Topic: Hodling vs trading (Read 1708 times)

There is this popular saying that you should "cut your clothes according to the clothes." This makes me appreciate your resolve, you are not such overzealous people who will just be venturing into what they do not know or have the mind for, and start losing money. Bitcoin earnings could primarily come through investment and trading, and it's obvious that trading is riskier than investment. Although none of the two is without risks and the risk in investment could be scary at times if the investor doesn't understand the investment properly. Imagine that he bought Bitcoin based on a friend's advice at about $60,000 price with $100,000. The remaining amount in the person's account would only be worth about $25,000 in November last year. Isn't that scary enough? So, none of them is without risks, which is why I will continue to implore everyone to know when to buy and sell at the right time and for the right reasons to be able to earn in investments.

While for trading, it's way more risky for short-term and big risk-takers. It is not for everybody and I know that it would be fine if we are careful about it when we do not have the guts for it or when we have been losing consistently in it. But as risky as trading is, it's worth saying also that it is capable of earning for traders more than investment. The choice lies solely with us, but for me, I engage in the two to maximize my earning potential in Bitcoin.

  These two are equally helpful to us, since we need profit most of the time trading can help us in this situation. Today, long-term holdings are becoming equal to our future savings.

  So, that means, if in day trading we are getting daily profit, at the same time there is also savings waiting for us in the future, so it is like a double blade that we have been able to accumulate our earnings this time.

Trade with a small very small part of your coins, keeps it interesting and you will make big gains if you are good and patient.

Nobody ever made a mistake hodl bitcoin, mistake is always selling.

So your real question is I have a guaranteed winning trade, should I risk losing money in an attempt to make even more? Answer to that depends on your situation financially and skill as a trader. Sincere advice whatever your situation is, hodl at least 50% and even that is risky. Nothing better than a sure thing, and bitcoin appreciating vs. fiat is a sure thing. 

Holding is usually done with long term planning and hoping for big profit clubs while trading is done with short term planning and small amount of profit. You can compare trading with a real business, in real business, as a business is to buy products at a low price and sell them at a high price, a trader's job is to buy a currency at a low price and sell it at a relatively high price. Coin selection is usually very important when it comes to trading and holding, most holders take bitcoins to hold because they are holding for a long time so holding on to a trusted coin is definitely important. Most of those who trade hold, those who can afford to hold and trade. In the case of trading, it is possible to gain a relatively large amount of money if the person trades with a large amount of money and understands the market at the right time.

The main point is to be prepared for the worst case scenario that can happen at any time. While improving your approach to seizing opportunities is good, it's crucial to acknowledge the potential downsides of both trading and hodling. I believe hodling BTC or assets with strong fundamentals shouldn't pose significant problems. However, trading altcoins with higher volatility than BTC comes with considerable risks. I recommend having a backup plan in case trading doesn't go according to the initial plan.

For both approaches, it's better to set aside an emergency fund first. No one wants to sell assets in desperate situations, and doing so might result in a loss if the market price is below the buying price. It's better to hold on a bit longer, using the emergency fund to secure all the assets invested, at least until the right selling moment arrives.

That is why investors has to diligently research on short, medium and long term altcoins for hodling as a form of investment, if it is a short term then memecoins fit this category once it price pump investors are expected to take profit quickly, but for long term perspective Bitcoin and Ethereum is the best meanwhile trading Bitcoin or Ethereum and any other crypto pair is entirely a different ball game as a trader you are expected to earn profit either in a bullish or bearish market thus this requires a lot of experience and expertise to be able to succeed in trading however this comes with a heavy price of learning for a very long period of time before such a trader can start earning profit consistently.

Holding now with market price conditions is ahead of the trader.

From various factors, holding will always be in a winning position compared to traders. Traders only earn when active trades are made. Requires many opportunities to be utilized continuously at any time. Wanting to store funds or assets on an exchange is wrong in the context of security. Wanting to make a profit for the long term is still risky.

Holding is the best way for long-term profit goals.
Yes. It is very important to keep the key for safety.

This is a good point. I think it depends on your investment appetite. For me personally, I think a combination of the 2 is the way to go. Hodling bitcoins and at the same time trade Altcoins to increase possible profits is the best way to go. It’s a way to maximize your profits.
And OP there are ways to judge when to sell, while monitoring the market, personally I rebalance my portfolio and I’ve seen success. Having someone experienced to guide you I think is really integral.

Smart idea to divide it into two, I do more or less the same   Cheers for a good tactic!
And also if you ain't super rich, trading can increase your total Bitcoin volume! So if you gonna hold long term, trading up your volume is a no-brainer?!

Because this is the choice that I think is the wisest. In any case we know that trading and investing is a choice but when looking at the current situation is sometimes the word trading is too considered easy by some people including beginners as if it becomes something that anyone can do to get easy profits. Indeed, trading can be done by anyone but not everyone can make a profit from trading even the ratio is only 1 person out of several people who trade is definitely profitable.
Investing is a situation that most anyone can do even though it is not as easy as imagined too but when saving money and continuing to do the right way (investment) then at least the risk we have is slightly smaller than the risk we receive when trading. At least we will not lose our investment even if there is a crash because what decreases is only the value of fiat not the amount we invested.

Not all cryptocurrencies are safe to be hold for long time, which is true, but this is not a result of their volatility, because almost all cryptocurrencies are volatile in nature, unless for those called stable coins. Bitcoin is volatile, yet it's safe to be hold for long and has proven its self as a long-time-investment. When it comes to safe-to-be-hold, which should look at the coin-use-case. I mean, what they can be use for and not just all the hype they get from whoever is promoting them. 
 
Most Altcoins, especially those Meme-Tokens, are not here to stay for long. They are short-time-projects, as I see most of them, and I will advise anyone, who wants to invest in such coins, to be careful and don't consider holding them for years without going to check up on them, before they end up losing all at once, just like those, who choose to invest in NFT, are crying out loud this period.

Agree. Why we must choose 1 option if we can do both, right? It is very possible to trade while investing in Bitcoin. I also do this although I don't trade everyday. I divide my funds into 2 parts, some of my funds for buying Bitcoin for a long term investment and the rest of the funds for trading. I have no problem with this way. I even can add more my Bitcoin asset whenever I got profits from trading. The profits got from trading, to buy more Bitcoin for a long term holding. Sometimes, some of the profits to convert to fiats and I spend the profits for buying goods as well. So, while we invest in Bitcoin, we also can enjoy profits from trading at the same time. 

Solid advice about altcoin HODLing. That's always a terrible idea.

BUT people who have learned how to use them are making big bucks, too. After years of studying the market as a Bitcoin enthusiast, I myself learned the potential of altcoins and how they can really boost short-term gains.

And now my new, but growing, community has steadily growing investments. We're using human-in-the-loop AI and dynamic rebalancing to identify short-term opportunities in altcoins, investing without leverage, and making decent profits. It's so simple, our users don't even have to look at any charts or make trading decisions.

Anyway, again, HODLing altcoins is a bad idea.

Strategy variety is essential. While skilled traders can increase their gains, this strategy isnt for everyone. It requires time, skill, and risk-taking that not everyone has. However, holders may not realize immediate rewards but strengthen Bitcoin's base. Bitcoin's ecosystem relies on traders and holders. A functional market requires traders to drive daily volume and liquidity. Bitcoin's long-term valuation is based on holders' consistent optimism. Both work together to create a vibrant but robust market.

We embrace both solutions because they uphold Bitcoin's revolutionary ideas of decentralization, human choice, and financial liberty. Bitcoin's financial significance and durability are strengthened by this approach diversity.

You can do both, I never understand people that think you only can choose one option. Long term holding is good and also it's P2P trading to increase your crypto currencies. I would never settle down with just one. 

It would really vary on what coin you are really that holding which its true that not all would really be that would be hold for long term. If you are that someone that have trust on a certain project then it would be good
but we know on what coin should really be that be hold for long years which is Bitcoin and some top known altcoins or already have that strong community. If you cant be able to bare up with the risks then holding would be your choice but if you are someone whose really that risk taker then you could really choose up on trading but of course this is something which it is really that very hard when it comes to make yourself profitable.
It would be needing up tons of experience and awareness on how this market moves because if you dont then you would be finding out yourself to be that failing on this one.

So its matter of choice on which one you would be choosing because not all would really be risk takers and not all would really be that confident on what they ha invested. This is why
decisions been made would really be entirely be different to each other but we know that there would really be those individuals who would really be loving
to take up the risks for  them to be able to gain benefit or having the chance to make profits.                                                                          

It matters if you are in crypto, because HODL or HOLD has a different meaning.

If you aren't ware yet, HOLD means, “hold on for dear life,”... means it's like holding forever which you don't usually apply as strategy in other forms of investment. This method would only work with investing in bitcoin as it has a real chance it'll survive and will not be affected whatever economic crisis we'll experience.

To be honest, not all cryptocurrencies are worth being held for the long term and most of them are extremely volatile and unpredictable and aren't suitable for this which is the reason why altcoins are generally used just for short or medium-term trading and not for long-term holding like Bitcoin. There are only a few altcoins that can be trusted to be held for a long time, ETH is one example of that which is the second largest and most successful cryptocurrency in the market.

It is also not necessary for a person to just do one of the two as one can always do both holding and trading since it isn't that difficult to learn the necessary trading practices and get into trading while you are already holding some of your assets like Bitcoin and ETH or a few more altcoins that you think have the potential to provide good returns in the long run.

@Outhue you are right,Both trading and holding are way of earning and both trader and holder have different strategies and unique goals. we cannot blame trader if we are not so good in trading. You should know that trading will give you 5 times more Profit then just holding if you are experienced trader. Suppose one holder hold 1 btc for 2 years while other just doing trading (Buy low sell high). As we now BTC will trade parabolic , Trader will earn on daily/weekly or monthly basis while holder will wait for btc to pump. During the journey of btc along 2x ,trader would have made 5 btc.

Everyone one have different approach and one strategy will not fit to other. Everyone has different goal, risk tolerance on which he decide which one is best suitable for him. I think we should support both as holder are best for btc future while trader will provide enough liquidity for instant buy sell

I still favor investors over trading because I am also an investor. But it cannot be denied that there are many people who are making money every day from trading and can change their lives through trading. I don't remember the exact names but even on our forum there are some people who have confirmed their daily income comes from trading and they are doing very well with it. Trading is risky and not suitable for many people, but that doesn't mean everyone loses money by becoming a trader. But, why don't we combine the two?