📘 Crypto Basics Explained: Long, Short & Leverage

⸻

🟢 LONG (Buy Low → Sell High)

You go long when you believe the price will rise.

Example:

BTC at $40,000 → you buy

BTC at $45,000 → you sell

Profit = $5,000

If price falls, you lose.

Simple. You benefit from upward movement.

⸻

🔴 SHORT (Sell High → Buy Back Lower)

You go short when you believe the price will fall.

Example:

BTC at $40,000 → you sell (via a contract)

BTC at $35,000 → you buy back

Profit = $5,000

If price rises instead, you lose.

You benefit from downward movement.

⸻

⚙️ LEVERAGE (Multiplier, Not Free Money)

Leverage lets you control a bigger position with less capital.

Example:

You have $1,000

Using 5× leverage → you control $5,000

✔️ Small price move → big profit

❌ Small price move → big loss

Leverage does not reduce risk.

It makes outcomes faster.

⸻

☠️ Liquidation (Important)

If losses reach your margin:

• The exchange closes your trade automatically

• You lose your margin

• This can happen even if price later goes your way

⸻

🧠 Key Takeaways

• Long = profit from price going up

• Short = profit from price going down

• Leverage = speed amplifier

• Futures = zero-sum game (someone wins, someone loses)

• High leverage + volatility = account wipe risk

⸻

🧭 Final Thought

Spot trading builds patience.

Futures demand precision.

Understand before you trade.

#cryptoeducation

#tradingbasics

#LearnBeforeYouTrade

#RiskManagement

#CryptoFutures