Why are long commodities the most traded recently?

long commodities

There are several preferences when it comes to active trading on online crypto platforms. However, recently, it seems the long feature/ the longing of commodities such as bitcoin, gold, crude oil etc., seems to be paying off. Be sure to note that the long feature is not the only available option. It’s a rather simple concept, such that investors long the market when the candles look promising or theirs an incoming development on the blockchain that has the capacity to push the price of the commodity upwards. On the other hand, you can also short the market. In this instance, you predict that the prices of the commodity or the supposed crypto will fall irrespective of what it takes. When investors long the market, we are most likely to be experiencing a bull run, and when they short the market, we are likely to experience the bear. Either way, both the long and short features are part of the cryptocurrency platform and most exchange platforms make huge amounts of money from investors’ losses. In this blog, you will know Why are long commodities the most traded recently.

Longing the market does not mean you are going to make profits. You only make profits when you predict right. If you choose to long the bitcoin market and the bitcoin price begins to reduce, you are definitely in for liquidation, which could be disastrous. So, before you go into trading, you need to understand some various features and aspects of trading to get you on the right track. If you are an active trader or an intending trader, you’ve come to the right place. Endeavour you read to the very end. 

What you need to know before you long the market

As explained earlier, there are various factors you need to consider and some important details you need to understand when longing the market. Here are some of these details 

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Technical analysis expertise:

There’s more to trading cryptocurrencies than just buying and selling. In fact, some investors take their time in learning “all there is” to trading before going into the actual trading because once your position gets liquidated, that’s all. So, your technical analysis encompasses the candlesticks and the market charts, the trends and the price volatility of your supposed commodity, in this case, bitcoin’s price. Currently, the price of bitcoin suggests you long the market because, according to technical analysis from experts, we are done with corrections, and a healthy position is in view. Hence, your technical analysis is one tool you use to predict market trends and know when to long or short the market. 

Know your trading platform and understand the technical terms:

As simple as this may appear, most newbies fall prey, and it’s quite understandable why they do. It is not enough to understand technical analysis. Do you understand how to navigate your supposed trading platform? And again, there’s a huge difference between spots trading and futures trading. Spot trading is easier to navigate and somewhat straightforward. Futures trading, on the other hand, is leverage trading, and it’s highly volatile. So, when trading futures, you are most likely to come across terms like Isolated, cross, entry price, liquidation price, stop loss, etc. all these terms need to be understood as they all contribute to a successful trading experience. 

Why is bitcoin one of the most crowded commodities?

Bitcoin has been around long past other crypto commodities; however, this is not the main reason for its popularity. The main reason for bitcoin being crowded is that bitcoin itself maintains the position of being the future of money and has a high user adoption ratio. Currently, bitcoin’s price is huge enough to carry out cross-border transactions and even international trades, with its transactions being facilitated in minutes. However, it should be noted that bitcoin also has a huge market cap, almost half of the entire cryptocurrency market cap. This is to define the amount of dominance bitcoin has on the entire crypto community. Even after May’s 35% crash that happened recently, bitcoin remains one of the most traded commodities crypto platforms. Yes, the price of bitcoin is such that it’s no more pocket-friendly for some traders, but as mentioned above, there’s more to trading than just spot trading. Futures trading allows you the opportunity of longing bitcoin even when your portfolio is less than $200. You could lean on your leverage, and with the right technical analysis, once you long/ short the market, you are definitely in for some more bucks depending on your analysis outcome. 

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