Topic: What is better - cryptocurrency trading or investing? - page 23. (Read 4394 times)

I'll give you some pros and cons of every solution.
Let's start with trading.

For me the biggest con is the risk of holding coins on exchanges. Your coins are not only at risk of being hacked, but also blocked by the exchange due to some change in rules or if they find your activity as suspicious.
I've lost some coins on bittrex because they've decided that my activity is suspicious and blocked my account and then demanded me to send them multiple selfies and bills to prove where I live and in that time I've changed apartments so that was out of the question... Long story short they demanded a ransom that I could not provide. They stole my coins. It wasn't a big deal because that was maybe $100 worth of cryptocurrencies, but imagine if you had 100 times more and the same thing happened to you.

You're also at risk of making a mistake, trading with leverage and getting liquidated and losing a lot of money.

What's the worst thing that can happen to your bitcoins held offline? If you buy today, we can go to retest the previous high by the end of the year and you'll earn 100% on your investment or go down to maybe 20 thousand and you'll lose 30%. If you decide to trade you can lose 100%, so the risk is much higher. Holders will never lose 100%, even if they buy the top.

Holding doesn't require any work, any thinking. It takes more time to make money so it's a game of patience but it allows you to focus on other things.

It's hard to give an advice since sometimes the one we suggest will not work to them, that's why its really good to see our capabilities so that we can point out to ourselves if its really good to hold or just trade it on various trusted platforms available around. But I really preferred to trade rather than holding as I don't have capabilities to do so I'm kinda not good on holding my emotions and we must consider it since its a huge stress to see how market collapsed especially if we bought and hold at the wrong time.

Do what works for you best. There are advantages and disadvantages on both investing and trading. You can do what suits your current situation and of course, your preference. Ask yourself, what do you prefer? Short-term or long-term? You can do both if you like to. Just remember that the two are completely different thing. Study how the two work so you'll not regret a thing later on.

Personally, I prefer investing over trading. I'm in it for long-term after all. Investing works best for me because all I have to do is buy the dip (for those coins that show potential) and hodl until the time I need to withdraw some funds and until I reached my goal. Although, I've tried trading as well. And man, it was a rollercoaster ride. You shouldn't start trading when you aren't equipped with enough knowledge. If you opt to do so, you'll end up losing. Trading requires a lot of skills, strategy, and strong gut-feeling. You must know when to take profit (T/P) and you should put stop loss to avoid losses and liquidation. Trading is time-consuming, but it always pays back your effort as long as you know what you are doing.

actually you can answer that literally mate because you will only comparing what profits you made in the Day trading strategy and what can holding brings you.

Lets say You daytrade bitcoin or other coins , and you choose to stop loss for at least 5-10% ups or down .

or think of those Holders that use to buy bitcoin last 2020 when the price drops down to 4000 and hold it for 1 year when the price climbs up to more than 60k.

what do you think is profitable? actually i only use Bitcoin as an example but of course Ethereum and other altcoins do the same growth or even much higher.

It's pretty stupid but I think that it's a much better option since it's safe and it covers both long-term and short-term, I think both of them can work together, you do trading while at the same time investing and hodling some of your cryptocurrencies that has a potential for long-term growth. I think that utilization of both facets of making money in cryptocurrency is a much better option compared to choosing just one.

Doing both would be better . Best choice
Now if you see that one of them isn't giving you profit or worse you are losing on it them better leave it or focus on one.

In terms of profitability, day trading would be better compare to just holding but on the other hand the chances of you losing money is higher in trading. High risk = higher reward as they are saying . Just do both of them and if you see that you are earning profit on both of it and you aren't stressed doing both of them then just do both .

Based on my experience holding bitcoin for long period is more profitable and convenient because it doesnt require a lots of time to monitor the market and its stress free. I tried to be a day trader before and though you can earn huge amount for choosing the right coin and buying/selling according to your plan it doesnt suit me because it gives me headache. Plus you really need to manage your time which I cant do because I also have day job. Well if you're curious to know which more is profitable then you have to try it first.

Nevertheless regardless what strategy you choose if the coin is btc its profitable compared to alts.

Trading takes time and you have to be knowledgeable about trading and have a lot of capital and experience and even with all that it's not even a guarantee that you will make a lot of profit. Investing on the other hand, all you need is patience and faith to the cryptocurrency you are investing and you won't need much faith if the cryptocurrency you are going to invest in has a big potential like bitcoin and Ethereum. If you want to make money for short-term, try your luck on trading but if you are on the long-term, try your luck on investing but no matter which you choose, always be wise and smart with what cryptocurrency you are dabbling in because there's a lot of shitcoins out there hungry for your money.

Making investments will not always make us check the price every day, reducing our panic if the price is down.
Although we need to wait for some period, as long as we can feel okay with holding the bitcoin, we will make a big profit.
It proves this year, when people already invest in bitcoin from 2018, even if they bought bitcoin at $19k that year, they already make a big profit by selling at $64k yesterday.
But day trading is not bad if you want to have additional income from crypto, but before you decide on day trading, you learn some lessons that can help you trade.

in total I prefer investing, although I am also learning to trade. by investing we just wait for the price to rise and sell it or we keep it for a long time, the most important thing is that we invest in trusted coins. different from trading which I thought, I personally haven't been able to make a lot of money from it, because I know that trading certainly requires a learning process

Honestly, there really isn't a rule that says you need to do some specific investing strategy or something. Just go ahead and do what suits you best or what investment strategy you are most comfortable with since it is you who will be investing and not others. People can give you options regarding investment strategies but you should be aware that their suggestions would mostly consist of strategies that works best with them which may not work for you since most of these strategies people suggest are made for specific life, time, interest or financial conditions that they have(of course this only applies for the people who invest strategically and not just randomly gambling with their money and efforts). What you can do though is take note of the suggestions you encounter and try them out yourself then see if you are comfortable with one, more or all of them so you can be at ease in adding it to your investment plans.

-Hope this helps, good day.

That's depend,
If you have time and skills to trading, trading and especially in cryptos can be very profitable if you know what you are doing
But that does not prevent you holding for long some well established cryptos, that is allways a good idea/deal.

Trading itself is a long way to earn a decent profit while I find investment as a good way to earn a good profit everytime you see a profitable price then you make some then try to reinvest if there's a cheaper price. Just like what you said trading will require some various skills and knowledge in order to gain profit plus patience and emotion control which will take some time to control.

And if you are just a newbie or trying to trade for the first time, you will lose more and more money in the long run before you even make a decent amount of profit.

Why you wont try out for yourself? You can do both if you do like and if you do like to answer the question you do have in mind in terms of profitability then its your choice to make.

But basing off with some common sense thing about profitability then nothing really beats out to someone who do make out active trades considering on the amount of profits
that they could potentially make compared to those who do simply hold but of course the risk is higher.

You would find it for yourself once you do experience on both trading actively or just simply holding.

If you are a type of person that does not go well into doing trading, then investment might be just for you. If you are foreseeing on which might be profitable between trading and investing with regards to Bitcoin, then I must say it still depends for we have different ways on handling the situation on which we can be good on either of investing or trading and there is a possibility to be good at both. Now, for a person that does not go actively on doing trading and just rely on the volatility of Bitcoin or any cryptocurrency he chooses, then investing might be your thing because right after you invest, it is up to you to hold or sell it already at a high price compared to trading that considers dealing actively with the market.

my mistake until now was not being able to hold coins for a long time. Somehow, I always look for ways and strategies to be able to control my mental when facing market conditions.

I know that in the future I can't continue like this. because after all, the strategy I'm using doesn't have a title at all.

At the end of the day, what it all boils down to is the person's personal preference. Some like to invest long term, some short term while some prefer to trade and some like to diversify and do most of the things available to them. Some even incorporate all these plus gaming ever since crypto currency related games started popping out everywhere. Now, if you are looking for the best way to earn, I suggest that you focus on one thing at a time first and see which best suits you. If that works, then you can go ahead and diversify if it ever interests you. One thing you must keep in mind though is to be very careful and do not do anything without studying it thoroughly first because this will only put you in very bad situations which is pretty common for newbies, even I wasn't exempted from this.
-At the end of the day, whatever you do is up to you, this is just a piece of advice in which I hope can help.

Trading or investing both requires a lot of risks that need to be put in consideration before attempting to enter the market. Trading is the act of placing bet on a coin pair against another coin of appreciating or depreciating more than the other. It need good knowledge of the market and how price moves.

Holding is the act of buying a coin and leaving it to appreciate after a long periods of time. It might take from a month to years of holding. It requires lesser risks than trading cause a coin can be left for years to gain value while trading occurs in shorter period. Some trading activities takes from 5 minutes to months depending on the type of trader involved.

having that kind of thinking, that what you decide and what you believe holding bitcoins long term is a good first step.
well I will say exactly, always choose the way that later you will find satisfactory results when holding bitcoin for a long time.
The longer you hold bitcoin, the better.

Trading is highly a risky game or activities. Yes the possibility of making the profit from trade is highly because it is daily but sometimes what is fearful is that losses are inevitable and when that happens you get discouraged to continue.