risk in hodling and trading strategy

[suzanne5223]

And we have more than 1600 coin now on market. And even 1000-1500 will be created in 2018. Almost everyday i see up to 3 new airdrops/icos. Its very hard to predict which of them will succed in years.

Yes, it hard to predict the best coin or a coin which will last or survive in the crypto currency market and this is why is good not to be greedy. However, i usually good for ICO which are owned by the US or register under the EU region due to their crypto currency regulation there which prevent every investors from loosing their investment.

[naidray]

I am in favor on your analysis, Hodler is more risky than trader, especially when you hold more of some Shitcoin bought in some ICO project... There is no chance of winning of them.. I prepared to trade all my ICO coins when hitted to market, that will lower the risk.. Trading is more on waiting and patience, plus the factor of a good timing!

Normally, it would be stupid of any holder to be holding shit coins long term and for that kind of strategy, you want to be holding coins that can at least give you something very substantial in the long run and you can be so sure you are not going to end up bag holding.

Everything comes with a risk because as a holder you are not sure of the future as policies can even change a lot of things, but you have a better position as a trader because you are making the best of the opportunity you have but in this case taking even more risk but if good, it is even a better to risk to take for a better profit.

[hasmukh_rawal]

I would not tell you what is good and what is bad but would like to say you that everything in crypto is risky because crypto itself is risky.
Any kind of trading whether it is day trading, short term or long term has their own risks and opportunities.
If a person is holding the crypto for a long term , he is basically hoping that his investment will result in a greater profit.
If a person is trading actively, he analyses and predicts that the crypto will be at such a price in future and so invests the amount in it.
In both the ways the trader expects a positive result which nobody can guarantee.

[sagybtc]

You probably right but each and every currency is not fake with their team and road-map, they did almost all thing what they said.And almost 80%+ coin and ICO are fake it`s also truth.

[Lazada]

Trading must have a risk and as we know that when someone tries to trade he / she has agreed to accept any risk that could happen. Strategy in trading will definitely determine what we will get. Usually there are two things that are the simplest of waiting in some time or doing Day trading. all the strategies in my opinion is a very good thing and worth a try. what distinguishes is how we are in responding to all existing conditions. Data movement in the world of crypto is very fast, we must be smart to take decisions and see what opportunities are possible to obtain.

[darkangel11]

OP is right when it comes to buying and holding altcoins. Most of them experience a point of hype wither at the beginning when they are being launched or somewhere along the way when the team floods the media with false promises. This is their one and only pump. If you catch the wave you're lucky, if not, your money is gone.
That said, I'm a Bitcoin holder and I will defend this strategy. Sure, if I knew what price it will land on, I would have sold and bought some more cheaper, but holding makes you detached from the market in a way. I don't have to check the price daily, I don't have to worry about anything. My investment is giving me passive income, without the need for any action and without any risk. There's no risk because my investment is already worth over 20 times more than it was in 2015.

[Tytanowy Janusz]

OP is right when it comes to buying and holding altcoins. Most of them experience a point of hype wither at the beginning when they are being launched or somewhere along the way when the team floods the media with false promises. This is their one and only pump. If you catch the wave you're lucky, if not, your money is gone.
That said, I'm a Bitcoin holder and I will defend this strategy. Sure, if I knew what price it will land on, I would have sold and bought some more cheaper, but holding makes you detached from the market in a way. I don't have to check the price daily, I don't have to worry about anything. My investment is giving me passive income, without the need for any action and without any risk. There's no risk because my investment is already worth over 20 times more than it was in 2015.

It means that now you are not risking your investment. Now you are risking 20 times more than you invested in 2015:) I would love to be on your place but it must be also hard (1 lambo, 2 lambo, 3 lambo, 1 lambo) . This topic was made for newbies who enters the cryptoworld and see advices from society "if you are newbie than chose good coins and hodl till profit, its safer than trading". I wanted to say that hodling might be even riskier. Profit also goes with risk. You took huge risk in 2015 and now you have huge profit. Hats off

Hodling was good strategy for 2012 - 2018 period. Everyone who enters the market must know that it is not quarantee that it will be good for next 6 years for every coin that you consider is good.

[akram143]

I do not think there is any particular risk in holding because if you hold long enough, you will gradually see value increase on your holding no matter what happen in short to medium term,  Long term always wins!

everything has risks in it so we cannot make a complaint we need to take this problems and get our winning so my opinion is holding his very important in trading.

[darkangel11]

It means that now you are not risking your investment. Now you are risking 20 times more than you invested in 2015:) I would love to be on your place but it must be also hard (1 lambo, 2 lambo, 3 lambo, 1 lambo) . This topic was made for newbies who enters the cryptoworld and see advices from society "if you are newbie than chose good coins and hodl till profit, its safer than trading". I wanted to say that hodling might be even riskier. Profit also goes with risk. You took huge risk in 2015 and now you have huge profit. Hats off

Hodling was good strategy for 2012 - 2018 period. Everyone who enters the market must know that it is not quarantee that it will be good for next 6 years for every coin that you consider is good.

Every move you make in life means taking a risk. I'll do a little comparison to help you understand my point.
I'm holding, my coins are in crypto because I don't trust my government and want to have a safe stash in case something goes wrong, like a war, bailouts, country wide crisis, or  anything that will result in the government trying to seize my money, like my personal bankruptcy or debt. I don't care about short term value of my coins and know my investment is safer than in a bank.

You are trading, juggling your coins between addresses and exchanges. You're risking compromising your keys, need to worry about the security of your computer, network, the exchange that you're using. You waste time monitoring the price every single day, you set alarms to tell you about sudden movements. Sometimes they wake you up at night. And what about the indicators? What if you buy or sell at a trap? What if you buy and there's an unexpected price move like the one by MtGox trustee? You sell at a loss?
Don't get me wrong, you may be making money on this, most likely more money than I'm making holding my coins, but that's just your way. It's by no means safer or better than my way.

[Shenzou]

Holding has nothing to do with getting scammed by an ICO, because if it is not legit you will be screwed over from the moment you invest in it because it won't even make it till the point where it is going to be listed on exchange sites, so your point of you is somewhat wrong, however holding an ICO token could have many risks as many people tend to trade them as soon as they hit the exchange, in fear of its price rapidly going down, but some good ICOs are actually worth holding for a long time sometimes.

[Tytanowy Janusz]

Every move you make in life means taking a risk. I'll do a little comparison to help you understand my point.
I'm holding, my coins are in crypto because I don't trust my government and want to have a safe stash in case something goes wrong, like a war, bailouts, country wide crisis, or  anything that will result in the government trying to seize my money, like my personal bankruptcy or debt. I don't care about short term value of my coins and know my investment is safer than in a bank.

You are trading, juggling your coins between addresses and exchanges. You're risking compromising your keys, need to worry about the security of your computer, network, the exchange that you're using. You waste time monitoring the price every single day, you set alarms to tell you about sudden movements. Sometimes they wake you up at night. And what about the indicators? What if you buy or sell at a trap? What if you buy and there's an unexpected price move like the one by MtGox trustee? You sell at a loss?
Don't get me wrong, you may be making money on this, most likely more money than I'm making holding my coins, but that's just your way. It's by no means safer or better than my way.

Agree in 100%
My point was not to convice anyone to trading. My point was to show that even strategy sugested for newbies as "the one with the lowest risk" is risky too. Personaly i hold bitcoin too and trade it with alts when i see good oportonity to increase my hold coin amount.

Holding has nothing to do with getting scammed by an ICO, because if it is not legit you will be screwed over from the moment you invest in it because it won't even make it till the point where it is going to be listed on exchange sites, so your point of you is somewhat wrong, however holding an ICO token could have many risks as many people tend to trade them as soon as they hit the exchange, in fear of its price rapidly going down, but some good ICOs are actually worth holding for a long time sometimes.

Even ether can in next 6 years go to 0 or close to that. This market since than will probably hit mass adoption. When that will happend only best projects will surwive. In this moment ether is not scalable enought to handle 1 or 2 good projects working for mass. Thats why every suceeded token moves on thair own blockchain (eos, bnb, ven). There are others doing the same as ether (stellar, lisk, eos etc.). But those few who will survived since 2024 will be shown as examples that hodl was best. Noone will remeber ether then if ether wont win.

[YTBitcoin]

I do not think there is any particular risk in holding because if you hold long enough, you will gradually see value increase on your holding no matter what happen in short to medium term,  Long term always wins!

Yes long term holding is safe and the holder do not face any headache because of the price fluctuation because he keep his money for particular time period and he have calculated that how much will the price of bitcoin will reach in that particular time. They will definitely see a profit in the price of bitcoin as the other investors got from the start.

[phucngungoc]

Ive seen many times on this forum statements like:
"trading is risky, holding is safer"
"when you are hodling you are not making that much mistakes"
"in trading there are much more possibilities to loose money"
"if you would buy ether for 1$ look where you could be now"
"Hodler is not affected by whales making pump and dump"

Lets discuss then how does investing time goes with risk taken (lets discuss only about risk).

Hodler strategy risk:

Hodler is buying coins by fundamental (whitepaper, team, code, hype, being unique in specific segment) analysis for very long period. Hodling is a strategy very often sugested for newbies in cryptos (when you are newbie than buy good coins and sell on profit after years - I heard it thousands time). What can possibly go wrong?

1- whitepaper is just a document with words. It can be copierd and change a little. Faked. I can create myown whitepaper in which ill write that tommorow ill be on mt everest.
2-team can be faked with fake twitter account with bought fallowers
3- code - who of us can check if code is ok? How many of currencies have working code now? Most of them are just concept without working product jet.
4- hype can be bought.
5- beeing uniqe dasnt give you certainty of beeing uniqe forever. 1 month after your investment there can be new ICO with better team, bought hype and with working product delivered faster.
6- you are newbie and you did fundamential analys wrong or didnt do at all just jump after hype or because someone said that its great investment
7- there are 1600 coins. More than 1400 wont survive next few years because they are not neseesary. Your decision must be precised and full of luck

What if any of above will happend? Your investment will contiously goes to 0. And if you are hodler you will never sell until there will be nothing to sell. When you are buying with hodler strategy you are risking 100% of your investment. I dont think there is more risky way.

Trader

Good trader have loved coins that he checked fundametaly and trade on them. He is trying to buy low and sell high. When trade is not going how he planned it he sells. He dont w8 for coin to hit bottom to panic sell, he try to sell on the rise. His risk is set by him by stoplos which is set in his trading strategy.  And it depends on time period he is investing in and expected profits. He dont fallow pump and dump.

Time period:

When trader see good buy oportunity on 1d candles he has to set stoploss lower, he takes bigger risk then but possible profit is bigger.
When he see oportunity on 5 min candle he can set stoploss even 0,5% under buy point risking only 0,5% of his investment.

Trader is taking known risk each time he enters trade and this risk i related to expected profits. When trades are not going well he can stop trading, lock money into bitcoin or usd and change strategy. Hodler takes unknows risk - up to 100% - for unknown profit. With hope that his analysis was good and data wasnt faked. He also dont have chance to learn investing becouse after first buy decision there is only hodl

I believe that at this point you should only trade short-term by day, with a market that is constantly volatile and difficult to predict as the present time the trade success is very difficult. The market is bearish in the long run, so your long-term investment risk will be very high and very heavy losses if the transaction fails.

[Putunembah]

Trading must have a risk and as we know that when someone tries to trade he / she has agreed to accept any risk that could happen. Strategy in trading will definitely determine what we will get. Usually there are two things that are the simplest of waiting in some time or doing Day trading. all the strategies in my opinion is a very good thing and worth a try. what distinguishes is how we are in responding to all existing conditions. Data movement in the world of crypto is very fast, we must be smart to take decisions and see what opportunities are possible to obtain.

so a trader does have a big risk, and let's say that entering into a crypto trade should really be quick to make that decision, when do we buy and when it should be time for us to sell and earn profits, and to trade day I think it is not an easy thing for everyone to do, because being a day trader must have a good strategy and analysis to be able to trade properly.

[phucngungoc]

Ive seen many times on this forum statements like:
"trading is risky, holding is safer"
"when you are hodling you are not making that much mistakes"
"in trading there are much more possibilities to loose money"
"if you would buy ether for 1$ look where you could be now"
"Hodler is not affected by whales making pump and dump"

Lets discuss then how does investing time goes with risk taken (lets discuss only about risk).

Hodler strategy risk:

Hodler is buying coins by fundamental (whitepaper, team, code, hype, being unique in specific segment) analysis for very long period. Hodling is a strategy very often sugested for newbies in cryptos (when you are newbie than buy good coins and sell on profit after years - I heard it thousands time). What can possibly go wrong?

1- whitepaper is just a document with words. It can be copierd and change a little. Faked. I can create myown whitepaper in which ill write that tommorow ill be on mt everest.
2-team can be faked with fake twitter account with bought fallowers
3- code - who of us can check if code is ok? How many of currencies have working code now? Most of them are just concept without working product jet.
4- hype can be bought.
5- beeing uniqe dasnt give you certainty of beeing uniqe forever. 1 month after your investment there can be new ICO with better team, bought hype and with working product delivered faster.
6- you are newbie and you did fundamential analys wrong or didnt do at all just jump after hype or because someone said that its great investment
7- there are 1600 coins. More than 1400 wont survive next few years because they are not neseesary. Your decision must be precised and full of luck

What if any of above will happend? Your investment will contiously goes to 0. And if you are hodler you will never sell until there will be nothing to sell. When you are buying with hodler strategy you are risking 100% of your investment. I dont think there is more risky way.

Trader

Good trader have loved coins that he checked fundametaly and trade on them. He is trying to buy low and sell high. When trade is not going how he planned it he sells. He dont w8 for coin to hit bottom to panic sell, he try to sell on the rise. His risk is set by him by stoplos which is set in his trading strategy.  And it depends on time period he is investing in and expected profits. He dont fallow pump and dump.

Time period:

When trader see good buy oportunity on 1d candles he has to set stoploss lower, he takes bigger risk then but possible profit is bigger.
When he see oportunity on 5 min candle he can set stoploss even 0,5% under buy point risking only 0,5% of his investment.

Trader is taking known risk each time he enters trade and this risk i related to expected profits. When trades are not going well he can stop trading, lock money into bitcoin or usd and change strategy. Hodler takes unknows risk - up to 100% - for unknown profit. With hope that his analysis was good and data wasnt faked. He also dont have chance to learn investing becouse after first buy decision there is only hodl

I believe that you should only trade short term at this point, you can see that bitcoin prices are going down steadily over the past few days and will probably go down further and to the $ 6000 level. The market is constantly fluctuating you need to always have specific plans, long investment risk will be very high, so I think you should not invest at this time.

[boty]

it seems the risk of holding back and trading strategy that I use to not too much risk atatu very high risk I usually do daily trading method, because with daily trading you are not too afraid for the risk that will come because daily trading only take advantage with little distance.

[vlad230]

Yes, I agree, there a few risks involved in buying and just holding coins.

I think you always need to be involved and follow the news about the coins you bought to know exactly where the price will go in the near future.

The average lifetime of coins is about 1.5 years, you need to make sure you're holding the correct coins at the right time.

[el kaka22]

I had a bad experience hodling. Initially I used to research for good coins and hodled them till it doomed. Recently tried short term trade and good with it.

Lol, actually at some point we have all ended up having that bad experience but really you cannot blame anyone who is into holding because it is simply hard to understand the movement of the market if you are not a learned trader and you would not want to be gambling your position as that can actually give room for more mistakes and make you lose more.

This personally made me to go through serious trading lessons on my own and it took so much time to get it right and a whole lot worth it as it is far better than just holding through. Trends will always change in between, and it is best to always take advantage of those trend fluctuations.

[Tytanowy Janusz]

You are trading, juggling your coins between addresses and exchanges. You're risking compromising your keys, need to worry about the security of your computer, network, the exchange that you're using.

Hodler also need to worry about the security of his computer.

I had a bad experience hodling. Initially I used to research for good coins and hodled them till it doomed. Recently tried short term trade and good with it.

.
Lol, actually at some point we have all ended up having that bad experience but really you cannot blame anyone who is into holding because it is simply hard to understand the movement of the market if you are not a learned trader and you would not want to be gambling your position as that can actually give room for more mistakes and make you lose more.

This personally made me to go through serious trading lessons on my own and it took so much time to get it right and a whole lot worth it as it is far better than just holding through. Trends will always change in between, and it is best to always take advantage of those trend fluctuations.

Im sceptical to trends. Maybe becouse every asset i entered in uptrend it break it after few days to go to downtrend for weeks (my experience with trends U can have oposit). Trends are telling you that now we are moving up. But it dasnt tell you when it will change. And it can change everyday. Thats why i decidet to never invest only by trendlines. I rather try to find assets relatively cheap (if today something is cheap it dasnt mean that it is also cheap tommorow with the same price). For example if something was worth 100$ yesterday and 70$ today ill call it cheep. If price will stop at this price for next few days its normal price not cheap anymore. If it dasnt bounce perhaps it wont (very short term investments). For longterm investments i rather look for FA instead of TA.

[Kevin77]

trading risk and risk holding more risk hold, because if you hold it you can hold the coin that you hold will run delist so it will make you loss if coin mean too long.

Only shit coins can get delisted and may end up making you bag hold for a very long time but you would want to be smart even as a holder anyway. In this market, everything is risky. Trading is risky because the market is extremely volatile and without knowledge and being cautious, you will end up getting screwed which you would end up even losing much more but with great knowledge, you certainly get the best of it.

All the above, holding is easy, as all you need is to do research on what you are holding, believe in the long term, forget about the mid fluctuations and come back in that long term to see how you have done. For holding, we do not need any big strategies and it may sound simple but definitely highly effective one.