Is Buy and Hold Really the Best Strategy in Crypto? - page 11.

Reatim

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Quote from: G.Seed on August 27, 2020, 08:14:24 AM

Actually, "buy and hold" is a strategy used for stocks because there are dividends every year.
As this does not exist with cryptocurrency we cannot use this strategy.
Except if you lend your crypto with interests and you withdraw interests.

If you buy and sell every hour, every day or every decade, this is not "buy and hold", this is trading.

Who told you that "Buy and Hold " is Only for Stocks?mind to explain what can you say for those Who Buy Bitcoin in March when the price falls $4,000 and had sell their coins last week when the price of this coin Reached out $12,300? does Holding is not profitable in this market?
Holding and Buying here in crypto is for responsible and willing to Risk their money.

Quote from: semobo on August 27, 2020, 08:38:04 AM

Trading is profitable and day trading is more profitable than anything in this world so day trader are supposed to be the richest people of this world but what is the reality? Long term holders are the one making the profits in reality because it is not possible to make money constantly from trading so the net profits at the end of years will not be equals to the profits made from simply holding.

actually there are some traders that still profiting in this market constantly mate,they are those traders that focuses in their trading skills and becomes very knowledgeable now.

semobo

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Trading is profitable and day trading is more profitable than anything in this world so day trader are supposed to be the richest people of this world but what is the reality? Long term holders are the one making the profits in reality because it is not possible to make money constantly from trading so the net profits at the end of years will not be equals to the profits made from simply holding.

G.Seed

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Actually, "buy and hold" is a strategy used for stocks because there are dividends every year.
As this does not exist with cryptocurrency we cannot use this strategy.
Except if you lend your crypto with interests and you withdraw interests.

If you buy and sell every hour, every day or every decade, this is not "buy and hold", this is trading.

carlisle1

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Quote from: deandree on August 26, 2020, 05:58:50 AM

Some people say that Buy and Hold is the best strategy and can't be beaten. They hear phrases like “95% of traders lose money” and automatically assume that all trading is bad and markets can not be outperformed.

I don't think that there is a debate in this area when Trading daily is far different in Holding mate.

Holders tend to Buy and keep the currency because the money they invested here is the amount that can be carry to lose meaning they can even stand to wait for long or Lost eventually because that is what they planed and expect from day 1.

While Traders are those skilled and knowledgeable in Market reading and speculation so they can profit each trade depending to the currency they chose and the luck they have in time needed.

minairia3

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Its for people who lack time to do an actual technical trading. Sometime I do this, buyinh and holding. Since I loss a lot last 2weeks, I am stopping doing future trading for now and leverage trading through buying legit altcoin and hold it for a while. I think holding good altcoins eith potential is my target for now.

Crypto is very volatile and if you dont like too much risk then hold top coins and major tokens to be safe at least but this is not guaranteed of course.

Salamstar

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Quote from: deandree on August 26, 2020, 05:58:50 AM

Some people say that Buy and Hold is the best strategy and can't be beaten. They hear phrases like “95% of traders lose money” and automatically assume that all trading is bad and markets can not be outperformed.

In my Medium post, I’m going to show you, that holding might not be the best option if you put in a little bit of work. To do that, I compare Buy and Hold returns for 25 coins with several basic trend-following strategies in different time periods (over 3.5 years of data and then a little extra).

Hold is one of the strategies that the trader adopts, which has great merit, provided that a set of its rules are respected, because the extent of storage is linked to the strength of the currency, meaning that there are currencies that are suitable for storage in the short term and are not suitable for storage in the medium and long term. There are currencies that are promoted in your strategy from storing in the short term to storing in the medium and long term, and most traders know that what affects the price of the currency is a set of factors, the most important of which is news and rumors.

Beparanf

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It depends always in what crypto we are holding, I'd been holding different bounty rewards token before and it doesn't earn at all some already lose their value. Buy and Hold will depend on the project on upto when we are going to hold them, is there's a chance that they will still grow like developing their products or creating some hype.

I'd learn to trade mostly than to hold since the market is not like what it was when the popularity started there is a need to move to make it works for you than to simply wait for it, if we are too busy, we must only invest in bitcoin not in any other non popular crypto.

bakasabo

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There is no best or worst strategy in cryptocurrency and other type of trading. Everything is individual and depends on the situation. Proper timing and research are what matters most. You can spontaneously buy at ATH or during a pump and hold for ages to get at least a cent of profit. Or you might buy second before huge pump and price growth start.

Buy and Hold is no the best, but the most easy strategy. All you need to do is to make a research before buying. If you still lazy, buy bitcoin at any time you want. People say its price will reach $50,000/$100,000/$1,000,000 by the end of 2020/2021/2022/...

TGD

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Strategy depends on the trading style of the trader. You can't implement the strategy that working for to other people because we have a different way on decision making and choosing the perfect strategy is very subjective. In my case, I try different type of strategy before using small amount of money, I record all my trading data and create different strategy guideline. After many trial and error, I pick the perfect strategy using the data sheet that I gather and scale up my trading on that specific method. Buy and hold is perfect for project that is still new while swing trading is for project that running for a long time. Doing swing trade on new project will just make you FOMO because big news can messed up on your trading.

Erumo

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Everything depends on 2 facts: how much you have spend on crypto and how long you are going to hold. Holding less than half a year is useless. Holding equivalent of less than 100$ is useless. Better spend this hundred on any instant benefit.

Becky666

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Let's be frank with ourselves, buy and hold some random stupid tokens won't yield anything even in years. The buy and hold don't actually give the assurance of win to anyone with such mindset. The project will determine if the tokens are Worth holding or not, don't expect to buy rubbish and think hold will perform a magic of profit.

But, buy and hold will be a good strategy when you buy the right token or coin. There are good defi projects with prospect, buying anyone of them will surely give a good profit on a long-term. I bought some Bandtokens in April early this year to hold which gave me profit.

abel1337

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I think buy and hold strategy will only apply to some assets/token, Not everyone can get the way of buying and holding like not every token is suitable for that kind of strategy and just holding it means that you are giving your trust to that certain token. I myself only hold 2 coins and it is Bitcoin and Ethereum because longevity wise I believe that I can profit on both of them. As a trader, I like trading big coins but I ain't holding it for too long because I know I can make better profits in trading them. Each coin has different potentials you just need to find them then learn the strategies and how to execute it.

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Quote from: Lanatsa on August 26, 2020, 02:22:11 PM

Quote from: deandree on August 26, 2020, 05:58:50 AM

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Actually a very informative medium article but i would say that this is somewhat a little bit advanced for some specially if you do really read it up but for those people who do already had the grasp in trading
will really likely able to get it with no problems.

Buy low and sell high might really be that too very basic strategy but it do really works but to know that there are lots of variations on where this buy and sell should be applied and it all goes or vary
into each trader on how they do deal with volatility with corresponding strategy that they made.

It doesnt matter generally as long you do profit then thats whats important.

True. Buy and hold might be the most old and basic strategy in trading but if you are comfortable and still making profits from it, then go on. I believe some traders are just too rush and becomes greedy to make more profits in just a short period of time but still end up regretting because they all lose their capital. The result of trading depends on how a single trader manages its own strategies and works on it.

LUCKMCFLY

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It really depends on what you want to be, if you just want to be an investor, the smartest thing to do is buy and hodl! But if you want to be a market speculator, you must go with the line of least resistance, just like Jesse Livermore did, it all depends on what you really want.

Twentyonepaylots

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Well there are various factors of a successful investment with crypto, first of your target profit let's say 30% or 20%, second is with the coin, is the coin would be volatile enough to pump or dump? is the coin able to give you your target profit? lastly is the time or time range, this is the very vital of the factors that I've said, time will always tell apart from your target and selected coin. let's say to got a target profit with a right coin but you don't know when to sell out or you expected short.

Lanatsa

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Quote from: deandree on August 26, 2020, 05:58:50 AM

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Actually a very informative medium article but i would say that this is somewhat a little bit advanced for some specially if you do really read it up but for those people who do already had the grasp in trading
will really likely able to get it with no problems.

Buy low and sell high might really be that too very basic strategy but it do really works but to know that there are lots of variations on where this buy and sell should be applied and it all goes or vary
into each trader on how they do deal with volatility with corresponding strategy that they made.

It doesnt matter generally as long you do profit then thats whats important.

target

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My strategy is mostly holding to tokens particularly the ones that I know will have the potential to 100x. Spot trading is a good option when you know the tokens experience the ups and downs for most of the time.

If you are just trading for USD, you'd best try the margin trading. BTC/USDT is best for it and eventually buy BTC with the earned USD but lke you said not everyone can foresee charts trend.

ololajulo

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Not everyone can do daytrade, not everyone have the time either, it also depend on your size of bag and the exchanges listing the coin. Some big bags cant just sell on some exchanges, so they have to hold and ladder out of the coin. The profitable strategy most times is Hodl, hand it over at OTC with average price for sale, usually this takes time because of the volatility of the space. Trading bitcoin can only give good profit by Hodling unlike the small cap coins

Kupid002

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For me its not the best option you can much higher profit trading it in short term trading than holding it for long term and praying that it will soon increase in the price you think its good for you to exit. In short term trading you can earn even daily this is not only In bitcoin buy also on other Altcoins.

wxa7115

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Quote from: deandree on August 26, 2020, 05:58:50 AM

Some people say that Buy and Hold is the best strategy and can't be beaten. They hear phrases like “95% of traders lose money” and automatically assume that all trading is bad and markets can not be outperformed.

In my Medium post, I’m going to show you, that holding might not be the best option if you put in a little bit of work. To do that, I compare Buy and Hold returns for 25 coins with several basic trend-following strategies in different time periods (over 3.5 years of data and then a little extra).

READ THE POST HERE!

The source code of strategies and raw test results (CSV) is pushed to my Github.

Let me know what you think! Thanks!

At the end of the day everything depends on your skills and how long are you willing to work to improve them, it is obvious that if you are a good trader and you can outperform the markets that you are going to be capable of earning more money than someone that just hold their coins, but how many people are capable of doing this? This is where the statistic about the 95% of traders being long term losers becomes important.

This is because it is way easier to become a reasonable good investor that earns money by buying and holding their coins for a very long time than it is to become a good trader and not only it is easier it is way faster as well, at least in terms of the time that you need to dedicate to the activity, and when you take that into account then it is obvious why people prefer to become long term holders.

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