That's how it should be done, but the problem with a lot people here is greed. Simply holding Bitcoin is a boring practice for them since it doesn't bring them in any real profits (as in seeing their coin count go up). That's exactly why they are looking for all sorts of ways to invest their precious coins (e.g. cloud mining, altcoins, hyip's, etc). Some dumbos even see gambling as a way to make profits. After a while their greed will cost them dearly, but then the harm is already done.
In general, this is not the case
In fact, the opposite is true. Since we are speaking about this matter at large, we should necessarily assume that all things apart from the timeframe of the investment remain the same. Mid and short term trading allows you to offset possible complete crash of a coin by constantly moving your break-even point down to zero and below (into pure profit territory). Long-term holding does nothing in this respect, so if the coin is set to hit the floor, you will lose as much as you invested, as simple as it gets. The only case when long-term holding can be more profitable is when the coin only rises in price without corrections, but this is highly unlikely to happen in real life