Long and Short Positions in Crypto Trading

Long and short positions are the two basic terms every trader learns at the very beginning of their trading journey. Going long is to own the asset and expect the price to increase, while shorting is waiting for the price to go down and buy back the asset at a better price to make a profit

Unlike other assets, cryptocurrencies are highly volatile, and that can work in the trader’s favor whenever they succeed in deriving profits from price fluctuations. Regardless of what trading style or strategy you’re choosing, understanding core concepts like short and long trades is a must.

Short and Long Terms Basics

In the middle of the XIX century, the terms came into general use in the US stock and commodities market. When the first crypto markets started making their appearances, short and term positions quickly became a part of the trading slang as well.

Bull traders expect the price to rise and hence hold long positions while  bears expect the price to go down, so they sell the asset, to buy it back at a better price. Now, let’s look into what this means in practice. 

In a long position, traders assume that the asset price will rise from a current point. Thus, the trader chooses to “go long” and buys the coins. At the same time, in a short position, the trader thinks the price will now start falling and “goes short”, selling the digital assets.

Long Positions Action Plan

When going long, traders use a universal profit-making strategy of buying cheaper and selling more expensive. This behavior is often typical for beginners.

Here’s how you do it:

  • Analyze the market, find an asset that is most likely to go in price in the near future, and buy it;
  • Wait until the price starts rising. Sometimes, it might take a while;
  • Sell the asset and enjoy the profit.

The trickiest part is to sell the asset on time. Considering it is not easy to predict when the price stops rising, chasing the highest price may be a losing game. If you lose the opportunity to sell for profit, you have a couple of options: One is to absorb the losses and sell their assets. Another is to wait until the price rises again.

It’s worth noting that long trades are very common and can be executed on any exchange. 

Short Positions Action Plan

When traders go short, technically, they sell the assets they do not own yet to buy it later at a lower price. Fundamentally, the short trades concept implies that the assets have to be borrowed before selling.

That’s your basic action plan when going short:

  • Analyze the market and look for the coins that might go down in price
  • Loan them from the exchange and sell them instantly
  • When the price falls, buy back the coins you sold and pay back the exchange

Short trades are not universally available, and you need to make sure your exchange is offering this service. HitBTC is one of the few exchanges that features margin trading, allowing traders to go short. 

Margin Trading

Margin trading enables traders to open short and long positions, considering they provide collateral. The collateral is a funds deposit that serves as a guarantee that the debt will be repaid. Margin trading is similar to credit leverage and practically increases a trader’s deposit by using a loan. In crypto, the coefficient may vary drastically, from 2:1 to 100:1 and higher.

Suppose everything goes according to the trader’s plan. In that case, their profit will increase proportionally to the leverage, and when the position is closed, the collateral and the fees will be paid back. Also, the remaining amount (trader’s actual profit) is deposited into the user’s account. 

If a trader’s predictions are wrong, and the asset goes in the opposite direction than the trader predicted, the exchange will liquidate positions and repay the borrowed funds to the trader once the asset price matches the loan amount. Before the liquidation, the trader will receive a margin call, meaning a request for more collateral in order to avoid complete liquidation of the position.

Moreover, traders are free to close the unsuccessful trade themselves at any period before the liquidation without losing the entire position but only a part of it. 

Longing and Shorting Crypto via Margin Trading

Longing crypto can be done by buying Bitcoin on the exchanges and selling it when the value rises. However, a more advanced and profitable way to long crypto is to use margin trading on exchanges like HitBTC. 

When longing via margin trading, one will have to put up collateral to borrow money and use it to purchase more crypto. The advantage of margin trading for long trades is that they can be exceptionally profitable, however, it does come with a certain risk.

As for shorting crypto, margin trading is the easiest and most widely-used way to do it. Benefiting from both rising and falling prices makes shorting a more flexible strategy. 

Advanced trading strategy

When trading in volatile and high risk financial assets such as crypto, you may choose to hedge, or in other words protect your portfolio from losing value, by using techniques that lessen the impact of unpredictable negative events.

If you are long on a crypto asset, and you believe that the long term value will increase, however, you analyse the market and see that there is a potential fall in price in the near future, you may use margin trading, and short the same asset using leverage. If you expect a 5-10% price decline it is a reasonable hedging strategy to short 5% of your position, so that in case the price goes down, you have some protection for the losses, and if the price continues the bullish upwards trend, you benefit as your overall position is long on the stock.

Furthermore you can protect your position by using limit orders to buy or sell at certain prices, which may often be a safer option as it executes commands with machine-like speed, and can operate when you are away from the terminal. You can read more about such orders here.

Final Thoughts

You have to keep in mind that trading is a high-risk activity. As a trader, you need to try minimizing risks while making sure you still get your profit. 

The idea of going long is in essence buying an asset expecting it to go higher in value so potential profit is unlimited when opening long positions, but you cannot lose more than you initially invested. For instance, $50 worth of coins can potentially end up being worth $50,000 if the token price goes up drastically. Meanwhile, if the price drops, you won’t lose more than $50. Those who look for higher profits can also use margin trading to go long in crypto. Using Short trading has a similar underlying mechanism, and you cannot lose more than you initially invested.

Overall finding the optimal trading strategy that is most suitable for you comes down to market analysis and personal risk tolerance. Do your own market research and choose the instruments that suit your trading profile the most. 

Сrypto wallet App

The HitBTC crypto wallet is a free and simple solution for beginners.

App on Android and iOS.

Fees and Limits update

We have recently updated our fees and limits. For the latest updates, please visit the fees and limits section on our website here. 

HitBTC Mobile App

Don’t forget that you can trade on our platform from your mobile device. Start today by downloading the HitBTC App on Android and iOS.

Kyrrex (KRRX) Trading Contest on HitBTC

Kyrrex Contest

We are pleased to announce that a Kyrrex (KRRX) trading contest with a prize pool of  10,000 KRRX will take place on our platform from 00:00 (UTC) on December 3rd to 00:00 (UTC) on December 17th, 2021.

How to participate?

  1. Trade KRRX on HitBTC during the contest period.
  1. Sit back, relax and wait until the end of the contest to see if you won. Users will be ranked on their buy and sell trade volumes during the contest period. 

Prizes and Positions

1st pos. – 3,000 KRRX

2nd pos. – 1,500 KRRX

3rd pos. – 1,000 KRRX

4th pos. – 500 KRRX

5th pos. – 400 KRRX

Good Luck and Happy Trading!

Apply now: https://hitbtc.com/trading-contest/133

Please note that we have a zero-tolerance policy towards wash trading and other unfair trading strategies. Those suspected of wash trading will be excluded from the list of winners

HitBTC Token (HIT) Token Burn Update – November 2021

HIT Token Burn

In November we burned a total of 41,611,359 HIT tokens (about 15.4 million USDT). The overall supply of HIT has officially decreased from 1,896,484,226.06 HIT to 1,854,872,867.06 HIT as a result of this recent burn.

Transaction Link: https://etherscan.io/tx/0xac927b01c0a7e960ebb2e3eceefdd8afe10c5228c14cc00b07725ec6e1f64963


HIT token, is the foundation of the HitBTC ecosystem and is used to provide incentives and rewards to our traders and active members in our community.

Find out more about the HIT Token here.

For more information about the HIT Token read our frequently asked questions here.

HitBTC Futures

New Partnership Announcement: XanPool

We’re thrilled to introduce HitBTC’s new partner, XanPool!

XanPool is a global fiat-gateway solution designed for cryptocurrency platforms such as exchanges, wallets, and others. It enables various local payment methods, eliminating the possibility of chargebacks. On top of that, the software can be seamlessly integrated into any platform with just a few lines of code. 

HitBTC and XanPool Alliance

By partnering with XanPool, HitBTC expands its services to the fast-growing Asian market and offers its user a new and affordable solution for buying and selling cryptocurrency.

The integration benefits include:

  • Support of 10+ additional fiat currencies
  • Local payment solutions for buying and selling coins
  • An easy entry point for users with no previous experience with digital assets
  • Access to 500+ cryptocurrencies available at HitBTC
  • Higher liquidity for the digital asset ecosystem 

About XanPool

A unique omnichannel solution offered by XanPool allows businesses around the world to integrate fiat on-ramp and off-ramp functionality. XanPool products, a customizable widget and an API, help crypto projects’ end-customers buy and sell cryptocurrency instantly, without any custody risks. Moreover, XanPool takes care of the KYC process, making it fully automated and secure. 

The use of local payment providers in India, Indonesia, Hong Kong, Australia, and other countries makes crypto sales and purchases more cost-efficient compared to credit cards or wire transfers. 

Useful links

Сrypto wallet App

The HitBTC crypto wallet is a free and simple solution for beginners.

App on Android and iOS.

Fees and Limits update

We have recently updated our fees and limits. For the latest updates, please visit the fees and limits section on our website here. 

HitBTC Mobile App

Don’t forget that you can trade on our platform from your mobile device. Start today by downloading the HitBTC App on Android and iOS.

Liti Capital (WLITI) Trading Contest on HitBTC

We are pleased to announce that a Liti Capital (WLITI) trading contest with a prize pool of 22,000 USDС will take place on our platform from 00:00 (UTC) on November 18th to 00:00 (UTC) on November 26th, 2021.

How to participate?

  • Trade WLITI on HitBTC during the contest period.
  • Sit back, relax and wait until the end of the contest to see if you won. Users will be ranked on their buy and sell trade volumes during the contest period.

Prizes and Positions

  • 1st pos. – 6000 USDС
  • 2nd pos. – 5000 USDС
  • 3rd pos. – 3500 USDС
  • 4th pos. – 2000 USDС
  • 5th pos. – 1000 USDС
  • Pos. 6-10th – 500 USDС for each trader
  • Pos. 11th-15th – 200 USDС for each trader

Good Luck and Happy Trading!

Apply now: https://hitbtc.com/trading-contest/129

Please note that we have a zero-tolerance policy towards wash trading and other unfair trading strategies. Those suspected of wash trading will be excluded from the list of winners

New Pairs Available for Margin Trading

Margin Trading New Pairs

We are very pleased to announce that more trading pairs are live on our Margin Trading feature! 

Now you can access x5 leverage on 1INCH/USDT, ALGO/USDT, SOL/USDT, ATOM/USDT, AXS/USDT, DGB/USDT, ENJ/USDT, HBAR/USDT, DOT/USDT, MANA/USDT, OMG/USDT, ONT/USDT, SHIB/USDT, ZRX/USDT, YFI/USDT and ZEN/USDT

Margin trading has been available on HitBTC since July 2020. With this feature, traders can utilize smaller initial deposits to open positions and access leverage to increase their position size and profit depending on their trading pair of choice. 

The feature is available on both desktop and mobile allowing live trading and the ability to adjust position sizes to ensure that in case of a partial closing of a position, PNL (profit and loss) is calculated proportionally and traders can keep trades open by transferring more funds into their margin account.

Margin trading is also available on the following trading pairs allowing you to access  x12 leverage on BTC/USDT and ETH/USDT, 10x leverage on EOS/USDT, TRX/USDT, LTC/USDT, ETC/USDT, ADA/USDT, XMR/USDT, EOS/BTC, TRX/BTC, LTC/BTC, ETC/BTC, ADA/BTC, XMR/BTC, 5x leverage on BSV/USDT, ZEC/USDT, DASH/USDT, XLM/USDT, NEO/USDT, VET/USDT, DOGE/USDT, BSV/BTC, ZEC/BTC, DASH/BTC, XLM/BTC, NEO/BTC, VET/BTC, DOGE/BTC, XTZ/BTC, XTZ/USDT, TON/BTC, TON/USDT and x3 leverage on XRP/EOS, TRX/EOS, XMR/EOS, LTC/EOS, DASH/EOS, XEM/EOS, NEO/EOS, TRX/ETH, XMR/ETH, DASH/ETH, XLM/ETH, ZEC/ETH, ADA/ETH, MKR/ETH.

Read more about margin trading on HitBTC. 

Fees and Limits update

We have recently updated our fees and limits. For the latest updates, please visit the fees and limits section on our website here. 

HitBTC Mobile App
Don’t forget that you can trade on our platform from your mobile device. Start today by downloading the HitBTC App on Android and iOS.

How to Eliminate the FOMO Factor and Automate Your Trading with Cryptohopper

Cryptohopper

Emotions are the main adversaries of successful crypto trading. FOMO gets in the way of rational thinking and pushes people to make wrong decisions like hesitating to sell in hopes the price rises higher. 

But what if it was possible to pre-configure buy and sell settings and trade without constantly checking the market data? Together with Cryptohopper, a leading trading bot and HitBTC’s partner, we’ve puzzled out the idea of using stolid bots to get a hold of one’s emotions.

Copy-Trading

User who are neither keen on constantly checking charts nor have the time to do so can profit off Cryptohopper’s Marketplace Signalers. The idea is to follow whatever other experienced traders are doing. The solution boasts over 55 professional traders a user can copy on HitBTC and manage their portfolio automatically.

For those who prefer to stay in control, the platform offers strategies, packages with market scanning algorithms. These strategies can be backtested and checked if they perform efficiently in the current market. User can activate packages built by Marketplace Sellers. These packages consist of technical indicators used to scan the markets looking for trends, momentum, volatility, and volume. 

Marketplace Sellers offer comprehensive set up guides explaining how to start using signals and strategies; and it’s recommended that beginners use a template. Most strategy makers have matching templates, pre-configured Hoppers that can be implemented straight away.

Sell Features

Apart from automated take profit and stop-loss features, there are other tools that can minimize traders’ losses or maximize their profits. For instance, trailing stop-loss helps continue to trail the price upward and sell when it drops a pre-configured percentage from its highest point. Alternatively, users can enable Trailing stop-buy to trail a buy signal downward and open a position when the price goes up by a pre-configured percentage from its lowest point. 

Moreover, Cryptohopper offers a Dollar Cost Averaging (DCA) feature that doubles down on a losing position to lower the average buy rate and get out of positions faster while breaking even, or making a profit. 

Strategy Designer

The platform also allows getting buy and sell signals coding-free by using trading strategy. RSI, EMA, Parabolic Sar, CCI, Hammer, and Hanged Man are among the most popular indicators and candle patterns. On top of that, Hopper continuously scans the markets in search for more opportunities.  

The Algorithm Intelligence (AI) Strategy Designer may fit the needs of those traders who want to elevate their performance. The AI analyzes numerous strategies in different trends and determines the best strategy for every trading pair. 

The Bottom Line

Keep in mind that trading bots neither guarantee profits nor eliminate the risks. For beginners, it is recommended to use trading signals from Marketplace Sellers and their setup guides to kick-start their trading activities. Moreover, it’s worth using a simulator to test features with simulated funds. 


All You Need to Know About Perpetual Crypto Futures

Perpetual Futures

Having launched in 2017, crypto futures are still a relatively new product on the market. In a trader’s portfolio, they can help manage risks, balance price fluctuations, or serve as an additional tool for gaining profit. Besides, crypto futures would also work for those who don’t particularly want to deal with digital assets directly, as they are often cash-settled.

Initially, Chicago Board of Options Exchange (CBOE) and Chicago Mercantile Exchange (CME) were the first two marketplaces that allowed its users to trade Bitcoin futures. At the moment, a wide range of platforms allows buying and selling Bitcoin futures, and some have also launched Ethereum futures trade.

What Crypto Futures Are and How They Work
Crypto futures are financial tools that allow traders and investors to buy and sell a specific amount of digital assets, namely Bitcoin and Ethereum, on a specific date at a particular price. When this date comes, the person who purchased a futures contract should seal the deal, regardless of the asset’s current price.

Let’s say it’s June 1, and you’re entering an agreement to buy BTC on September 30 for $25,000. When the time comes, even if Bitcoin’s market price is $40,000, the counterparty is required to sell it for the pre-agreed price. Alternatively, a trader can agree to sell a certain amount of coins for the pre-agreed price.

Long position stands for the process of buying an asset at X price on Y date.
Short position stands for the process of selling an asset at X price on Y date.

While some investors use futures for price speculation, others focus on locking in the asset’s price and protecting themselves against volatility.

Perpetual Futures


Unlike classic futures that have an expiration date, perpetual futures can be held by traders indefinitely. A funding mechanism helps with linking the price of the contract to the base asset price. The mechanism sets the funding interest rate based on two factors: premium index and interest rate

Price is higher than the base asset price
If the futures price surpasses the base asset price, traders who entered long positions pay a percentage, while short positions’ traders receive the equivalent of this percentage. The purpose of this mechanism is to encourage traders to close and open positions less frequently, so the futures price won’t be constantly increasing. Moreover, traders will potentially focus on less profitable short positions to cover the losses.

Price is lower than the base asset price
If the futures price ends up being higher than the base asset price, the opposite happens: traders in short positions are the ones to pay the funding and long positions’ traders get the profit. This way, traders will buy more and sell less, moving the price to the base asset price.

How to Start Trading Perpetual Crypto Futures
What is the difference between futures trading and regular cryptocurrency trading? First, with crypto futures, you don’t necessarily need to deal with crypto whatsoever. All the settlements are done with cash. However, it does depend on which platform you are using for trading. Secondly, as opposed to cryptocurrency trading that only offers a single way to make a profit, Bitcoin futures are slightly more diverse.

Basically, when you expect Bitcoin price to go up, you go long or buy a futures contract. And also, the other way around, when you expect that Bitcoin price is going to fall, you go short or sell the futures contract.

You can use futures for hedging and risk management, as well as leverage your positions, depending on the exchange.

On HitBTC, users can buy or sell perpetual futures contracts. Before trading, you should deposit currency on the Derivatives account: open the Account page, press Transfer, select an account to transfer From (Spot or Wallet), and select the Derivatives account in the To drop-down menu. Enter the desired amount of collateral (margin) and press the Transfer button

Transfer Derivatives

To open a position, you can open the Derivatives page and make sure you’ve got USDT or other crypto on your account.

Here are a few further steps you need to take:
1. Go to the Futures tab, all available contracts are visible in the Contracts widget
2. Assign the currency amount, which will act as the collateral for this contract
3. Create a Long or Short order
4. The newly created contract is now visible in the My orders and trades widget

Futures contracts are settled daily so that your profits or loss is deducted or added to your balance at the end of each day. There is no commission to maintain the futures position, only the fixed taker (0.05%) and maker (0.02%) fees.

The user can place both the margin (on the Margin tab) and futures (on the Futures tab) positions. These are two different markets. Each instrument uses an isolated margin. Isolated Margin mode allows traders to manage their risks. If a trader’s position is liquidated in Isolated Margin mode, instead of their entire margin balance, only the Isolated Margin balance gets liquidated – unlike the Cross Margin mode, where the entire margin balance is shared across open positions to avoid liquidation. Our platform futures do not use Cross Margin.

Exiting Tips
Another thing you need to know before jumping into the world of futures trading is that it is possible to exit your contract.

There are two ways to do so: offsetting, and rollovers.
One of the most popular ways to exit a contract is offsetting – the process of entering another futures contract that features the same size and value. This way, the current obligations reset to zero and balance out.
Alternatively, one can practice rollovers, which is the same as offsetting, only with an extended contract end date.

Additional info

  • You can trade several Bitcoin futures contracts at a time
  • Experienced traders with a larger portfolio can hedge the risk of price fluctuations by entering the contract with an opposite position
  • Bitcoin futures and stocks trading is not too similar, so previous experience with stock trading will not necessarily be helpful

Closing Thoughts
Trading cryptocurrency futures requires specific market behavior knowledge, following news and predictions, and staying self-aware. However, for experienced traders and investors, crypto futures can help balance their portfolio, lower risks, and in the best-case scenario, make a profit. Moreover, crypto futures add liquidity and attract more institutional investors to the market.

HitBTC Token (HIT) Token Burn Update – October 2021

HIT Token Burn

In October we burned a total of 26,623,393 HIT tokens (about 9.9 million USDT). The overall supply of HIT has officially decreased from 2,000,000,000 HIT to 1,896,484,226.06 HIT as a result of this recent burn.

Transaction Link: https://etherscan.io/tx/0x2142d6554222a71c449d84b9a5306bc40dcc74ddacbcc7335d2c14734c6d3c72

HIT token, is the foundation of the HitBTC ecosystem and is used to provide incentives and rewards to our traders and active members in our community.

Find out more about the HIT Token here.

For more information about the HIT Token read our frequently asked questions here.

Perpetual Futures Trading is now live on HitBTC

Perpetual Futures

We are pleased to announce that Perpetual Futures contracts with up to 75x leverage are now live on HitBTC.

Now you can trade BTC, ETH, TRX, BCH, ADA, DOT, SOL, EOS, AAVE, MATIC, XLM, UNI, LTC, and HIT, our native utility token as perpetual futures.

These contracts are USDT-denominated and use isolated margins, meaning traders can add or remove assets that serve as collateral for a selected position, effectively altering the leverage of that position.

What are Perpetual Futures?

Perpetual Futures differ from traditional futures as they do not have an expiration date. This allows traders to hold a position for as long as they like. Besides that, Perpetual contracts help better manage risk, deploying small amounts of capital to hedge the market.

Like in margin trading, Futures trading also gives traders the option of leveraging funds to maximize profits with low initial investments. The maximum amount of leverage available on HitBTC for futures trading is 75x.

How to Start Trading?

To start trading Perpetual Futures contracts, follow these 4 easy steps:
1. Make sure you have 2-factor authentication enabled.
2. Add assets to your Derivatives Account.
3. Add margin.
4. Make your first trade.
The API instructions are available here. You may find the information about the Futures Trading fees here.

Please note that Futures trading carries a high level of risk, with the potential for both large profits and large losses. Please learn more about futures trading and margin trading on HitBTC.

If you have any questions please don’t hesitate to reach out to our support team who are happy to answer any questions you may have.

We are eternally grateful for the trust you have placed in us over the previous eight years. Our commitment, as it has been in the past, is to continue to provide dependable and secure services that exceed our clients’ expectations. It is our pleasure to welcome you to start trading Perpetual Futures contracts.