Daytrading vs Holding

[xSkylarx]

Not all are able to concentrate watching the crypto market and able to do daytrading. Sure that you can gain more profit from daytrading than holding but there are many factors that some people still prefer to hold. As for me, I have a weak emotion in trading and doesn't really understand to read candlesticks and charts which makes it difficult for people like me to daytrade. We can lose money if the market doesn't go the way we want. Unlike holding, we just wait for a year or more to take profit

[Raflesia]

Holding is the best strategy for those who don't want to trade or can't trade.

Holding pays off, other trading can go either way. Daytrading specifically is a bit of a hard thing to do (trading intra day can be difficult). Dcaing or other tactics can be a lot easier to carry out and tactics like "buy the fear, sell the silence" might even work better than some day trading.

Holding will not be as complicated as daily trading which requires deep analysis and also strong techniques with holding we can wait for the right price to target so I think it's easy.

Daily trading is enough to do if there is no skill at all, not just buying and selling but all of that you must know that analysis is strong, it is strong to determine the best position with the targets covered, therefore daily trading needs perseverance and I think this needs strong learning for those who don't know.

I'm still lacking in day trading unless there is a strong indicator I can understand.

[mk4]

Day trading is good if the market can moves up and down many times.

More like if you can actually accurately time the up and downs of the market. If's really not an 'if'; It's general knowledge that the cryptocurrency markets do fluctuate a lot since it's inception. It's just the matter of can you make the right long/short trades to monetize off these movements.

[Lee_Mire]

But yea, I'm personally a hodler as well, with a few mid-long term trades here and there. Not that I'm against day-trading, but I personally just rather do something else than reading charts all day.

I now see it in exactly the same way. Trading is a lot of fun, at least in the beginning, but it can quickly turn into frustration if you make mistakes and have to watch your hard-earned BTC melt away.

Basically, this graphic sums it up very well here:


Source

As a Hodler, you simply go through life much more relaxed, but have less excitement.

This guy gets it. Trading is only good if you are good at it. Otherwise its an exhausting and expensive form of character development. If you are not good at trading then just hodl. You will probably outperform 95% of traders.

[Bitum]

From my point of view holding is a better strategy because:
- too little time investment, bought once and forgotten, I don't need to sit in front of a monitor for hours every day
- less stressful
- tax-wise cheaper = 0, as you said before
- in the long run it can be more profitable than day trading. There are even statistics about it on the net.

[Lakai01]

It's general knowledge that the cryptocurrency markets do fluctuate a lot since it's inception. -snip-

In principle, it does not matter how high the actual fluctuations in the market are. You only need to look at the forex market, for example, where fluctuations are generally extremely low, at least if you look at the actual fluctuations in value:



In such markets one helps oneself with very high leverage in order to make money quickly (mostly of course to lose money). The crypto market with its already high fluctuations coupled with leverage is for me, however, unbeatable in absurdity (and danger).

[mk4]

In principle, it does not matter how high the actual fluctuations in the market are. You only need to look at the forex market, for example, where fluctuations are generally extremely low, at least if you look at the actual fluctuations in value:



In such markets one helps oneself with very high leverage in order to make money quickly (mostly of course to lose money). The crypto market with its already high fluctuations coupled with leverage is for me, however, unbeatable in absurdity (and danger).

True. Leverage has been the answer for traders to trade far less volatile assets. As far as I know though(I don't have the data), most crypto traders/speculators execute trades through spot trades. You know, the typical buy/sell button through Coinbase/Binance. Hence why the crypto markets are more attractive to them because of the huge volatility (without the need of leverage).

[gabbie2010]

Day trading is good if the market can moves up and down many times. Holding is good if you do not want to involve in the market too often or you are busy or do not have much time to trade. Both day trading and holding will have risk and you can choose what you want to select. You can also make a profit from both day trading and holding, but that will depend on your skills if you select day trading because you need more skills to make a profit from the day trading. If you select holding, you can determine how much the increase of the price that you want to sell so you can make a profit.

Many had tried to put themselves at risk by doing trading and holding for the sake to make good money out of crypto. If I have to choose among the two, I'll take them both. Sometimes we get tired of trading, sometimes the market seems not good for trading, and holding will be the last option to take.
Holding doesn't matter if you have skills or not, but at least we have some knowledge about crypto, about what we are doing as a basic requirement. Next, will be the chosen coin otherwise, we come near to failure and losses.

The skills required in becoming a day trader is vast thus it will be quite difficult and tasking for any newbie to get involve straightaway without any prior knowledge and  this will amount to rekting of account or losing of funds however on the other hand hodling is much easier to execute and is more or less easier for a newbie to make profit on a long term basis however time span involved in taking profits is another difference between a hodler and a day trader, apart from the skills  they earn their profits within a short period of time and can equally be chosen as a full-time job.

[GreatArkansas]

For me, what I can see on Day trading versus Holding.

Daytrading = more on technical analysis
Holding = more on fundamental analysis

For me, more work to do here is day trading, technical analysis because if you are doing trading, you probably doing analyzing charts not every time but if you want to observe, you should have more time for analyzing the chart.

For holding, this can be done by researching a particular coin, research, and research, identify the tokenomics, what is the use of it and what problems will solve for this project, and if you are already done researching and you decided to buy it, then for sure you will hold it for midterm to longterm.

Overall, I can say that these days trading and holding both got some work to do, need time and effort too.
There are some people who are bad in day trading but extremely good at finding a gem and hold it for the long term or vice versa.

[philipma1957]

Okay so people keep saying holding is more important and things like its better because if you hold, you pay less in taxes because of long term capital gains as oppose to short term which makes sense.


However, what if the crypto or stock increases like 50% or even double in a few days time or weeks time etc?  Yea so you are paying a lot in taxes if you trade... but if you wait for a year or longer, now you could have no gains or just 5% gain.  Whereas you trade for a few days and make 50%... sure you pay a lot in short term capital gains... but if after a year, the gain is only 5%, well you made more trading than holding.


Thoughts on this for trading whether crypto or stocks?  Doesn't it make a ton of sense to daytrade crypto since you could make a lot in roi where even if you daytrade, well paying the taxes in short term gains would earn you lot more money than holding it long term when the gains could be completely gone by then?  Or if there are gains, well you might get just a 5% gain and long term and pay long term capital gains... but if its short term and 50% or even double that... well the amount you keep after taxes is much more than that 5% long term gain?  Of course ideal situation is big percentage gain and long term gain but of course that is hard.

day trading is pretty much an act of degenerate gambling.

dca and hodl

[ethereumhunter]

Day trading is good if the market can moves up and down many times. Holding is good if you do not want to involve in the market too often or you are busy or do not have much time to trade. Both day trading and holding will have risk and you can choose what you want to select. You can also make a profit from both day trading and holding, but that will depend on your skills if you select day trading because you need more skills to make a profit from the day trading. If you select holding, you can determine how much the increase of the price that you want to sell so you can make a profit.

Many had tried to put themselves at risk by doing trading and holding for the sake to make good money out of crypto. If I have to choose among the two, I'll take them both. Sometimes we get tired of trading, sometimes the market seems not good for trading, and holding will be the last option to take.
Holding doesn't matter if you have skills or not, but at least we have some knowledge about crypto, about what we are doing as a basic requirement. Next, will be the chosen coin otherwise, we come near to failure and losses.

Actually, I use both trading and holding because I see that by trading and holding, I can have a chance to make a profit. When the price can go up and down many times, I can buy low and sell high. Although I need to wait for some time to sell, that is still worth it for me. Maybe with trading, I can have some profit, and I am okay if that profit will be for one week or bi-weekly. Holding needs patience and calms down as the market can up and down every day. Without that, we will not be able to hold the coin.

[CryptopreneurBrainboss]

Okay so people keep saying holding is more important and things like its better because if you hold,

Now that's where your problem is coming from, your very first statement. You don't developed an investment strategy based on what people say, people will always recommend what worked for them and if you don't have their type of mindset you most likely won't have th same success rate as their. On a general note, holding has been the same st strategy but you can also decide to trade and make more profit than the hodlers.

The hodling mentality was use to advice new incomers that didn't have very strong idea of trading but just want to start making money, this guys loses it before they even begin their journey so for their best interest, they're advice to hold and since hodling has less work to be done, it's highly recommended.

Hodling isn't a strategy that should be used for every project out there, we have project that are just been hyped that's why you can see them making high return in the short term but not doing so great in long term, those projects you trade and not hodl.

[Ararbermas]

Day trading on this current situation is very stressful to be honest because market still unpredictable and most of the coin are still struggling . wherein yes you can make quick profits but at the same time its like you put your self in a risky situation as well and despite you don't have an idea how many profits you can make or how much money you will lose after making mistakes in it.

It's a big question actually if you want to trade on this current situation, so you better think about it.

[Lakai01]

-snip-
You know, the typical buy/sell button through Coinbase/Binance. Hence why the crypto markets are more attractive to them because of the huge volatility (without the need of leverage).

That's true, of course, yes. For someone who wants to work without leverage but still see high fluctuations, there is no way around the crypto market. I don't know a single representative from the classic markets that is even remotely subject to such daily fluctuations. Especially in the stock market, traders already lose their nerves when a stock drops 3% within one day. "Only" 3% on a crypto day is a boring day ...

Day trading on this current situation is very stressful to be honest because market still unpredictable and most of the coin are still struggling.
-snip-

Day trading has nothing to do with the general market sentiment (bullish, bearish) since the trades - as the name suggests - are executed within one day (= buying and selling within 24 hours) ... often there are only a few minutes between buying and selling.

[bitcub]

I can trade, but I have no time. so the wise move for me is to buy the coin I believe, and transfer it to my wallet for hodling. Remember, never never hodl a coin in an exchange site for longterm.

[maxreish]

If you dont know how to read indicators and doesnt know some tools to use in trading, then holding is indeed for you. We need courage, we need to learn and take risk. If you arent that good in trading, holding suits you better. But then continous learning about trading, experienced how to do it will make you a better profits as well.

[ningrum]

Day trading on this current situation is very stressful to be honest because market still unpredictable and most of the coin are still struggling . wherein yes you can make quick profits but at the same time its like you put your self in a risky situation as well and despite you don't have an idea how many profits you can make or how much money you will lose after making mistakes in it.

It's a big question actually if you want to trade on this current situation, so you better think about it.

It is quite risky for sure if you are still determined to do daily trading,
as you said with the current conditions better think carefully before making a trade,
In trading, there is always risk, no matter what the conditions are and it all comes back to their respective decisions

[Alisha-k]

Holding has a higher ROI compared to day trading because for day traders who make 50% ROI of their capital  pays taxes which can't be below 10% of their profit while holders hold for months, or even years and most atimes they ROI could amount to 200% with lesser tax fee compared to day traders and also holders don't need any special technique to hold on to their coin they only follow the news to know when to sell and the right time to buy more

[Mpamaegbu]

OP should come to the knowledge that hodling is also trading because at some point the hodler will have to sell off. I haven't heard of someone who has been hodling Bitcoin since its creation toll date without selling any bit. Even Satoshi who is believed to have mapped out one million Bitcoin in a secured wallet must be trading from small hodlings in different wallets (that's my belief). Again, what gives a token it's value is the activities of buying and selling on it. If everyone decides not to sell and hodl, how will the token be valued? However, OP should also know that hodling requires no special skills but trading does.

[semobo]

Okay so people keep saying holding is more important and things like its better because if you hold, you pay less in taxes because of long term capital gains as oppose to short term which makes sense.


However, what if the crypto or stock increases like 50% or even double in a few days time or weeks time etc?  Yea so you are paying a lot in taxes if you trade... but if you wait for a year or longer, now you could have no gains or just 5% gain.  Whereas you trade for a few days and make 50%... sure you pay a lot in short term capital gains... but if after a year, the gain is only 5%, well you made more trading than holding.


Thoughts on this for trading whether crypto or stocks?  Doesn't it make a ton of sense to daytrade crypto since you could make a lot in roi where even if you daytrade, well paying the taxes in short term gains would earn you lot more money than holding it long term when the gains could be completely gone by then?  Or if there are gains, well you might get just a 5% gain and long term and pay long term capital gains... but if its short term and 50% or even double that... well the amount you keep after taxes is much more than that 5% long term gain?  Of course ideal situation is big percentage gain and long term gain but of course that is hard.

No one is denying that day trading is highly profitable but the question is every day trader can pick that peak and sell at the perfect time so they can make 50% profits in just 2 days?

Okay if some people did it perfectly then what will be their next strategy? They will buy at the high price or wait for the price to dip? They have to wait for the dip so they can buy at cheaper prices this strategy is same in the HODLing as well.