Understand the meaning of bullish and bearish, and master the two main ways to make money in the crypto market

In cryptocurrency trading, long and short are the two most core concepts. Simply put, going long means making money from rising prices, going short means making money from falling prices. Most beginners only know to buy low and sell high, but they don’t realize that they can also profit from declines by shorting. This article will thoroughly explain that.

What is a Bull? The Difference Between Going Long and Being Bullish

Bull represents the bullish camp. These people believe the price will rise, so they enter the market to buy.

Being bullish is a judgment — you predict the market will go up.

Going long is an action — you act on your bullish judgment by investing real money to buy. All purchase behaviors in the spot market are considered going long, earning profit from buying low and selling high.

Here’s a clearer example: Suppose a coin is currently priced at 10. You predict it will go up (bullish), then buy 1 coin at 10 (going long). When the price rises to 15, you sell it, earning a 5 profit. This entire process is called a long position.

Note: Going long is the basic operation in the spot market, with relatively controllable risk — at most, losing your principal.

What is a Bear? The Difference Between Being Bearish and Short Selling

Bear represents the bearish camp. These people believe the price will fall, aiming to profit from the decline.

Being bearish is a judgment — you predict the market will go down.

Short selling is an action — you execute based on your bearish judgment. But shorting is more special; it cannot be done in the spot market and can only be achieved through futures trading or leverage trading.

The specific process of shorting is as follows:

Suppose the coin is priced at 10, and you are bearish, but you do not own any coins. You put up 2 as margin, borrow 1 coin from the exchange. After borrowing, you immediately sell it, holding 10 in cash (but you cannot withdraw it because you owe a coin).

If the price drops as expected to 5, you buy back 1 coin at 5 to return to the exchange, leaving a profit of 5.

But the risk is: if the price does not fall but instead rises to 15, your margin may not be enough to cover the loss, leading to liquidation — your principal is wiped out. This is the most terrifying part of shorting.

The Essence of the Long and Short Opposition

The opposing relationship between long and short determines the market trend. The more people are bullish, the stronger the buying pressure, and the easier the price is to rise; the more people are bearish, the stronger the selling pressure, and the easier the price is to fall.

Remember this: The key to understanding the meaning of long and short is recognizing that they are two ways of thinking in trading, corresponding to profit paths in rising and falling markets. Beginners starting with going long is correct, but mastering shorting can help you find opportunities even in a bear market — provided you fully understand the risks.