Players will hold their arms up as long as you have "Block" held. You can block shots that are going for your hoop if you time your jumps precisely. Note that your opponents will also do this. When you have the ball, try to fake them out by shooting slightly sooner or later. Consider waiting until they land when they jump to block, then try for a free shot.
Jumping
The longer you hold the "Jump" button, the higher your players will reach in the air. When in the 3-pointer range, jump as high as possible if you will shoot. Notice the "Jump" button has a cooldown after each jump. IF you try to jump again too soon, your players will not get that high. To reach maximum height, allow the "Jump" button to refill to maximum before you try to jump again.
Shooting
Shoot at the apex of a high jump. Try to have fully charged jumps. When you have possession of the ball, wait for your jump to recharge, jump as high as possible, then release to make your player shoot. If done while standing upright with no interference, most of your shots should land. When shooting from your side of the court, it will count as a 3-pointer. 2-pointers will be scored when past the halfway marker on the court towards the opposing team's net. The closer you are, the less points each shot is worth. However you can also choose to do a slam dunk. When you have the ball and are directly under the net, jump to have your player slam the ball into the hoop.
Stealing
If fast enough, you can steal the ball. Your hands are not "active" unless they are actually moving. When your hands bump into the ball while the other team has it, you will not steal it. Instead, tap the button a little to have your player raise their hands slightly while they come into contact with the ball.