Finance Blog

Trading VS. Hodling Cryptocurrency Long-term: Benefits And Drawbacks

A common strategy for getting the best return from crypto assets is day trading and cryptocurrency hodling. Crypto investors buy and sell cryptocurrencies on the same day with day trading, which is a short-term and high-risk strategy.

Hodling is the act of buying and holding cryptocurrency to profit from long-term value appreciation. Cryptocurrency enthusiasts have widely adopted the term hodl, which was coined in a 2013 Bitcointalk forum post by a Bitcoin supporter. Also used to mean “hold on to life,” or indefinitely.

It requires more techniques, self-discipline, and rational decision-making. As a result of hodling, crypto investors invest their money long-term in assets they believe will prosper in the future. Crypto trading strategies often resemble traditional stock and other asset trading methods, such as technical analysis and fundamental analysis. Cryptocurrency rewards can be higher and faster due to the proverbial volatility in the market.

Cryptocurrency Day Trading: What Is It?

There are numerous trading strategies that involve entering and exiting opportunities on the same day. Day trading requires a deep understanding of the market and a lot of experience.

It’s really easy to make money online with day trading in the crypto space. Profits on your investment can reach 5% to 10% within a day. Bitcoin’s price fluctuation serves as a basis for capitalising on it. When Bitcoin reaches their speculated target, crypto traders sell it to take profits in one day.

Since you must keep up with news and happenings within the crypto space and also price changes, it requires a substantial amount of your time.

Hodling Strategy For Cryptocurrencies

Hodling is an effective long-term strategy for investing in cryptocurrencies. A bitcoin or token must be held for years in a secure Bitcoin wallet before it can be sold at a profit. A hodler is usually unwilling to sell and remains unaffected by price fluctuations.

Bitcoin can be purchased and held for a long period of time without requiring much knowledge, unlike day trading.

The best way to invest in Bitcoin is by hodling or making long-term investments. A crypto investor can easily make money passively without stressing over what is happening in the crypto space, and without worrying about what is happening all the time. With HODLing, you can buy Bitcoin with little knowledge, just know how and when to buy BTC, and how to take your profits. They may miss out on huge profits because they are distracted by the little profit they make every day.

If, however, you are okay with the volatility of the market and have a high risk tolerance level, day trading might be for you. Bitcoin and altcoin trading requires knowledge and expertise. If you’re ready, you can switch to hodling or long-term investing.

No matter whether you like hodling or day trading, it’s important to use a trusted cryptocurrency exchange to trade or invest. Having the ability to liquidate your asset at your convenience is also important. It’s the perfect exchange platform for day trading and hodling. Day trading is easy with Remitano P2P, and investing or holding cryptocurrencies is easy with Remitano Invest.

HODLers should definitely consider day trading if they have the budget to do so. With both strategies, you will be able to earn daily income as a day trader and earn massive returns on your long-term investments.

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