Daytrading vs Holding

[jerry0]

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.

[jackg]

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.

[carlfebz2]

Actually depends on someones capacity on doing trades or on how he would be dealing into his investment because not all would really be knowledgeable nor be skillful when it comes to this area and not all would be having the same experience.

Daytrading is something you should need to deal with the market on the active manner where does simply means that you would need time and proper effort for you to deal with volatility which it would be needing for you to face off in the front of a computer and dealing off with things.

This isnt suggested for noobs though but if you do want to play on the safer side then hodling would be the best option but not all does have the patience
on doing so.SO its up to someones preference and capacity.

[Vaculin]

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.

There is no specific time until when you just hold. They hold for some reason and one is that to wait until the next Bullrun will come, it takes months or years depending on the situation. The good thing about holding is less stress for the holders, they just sit and wait for the perfect time to sell and make a profit from it.

While day trading, you have to check and work it every day at your trades. Honestly, it is a stressful job. Let us say that we can possibly make a huge money in trading for a shorter time but we can't decline also the possibility that we might lose huge money in a single day. It finds to be riskier and this makes some people to outplay in trading but instead to choose to just hold only.

[Bitcoin_Arena]

You think day trading is always about making profits?

Well, tell that to millions of traders who at one point tried day trading. A big percentage of them(we are taking about over 90% don't make profits day trading)

Whereas for Holding, you just have to buy Bitcoins at the perfect time (during the dip or bear market) and then relax for a few years. There's a certain guarantee that you will always been in profits. If you are doubting this. Go look at the BTC charts since 10 years ago and see how the price has been rising.

[Twinkledoe]

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.

Also, if you are holding good coins and very solid ones, it is better to hold and not be bothered by day trading. However, if you are up to the fast pace of life in day trading, you can, but you should set your targets so you are still align with your goals. Not many crypto users can catch up the life of day traders. This is the reason why a lot of them are losing instead of gaining profits. Day trading is not an easy peasy task though.

[mk4]

There's a lot of "you could"'s and "you can"'s when talking about trading. But the question is, can you actually? If you can end up by actively trading and actually end up making a lot more money compared to holding, then go for it. If you can't, then just hold for the long term. It's that simple, really.

[isaac_clarke22]

~

Well thoughts on whether it'd be trading stocks or crypto? It does not matter anyway.
If you can trade like for majority of the day, trading would suit the best at your pace.
If not, it is the hodling that you can do.

[Kemarit]

There's a lot of "you could"'s and "you can"'s when talking about trading. But the question is, can you actually? If you can end up by actively trading and actually end up making a lot more money compared to holding, then go for it. If you can't, then just hold for the long term. It's that simple, really.

Yeah, but for me before you can make money on trading, most of the time, you need to lose some before getting that needed experience under you belt, and then you feel comfortable about it and maybe starts to make money.

As opposed to just HODLing for long term, you just continue to accumulate, get a hard ware wallet and store your BTC for a long time.

[noorman0]

Basically people just want to pursue the maximum possible profit by any means. There are a few things at stake in daytrading which I think are the main reason some people don't like it even though it looks promising.

A person will not spend his time watching a monitor screen all day if he has a surefire way of earning more flexibly if the results will be worth it.
A fairly good portfolio will not be easy to change someone's strategy to try something else that is more risky, let alone considering the costs of trading, electricity, and health (of course you don't want when big profits in day trading for 1 full month then suddenly get sick).

[mk4]

Yeah, but for me before you can make money on trading, most of the time, you need to lose some before getting that needed experience under you belt, and then you feel comfortable about it and maybe starts to make money.

As opposed to just HODLing for long term, you just continue to accumulate, get a hard ware wallet and store your BTC for a long time.

I'd even say not only most of the time, but I'd go as far and say all of the time. Idunno, though theoretically not impossible, I haven't heard of a single trader that did great consistently from the start.

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.

[Lakai01]

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.

[TheUltraElite]

Theoritically day trading specially on volatile altcoins ends up giving a way more return. But that would mean a complete breakdown of your mental, physical and social health. You would have to set up bots to monitor prices 24x7x365 and then execute trades based on indicators. It becomes way more stressful than day trading on stock market where you have fixed hours.

If you want to have a stable anxiety level in the market and not go crazy over price - go with the long term hodl. For example, back in 2015 bitcoin was priced at 600-700$ and today after 6years it is priced at ~35k $. So you can see the reason why Bitcoin users have advocated a long term holding strategy as a safe method.

About where taxation is a point of difference, I would not give it much weight. Eventually when crypto gets regulated (fingers crossed), you will have to pay taxes, that should not be a reason for changing trading strategy.

[pooya87]

I'm not sure what you said about taxes is correct, besides tax laws are different in different places. AFAIK you pay taxes on your gains whether you gained small amounts in your trades like 100 times $10 = $1000 or held and sold once for a single time $1000 you pay the same tax assuming small amount are also taxed (like $10).

As for day-trading versus holding it is a matter of WHAT. For example for the past 4 years there has been many newbies who held on to a lot of altcoins that they bought in 2017 bubbles, the result is that not a single one of them has been capable of going back to the prices they bought at. That means "holding" the wrong thing will result in big losses.
On the other hand even if you had bought bitcoin at the peak of the bubble or the last couple of weeks of the bubble you had bought it in $8k to $19k and are now in a big profit that keeps on rising as bitcoin keeps going up. Again choosing the right thing results in big profit.

Day trading has its benefits and risks too. One big risk is when the centralized exchanges are hacked or run away with your money. Otherwise day trading pump and dump altcoins despite being risky can be very profitable if you don't get caught up in the hype and end up becoming a bag holder. In other words as long as you dump that altcoin before others dump you'd be golden.

[blockman]

Taxes will always be there, you trade or invest in stocks, you'll be taxed. You day trade or hold bitcoin then you'll also be taxed. So no matter what you choose, you'll still be taxed. What's best for you to do is to choose which market you're very much familiar with and good at analyzing.
If you're from the stocks market, you stay there and start to study little by little the crypto market. But if you're definitely and without a doubt good in day trading in crypto, you hold and day trade as much as you can and get an unlimited profit opportunity as you trade. In crypto, it's not just all about trading, you can explore more on it.

[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.

[Maslate]

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.

[Wexnident]

Ok so if were going to talk about obtaining the maximum amount of profit one could get in the shortest amount of time (even in a long time tbh), it's a no-brainer that day trading is the answer. But, as mk4 said, it's a matter of whether you even can or not. It's close to impossible to get the maximum amount of profit, and heck even 50% of the max amount of profit is close to a dream. It's just that hard to day trade. So the next option you'd actually consider is how much time you're going to spend on it, and if profit isn't a question, then it's holding. With holding, you don't peek at the charts 24/7, you just cash out after a few years when you think you've made profit.

[Woodie]

Well let's just say of the two holding is playing it safe as there isn't much risk...all you doing is waiting for value of assets to go up  unlike day trading which means getting onto the market to buy or sell an asset and should you make the wrong call,there is a possibility of actual loss of money (crypto assets) but on the reward side of things trading is more profitable than being a hodler.

[tranthidung]

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.

If you look at the price chart with monthly candles, you will see the trend line is similar to the smooth road for hodlers whilst if you use daily candles, you will see many ups and downs which can kill your patience, confidence and steal your Bitcoin.

Alternative way is using the daily low price (from coinmarketcap) then finding the minimum value of daily low price of each year. See the draw result and the chart. Bitcoin is bullish even if you look at its lowest price each year.

Code:

     +---------------------------------+
     | year     min_l   percent_change |
     |---------------------------------|
  1. | 2013     65.53                . |
  2. | 2014     289.3           341.48 |
  3. | 2015    171.51           -40.72 |
  4. | 2016    354.91           106.93 |
  5. | 2017    755.76           112.94 |
     |---------------------------------|
  6. | 2018    3191.3           322.26 |
  7. | 2019   3391.02             6.26 |
  8. | 2020   4106.98            21.11 |
     +---------------------------------+