🧠 Understand the 3 basic concepts in trading: LONG – SHORT – SPOT

Hello new traders!

When first stepping into the crypto market or finance in general, everyone has probably felt confused by the 3 terms: LONG – SHORT – SPOT. Below is the easiest and briefest way to understand them:

✅ 1. SPOT – Spot trading (Real Buy & Sell)

You buy and own the asset (for example: buying BTC means you actually have BTC in your wallet).

If the price goes up, you profit; if the price goes down, you incur a loss if you sell.

No leverage is used. No liquidation. Very suitable for beginners.

📌 Example: Buy 1 BTC at 60,000 → Price rises to 70,000 → Profit 10,000.

✅ 2. LONG – Bet on price INCREASE in futures

You borrow money to open a buy order, hoping the price will increase to make a profit.

If the price goes the right way (increases), you profit faster than Spot thanks to leverage.

If it goes the wrong way (price decreases), your account may be burned (liquidated).

📌 Example: Long 1 BTC at 60,000, using 10x leverage → Price rises to 66,000 (up 10%) → Profit 100%.

✅ 3. SHORT – Bet on price DECREASE in futures

You borrow coins to sell first, expecting to buy back at a lower price later.

Opposite to Long: the more the price decreases, the more profit you make.

There is also a risk of account liquidation if the price increases too much.

📌 Example: Short BTC at 60,000 → Price drops to 54,000 → Profit 10%.