Topic: Trade vs. HODL - avoid traps - page 7. (Read 1982 times)

Even if you used TA on forex, it still doesn't mean you're going to make money. Always remember when doing active trading, you're trading against actual professionals on trading desks working for huge companies. Quite difficult to win against them if you're just a retail trader trading in your pajamas.

Hmm..So is position trading acceptable for bitcoin and not considered as trap?

I mean you don't have to go through a tedious task of technical analysis on a daily basis; instead, you can look for buying and selling on a much longer timeframe. This way, you can maximize a good return but it will take a lot of patience and a bit of mental strain. Even if you don't sell at peak, there is still a good probability that the price will retrace for buying opportunity.

I don't know, it feels like some people do this trick in accumumulating sats in the long run.

You missed the most important thing here.

Make sure you're buy Bitcoin and not buy shitcoin aka altcoin

It doesn't matter how long you hold, shitcoin will always being a shitcoin where it might be a scam, become a deadcoin, etc. There's no point for holding shitcoin for longer than 6 months or a year, also you shouldn't diversify your investment to other shitcoin. If you want to diversify you need to buy other assets e.g. gold, stock, or real estate.

Anyway I'm 100% agree with your point, it's better to hold Bitcoin rather than to trade it. Just make sure you're buy Bitcoin with money you can afford to lose, so you wouldn't really worried when the Bitcoin price suddenly drop for 80-90% in the bear market.

I agreed. No matter what you think or analyze, with a supply like 21million and some of those arent even used or loss in the space. We can see how limited this could be, imagine you have a 1 bitcoin over that fixed supply, even smaller or scarce than the peoples population among the world. You can see it worth in the long run that will succeed. This is an incredible explanation OP!

Applying one's knowledge in sectors like Forex and trading to Bitcoin might not yield accurate predictions. This is because bitcoin is not like other foreign exchanges or stocks that can be manipulated easily. I observed that bitcoin is gradually becoming independent from external manipulative forces.  


The best advice I always get from most bitcoin supporters is just keep hodling because the gain of keeping your coins is far greater than the little profit you make from trading. Although the price currently looks attractive to trade, I have decided to keep my coin because it is my long-time investment.   

Wow, glad to hear you got it sorted!  

I totally agree here. The mental exhaustion part is a very important point. It's part of the game for trading and can also result in big losses if traders are making rushed decisions.
As you've said, it's much more efficient to dedicate the time for other things.

After all, trading is a very risky and stressful way to make money:

A trader after he traded successfully
 

I tend to agree with this and I think you nailed the right point.

I tried trading once when I had free time when I don't have a small business outside but now, I can't focus too much on crypto just like trading which is time-consuming, or else, it's a wasting time.  Technical analysis won't work, it might I believe in fundamental analysis that's based on news than this technical analysis.  It's always the price is unpredictable.

I learned to HODL in the long-term and aim for profit than trading.
But, if you want to gamble your money and have a short-term of waiting profit, trading is good for you.  It's a high risk if you're lucky enough, there will be a quick profit too.

Holy crap! This thread is spot on from what I experienced when I attempted day trading back then. I don't even know what most of those terminologies meant in the "trading" image.
I took some time to learn day trading through Youtube (I believe it was Cryptojack channel that taught me not sure if the channel is still active though), since I was not fan of just reading books and not being able to see the demonstration of how signals are used. Binance was the first exchange I tried since it's the most mentioned one at that time.

I only knew some instruments like Bollinger Bands and RSI and I thought that just by simply following the tutorial would somehow give me a satisfying results/profits, but nah. It all ended up in a loss and just by learning and watching throughout the whole tutorial I was already exhausted considering I also have my 9-5 and I was only trading in hopes of having some side hustle. I just went on and go full hodling and call it there. Best decision of my life.

There might be some people really earning a lot from trading, but I won't go through those hoops of mental exhaustion ever again. Trading is not meant everybody.

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Love the tl;dr by the way, sums up what should I had done instead. I could have invested it more in learning programming instead.

It's because "technical analysis" doesn't work. Or why are there so many people trying to sell their "trading courses based on TA"? 
They could just trade themself and make big profits as it's always advertised by them. But they don't do this. Wonder why? 
Because it's not a reliable way to make a profit. 

Maybe, we could analyze economic events and try to predict the market (often by insider knowledge). That's hard as well and also very risky but simply by drawing some lines into the BTC chart, and hoping that we are right, won't get us far. Or it wuld be very risky and only based on luck if we get far.


You are right, the info-graphic was intended as a Meme. 

Hodling is a more consistent means of benefiting from bitcoin and does not require any sort of technical skill to utilize, all you need to know is how to properly set up a wallet and back it up, making it accessible to even newbies to bitcoin.

But checking the info-graphics, I do not consider hodling to be a linear path to profits, there are pitfalls and market volatility which makes it difficult to hold on to your coins. There is also the emotional development one has to go through to hodl through different market situations.

Should this apply to everyone or those who do not profit from it? No trading strategy guarantees profits, but there would be people who get net profit from trading.

- Jay -

I have tried bitcoin trading and failed, I learned technical analysis but again failed. Bitcoin just doesn't follow the technical analysis terms like the forex or it is me who is failed to give my 100% effort on learning and implementing those into bitcoin trading.

But after trying so many years, probably a good 4 years trying to trade bitcoin successfully (make profit day trading), I gave up 2 years ago. Now I can live my life peacefully and avoid day trading.

After all, we know how valuable Bitcoin is, so we need to protect and possibly even increase our holdings but when doing so, many traps should be avoided.
One of those traps is to fall for the misconception to increase Bitcoin profits from trading reliably.


Trade vs. HODL



Bitcoin's fundamentals make it very suited to HODL because Bitcoin’s supply is limited to 21M units itself. By HODLing, Bitcoin should increase likely in value long-term and HODLing is our safest way to make a profit. Low risk – likely to succeed.
But we need to be patient and favor safer long-term gains instead of quick but more insecure profits.


Technical analysis is risky

Some people have claimed, that trading by technical analysis is a reliable way of making money – it’s not true because it's very risky, especially for short terms (daytrading). If technical analysis would be predictable, it would be easy to take a credit, give it to a "professional" trader and he would make a profit.
Be careful and don’t fall for such offers, it’s a scam!
Because if technical analysis would be a reliable way to generate profits, everyone would be a millionaire. A coder would have coded these "technical analysis patterns" and trade according to them.
Such a program does not exist because it doesn’t work. Technical analysis is not predictable and doesn’t generate reliable returns.
Like xkcd explained it: technical analysis is more like a pseudo science:


https://xkcd.com/2101/


HODL instead!

When we are HODLing, we are taking advantage from Bitcoin’s scarcity. Bitcoin is limited to 21 M BTC. And every 210,000 blocks, block rewards (for miners) will be halved, decreasing newly issued units of Bitcoin aproximately every 4 years.
By HODLing, we are simply taking advantage from Bitcoin's scarcity because Bitcoin is a good asset for saving. It might be volatile in terms of Bitcoin price now but as more people will hold Bitcoin, we could see Bitcoin's price getting more stable – increasing demand for Bitcoin as a store of value even more.

It could take some years until we see some decent profits as Bitcoin's price has been moving in cycles of around 4 years but so far HODLing has proven to be reliable (and will also make Bitcoin less volatile).

tl; dr:
Better HODL, don't trade!  

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Translations:

Language	translated by	Title
___________________________	_________________________	_______________________________________________________________________
Arabic	Nalain420 (reserved)	reserved
Bahasa Indonesia (Indonesian)	Taufik123	Trading Vs HODL - Menghindari Jebakan
Bengali	Z_MBFM	ট্রেড Vs হোল্ড এর ফাঁদ এড়িয়ে চলুন
Deutsch (German)	1miau	Warum Trading so riskant ist (und man besser HODLn sollte)
Français (French)	iwantmyhomepaidwithbtc2	Trade vs. HODL - Évitez les pièges
Nigeria (Naija)	Chilwell	Trade vs. HODL - avoid traps
Română (Romanian)	GazetaBitcoin	Tranzacționare vs. HODL – evitați capcanele
Türkçe (Turkish)	mindrust	Al-sat vs. HODL - tuzaklara kanmayın
Pakistan (Urdu)	Compromise me (reserved)	reserved