risk in hodling and trading strategy

[alminium]

When you hold more than a few Shitcoins purchased on some Ico projects hold more risk continuously, because if you hold it you can hold the coin you hold will run delist so it will make you loss if coins mean too long.

[henmark]

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.

Everyone has different kind of experience with that of the trading or even short-term investment of money. There are few who find day trading to be the most difficult thing to do but the fact is you must make a choice according to your own interest and that do not try to copy others. Holding is a very good option but for that, you must be patient enough that you can hold your coins at tough times.

[rocketbits]

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.

In these days there is no risk in holding besides if you sell your holding then you will lose your money due to fall in the price. if you have trading experience and can trade positively then you should not just hold your coins, because you can make more money from trading. More time over the internet and knowledge about the market trend is valuable for traders.

[Tytanowy Janusz]

In these days there is no risk in holding besides if you sell your holding then you will lose your money due to fall in the price. if you have trading experience and can trade positively then you should not just hold your coins, because you can make more money from trading. More time over the internet and knowledge about the market trend is valuable for traders.

There are dozens of risk in hodling strategy. If only you read whats in treat instead of posting after riding topic only you would know.

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

Risk of holding established coins is smaller. You are still risking 100% of your investment too but with much less probability. But there is still vatious of risks. Lisk for example is contiously postoninig every think they promise. Team must be inexperienced though. You also throw here ETC, ETH, LSK - they all provide platworm for smartcontracts daps ets. In my opinion after years from now only 1 of them will survive. There is no need of 3x google or 3x youtube. And there is very high risk that the one who will surviewe after years wont be one of those tree because there is EOS STELLAR and dozens more. And few more new are beeing created every month.

ETH - as you see every succesed token (EOS BNB VEN) in leaving eth to jump on theirs own blockchain. ETH is not that scalable to hold even 1 huge project that reach mass adoption. And there are houndres of tokens on it.

Market looks different now. And will look different in next years. Hodling was the best strategy for 2012-2018 period. But there is no guarantee that it will be for 2018-2024 period. Perhaps it will be the best strategy for 2018-2020 and the worst for 2020-2024 for 99% of coins and still good for 1% of coins. We dont know it. Hope for the best but prepare for the worst.

But you dont see those risks because you see market today and think that it will remaint like this for next years. For sure it would change. Currently 1000-2000 new ico are coming to this market every year. You think that in
2025 there will be 20 000 coins? And your hodl coins from 2018 would still be there? I think that in 2025 there will be 100-200 coins but with marketcap bigger than whole market today. And hodling this coins will be the best strategy for 2018-2025 period. But the worst for other thousends of coins.

[Tigorss]

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.

the risks we get when we hold on for too long will not get the maximum profit even though with a slight increase but different from those who often monitor to sell and buy increases and decreases will be arranged how to sell and buy.

[Whosdaddy]

Good traders will always have the best chance to create opportunities from the fluctuations in the market.
Holding is easy but in that sense, you really will have to understand the market very well and be sure you are making a good decision buying at the best time and holding for as long as you can until you see some very good profit or you are at least able to make back your investment capital.

Traders get the fluctuations in the middle of it all, and even though risky, find a way to minimize the risk with stop losses, but as it is, simply not everyone can trade.

[setupbounds]

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.

Risk is holding is that the growth in the price is not guaranteed and you may waste your time and lose your money. Trading is better than holding to earn moray is less time. If you are an expert trader you can make handsome money in short time because of daily activity in crypto market. Best strategy is that you should give more time to search the market position and take the right decision on the right time.

[robotrobert]

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.

Technical analysis makes you able to take good decisions about profitable trading. There are no big risks in holding but the only disadvantage of holding is that you cannot make money in short time. Holding needs long time to earn some money, while trading on daily basis can give you huge profits in short time if you have experience and knowledge of trading.

[deafmaster]

Thank you for this information. This is so helpful to newbie like me.

[Caladonian]

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.

Technical analysis makes you able to take good decisions about profitable trading. There are no big risks in holding but the only disadvantage of holding is that you cannot make money in short time. Holding needs long time to earn some money, while trading on daily basis can give you huge profits in short time if you have experience and knowledge of trading.

You can use this tools to analyze well, maintaining your composure while you are choosing coins and allowing yourself to be flexible from the wild market
like this is necessary, you needed to know your boundaries between long and short tradings, reading is essentials so you can make a good target time frame and enough value of your assets before you let it go both for profits or to cut some loses.

[littlebill16]

Both trading and holding have their complications. It's hard to say which one is more risky. With the market fluctuating as much as it has, I would debate that holding would have a few more complications than trading. With holding and the market falling as often as it has it would be difficult and time consuming to make a profit off of it.

[amih]

actually the answer is like the title on the topic you write with the risks in holding and trading strategy. so I mean every activity that will be done either trading or holding of course must be done with a good enough strategy. so even though what you will do I do not think it will work properly without a good strategy. and of course a good strategy that you can gain from that experience will lead you to an advantage.

[fudster]

Holding of course will be good if the price will rise up. I for once would rather dump while the price is more than the ICO price. I always assume it will dip again before moving up.  Its not a strategy I can say but its more of an accumulating bitcoin. Bitcoin after all is the most trusted coin but there are exceptional coin though.

[sabrikks]

Really thank you for talking some sense, i said and explained to my friends that hodling and trading involve the same risk, and i many situation i found that hodling is more risky than trading

[CryptoCoinArbitrage]

Holding is more risky than Trading in some situations as traders can react on changes on the  market  Holding coins out of TOP 100  is especially  risky as they can go to zero and  the investment can be lost. It can happen to Top coins as well but traders will not allow to lose all their investment as they are using stop loss strategy.
When the market is bearish like we have now  it is risky to hold and waiting for the trend to change,  as some coins will not recover.

[NeverSop]

Both trading and holding have their complications. It's hard to say which one is more risky. With the market fluctuating as much as it has, I would debate that holding would have a few more complications than trading. With holding and the market falling as often as it has it would be difficult and time consuming to make a profit off of it.

Financial investment is always quite risky and investment in the market cryptocurrency as well. Trading and keeping in this market has its own advantages and disadvantages, it is important for investors to know what strengths they have to choose the right investment form.

[BlackPanda]

Both trading and holding have their complications. It's hard to say which one is more risky. With the market fluctuating as much as it has, I would debate that holding would have a few more complications than trading. With holding and the market falling as often as it has it would be difficult and time consuming to make a profit off of it.

Financial investment is always quite risky and investment in the market cryptocurrency as well. Trading and keeping in this market has its own advantages and disadvantages, it is important for investors to know what strengths they have to choose the right investment form.

Nothing can be ascertained safely, everything is very risky in the world of cryptocurrency. The investments we make are always risky, fluctuations and rapid price changes are the main factors why investing in crypto is a risky thing, but please note that investing in the world of crypto will give us the opportunity to gain enormous profits and success . So for anyone who wants to be successful then they all have to dare to take any risks that may happen in the future. Two results that will always be a failure or a success, the results will be different depending on what we do !!

[rodel caling]

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"
(/quote)
your right when you hold your investment and sell it at the right time less mistakes, i'm not agree trading much more possible to lose moneybecause if they have knowledge and skills this is way to avoid loses, lack of skills and are way to become lose your investment.



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

Buy low sell high are best strategy to earn profits, actually in trading can't avoid risk because as investor need to accept the risk and ready to lose of their invest because bitcoin as crypto currency is high volatile fluctuation as decentralized currency that's many people herein forum saying need to be patience during the price is dropping to avoid loses.

[BitHodler]

please note that investing in the world of crypto will give us the opportunity to gain enormous profits and success .

That only applies to market movers and a small number of people. Most people will never gain anything from crypto, especially not if you look at their long term results. It's all negative.

Don't forget that there where some people manage to book massive gains, there are a lot people directly losing significantly. Your gains are other people their losses, that's how this market works.

Short term mentality tends to work against you. I don't even think we can talk about trading or investing anymore with how people go nuts on everything. It's actually more like gambling.

[Reid]

It is not hodling forever of course.
You will need to get that ROI back.
Problem is people take it literally. As in they will do buy and hodl and forget about it. But there should be a time limit for that. 1 or 2 years, I dont know. It will be your owm decision or maybe on how you see the project is.
Bitcoin is already a good example of long term hodling and look at Ethereum, also one good example. From dust to a full blown crypto currency.

I think you misunderstood it all. This ICO's are your problem. Well they tend to die and what could you do with that. Be wiser than them.