Pages:
Author

Topic: Long-term Holding vs. Active Trading: The Choice (Read 291 times)

member
Activity: 182
Merit: 33
OP it is not good to be trading and at the same time investing for a long term. This is because you cannot serve two masters at the same time. You must dedicate time to one than the other. The disadvantage is that trading is prone to losses and as someone that is emotional, if the funds that you reserve for trading is lost, you might be tempted to take some part of funds from your bitcoin investment for trading to see if you can make profit and before you know it gradually your bitcoin investment portfolio will start depreciating and if you cannot control yourself, you might trade all your investment. Stick to one trading or investing. I will go for long-term investment because it saves your funds from depreciation and gives good profit. Trading is 50-50 profit/loss.
you are very right mate,there is no way you can give hundred percent attention to the two,we all know how trading is hard,and for you to pay attention to the margins and be able to remain active on it,and at thesame do long term investment,it's going to actually worry,or you should always bare in mind that you will lose money while doing one.So it's better you do one,and leave the other.
If it's trading you want to concentrate on,do that one with all your attentions focused on it,or if it is investment,do the same, and have patience as it has less risks involved.
this is just a personal thought, have seen a friend  that trade and hodl too and his doing well, he hodl spare money from his trade to his wallet, any profit he made he send it to his wallet. we have good traders that can still hodl and trade 100% no distraction, this friend of mind don't go out he is not a outing person he can stay indoor for week, he gives 100% to bitcoin and he is a successful  trader. don't just conclude because you don't have such time to mix the two. I respect those  that only focus on bitcoin like all that matters to them, nothing else matter to them. They even made more profit than most people hodling.
jr. member
Activity: 98
Merit: 6
OP it is not good to be trading and at the same time investing for a long term. This is because you cannot serve two masters at the same time. You must dedicate time to one than the other. The disadvantage is that trading is prone to losses and as someone that is emotional, if the funds that you reserve for trading is lost, you might be tempted to take some part of funds from your bitcoin investment for trading to see if you can make profit and before you know it gradually your bitcoin investment portfolio will start depreciating and if you cannot control yourself, you might trade all your investment. Stick to one trading or investing. I will go for long-term investment because it saves your funds from depreciation and gives good profit. Trading is 50-50 profit/loss.
you are very right mate,there is no way you can give hundred percent attention to the two,we all know how trading is hard,and for you to pay attention to the margins and be able to remain active on it,and at thesame do long term investment,it's going to actually worry,or you should always bare in mind that you will lose money while doing one.So it's better you do one,and leave the other.
If it's trading you want to concentrate on,do that one with all your attentions focused on it,or if it is investment,do thesame,and have patience as it has less risks involved.
sr. member
Activity: 476
Merit: 307
OP it is not good to be trading and at the same time investing for a long term. This is because you cannot serve two masters at the same time. You must dedicate time to one than the other.
I will disagree with you a little on this one because I have seen people who have done it successfully. I have know some good traders that use the money they made from trading to buy bitcoin for long time hodl. I will not encourage anyone to use this route because it comes with a lot of pain and endurance and not many people succeed there but the truth is that it is doable and people have done it and succeeded as good bitcoin hodlers. I have tried trading but my result was not good so I decided to take a break and focus on building my bitcoin portfolio through my little income. It will only take me time but I believe I will succeed in building a good bitcoin portfolio I will be very proud of.

I will not call a dual approach of trading combined with long time hodl as serving two masters because both can be operated with separate budgets. There is no conflict in them
sr. member
Activity: 434
Merit: 265
WOLFBET.COM - Exclusive VIP Rewards
It's important to know that in as much as Bitcoin dropped significantly or not, that it's the best time to continue buying Bitcoin because as it reduces it will also increase, so when it's low just take the advantage and buy it. Honestly you are correct that anything that has advantages also has disadvantages, just like trading, no matter how constantly you trading the whole thing is all about price or value. If we invest on Bitcoin it means we are hoping that it will have more value in future that's why we hold for long term and even when we trading we hope for its value in short term. Traders are just like people who can't wait, or people who can't exercise patience. Long term holding depends on ones patience, a trader should also know that emotions won't help him.
full member
Activity: 448
Merit: 202

no need to constantly monitor markets or study charts all the time. Also, Bitcoin's value increases over time.

You are right, but still, there is something I want you to understand more about this statement. I know that as an investor in bitcoin, you will have a slight peace of mind and higher patience, which means that if you say that you will not be focused more on the chat of bitcoin, you might still lose even with the long-term investment. Let's take an instance where you aim to invest for an interval of 6 months and you invest in January 2024, when the price was around $51,000. At the time that is supposed to be your complete 6 months, based on calculations, you find out that the bitcoin price has been dropping. Are you going to remove it, or will you leave it for another 6 months? But with adequate study and concentration on the chart, you will definitely know the best decision to follow in such situations, although I know that the bitcoin price might still change, either to increase or decrease. 
sr. member
Activity: 630
Merit: 298
OP it is not good to be trading and at the same time investing for a long term. This is because you cannot serve two masters at the same time. You must dedicate time to one than the other. The disadvantage is that trading is prone to losses and as someone that is emotional, if the funds that you reserve for trading is lost, you might be tempted to take some part of funds from your bitcoin investment for trading to see if you can make profit and before you know it gradually your bitcoin investment portfolio will start depreciating and if you cannot control yourself, you might trade all your investment. Stick to one trading or investing. I will go for long-term investment because it saves your funds from depreciation and gives good profit. Trading is 50-50 profit/loss.

I will like to disagree with this statement, I bitcoin trader can easily venture or have his own portfolio of investments without any risk, it is just an investor that can’t venture into trading easily because of the knowledge required to trade which we all know is more hard to sort than what investors need. The only thing the needs too much dedication of time is the trading which requires you to go beyond knowledge like fundamentals which to me is the most important knowledge needed for investing to other analysis like the technicals. A trader doesn’t necessarily need to seek an extra knowledge to invest, so they can easily combine the two.

Yes I get that you can lose in trading and as you said use your investment to trade but i think even without trading of you can’t allow your crypto investments to grow, you’re aren’t an proper and you can still take those funds out to do other things aside trading.
hero member
Activity: 560
Merit: 511
OP it is not good to be trading and at the same time investing for a long term. This is because you cannot serve two masters at the same time. You must dedicate time to one than the other. The disadvantage is that trading is prone to losses and as someone that is emotional, if the funds that you reserve for trading is lost, you might be tempted to take some part of funds from your bitcoin investment for trading to see if you can make profit and before you know it gradually your bitcoin investment portfolio will start depreciating and if you cannot control yourself, you might trade all your investment. Stick to one trading or investing. I will go for long-term investment because it saves your funds from depreciation and gives good profit. Trading is 50-50 profit/loss.
full member
Activity: 196
Merit: 91


📌I think a hybrid approach is safe to try. Combine long-term holding with active trading. Hold a core amount long-term and trade a smaller portion actively.

What do you think?

I agree with this summation, a person can become a Bitcoin hodler and a trader, it just requires having adequate knowledge about how Bitcoin works and learning the necessary skills to be a good trader. A Bitcoin trader can make profit from crypto trading and diversify it into Bitcoin investment, that is why I think that it is a good idea to trade and hodl Bitcoin at the same time. The major difference between the two is that trading is for short term profit, although loses can occur while hodling or investment is for long term profit if the investors will hodl for long term. Also trading requires learning trading analysis to avoid or minimize loses while Bitcoin investment doesn't require much technical skills, an investor basically needs to understand how to secure their wallet private keys and occasionally monitor Bitcoin price from the Blockchain.
full member
Activity: 658
Merit: 172
The disadvantage of HODLing is that prices may drop significantly in the short term, and if you're holding through market downturns, it means missing out on potential gains.
If you decide to become a holder, you need to ignore any disadvantage that it may have, ignore  market movement and just know that the market will always go back up even if it goes down. If you are able to accept this, you will be a very good holder who does not respond to Fear, uncertainty and doubt.
Why we for our side dey sabi worry when bitcoin price dey drop, na because say our economy dey poor and every money matters to us, so once value of bitcoin wey we get dey drop, we dun start to panic, we need to stop that kind thing. 
sr. member
Activity: 448
Merit: 264
WOLFBET.COM - Exclusive VIP Rewards
Trading is to make quick money while investment is to make money or gain in a long time. If the trader is very good in trading then it is good for him to make profit from the trading but if he is not too good for trading then I advise him to invest. As for I am not good in trading so I chose investment and it is for long term investment. Trading is too dangerous for me. Though bitcoin price is not stable and it is volatile but if you are investing foe long term then you will not regret investing in it.
Trading is not for newbies and it is not for inexperienced traders and it is good for those who have the experience so that they won't lose when trading before in investment your don't need much but if you like to learn deeper and you can do it. But the basic knowledge of bitcoin can give you the investment plan.
hero member
Activity: 868
Merit: 574


The disadvantage of HODLing is that prices may drop significantly in the short term, and if you're holding through market downturns, it means missing out on potential gains.

It is normal for the price of Bitcoin to change due to its nature of volatility. When holding, and in the process the price drop, I don't see it as a disadvantage because that’s Bitcoin nature, and everyone in to Bitcoin investment must know that the price can change anytime. So, if the price of Bitcoin is down significantly, the best thing to do is to continue holding for the best time you can make  reasonable amount profits. The only way someone can avoid selling in the short term is to only invest what they can afford to lose. Once it is money someone can afford to lose, holding for a long time may not seriously be a problem when market is not doing fine when you have plan to sell it.

⚫Active Trading

This method offers potential for quick profits; you can buy low, sell high, and repeat. Also, you can adjust your strategy swiftly as market conditions change for bigger gains. And active trading can be engaging.

Trading is not an easy thing, and it is not that easy to make quick profits from trading just like that repeatedly. Even with proper knowledge, someone cannot continue making profits trading because it is very hard to deal with. This is one of the reasons they always warn newbies that they should not be involved in trading unless they have learned and gained proper knowledge. I am not discouraging people from trading, but that is the truth. One more thing: when trading, know the type of coins to trade because some coins are just for scamming people. If possible, I would advise starters to only trade Bitcoin.
legendary
Activity: 2184
Merit: 1302
Playbet.io - Crypto Casino and Sportsbook
Hybrid approach no go fit work for everybody, particularly because of limited amount of funds. Me i dey always tell newbies make dem no trade, e better for dem to buy bitcoin and if dem don dey in the network for sometime and within that time they try to acquire trading skills, then dem fit begin trading small small. Personally, i prefer long term hodling, it is a safer approach and you only have to learn how to keep your assets safely, you go fit also adopt the DCA strategy and accumulate your bitcoins gradually.
sr. member
Activity: 224
Merit: 195
What do you think?


I usually don't advise people to go into trading, that because of the risk involved in trading the market. Just like you stated,trading requires you steadily monitor the market and try to ride along it's wave. But then when you go into the long term hold, you don't go through theses stress as you make profit from holding more than a year or 2 of purchasing. Both of them come with disadvantages but trading has a more significant risk when you don't know how. It takes time and experience to make short term profit from trading. So if you don't have such experience just stick with the long term hold.
People can also be subjected to what they choose to do, in most cases a user might decide to go on both trade and holding. Holding is most preferred because it doesn't ignite the possibility of losing funds unlike trading which stands between the line of either profit or loss. We only can encourage more people to choose the path were they are potentially filled to make profits without having doubt especially to those who have a small funded account. Anyone going into trading should aswell know the risk and benefits and benefits able to bear possible losses.
sr. member
Activity: 336
Merit: 365
The Alliance Of Bitcointalk Translators - ENG>PID
What do you think?


I usually don't advise people to go into trading, that because of the risk involved in trading the market. Just like you stated,trading requires you steadily monitor the market and try to ride along it's wave. But then when you go into the long term hold, you don't go through theses stress as you make profit from holding more than a year or 2 of purchasing. Both of them come with disadvantages but trading has a more significant risk when you don't know how. It takes time and experience to make short term profit from trading. So if you don't have such experience just stick with the long term hold.
full member
Activity: 490
Merit: 225

The disadvantage of HODLing is that prices may drop significantly in the short term, and if you're holding through market downturns, it means missing out on potential gains.
this is not really a disadvantage. Note that Bitcoin is a volatile asset and for that reason, it's normal to see price drop or some correction while you're still HODling and the simplest thing to do at such instance is to keep HODling till you've come out of such correction. If you even have the resource, it's during price drop that you can easily add up to the amount you're already holding. Your potential gain as a real time Bitcoin investor comes when you've accumulated a good amount of Bitcoin and so it's more appropriate to look at HODling from a longer term perspective which will bring along the line multiple of dips and bull up untill you've built up a good chunk of BTC and can comfortably sell when you're in good profit.

⚫Active Trading

This method offers potential for quick profits; you can buy low, sell high, and repeat. Also, you can adjust your strategy swiftly as market conditions change for bigger gains. And active trading can be engaging.
the issue with trading Bitcoin or buying Bitcoin and then selling it immediately you're in profit is that for most cases, it's not always easy to see Bitcoin at say $53k at the moment and In the next day or one week it's at $100k which would have placed the short term trader at 2× his profit. If it ever happens, it's always ones in a while and you can't really depend on such minimal possibilities as a trader. Maybe for other digital asset like some altcoins trading might be good for the short term and for some profit but Bitcoin is best looked at as a long termed asset.

The disadvantage is that it can be stressful because of the constant market monitoring and quick decision-making. Also, constant transactions mean higher exchange and trading fees.
if you don't have a good amount you're putting into this, even while you're in profit and want to sell too soon, you have to factor in the charges that comes with trading with a small amount of Bitcoin and if you don't know what you're doing, you might spend your small profit as charges
legendary
Activity: 2478
Merit: 4341
eXch.cx - Automatic crypto Swap Exchange.
The disadvantage is that it can be stressful because of the constant market monitoring and quick decision-making. Also, constant transactions mean higher exchange and trading fees

Don't forget the potential lost of your crypto because of leaving them active on exchanges which are mostly CEX. You won't buy and send the crypto to your non custodial wallets as you're actively trading and would want to seize every opportunity that you have to take profits. Traders are expensive risk takers and they aren't the most successful in the industry. Trading exposes you to the market and the risk of losing your coins but investing don't and don't forget there's a big difference between trading and investing (don't confuse the two).

Quote
.📌I think a hybrid approach is safe to try. Combine long-term holding with active trading. Hold a core amount long-term and trade a smaller portion actively.

What do you think?

It's not the best method na investing (hodling) and it has proven that it's better than trading, short term investing or anytime you wan do. Hodling na him sure pass. People wey dey enjoy Bitcoin for the industry are hodlers. As you dey hodl e dey give you chance to do other things wey fit bring you money and diversify your portfolio. Trading go take most of your time and even though you wan dedicate a specific time for your trading so you fit dey use the other free times do other things e no go fit give you peace of mind as how if your investing are projected for a long term. All the market wahala no go just dey stress you.
hero member
Activity: 2212
Merit: 805
Top Crypto Casino
Hybrid approach is might not be the best approach for everybody. The reality is that all market participants are different and no-one market participation style is better than the other. Here's how I see it:

  • If you're a long term believer and don't want to spend plenty of time opening, monitoring and closing trades, then it's not for you. If you don't also know how to trade, or at the bare minimum, Knowledge of trading fundamentals, there you are better off just buying and holding.
  • Trading is just simply better for anyone that has the capacity and knowledge for it and don't like leaving money on the table. Quick profits and quick losses are the order of the day

Either strategy works. You just nerd conviction on one of them and you'd be good to go.
sr. member
Activity: 476
Merit: 230
God is All
Hybrid approach might jeopardize your bitcoin holdings for long term because the loss in trading  might see an investor loose coins meant to hold for long term. The knowledge required to buy Bitcoin and HODL for long term purpose is different from the knowledge a trader requires to be successful in trading, Don't be enticed by the short term gains of trading, the losses is greater. Holding Bitcoin for long-term is a more flexible approach to make profits, so a long as good strategy like (DCA) are applied and done consistently with right perspectives you can profit from holding bitcoin.
Anything concerning trading Bitcoin for short term is actually not advisable and that's my own naive take although some persons.might still say this method or move actually do work for them but am off that opinion because you might get some loses sometimes in trading and that might trigger you to even get back that coin you lost and before you know you have ended up trying to catch that win with all your savings.
hero member
Activity: 602
Merit: 442
A Proud Father of Twin Girls 👧 👧
It all depends on what favour the trader and I’ve seen a guy who does both long term and short holding because he has a wallet which he has held for some years now and constantly buys coin at every possible time and I think his already doing well for himself because he already knows how to maintain balance in the trading industry.

I think everyone would prefer to hold for much more longer time if they have all it takes to do so and what it really need and requires to hold coin for much more longer time is contentment and discipline and the ability to constantly practice the DCA method will help every actual investors and potential/intending investors to always try as much as possible to buy little fraction of bitcoin at every opportunity they get to do so because it always pays off.
hero member
Activity: 672
Merit: 546
When it comes to investing in Bitcoin, two popular methods are known: long-term holding and active trading. Each method has its advantages and disadvantages, which I'd love us to discuss.
Try to make more enquiries and have a better understanding before posting, Trading is different from investing (holding as you call it). I think you should focus more on learning for now so you don’t get wrong ideas about certain things.

Investing can be either short term or long term with the hope of earning profits. It will depend on the investment plan you design for yourself but long term investments are more profitable with lesser risk.

Market dip is not really a disadvantage because all investors suppose to be aware of market dips and that they are inevitable and that they are bound to happen at some point so investors are to include them in their plan what to do when there is a drop in price. Dips present investors the opportunity to accumulate more bitcoin at a more affordable price.

This method offers potential for quick profits; you can buy low, sell high, and repeat. Also, you can adjust your strategy swiftly as market conditions change for bigger gains. And active trading can be engaging.
Not including the high level of risk in trading proves to me you don’t know much about trading, the way it  offers quick profit is the way offers quick losses too.
Pages:
Jump to: