In crypto, going long means betting a price will rise: you profit when it goes up. Going short means betting a price will fall: you profit when it goes down. Long is how you aim to make money in a rising market; short is how you aim to make money in a falling one. Here's how each works, and how to trade both.
What does "going long" mean?
Going long is the one most people already know: you buy an asset expecting its price to rise, and you profit if it does. Buy Bitcoin at $60,000, and if it climbs to $70,000, your long position is in profit. You can go long simply by buying and holding (spot), or with leverage by opening a long position on a derivatives platform.
What does "going short" mean?
Going short is the opposite: you profit when the price falls. Since you can't easily sell an asset you don't own on the spot market, shorting is usually done with derivatives, most commonly perpetual futures ("perps"). You open a short position, and if the price drops, you close it for a profit. Traders short to speculate on a downturn, or to hedge, protecting a long position they don't want to sell.
Long vs short: the key differences
| Long | Short | |
|---|---|---|
| Your bet | Price goes up | Price goes down |
| You profit when | The price rises | The price falls |
| How you do it | Buy spot, or a long position | Perps, margin, or options |
| Maximum loss | Your investment (on spot) | Can exceed your stake (leverage) |
| Works best in | A rising (bull) market | A falling (bear) market |
How to actually go long or short
- To go long: buy the asset outright (spot), or open a leveraged long position on a perps platform.
- To go short: open a short position on a perpetual futures platform (the most common method in 2026), or use margin or options.
Both directions can use leverage, which lets you control a larger position with less capital. That amplifies your gains and your losses equally.
The risks (read this before you trade)
- Leverage cuts both ways. It multiplies profit and loss the same amount. A small move against a leveraged position can wipe it out.
- Shorting carries bigger risk. If you're long, the most you can lose is your investment. If you're short, losses grow as the price rises, in theory without a cap.
- Liquidation. A leveraged position gets force-closed if the market moves too far against you, and you lose the margin on that trade.
Use low leverage, set a stop-loss, and never risk more than you can afford to lose. This is education, not financial advice.
How to go long or short self-custodially
Most people short on a centralized exchange, where you deposit your funds and trade from the company's account, the same custody risk that took down FTX. You don't have to.
Tria lets you trade both long and short perpetual futures self-custodially, through the integrated venues Hyperliquid and Decibel, from a balance that stays in your own wallet. Your keys, your crypto, right up to the moment you trade. New to this? Start with our guide to how to trade perpetual futures.
Frequently asked questions
Can you short crypto?
Yes. The most common way is a perpetual futures contract: you open a short position that profits if the price falls. You can also short through margin trading or options.
What do "long" and "short" mean in simple terms?
Long means you think the price will go up and profit if it does. Short means you think the price will go down and profit if it does.
Is going long or short better?
Neither is better: they suit different markets. Long profits when prices rise; short profits when they fall. Short carries higher risk, because losses can exceed your initial stake.
Can I short crypto without giving up custody?
Yes. A self-custodial app like Tria lets you open short (and long) perpetual futures positions from your own wallet, without depositing funds to a centralized exchange.
