risk in hodling and trading strategy

[Tytanowy Janusz]

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.

I don't know why this myth is repeated so often. "Trading is risky because without experience you will loose".
So if newbie cames to the cryptoworld knowing that there is something like bitcoin and didnt even knowing what blockchain is can't trade on crypto because it need experience but for sure can do great research, read 40+ page whitepaper in english (it is not native language of every crypto investor), compare team, CODE, and finding out that this is great project, there isn't any better doing the same stuff, there isn't any project that will perhabs deliver working product faster. From first look he will know that some on statements in whatepaper are impossible to do etc?(it is very important because with 1600 coins currently and 1000+ new coins each year this market will for sure look totaly different after years) To invest first money he will have to read and understand at liest 50+ whitepapers (2000+ pages), get to know about 200-400+ cryptos to make good long term choise. I think good reaserch takes more time than learning trading.

If i would campere risk in trading and hodling i would compere unexperienced treader with unexperienced hodler (newbie in doing researches). And even chosing hodl tactick its good to have basic trading knowledge to knew that f.e. january 2018 was not the best moment for investition even if coin was great. Thats why in my opinion trading with lowest possible bet is best option for newbie. While trading learning about coin that newbie want to trade at. Get basing knowleg about various of coins and then jump to HARDER AND RISKIER hodling tactic.

[darkangel11]

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.

Only if that computer is connected to the Internet. There are ways to protect your cold storage without too much hassle and among the easiest and safest is buying a machine that is only used to hold your cryptos and is most of the time offline, or completely powered off. I start it up once a week to check the balances and update wallets. It takes maybe 30 min and then it goes off for another week. I'd like to see someone hack it, that would require skills of Tom Cruise in Mission Impossible

[wantjokull]

That is not the strategy of the holder really. At least I am not looking after the whitepaper and stuff because I never invest in the ICO and then make holdings of those ICO tokens which are not even listed over the market.

I always hold those coins which are already listed in the market and are in good positions. These mostly includes coins from the list of Top 50 coins and some from beyond that. But only those who are getting good daily volume will be in my list for sure.

This makes the HODL very easy and way beyond perfect and risk free.

[collins3]

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 think that at this point you should only trade short-term by day, do not hold or invest any long-term coin, the market is in a bear market for long term so if you invest long-term risk will be very high and the possibility of losses will be huge. The market will be hard to recover if you fall into crisis and you will lose money and losses very heavily.

[Bardman]

It's just much healthier to trade. Holding in crypto can be a really hard mental task, even more than trading. When trading, as long as you are doing it right, you always set a stop loss, you know that even if you fail 1 or 2 trades, you only lose a set % of money, you can even lose 5 trades, 10, 20, it doesn't matter as long as you are using a good risk reward ratio.

[omonuyak]

Holding is somehow safer than trading but in business the higher the risk the higher the return always play out. To make really money and big profits from cryptocurrencies you must  take higher risk and this higher risk exist in margin and speculative trading. I see many investors make great profits from margin at poloniex and 1fox. However, holders has also make and loss their investments especially now that bitcoin and others coins price are not stable.

[developer101dev]

Holding is somehow safer than trading but in business the higher the risk the higher the return always play out. To make really money and big profits from cryptocurrencies you must  take higher risk and this higher risk exist in margin and speculative trading. I see many investors make great profits from margin at poloniex and 1fox. However, holders has also make and loss their investments especially now that bitcoin and others coins price are not stable.

It depends on the situation, if you are going to look on the market prices today then it was very obvious that you should hold your coins right now more than trading on the market because the prices is drastically changing.

[Tytanowy Janusz]

That is not the strategy of the holder really. At least I am not looking after the whitepaper and stuff because I never invest in the ICO and then make holdings of those ICO tokens which are not even listed over the market.

I always hold those coins which are already listed in the market and are in good positions. These mostly includes coins from the list of Top 50 coins and some from beyond that. But only those who are getting good daily volume will be in my list for sure.

This makes the HODL very easy and way beyond perfect and risk free.

You invest long term in coins beacouse of current volume and position in marketcap. Its soo funny. I finaly met that guy who is alwais loosing money. I need to thank you. You are that guy who is buying coins from me few days beafore crash. You are buying from whales who pumped coins and sells on big volumens. And for hodl. Thats the funiest paart. In this tactick you can buy shitcoin without future with no chance to survive only because 1 whale pumped in on big volume. And you will hodl it untill 0...

[cryptosluck]

inherently both have risk holding and trading as per the market conditions so we cant completely reply on holding for long-term and trading for long-term

[Fatunad]

It's just much healthier to trade. Holding in crypto can be a really hard mental task, even more than trading. When trading, as long as you are doing it right, you always set a stop loss, you know that even if you fail 1 or 2 trades, you only lose a set % of money, you can even lose 5 trades, 10, 20, it doesn't matter as long as you are using a good risk reward ratio.

Not only a hard mental task but also a very stressful thing on the same time. When you witnessed anytime on how the price swings either on bitcoin or on other altcoins in the market you will really be bothered when you check out prices.Holding do really give a positive thing but not anytime because most coins in the market doesnt have thave that potential to increase its price on longer runs.

[Slow death]

[...]

this hodl is not as if it were a strategy that only brings good results, on the contrary it can be a knife and it can make the person lose all money, there are projects that have no application in real life that are just a temporary illusion, if you are going to invest for a long time is better to stay only with bitcoin or ETH, but other altcoins are very risky to invest in the long term something like 5 years for example. imagine investing in an altcoin for 5 years and after 5 years the altcoin have the price of 1 satoshi, this would be a disgust, so even I advise to invest in bitcoin for 5 years

inherently both have risk holding and trading as per the market conditions so we cant completely reply on holding for long-term and trading for long-term

I prefer the Hold for long term

[syahril husen]

If you holding your investment it will never failed how many years are you hold your investment. If you expect in quick profit this is not a right time. But day traders also earn profit in every day so you should analyse the good coin definitely you will make profit in holding and short term trading little risk compare to holding so no one is agree with your point...

[xitrum]

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

At this point, I think you should only trade short-term by day and should not invest too much into bitcoin, the market is fluctuating continuously and is in the bearish cycle so invest in this risky point. will be very high and you can lose a very heavy losses if bitcoin prices fall deep.

[Kelvinid]

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

At this point, I think you should only trade short-term by day and should not invest too much into bitcoin, the market is fluctuating continuously and is in the bearish cycle so invest in this risky point. will be very high and you can lose a very heavy losses if bitcoin prices fall deep.

Holding may be a good idea but you should be careful in choosing coins to hold for long term investment.Make sure they have their own potentials that will eventually grow as market price increases so that you will also gain good profits from it.

[hoavantathan]

First you must find good coins to invest.
Second, if you choose BTC or ETH, you should hold until the highest price. Price of other coins base on price of BTC and ETH.
10% of your money can invest other coins. That's safe strategy.

[fudrocket]

I lost way more money holding than i ever did doing the basic 'sell on upswings'.

[Saichoukyushin]

I don't see a big risk in holding strategy if you are in a rarely potential coins in the market now and if you got it from cheap price. The risk only is if you don't check it regularly if they are moving forward or they stop developing something like that. So far holding is the best strategy for a long period of time.

[xali]

with the current market conditions you are not going to be able to make a huge amount of money, that is the main reason of why trading on this kind of markets is good if you want profit

[Ronaldcoin2017]

with the current market conditions you are not going to be able to make a huge amount of money, that is the main reason of why trading on this kind of markets is good if you want profit

Yes I agree on that and I believe that holding and trading strategy has no risk at all but it really depend on the price and the patience that you maybe put in on every time you make an investment. If we have patience and we can wait the update of the current price or maybe we can hold it for a long term there will maybe a big possibility that the price may rise and soon we Can earn buy selling into higher price.

[colkcolk]

Trading and Hodling is having similar risk for me, so the key is on risk management. If in hodling, the risk is higher but the opportunity to get bigger profit is also higher. This is different thing to be treated properly, if a hodler just to put the money after all assessment and leave it for 1 year or 2 years. But for trader, he/she should always monitor the chart and surroundings frequently for analyze further.