risk in hodling and trading strategy

[Cotton Candy]

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 can comprehend that in a market, costs change, yet at various circumstances. What's more, when you make numerous buys to make a benefit, your danger of losing cash is more prominent than purchasing and holding, until the point when the cost builds enough to make a benefit. In any case, this isn't generally the case.There will be times when costs fall profound and are probably not going to recoup. To be fruitful all relies upon your judgment.

[1715423599]

1715423599

[D3m1r4wanti]

it is not something that needs to be analyzed if indeed the holders have a greater risk than investors, because investors have bought coins far cheaper than the holders

[benres]

Indeed every cryptocurrency enthusiast needs a good plan and planning it carefully, hodling is one way to develop a good portfolio but having a good research on a coin or token before investing on it to hodle is one good strategy. While trading is for the veterans or for the smart money investors it is still the most profitable way in the cryptocurrency space. Any of the two whatever the strategy is the faces of the cryptocurrency community who believes in the cryptocurrency age.

[Adriano2010]

You are right OP, and i also think investing in cryptocoins is always a risk, either if people trade daily or even if they hold, no one can guarantee a profit in a period of time, and sometimes can be a stresfull situation if people need money invested before get profit and can result a loss.

[Ziskinberg]

You are right OP, and i also think investing in cryptocoins is always a risk, either if people trade daily or even if they hold, no one can guarantee a profit in a period of time, and sometimes can be a stresfull situation if people need money invested before get profit and can result a loss.

Risk is normal in trading, and if you cannot take it, you should not start trading.
Mostly, those who enter into trading are people who already know how to gamble, so they are already taking risk.
Both are high risk, what's important in trading is you make a good decision at the right timing so you can be profitable.

[signup01]

it is not something that needs to be analyzed if indeed the holders have a greater risk than investors, because investors have bought coins far cheaper than the holders

absolutely right but despite the huge risks to the traders who hold the coins the income that is earned from the profits is large also equal to the risk that will be obtained

[kidoseagle0312]

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"

- those are true and correct, in addition to that if we are going to hold some coins into our wallet we better make sure the altcoins itself is a legit one to hold in a long term. Or else if this is a shit coin, obviously your destination in holding it in the end will become a waste time only. then, the rest of your comments was all certified true.

[seleme]

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 can comprehend that in a market, costs change, yet at various circumstances. What's more, when you make numerous buys to make a benefit, your danger of losing cash is more prominent than purchasing and holding, until the point when the cost builds enough to make a benefit. In any case, this isn't generally the case.There will be times when costs fall profound and are probably not going to recoup. To be fruitful all relies upon your judgment.

Fundamental analysis is for long term or medium term investors/traders. Short timeframes are base of longer timeframes  if so we are trading same market while changing variable of time factor. Good trader are looking for trading opportunities which can bring profit to balance no matter it was good or bad decision. It is all about profit/loss not good/bad decisions..

[Klausi]

it is not something that needs to be analyzed if indeed the holders have a greater risk than investors, because investors have bought coins far cheaper than the holders

absolutely right but despite the huge risks to the traders who hold the coins the income that is earned from the profits is large also equal to the risk that will be obtained

The risk is always there in every investments, and holding is more risky when you don't know what future may bring to your asset. Having different strategies might be worthless when you picked that wrong coin. Scrutinize more often rather than picking without knowing deeply what coins you're risking to buy and hold.

[leowonderful]

Holding coins can be less risky than trading if you're not experienced at trading and you're blindly making moves or trading largely emotionally, but both holding and trading have risks baked into them. At the end of the day, both trading and holding are perfectly viable ways of attempting to make a profit in crypto, but holding's easier to do for most people.

Most of my long-term coins I hold are major cryptocurrencies, as holding smaller coins usually doesn't give the best results. There are indeed coins that shoot up from a few cents to a couple dollars, but you have to also remember there are thousands of coins out there, but few will rise in the long term. There's just so many shitcoins out there still.

[Finestream]

it is not something that needs to be analyzed if indeed the holders have a greater risk than investors, because investors have bought coins far cheaper than the holders

absolutely right but despite the huge risks to the traders who hold the coins the income that is earned from the profits is large also equal to the risk that will be obtained

The risk is always there in every investments, and holding is more risky when you don't know what future may bring to your asset. Having different strategies might be worthless when you picked that wrong coin. Scrutinize more often rather than picking without knowing deeply what coins you're risking to buy and hold.

Right.Make sure you know exactly the coins you are holding,its potentials that will surely make you profit in the future.Because if you just hold only with a worthless coin,you are just wasting your time and still end up losing.I think trading and hodling are both risky especially if you are not so sure of what you are doing.

[nydiacaskey01]

Hodling they say is a sure and safe way to increase Bitcoin, but it comes wit a risk, if you bought Bitcoin last December 2017 and hodl, you are at negative 77% loss by now. But if you trade from January to November and made profits every month, you could have recovered and gained profits by now.

[D3m1r4wanti]

the risk of holding back is falling in price and cannot grow again. even shitcoin risk occurs when holding is too long. therefore the holding and trading strategies are not much different.

[mornabo]

Trading is quicker to make a profit if you examine faster in market analysis, and hold more risk because the coins we hold can be delisted by Exchange.

But holding the famous Altcoin like Ethereum, TRON, Bitcoin Cash it can generate profits when Altcoins is up, because I'm sure Altcoin is ready to ride again when there is an event.

Holding altcoin must be selective, you can't hold on a new altcoin that doesn't have many users yet, because they have a big risk of being dead, or delisted. if you want to hold then look for trusted altcoins like Ethereum, Ripple, Stellar and many others

[syamster]

it is not something that needs to be analyzed if indeed the holders have a greater risk than investors, because investors have bought coins far cheaper than the holders

absolutely right but despite the huge risks to the traders who hold the coins the income that is earned from the profits is large also equal to the risk that will be obtained

Risk is part of life if we will keep on thinking that there is risk of loss in some business so we will never earn anything. So don’t worry about the risk just work hard and wait for your luck. In this age everything is on digital system so try to gain skills and knowledge and this way we can change our lose to profit.

[nebiki]

there is no risk when we want to do something and there is always a risk. the most important thing is that we must accept the risk, then run well and carefully. do not be careless so that the risk does not increase.

[nelson4lov]

I agree with OP. Hodlers has a lot to lose especially in a bear market trend. I know a guy who was a strong believer of HODL and he hodl his holdings through the bear market and today, He has lost massively in the last couple of months. Now, If He was a trader rather than a trader, He would've sold his holdings and kept most part in USD waiting for a good entry point. However, Traders tends to miss out on long term gains that hodlers always enjoy.

[kaizerblitz]

Big help thanks for this i will add the analysis of the team whether the team is legit and true person and not a poser on the project and the live event blockchain conference of the project the will help you decide that the project that have future.

[coin_1122]

I don't find anything risks in holding because if you don't panic for the market situations because there won't be any growth if there is no downfall in the market. For trading, we need to analyse ourselves before investing into any coin and price fluctuation are common.

[BigBos]

 

I don't find anything risks in holding because if you don't panic for the market situations because there won't be any growth if there is no downfall in the market. For trading, we need to analyse ourselves before investing into any coin and price fluctuation are common.

if you haven't found it, then you don't pay enough attention to it. of course there is a risk of holding back. the coin that you hold can be stolen by hakcer. besides, I think you can also get a loss when you hold a coin and the price drops.