What is better - cryptocurrency trading or investing?

[AicecreaME]

Do what works for you best. There are advantages and disadvantages on both investing and trading. You can do what suits your current situation and of course, your preference. Ask yourself, what do you prefer? Short-term or long-term? You can do both if you like to. Just remember that the two are completely different thing. Study how the two work so you'll not regret a thing later on.

Personally, I prefer investing over trading. I'm in it for long-term after all. Investing works best for me because all I have to do is buy the dip (for those coins that show potential) and hodl until the time I need to withdraw some funds and until I reached my goal. Although, I've tried trading as well. And man, it was a rollercoaster ride. You shouldn't start trading when you aren't equipped with enough knowledge. If you opt to do so, you'll end up losing. Trading requires a lot of skills, strategy, and strong gut-feeling. You must know when to take profit (T/P) and you should put stop loss to avoid losses and liquidation. Trading is time-consuming, but it always pays back your effort as long as you know what you are doing.

[ultrloa]

I have been a day trader but want to know if it’s a good idea to hold bitcoin for long, whether it will be more profitable?

actually you can answer that literally mate because you will only comparing what profits you made in the Day trading strategy and what can holding brings you.

It's hard to give an advice since sometimes the one we suggest will not work to them, that's why its really good to see our capabilities so that we can point out to ourselves if its really good to hold or just trade it on various trusted platforms available around. But I really preferred to trade rather than holding as I don't have capabilities to do so I'm kinda not good on holding my emotions and we must consider it since its a huge stress to see how market collapsed especially if we bought and hold at the wrong time.

[pixie85]

I'll give you some pros and cons of every solution.
Let's start with trading.

For me the biggest con is the risk of holding coins on exchanges. Your coins are not only at risk of being hacked, but also blocked by the exchange due to some change in rules or if they find your activity as suspicious.
I've lost some coins on bittrex because they've decided that my activity is suspicious and blocked my account and then demanded me to send them multiple selfies and bills to prove where I live and in that time I've changed apartments so that was out of the question... Long story short they demanded a ransom that I could not provide. They stole my coins. It wasn't a big deal because that was maybe $100 worth of cryptocurrencies, but imagine if you had 100 times more and the same thing happened to you.

You're also at risk of making a mistake, trading with leverage and getting liquidated and losing a lot of money.

What's the worst thing that can happen to your bitcoins held offline? If you buy today, we can go to retest the previous high by the end of the year and you'll earn 100% on your investment or go down to maybe 20 thousand and you'll lose 30%. If you decide to trade you can lose 100%, so the risk is much higher. Holders will never lose 100%, even if they buy the top.

Holding doesn't require any work, any thinking. It takes more time to make money so it's a game of patience but it allows you to focus on other things.

[Leviathan.007]

To my friends who wanted to enter this market, I always suggested they do investing instead of trading because as you may know bitcoin much more profitable in long term, and if you invest in bitcoin for the long term you will definitely get the reward for it. But on the other hand, bitcoin can be very much risky for people who don't have enough patience to get the profits and always panic sell or sloce the orders, also since the price is moving sharply and hugely in short term, people may lose control and do emotional actions that's why I think investing can be more profitable.

[swiftbits]

I have been a day trader but want to know if it’s a good idea to hold bitcoin for long, whether it will be more profitable?

You're a day trader, so you probably know the difference between altcoin and bitcoin market movement; based on the market history of bitcoin, there's a huge chance that we will reach a new ATH. The problem comes when bitcoin becomes steady low in the long term. A positive outcome is possible in holding BTC, but it is better to use your time to earn more on the short-term play. You're a trader, so keep buying on the dip to secure a profit.

[iv4n]

It's pretty stupid but I think that it's a much better option since it's safe and it covers both long-term and short-term, I think both of them can work together, you do trading while at the same time investing and hodling some of your cryptocurrencies that has a potential for long-term growth. I think that utilization of both facets of making money in cryptocurrency is a much better option compared to choosing just one.

From time to time some people raise this question... like it's hard to cover both! I think it's crazy to trade without some holdings on a side, and in crypto sometimes it's stupid to just hold all your bag when you can sell at some point (when price reach some top after a bullish run, and we had that recently), and to buy back when prices drop!
Like you, I think this question is pretty stupid! Holding and trading are both good, someone can decide to do just one of these two for any reason, but doing both is very simple, after all, holding is holding, it doesn't require a lot of effort and constant monitoring, so it can be combined with all sorts of trading strategies, in short, mid or long term!

[sapnu]

I have been a day trader but want to know if it’s a good idea to hold bitcoin for long, whether it will be more profitable?

In my opinion, I think upon identifying which one is better, it will rely on the set of skills and knowledge you have. If you've learned enough information about trading, therefore it might be more suitable for you as you can apply all your learnings to be successful on that one. On the other hand, if you have more idea about investing, then choose it so that you wouldn't end up looking ignorant in trading as you push yourself through it when in fact you can do better at investments. Timing will also play a huge role for the two cause there are instances where investments are better at a certain time or vice versa.

[oHnK]

To my friends who wanted to enter this market, I always suggested they do investing instead of trading because as you may know bitcoin much more profitable in long term, and if you invest in bitcoin for the long term you will definitely get the reward for it. But on the other hand, bitcoin can be very much risky for people who don't have enough patience to get the profits and always panic sell or sloce the orders, also since the price is moving sharply and hugely in short term, people may lose control and do emotional actions that's why I think investing can be more profitable.

Although Investing is better than trading for begginers but We have to learn more about strategy to earn gain or avoid lose. Because when the investors cant choose the best asset which he want to invest, he will get much lose from his investing. I have felt the moment, when I invest in crypto with following others without knowledge, the result what I got was a bigger lose. I sold ADA for bought AOA, thats really dumb. That looks like I sold a gold just for a shit.

[izsara]

it depends on your thinking. if you feel your profit is enough I think you can end it but if you feel this is not enough especially now that it is drastically decreasing you can hold it a little longer.
but I can suggest you should now increase your asset load compared to selling now because if you look at the prospects year after year, I think the future will be better. but with a note what coins you buy

[Silberman]

I have been a day trader but want to know if it’s a good idea to hold bitcoin for long, whether it will be more profitable?

It depends, it is widely known that in theory trading is more profitable than investing, but that is the theory, trading has a higher failure rate as it is harder and even if you obtain profits that does not mean that you are beating the markets and obtaining more profits than those that are just holding, so if you can earn profits and beat the markets just keep trading but if this is not the case then it is a good idea to begin to consider if it is not simply a better option to become a bitcoin investor.

[goinmerry]

I have been a day trader but want to know if it’s a good idea to hold bitcoin for long, whether it will be more profitable?

We have different ways how to make a profit either by day trading just a simple holding. For it to become profitable, the keys will be your way, your knowledge, your strategy.

Not because I'm getting more profits at holding, it means you will have the same experience and vice-versa.

Try it so you will see the actual result by yourself.

[Rruchi man]

When discussing issues like this, it is first important to note that it is relative, that is they are both good, what determines which is actually better is the one that works best for you after trying the two, that is investing and then trading. That is, you cannot say cryptocurrency trading is better when it is all that you have tried and have not tried investing, also you cannot say investing is better for you when it is all you have tried and you are too afraid to try trading probably because of other people's experience.

I might argue that investing is better and another might argue that trading is better, the truth is that we are both correct because we are speaking from different standpoints, our own point of view which has been directly influenced by the profit we have made from our choices.

Above all, what is most important is identifying the one that works for you and gives you profit and then sticking to it. What works for a certain Mr Z may not work for you and vice versa.

[Lorence.xD]

To me, putting faith in the market is risky but is the most fruitful if the risk pays of unlike daytrading where the aim is to beat the market or make a profit which is a really difficult thing to do because not everyone can really do it and it takes a lot of time compared to investing where you can just put your faith in it and hodl and wait for profit. Knowing your risk tolerance can help you decide what you're going to do next.

[justdimin]

I have been a day trader but want to know if it’s a good idea to hold bitcoin for long, whether it will be more profitable?

Doing both would be better . Best choice
Now if you see that one of them isn't giving you profit or worse you are losing on it them better leave it or focus on one.

In terms of profitability, day trading would be better compare to just holding but on the other hand the chances of you losing money is higher in trading. High risk = higher reward as they are saying . Just do both of them and if you see that you are earning profit on both of it and you aren't stressed doing both of them then just do both .

I do both of it a bit, not really a lot of trading though and I can say it is fun experiment. Nearly all of my money is in long term investments and it will stay that way for a very long time, however I have a small amount (like 100 bucks or so) that I trade but not the conventional way of trading, it is just the cake swap world where I invest into multiple small time small cap stuff and trade back and make some money from the spread as much as I can, it is not easy and I do lose money a lot of the times, but when I do make profit it is usually high enough to cover all the losses I made earlier, yet not a lot and sometimes even not enough.

This is why I am not turning into full time trader, it is just not worth enough for my time, you spend a lot of time and earn very little unless you are good at it, I rather not spend that much time on something I may end up losing money.

[goldade]

I have been a day trader but want to know if it’s a good idea to hold bitcoin for long, whether it will be more profitable?

Making profits with hodling bitcoin depends on how long you intend to hold and how high the price of bitcoin moved in that particular period. This means that earning is actually out of your control (except knowing when to stop hodling of course). You do not control how much you get to make in that period.
Trading, however, is active and this means that you control all that happens. How long you want short or long, how much profits or loss you'd make with the leverages.
So if you intend to control how you make money, then it's best you do trading than hodling, although it is more risky than trading.

[ipanks]

I have been a day trader but want to know if it’s a good idea to hold bitcoin for long, whether it will be more profitable?

Since you are a day trader, I assume you can make a profit daily so maybe you can hold some funds to buy bitcoin at a low price and hold it for the long term. I am sure you can do that because you can still do a day trading and have the other bitcoin for your investment. It will give you more profit in the short and long term.

People who can not trade better will prefer to invest because they do not have to trade every day and do not have to think much about the market movements. But to become an investor, you need to have patience and control yourself because you will see the price will be up and down and if you do not have control, you can become panic and sell your bitcoin at a downtrend.

[ashleyknight]

For me personally, adding more and hodling works much better than actively trading. I tried trading before of course and I sucked at it, so instead buying low selling high, more often than not I ended up doing the exactly opposite thing due inexperience, ignorance and impatience.

Last time I tried to sell some BTC in order to rebuy when it goes down was back in 2019, and managed to loose like 5%  of my BTC, and never tried anything similar ever again. My guess is that at least 95% of the people would end up having more BTC  if they just hodl, instead getting into day trading

That makes me wonder that if you had invested in any other cryptocurrency like ethereum, you would have made more profits since it has shown noticeable growth in the last few years. Should I thus conclude that whether I should buy and hold or day trade should depend on the cryptocurrency that I am planning to invest my money in?

[Sayeds56]

To me, putting faith in the market is risky but is the most fruitful if the risk pays of unlike daytrading where the aim is to beat the market or make a profit which is a really difficult thing to do because not everyone can really do it and it takes a lot of time compared to investing where you can just put your faith in it and hodl and wait for profit. Knowing your risk tolerance can help you decide what you're going to do next.

I think History of Bitcoin has proved that investing in Bitcoin for long term has given huge reward in term of capital gains but you need to have patience and faith in Bitcoin. If you have good technical skills the you can go for Day or swing trading and make entry exit based on signals generated by Technical Indicators, this way you make your living by need experience and good know how.

[ShowOff]

Depends on what your real goal is. If you want to profit in the long term then you just have to think that investing and holding some asset is the best way. Make sure bitcoin is included in your portfolio although you can include some other altcoin as well. I prefer investing over day trade because I don't have enough time to constantly monitor price movement. But if you can maximize the opportunities and profit from day trading, then it is still a good thing to do while you can also set aside the profit to invest in the long term.

[ashleyknight]

Of course, Bitcoin is relatively the most reliable and valuable. Compared with other air coins, the risk is relatively small. If you are a believer in Bitcoin, then hold Bitcoin for a long time, just for speculation and when the return is good, you can consider selling it. But I suggest you hold Bitcoin for a long time. The investment right is in your hands. You can decide according to your own ability.

But if bitcoin doesn’t grow much, don’t you think I would just be bonding my money for the long term?

I have been a day trader but want to know if it’s a good idea to hold bitcoin for long, whether it will be more profitable?

I have also traded cryptocurrency before and I can say that it is quite a profitable business. However, in order to trade successfully, you need to have trading skills and know which cryptocurrencies to use for trading. But it is not always possible to make a profit from cryptocurrency trading, since very often the market behaves in an unpredictable manner. As for simply holding BTC, we have already seen that this was one of the best solutions, because over the years, the price of BTC has shown incredible growth. Based on this, I believe that now it is better to invest in BTC, since there is a high probability that by the end of 2021 we will enter the next stage of growth, which means it will be possible to make very good money on this.

I agree that bitcoin has shown incredible growth in the past. But these days after Elon Musk tweeted about bitcoin consuming a lot of energy, I have seen the bitcoin price going down. Is it still a good idea to buy and hold bitcoins for long?

My personal opinion about any kind of trading is that if you have anything that remotely works you will not ask this question and you will certainly will not publish a youtube video "showing others how easy it is", etc... (not that you have done, just example). Other than that, it is the fastest way to loosing your money. Most trading platforms have to include disclaimers such as "most of our clients take loses" and the like - you surely get the point. Investing in crypto, as such, is not that different from trading except that you will trade much less. The chances of success are slightly better.

But the main point is something else: investing in crypto should be taken as investing in venture capital. Very high rewards for just a few projects, 100% loss for most and extreme variability in results. The only difference is that you normally have liquidity.

Do you mean that I should spend some more time practicing what I want to do?

I have been a day trader but want to know if it’s a good idea to hold bitcoin for long, whether it will be more profitable?

You have to follow what works for you and not to join the crawd because you can not deceive yourself. Trading is not easy for everyone out there and if you don't have passion to learn it don't go into it. With trading you can continuously lose part of your capital in btc and or all but for hodling it, you don't have any fear to have because it will rise again to profit.

Trying both can help us realize which works best for us. Sometimes we limit ourselves to something we thought we can or cannot without really trying it. When we at least test it for ourselves with a budget we know we can afford to lose or we aim to profit we will strive harder to make it progress. Trying out and exploring ourselves will lead us to decide what path we can pursue.

This makes me believe that I should give buying and holding bitcoin a try because nothing would help me more than my own experience.

both are methods for managing finances, but based on needs if you are trading Bitcoin for a short period of time. it will be very risky and not too big impact. Bitcoin to invest long term. while if you feel that daily trading will be very profitable, then at least use the second alternative that makes altcoins that must be traded.

Again, for Bitcoin, it will be more useful if you hold it for a long time.

I am confused because bitcoin has been showing a lot of fluctuations in recent times making it suitable for trading more than buying and holding.



[moderator's note: consecutive posts merged]