What Is the Primary Difference between a “Short Hedge” and a “Long Hedge” Using Futures Contracts?

A short hedge involves selling a futures contract to protect against a decline in the price of an asset already owned or expected to be produced, such as a miner's future crypto production. A long hedge involves buying a futures contract to protect against an increase in the price of an asset that one plans to purchase in the future.

Miners primarily use a short hedge to lock in a selling price and secure revenue.