Before deciding to hold in the long term, of course we have to know for sure the potential of the coins we are going to keep and never hold coins that do not have good potential for the future which makes us lose by holding these coins, if we have a good understanding of how to analyze The market will of course make it easier for us to gain profits both in the long and short term and both of these things will be profitable for us.
I agree, it depends on the coins whether they should be traded for the short term or should be held for the long term, and we should also make sure that the budget we are going to use for long-term investments doesn't consist of the money that we might need in short term for anything else because you can't withdraw your money once you have invested it in case the assets you've bought don't stay in profit in short term.
Short term trades or day trading is best if we have proper knowledge and understanding of the market and we know that we can manage our trades very well in the short term, but without knowledge, it's both a waste of time and money and we should go for the long term instead.
Of course, we must have a good understanding before we make a decision, whether we will hold for a very long time, or whether we will choose to trade daily. If it is bitcoin, then there is no doubt that holding it for a very long time will bring us profits, but for other coins I can say so.
We must be able to analyze well and in analyzing we must have in-depth knowledge. We can't just look and jump to conclusions, especially if we make decisions because of hype or because we have FOMO. That is the wrong step for us to take. Because we can be said to have no reason to make us take steps like that.
It's actually very easy to invest, but in investing our goal is profit, right? So we must be able to carefully consider before making a decision.
If you arent that sure on what path you would really be taking then it would be best that you should be testing out whether you would really be going for short term or long term kind of trades. We do know that each one of
us would really be having that kind of different approach when it comes to trading. There are individuals who do prefer on seeing profits in short term period and there are ones who would really be liking on having that long term approach. There would really be several factors on which could affect out into your choice;
1. Time preference
2. Risk taking factor
3. Capital
4. Knowledge/Skills
You would be the one will really be making out that kind of adjustments whenever you do see that something doesnt work for you. If you've seen that its something profitable
and something beneficial on your part then you will really be sticking into it on which you would really be having such consideration. There are really just those people who do love on sticking
on which it is really something safer but there are ones who are really that risks takers and loving to deal up with something more riskier but something rewarding.
