking a long position can be as easy as just buying Bitcoin or Ethereum and keeping it in a wallet. Traders who are thinking of a strong price increase and generally a bullish market might even open long positions via futures contracts or margin accounts that give them access to leverage. Using leverage means that the trader can get more profit if the market goes in his/her/their favor, however, the risk of losses would also be increased if the prices go down.
Going long does not necessarily mean that the trader has to keep the asset for a long time, it just refers to the direction of the bet. The long position could last for minutes, hours, months, or even years depending on the trader’s style and the level of his/her/their confidence in the trend.
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Long positions are generally taken during bull markets when the investors’ sentiment is positive and thus they think that the prices will continue to rise. To put it simply, going long means that you expect the market to be bullish and you are taking steps to reap the benefits of that increase.