Trading or HODL
Such a strategy can be super profitable. Here are some examples:
Spectrecoin +48228%
Neo +90450%
Ethereum +95390%
IOTA +105505%
NXT +391776%
(data for the end of 2017)
And how do you think, share your views on the pros and cons of trading and long-term hold in the comments.
This happend. You wont go back and buy etherum that low. Not all of coins do like that. Thats why when you invest and decide to hodl forever you risk more than daytrading. You risk all campital invested. Beacuse wrongly chose coin can turn out scam coin with no product. Many of coins never recover to ICO price. You cant show us 5 biggerst gainers from ICO to Now and tell us hodling is better. Chance to invest in 5 best is like in lottery.
Daytraders choose high volume coins with high variability. They jump into coin, set stoplos, grab even 0,5% profit and jump to other coin or the same 5 min after. They risk small % (when trade is not going well they cut looses to jump and earn istead of making it worst) of investment each trade. If trades are not profitable (summary of all) they can alwais stop, change strategy or stop at all (for example when my wallet will drop 10% after week of trading i give up and put everything into bitcoin)
That makes hodling riskier than daytrading.
Is it more profitable? For those who chose good coins it can be. For those who didnt for sure not. Hodler make 1 decission. When its wrong all capital is lost. Daytrader makes dozen of decision each day. And each decision gives him -1% - + 5% (depends on trader).
Current hodler (who buy today) will get totaly different gains that hodler who buy years ago. Is something jump 1000 times in few years it can jump 1000 times in next few or drop half of it or even all. You can't say hodling was better since now so since next few years it will too.
Those examples shows that it was better to hodl from 2012 to 2018. But it will never show that it is better to hodl from now to 2024.
Personaly i hold bitcoin. Daytrade it to increase its amount (with success) and also invest into altcoin deeps for 1-3 months grabing 10-200% gains. I think thats the safest way in todays market. I think that bitcoin price will remin stable for next few months (6-10k)
I'm definitly not person who read whitepaper and say - thats great project. Ill invest my money and hodl for years. Beacuse i know that whitepaper is just document with words that can be written and none of statement there will be delivered. I know that team can be faked. I know that currencies can be hacked (like verge). I know that product can not be delivered. I know that other project that is not on market yet can deliver the same product earlier or can jump on market with higher (payed) hype.
Take a look at Historical Snapshots from 2013 year. You will find many coins thats price is higher then today. Hodler that invest in them in 2013 lost. INVESTING IN CRYPTO IN 2013. When marketcap was dozen times smaller.
Accoring to wikipedia
NXT was created without announcing any ICO (Initial coin offering) with total 1,000,000,000 coins amount. On 28 September 2013 Bitcointalk.org member BCNext created a forum thread announcing the proposed launch of Nxt as a second generation cryptocurrency and asking for small bitcoin donations to determine how to distribute the initial stake. On 18 November 2013 fundraising for Nxt was closed.[6] The genesis block was published on 24 November 2013.
That kind of risk you had to take to gain 390 000%. 1 coin for half satoshi from guy from forum who wrote - send me some bitcoins ill send you some coins. That was in 2013. When cryptocurrency investor was here only for technology. Visioners. And now in 2018 you are posting NXT as na example to proof that hodling is better.