Equally good and profitable for both; trading crypto and investing in bitcoin for a long time. For the record, if you make a profit on a day trade, not a loss.
But if you trade cryptocurrencies and the profits from your trades - invested in bitcoin for the long term it will be even better, where the value of your investment will continue to increase over time.
Trading is profitable if you know what you do.
But it's not for the people that just started to know how it's being done.
Just do both of it. You trade while having an asset to hold such as bitcoin. You don't touch that holding you have and instead you're buying more for you to have more holdings. As you profit in trading, it's your strategy that will prolong your capital there.
Good strategy! if you can spare some of your investment into trading and experienced how the market works and keep other portions into investment, you'll be able to enjoy both venues. It's a matter of good choice and right decision making. If you know how to play in the market, the chance or the opportunity is good.
Take time to understand and make sure to go deeper. It will help you a lot in choosing the right venue that will give you more benefits.
Keep in mind as well that risk is also on both sides of this investment.
Right. Risk will always exist in any investment method, whether trading or as a asset holder. If we decide to invest long term (as a holder) and trade, then before doing those two things we must be ready to face the risks and prepare a solution.
1. As a long-term holder. we must be careful and do various research before buying coins that we will make as an investment vehicle. For example Bitcoin or Ethereum. And to buy it, we can't directly buy it using our money in full at one time and at the current price. To minimize losses due to falling prices on investment assets, we can make purchases by means of DCA. In this way the average purchase price that we get will be profitable for us.
2. Traders must master analysis and Money Management so that trading activities are carried out smoothly or with low risk.
80% we put into long-term investment (asset hold) and 20% go into trading. I think this is the best ratio.