Bitcoin Forum

Dear Pros,

Please advise if the short-term crypto trading makes sense and is worth it? What are the pros and cons? Is the risk to lose everything higher than traditional trading? Please share your personel experiences as crypto traders.

Thank you in advance.

The majority of traders are trading on cryptocurrency exchanges online. All cryptocurrencies have high volatility. This creates a unique environment for traders. There is no such profitability anywhere. If you have the ability to trade you have good prospects. Remember that you can make good money but also easily you can lose everything.

Good thing is of course profit, if you are good at looking around and understanding to recognize pumps you could generate nice income from only doing this, however this is not an easy task to do. Many traders use bots and apply various strategies there, so if you are looking to be day trader you might want to check out bots as they are faster than human and of course they can't get tierd, but with them you can lose your money as well as when trading solo.

Bad aspect of it is that you can lose money and potentially if you are unable to control your emotions well enough you could be stressed most of the time. Maye even be obsessed with looking constantly at coin prices and second questioning yourself and thus don't create time for anything else except trading.

Holding is much easier than trading and I see many people see this as an better alternative for the piece of mind. For instance if you bought NEO like 1 year ago and bought it like 1k of it - today you would have earned more than a million dollars. This is why many people are now throwing money at alts and holding in hope for this extraordinary returns which can happen. But finding that diamond opportunity is a tough quest on it's own.

Short-term trading has large profit margins, if monitored and acted correctly, of course there is always the risk of losing your investment. The main principle of buying low selling high isn't that risky though, from my point of view, regarding the most major Cryptocurrencies, such as Bitcoin, Ethereum and Litecoin. If you have paid attention to the market graphs, right after a dip, there is a small pump in price, which could easily be taken advantage of.

Short - term trading can bring you more profit, but it also carries a greater risk. Short-term trading requires a lot of trading experience. Because the price of bitcoin is not stable, if you don't have enough power, you will lose a lot of money.

Benefits of short term trading:

1) You have control over this and are thus more protected from price decline. A situation like $7000 from $18000 which happened few months back will not occur in short term trading.
2) You can make full time income with this short term trading.

Limitations of short term trading:

1) One of the biggest limitation in my opinion is that everyone does not have the time for all the research as they might be busy with regular job.

Short term trade for me is more profiting in the sense that it gives you the opportunity to be in and out making profit especially when trading bitcoin that has high possibility of going bull. For comments on the harm on short term, since is trading, both short and long involves risk. Understanding the potential of coin being traded is just the point.

people have their own method to get profit in trading and long term or short term is good as long as you will not experience to loss and short term crypto trading indeed makes sense but depend on which coin would you choose to get profit for short term trade purposse and there always be risky to losing all of your money in trading especially if you're choosing wrong coin

The benefits of short term crypto trading comes from the volatility. It's not like stocks where sometimes they just move by a few cents. When cryptocurrencies move, they move by a good amount of money. That's the nature of the currency, and if you're a short-term trader, you should be taking advantage of the volatility. The cons are that this will take a lot of your time because you need to watch a lot of the movements of multiple coins and be ready to invest when you need to.

As you said, I think the overarching problem about this is "What if I lose all my money???" And that's a problem that every trader has to deal with themselves.

The professional trading is trading which can use short-term time or long-term time for trading. If you choose short term trading, you should have an knowledge about technical analyze. Because short term trading is very fast to get the profit but also very fast to loss too. But if you let me to give you suggestion so trading with investment system is most easy way to get big profit.

My experience about trading in short term time, we should thinking and analyze the chart very fast, and this is always make me loss, and I'm still invest my money in bitcoin and I always be grateful because I get much profit every years.

All,

Thank you for your comprehensive answers. Based on them, I see the high risk of short-term game, rather than long-term investment as high volatility could be both your friend and/or enemy when it comes to making profits.

The advices differs from trader to trader and I am the one who falls in the category where I like long term trading. The long term trade for me is nothing but buying hard at lowest point and then keep holding as long the prices don't boost up high enough to get me profits. Or at least I would wait until my mind doesn't set itself to sell my holdings.

The next thing that I consider is, I believe short term trading is non sense because of the volatile issue. The crypto market is already very volatile and getting the swing trades or short period one might not get us enough profits as long term would do.

The downside of short-term investment is that you will spend more time and stress than long-term investors. Long-term investors are more experienced and calm. Therefore, they can choose long-term investments. Short-term investors are often fearless and do not really trust the altcoin they invest. That led them to spend a lot of time checking the cost of altcoin.

In short term trading the pros is the high possibility of profits if you focus on it and have plenty of time monitoring the movement of prices on other hand the consequences is the high risk in doing so because in a matter of seconds the price can turn into lowest to highest. I do a long term one as I’m not a risk taker and I have much patience to wait for months or even years.

I am not a pro but what I understand in your question is that what you mean in short-term trading is shorting? It is more risky than the traditional buy low and sell high wherein you can wait for as long as you can. In shorting, you borrow some funds to sell it and wait for the coin to go down in value to buy lower which is risky because if you leverage it by 10x then there is a risk you might get rekt if the coin go higher. You need to understand the concept of trading and understand the movements of the candle and you should always have a trading plan so that you can put stop loss to minimize the risk. It is profitable if you understand what you are doing but there is a risk to lose your capital if you are not careful. It is not advisable for newbies in trading.

Pros and cons in any market are always the same.

There is the potential to make huge profits, of course it will depend on your trading skills. Cons is also having to risk your capital that may end up of substantial losses. Also Being a short term trader is time consuming and very stressful. You need to be fast in spotting trading opportunities.

Short term trading? I always knew it as day trading. It greatly depends on the exchange fees, so you need to find an exchange that is cheap to trade and at the same time has a decent volume, so that you don't have to wait for your order to fill. I've seen people do all three things at the same time, meaning long investments in new altcoins + day trading the most popular coins like BTC and ETH, and arbitrage. If you add to it the profit from airdrops and forks, like the recent ltc fork that you were able to trade before it even happened, you can make a lot of money. I'm talking thousands of USD a day if you know what you're doing.

I think short - term encryption can get more revenue in the short term. But not everyone is fit for short-term trading, which requires you to have a lot of short-term trading experience that you can gain. Many people are losing money on short-term investments.

Short-term trading gives you great benefits, and requires only a small amount of capital.
but the risk that you will be received is also big, but I think it is comparable to what we will get.

talking about risk, the risk of investing with bitcoin is proportional to the profit that will get
but not as easy as we think, first we have to learn about bitcoin, not because you have a lot of money then you immediately make a trade,we need to learn it first, otherwise it will be a hassle if we face problems in the future

trading short-term in crypto is very risky, I do not guarantee that you will profit 10x if doing so. because the price is so vultuactive I have lost a lot of funds. but, it's my mistake that has passed and make me learn better after than

short term trading like scalping is good strategy as long as you know how to enter and exit in the market and not be swayed by hypes and pumps of others.

the difference of short term to long term trading is you will miss the lowest low and the all time high of the certain coin because you are scalping in the middle. it is more risky because it requires a lot of entry and exit unlike long term trade once you get in, wait, then get out when you are satisfied.

Pros
You can earn profit at a short period of time
You can stop to cut loss or make profit any time you want
Leverage the capital investment

Cons
More risky than long term trading
Need more of your time to focus in trading
More pressure and its kinda more stress for a trade

You won't ever lose everything because things never really go to 0, or if they do you hope you would liquidate at some point before 0. It makes sense if you can understand TA, and are able to combine that with other market factors in order to make you money. What you have to ask yourself and be honest about is, do you have the skills necessary to do short-term trading? Because it isn't something you decide you want to do, like say investing long term in altcoins (completely different game).

Pros would be the profit, crypto is volatile it moves quickly so you can make good profits.
Cons it takes a lot of time up, just as much as you can make good profit, you can quickly lose just as much money.
Day trading is hard, its not just easy to do you need to know what you are doing, i prefer to learn about a good coin and hold.
Each to there own

It is just like a gamble, sometimes you win a lot, sometime you lost a lot when you are doing a day trading or just a short term trading you should know how to control your money and your emotion, set an strategy, for example if you are doing short term and you have seen that the price is going low then don't sell it yet, wait for the right time.

When I try to trade in stock exchange , their value depend on global issue and the increment on range 0.1% - 5 %
After I try trade altcoin on crptocurrency ,their value still volatile and the increment is insane 2% - 20% in one day !

That's why you must prepare the worst when you decide to trade bitcoin !

If you are familiar with the term trading , and have an idea - then go ahead to the exchange. If you just want to get rich quickly, then most likely you will lose everything quickly. Start investing and learning coins . You need to think with your head. And less trust in the signals from analysts.

There are specific short-term trading opportunities which an investor can take advantage: Many of these short term events tend to have limited upside supply demand imbalances during a trading session would usually normalize with the day , if not the next fee  hours . Investor will spend more time capturing these opportunities and often at the cost of charger portfolio turnover. In order to be successful when trading in this term length ,you must understand the benefits and challenges of what you're doing.Short term trading is the fact that your capital is only at risk for short period of time.

I prefer short term more though it may sound amateur  ::) ::) it lets you out and in when needed, so I think it's more effective. and it's strongly suggested if you arent a pro, just doing this part time.

Short-term trading makes your investment a headache, because you'll always check the price and what's happening on the market from time to time. I suggest you hold your investment and it makes you not to worry on your investment, but there is also a disadvantage with holding you may end up losing your money because of the price volatility of bitcoin. 

Pros and cons of short term crypto trading may varies on how you manage your coins. You may earned profit the way you handle your portfolio. But, this will also leads you to lose your coins so their is always risks. It can be profitable though and always checked your coins to get rid of lose.

I believe that in crypto trading, one should be able to provide flexible involvement in picking the right pair at right time and monitor the same, whereas in investing one can take his time to do research and invest as the time frame is much higher. I believe that trading is not everyone's cup of tea (like me). Even the smallest mistake can lose entire capital.

The forecast of the course is based on a theoretical assessment of various factors - popularity, development prospects and functional features of the crypto currency.

The challenge for regulators, as always, is to develop effective solutions while at the same time not weakening the growth of emerging companies and markets.