Both trading and holding have their complications. It's hard to say which one is more risky. With the market fluctuating as much as it has, I would debate that holding would have a few more complications than trading. With holding and the market falling as often as it has it would be difficult and time consuming to make a profit off of it.
Financial investment is always quite risky and investment in the market cryptocurrency as well. Trading and keeping in this market has its own advantages and disadvantages, it is important for investors to know what strengths they have to choose the right investment form.
Topic: risk in hodling and trading strategy - page 15. (Read 26450 times)
Both trading and holding have their complications. It's hard to say which one is more risky. With the market fluctuating as much as it has, I would debate that holding would have a few more complications than trading. With holding and the market falling as often as it has it would be difficult and time consuming to make a profit off of it.
Financial investment is always quite risky and investment in the market cryptocurrency as well. Trading and keeping in this market has its own advantages and disadvantages, it is important for investors to know what strengths they have to choose the right investment form.
Holding is more risky than Trading in some situations as traders can react on changes on the market Holding coins out of TOP 100 is especially risky as they can go to zero and the investment can be lost. It can happen to Top coins as well but traders will not allow to lose all their investment as they are using stop loss strategy.
When the market is bearish like we have now it is risky to hold and waiting for the trend to change, as some coins will not recover.
When the market is bearish like we have now it is risky to hold and waiting for the trend to change, as some coins will not recover.
Really thank you for talking some sense, i said and explained to my friends that hodling and trading involve the same risk, and i many situation i found that hodling is more risky than trading
Holding of course will be good if the price will rise up. I for once would rather dump while the price is more than the ICO price. I always assume it will dip again before moving up. Its not a strategy I can say but its more of an accumulating bitcoin. Bitcoin after all is the most trusted coin but there are exceptional coin though.
actually the answer is like the title on the topic you write with the risks in holding and trading strategy. so I mean every activity that will be done either trading or holding of course must be done with a good enough strategy. so even though what you will do I do not think it will work properly without a good strategy. and of course a good strategy that you can gain from that experience will lead you to an advantage.
Both trading and holding have their complications. It's hard to say which one is more risky. With the market fluctuating as much as it has, I would debate that holding would have a few more complications than trading. With holding and the market falling as often as it has it would be difficult and time consuming to make a profit off of it.
Yes, I agree, there a few risks involved in buying and just holding coins.
I think you always need to be involved and follow the news about the coins you bought to know exactly where the price will go in the near future.
The average lifetime of coins is about 1.5 years, you need to make sure you're holding the correct coins at the right time.
Technical analysis makes you able to take good decisions about profitable trading. There are no big risks in holding but the only disadvantage of holding is that you cannot make money in short time. Holding needs long time to earn some money, while trading on daily basis can give you huge profits in short time if you have experience and knowledge of trading.I think you always need to be involved and follow the news about the coins you bought to know exactly where the price will go in the near future.
The average lifetime of coins is about 1.5 years, you need to make sure you're holding the correct coins at the right time.
like this is necessary, you needed to know your boundaries between long and short tradings, reading is essentials so you can make a good target time frame and enough value of your assets before you let it go both for profits or to cut some loses.
Thank you for this information. This is so helpful to newbie like me.
Yes, I agree, there a few risks involved in buying and just holding coins.
I think you always need to be involved and follow the news about the coins you bought to know exactly where the price will go in the near future.
The average lifetime of coins is about 1.5 years, you need to make sure you're holding the correct coins at the right time.
Technical analysis makes you able to take good decisions about profitable trading. There are no big risks in holding but the only disadvantage of holding is that you cannot make money in short time. Holding needs long time to earn some money, while trading on daily basis can give you huge profits in short time if you have experience and knowledge of trading. I think you always need to be involved and follow the news about the coins you bought to know exactly where the price will go in the near future.
The average lifetime of coins is about 1.5 years, you need to make sure you're holding the correct coins at the right time.
it seems the risk of holding back and trading strategy that I use to not too much risk atatu very high risk I usually do daily trading method, because with daily trading you are not too afraid for the risk that will come because daily trading only take advantage with little distance.
Risk is holding is that the growth in the price is not guaranteed and you may waste your time and lose your money. Trading is better than holding to earn moray is less time. If you are an expert trader you can make handsome money in short time because of daily activity in crypto market. Best strategy is that you should give more time to search the market position and take the right decision on the right time. 
Good traders will always have the best chance to create opportunities from the fluctuations in the market.
Holding is easy but in that sense, you really will have to understand the market very well and be sure you are making a good decision buying at the best time and holding for as long as you can until you see some very good profit or you are at least able to make back your investment capital.
Traders get the fluctuations in the middle of it all, and even though risky, find a way to minimize the risk with stop losses, but as it is, simply not everyone can trade.
Holding is easy but in that sense, you really will have to understand the market very well and be sure you are making a good decision buying at the best time and holding for as long as you can until you see some very good profit or you are at least able to make back your investment capital.
Traders get the fluctuations in the middle of it all, and even though risky, find a way to minimize the risk with stop losses, but as it is, simply not everyone can trade.
Trading and Hodling is having similar risk for me, so the key is on risk management. If in hodling, the risk is higher but the opportunity to get bigger profit is also higher. This is different thing to be treated properly, if a hodler just to put the money after all assessment and leave it for 1 year or 2 years. But for trader, he/she should always monitor the chart and surroundings frequently for analyze further.
the risks we get when we hold on for too long will not get the maximum profit even though with a slight increase but different from those who often monitor to sell and buy increases and decreases will be arranged how to sell and buy. In these days there is no risk in holding besides if you sell your holding then you will lose your money due to fall in the price. if you have trading experience and can trade positively then you should not just hold your coins, because you can make more money from trading. More time over the internet and knowledge about the market trend is valuable for traders.
There are dozens of risk in hodling strategy. If only you read whats in treat instead of posting after riding topic only you would know.
1- whitepaper is just a document with words. It can be copierd and change a little. Faked. I can create myown whitepaper in which ill write that tommorow ill be on mt everest.
2-team can be faked with fake twitter account with bought fallowers
3- code - who of us can check if code is ok? How many of currencies have working code now? Most of them are just concept without working product jet.
4- hype can be bought.
5- beeing uniqe dasnt give you certainty of beeing uniqe forever. 1 month after your investment there can be new ICO with better team, bought hype and with working product delivered faster.
6- you are newbie and you did fundamential analys wrong or didnt do at all just jump after hype or because someone said that its great investment
7- there are 1600 coins. More than 1400 wont survive next few years because they are not neseesary. Your decision must be precised and full of luck
2-team can be faked with fake twitter account with bought fallowers
3- code - who of us can check if code is ok? How many of currencies have working code now? Most of them are just concept without working product jet.
4- hype can be bought.
5- beeing uniqe dasnt give you certainty of beeing uniqe forever. 1 month after your investment there can be new ICO with better team, bought hype and with working product delivered faster.
6- you are newbie and you did fundamential analys wrong or didnt do at all just jump after hype or because someone said that its great investment
7- there are 1600 coins. More than 1400 wont survive next few years because they are not neseesary. Your decision must be precised and full of luck
Risk of holding established coins is smaller. You are still risking 100% of your investment too but with much less probability. But there is still vatious of risks. Lisk for example is contiously postoninig every think they promise. Team must be inexperienced though. You also throw here ETC, ETH, LSK - they all provide platworm for smartcontracts daps ets. In my opinion after years from now only 1 of them will survive. There is no need of 3x google or 3x youtube. And there is very high risk that the one who will surviewe after years wont be one of those tree because there is EOS STELLAR and dozens more. And few more new are beeing created every month.
ETH - as you see every succesed token (EOS BNB VEN) in leaving eth to jump on theirs own blockchain. ETH is not that scalable to hold even 1 huge project that reach mass adoption. And there are houndres of tokens on it.
Market looks different now. And will look different in next years. Hodling was the best strategy for 2012-2018 period. But there is no guarantee that it will be for 2018-2024 period. Perhaps it will be the best strategy for 2018-2020 and the worst for 2020-2024 for 99% of coins and still good for 1% of coins. We dont know it. Hope for the best but prepare for the worst.
ETH - as you see every succesed token (EOS BNB VEN) in leaving eth to jump on theirs own blockchain. ETH is not that scalable to hold even 1 huge project that reach mass adoption. And there are houndres of tokens on it.
Market looks different now. And will look different in next years. Hodling was the best strategy for 2012-2018 period. But there is no guarantee that it will be for 2018-2024 period. Perhaps it will be the best strategy for 2018-2020 and the worst for 2020-2024 for 99% of coins and still good for 1% of coins. We dont know it. Hope for the best but prepare for the worst.
But you dont see those risks because you see market today and think that it will remaint like this for next years. For sure it would change. Currently 1000-2000 new ico are coming to this market every year. You think that in
2025 there will be 20 000 coins? And your hodl coins from 2018 would still be there? I think that in 2025 there will be 100-200 coins but with marketcap bigger than whole market today. And hodling this coins will be the best strategy for 2018-2025 period. But the worst for other thousends of coins.
I had a bad experience hodling. Initially I used to research for good coins and hodled them till it doomed. Recently tried short term trade and good with it.
Lol, actually at some point we have all ended up having that bad experience but really you cannot blame anyone who is into holding because it is simply hard to understand the movement of the market if you are not a learned trader and you would not want to be gambling your position as that can actually give room for more mistakes and make you lose more.This personally made me to go through serious trading lessons on my own and it took so much time to get it right and a whole lot worth it as it is far better than just holding through. Trends will always change in between, and it is best to always take advantage of those trend fluctuations.
I had a bad experience hodling. Initially I used to research for good coins and hodled them till it doomed. Recently tried short term trade and good with it.
Everyone has different kind of experience with that of the trading or even short-term investment of money. There are few who find day trading to be the most difficult thing to do but the fact is you must make a choice according to your own interest and that do not try to copy others. Holding is a very good option but for that, you must be patient enough that you can hold your coins at tough times.
When you hold more than a few Shitcoins purchased on some Ico projects hold more risk continuously, because if you hold it you can hold the coin you hold will run delist so it will make you loss if coins mean too long.
Trading and Hodling is having similar risk for me, so the key is on risk management. If in hodling, the risk is higher but the opportunity to get bigger profit is also higher. This is different thing to be treated properly, if a hodler just to put the money after all assessment and leave it for 1 year or 2 years. But for trader, he/she should always monitor the chart and surroundings frequently for analyze further.
with the current market conditions you are not going to be able to make a huge amount of money, that is the main reason of why trading on this kind of markets is good if you want profit
Yes I agree on that and I believe that holding and trading strategy has no risk at all but it really depend on the price and the patience that you maybe put in on every time you make an investment. If we have patience and we can wait the update of the current price or maybe we can hold it for a long term there will maybe a big possibility that the price may rise and soon we Can earn buy selling into higher price.
with the current market conditions you are not going to be able to make a huge amount of money, that is the main reason of why trading on this kind of markets is good if you want profit
Jump to: