Topic: Long-term Holding vs. Active Trading: The Choice - page 2. (Read 279 times)

Trading can be very emotional, I prefer long term holding which is more like investment as when compared with trading perhaps Bitcoin is best performed when viewed on a long term perspective, thou patient is required and also the ability to increase your holding up to a reasonable amount and hold for as long as possibly 4 to 10 years or more where you can have the compounded value of your investment over a period of time of getting a substantial overall return of investment. Trading can be very complex and emotional devastating both for an experience one let alone a newbie.

And in addition to what Charles Tim has said, I will also like to add that we also have another form of trading called p2p trading and Future trading, whereby p2p stands for peer-to-peer, and it is the type of trade which involves buying or selling of crypto assets directly between two or more parties using either centralized & decentralized crypto exchanges as escrow to execute transactions for security. And p2p happens to be one of the most common type of trading, whereby a user who intends to buy or sell his Bitcoin into fiat currency could conveniently use it to execute his transaction successfully.

Secondly, Future trading, which happens to be another  type of trading with the use of contract whereby investors are allowed to buy on a speculated price in the future movement of a digital assets (i.e Bitcoin/Dollar, Bitcoin/Euro, Bitcoin/Pounds).

OP your insight about bitcoin investment can be good example to get profit. I think most of the investors use these two methods because holding is a means of making sure profit for them and active trading can be a means of daily income for them.

Bitcoin Holding : Long-term Bitcoin holding can definitely be a safe investment for you that you might not expect in other traditional investments. If you review the past price history, you will see that the value of Bitcoin has been increasing steadily over the years. So if you can hold bitcoin for 4-10 years then you can get huge profit. But you should keep in mind that Bitcoin is volatile but you should continue holding.

Bitcoin Trading: Trading is much more risky than holding and you can lose your capital because trading is a short-term investment and the value may drop immediately after your purchase, so your capital is at greater risk. The current market price of Bitcoin is very disappointing for traders and the price may fall further. when the price of Bitcoin is increase is very positive for traders which can make them huge profits.

Above all Bitcoin can definitely be a positive investment for you but you should keep a long term investment horizon which can give you a lot of profit for the future. Your active trading can be relatively nerve wracking and raise your blood pressure while monitoring the daily market. So if you have a guaranteed alternative income, long-term bitcoin holdings may be the best decision for you.

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.

The stress is not enough to be called a disadvantage afterall, hodling requires more concern as to how you protect your coin from cyber theft. Anything that produces profit at the end will always require meticulousness.
hybrid? There's something you really need to understand. These two strategies of investments require different level of skills; anyone can hodl coins and stay safe with it, but not everyone can trade.

Investing is different from trading.

Holding your coins for many months like 6 months or for years is known as investing. 3 to 6 months can be considered as short term holding while her more than that can be considered as king term.

Trading are if three types. Scalping which means to trade within second to few minutes. Day trading which means to leave the trade opened for like a day and many for many hours. Swing trading which means to leave the trade opened for many days or weeks.

And also offering potential losses.

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.

⚫Long-term Holding (HODLing)

This method offers lower stress or high BP because you simply buy and hold, no need to constantly monitor markets or study charts all the time. Also, Bitcoin's value increases over time.

A study by Coinbase found that 75% of Bitcoin investors hold for at least six months, while 50% hold for over a year. Also, according to Glassnode, the average Bitcoin investor holds for around 1.5 years before selling.

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.

⚫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 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.


📌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?