Hodling vs trading

[TheUltraElite]

Hodling is a part of trading, so how are you comparing these two terms?

Hodl does not necessarily mean to never sell, even though thats is exactly what many users end up doing. It is a way to tide over bear markets and wait till they reach a target price to sell.

If you compare hodl to long term trade then it makes sense and trading essentially would mean day trading. Investing also is a long term trade and can be said to be similar to hodl.

[kingvirtus09]

Literally speaking, it's safer to do holding than trading, because in trading, if you don't have enough knowledge, you can quickly lose the capital you bought with Bitcoin or crypto.

Unlike holdings, you just choose the cryptocurrency you will invest in as long as you make sure you know that you will not lose; instead, you will have income when the bull run comes or the halving is coming. For sure, there is, and you will get a profit from your investment in Bitcoin or crypto here in this business field.

[Twentyonepaylots]

Obviously holders have a long time preference and traders are trying to get rich quick. The crazy thing is that even knowing Bitcoin is the greatest performing asset in human history, people still want to trade it instead of holding it. Even with all the billionaires holding has created and all the people who lost everything trading, people still think they’re going to trade themselves to wealth, missing out on doing so by not holding.

Holding is basically buy and sell where time is a core factor, while in trading it is more on analysis of when to buy and sell, less duration compared to holding. But I'd like to address the term used ' get rich quick ' I guess it is not the goal of the every trader, so let us not generalize it, most of traders do want to have continuous win or constant profit, no one wants to lose right? Holders are huge part of the market tanking every bear and holding the floor price of cryptocurrencies as well as the market capitalization. I don't argue of what's better, holding or trading, but do what suits you  best. If you are active with crypto market then trading might work for you, hold otherwise.

[Gozie51]

For me I still prefer to do holding despite knowing how to trade, since it's more riskier to do trading as you can get liquidated in just seconds, but in the other hand you could also profit quickly. Which I think it's not suitable for me, I would rather do hodling with the DCA method since I'm not the type of person that would analyze and always check the market cause it will drain me. Imagine working,studying and trading, it will literally affect your mental health as well your physical health. Maybe full time trading will be applicable as you can focus on the market.

It is really such a difficult exercise with trading. Your analysis of the whole challenge of the struggle to get a life is funny but seriously that is what it is. Sometimes it seems like 24 hours in a day isn't enough to achieve all you want to do . However, properly planning of time will get you to achieve alot that you want to do. Yes being a student and having time to study can't really allow you to get some other things done. So hodling is more preferred too , the risk of trading is high.

[ZAINmalik75]

1. The use of wallets to store Bitcoin.

I can not agree with you on this, because in trading we might be using some custodial wallet like of centralized exchange i.e Binance or Coinbase but in holding we can use custodial but the most and the best practice is to use noncustodial and the 2nd level best practice is to use cold wallet instead of hot one. I hope you understand this point.

With all these being  said it is important to note that hodling shitcoin is not advisable due to their exponentially high volatility which may lead to severe loss if not properly managed.
Trading and hodling is always a choice as they indirectly serve as balance to the Bitcoin ecosystem.

Don't forget to keep your keys safe 😁

Exactly, we should definitely not confuse with the holding benefits of BTC with ALts because I definitely will say Alts are not for holding purposes, because of their high volatility and dependence on the centralized authorities and the rug pull scams, etc. type shit scares me out. I only prefer everyone to do trade in Alts but not holding.

And dear OP, I appreciate your efforts, because most of the newbies and even old users of this forum are not aware that holding and trading are the two branches of the investment tree. Which should be considered as separate methods to make money. Because the strategies are different and of course the stress level too as you have aforementioned.

[Asuspawer09]

Hodling and trading has always been a debate in the Bitcoin crypto space.Are they different? Of course yes.Hodling is a term used to describe owning Bitcoin in a wallet especially for a long period of time.While trading on the other hand refers to the selling and buying of Bitcoin through an exchange.
 Both Hodling and trading have some similarities such as ;

1. The use of wallets to store Bitcoin.
2. For both trading or hodling to be possible you must own Bitcoin. Although trading requires a minimum amount of coins, hodling does not.
3. Both require you to understand how to secure your coins to avoid hacks or loss of funds.

Nevertheless, despite these similarities hodling and trading are also distinct this is due to the fact that hodling is usually long termed ( hodling appreciates better during long term.) however trading returns come from short term fluctuations in the price of Bitcoin.Due to the uniqueness of Bitcoin,some  persons tend to choose hodling over trading due to some advantages such as;

1. Ease ; hodling Bitcoin saves you the stress of understanding marketing strategies and little price fluctuations As you only store the Bitcoin in your wallet without transacting.(successful trading requires constant research and experience)

2. Transaction Costs ; Hodling comes with a lower transaction cost which is from depositing the Bitcoin in your wallet. However trading incures cost due to frequent transactions especially when the network is congested.

3. Long-Term  Gains ;Over time Bitcoin  has shown promising potential in it's price.Hodling  helps you benefit from the long term potential of Which in most cases appreciates better than little price gains from trading.

4. Security; Hodling your Bitcoin gives you a better option of making use of offline wallets such as air gapped wallets or hardware wallets,As they deem more secure than online wallets
 
With all these being  said it is important to note that hodling shitcoin is not advisable due to their exponentially high volatility which may lead to severe loss if not properly managed.
Trading and hodling is always a choice as they indirectly serve as balance to the Bitcoin ecosystem.

Don't forget to keep your keys safe 😁

It was pretty much similar since you going to trade first if you are planning to Hold your cryptocurrency, I mean most investors would look at trading as something like daily trading, so if you say that you are trading we could assume that you do it a lot like buying and selling cryptocurrency then just selling it for a short period of time, and we could use holding as something like investing as well same on trading but more of a long term thing since if your not going to hold you could just say that you are trading if your planning for a long term investment you could say that you are holding or HODL something like that.

Both terms are great, but I still would prefer Holding over trading daily, I suppose we can put it that way since if we do the term with only "trading" that just means buying and sell crypto, and it just different things with holding, I mean yes you could probably earn more if you do daily trading and you could as well earn easily in just a small amount of time compared to holding where you need to actually wait for months or even years to actually make a good profit on cryptocurrency, but Holding still has less risk than doing daily trading and you could assume a much guarantee profit.

[Hamza2424]

Holding is the investor's approach and trading is the market professionalises approach, as simple as it is. Newbies are always recommended to enter the market with a holding approach and learn about the market momentum and spend some time learning about trading skills, and exercise strategies after that trader is more powerful than an investor as he can rely on better decision-making strategies to gain higher returns.

What makes both different is their view of understanding the market, an investor or holder takes the cyclical behavior of the market and its fundamental analysis at the same time a trader is a time market analyst he examines the sentiments of the market and patterns, on-chain data, etc. A trader is emotionally more strong and patient as compared to a holder. It varies from person to person as well.

[bitzizzix]

Yes, usually there are two types of investors' goals, namely those who trade Bitcoin or crypto regularly to make a profit, or those who buy and hold it or what is called holding until they reach maximum profit and sell it.
Both are mutually beneficial, and supported by expertise.
And trading is not an easy job because it requires full or part time to do it and requires a lot of time and energy for in-depth analysis which in my opinion must be done seriously. And trading is more suitable for those who have a lot of time, or only have trading activities that are carried out seriously in order to generate profits.

And I personally choose holding, because I don't have much time for trading and also don't have the interest to learn it. Additionally, holding is the easiest way for me who has a job to stay focused on my work and let my investments grow to their highest prices.

[BitDane]

I can say for minimal risk, Hodling is better but for maximum profit, trading is way better.

As what is stated by @OP, holding is easy, there is no need to take advantage of the fluctuation and get burn due to a wrong decision but trading on the other side can give a person the maximum profit assuming majority of his trades are successful.

Holding will not increase our coins unless we accumulate through buying and needs more fund to make it come true.  While trading can grow our stash with just the original bought coins by taking advantage of the price fluctuation making our Bitcoin holdings grow in every successful trade.

[pixie85]

I always feel like trading is for people who don't really want bitcoin but fiat money. For most of them the goal is to get as much fiat as possible.

Trading is risking your coins to get a little bit more if your trade is good but since trading involves shorting I'd be very careful if I were you since most of the time bitcoin goes up and you can't really tell when that moment will happen again. Waiting in the sidelines because you're too scared to hold bitcoin is s stupid thing to do in my opinion just as using bitcoin like a tool to get more fiat money when it's so much more.

[Quidat]

Hodling is a part of trading, so how are you comparing these two terms?

Hodl does not necessarily mean to never sell, even though thats is exactly what many users end up doing. It is a way to tide over bear markets and wait till they reach a target price to sell.

If you compare hodl to long term trade then it makes sense and trading essentially would mean day trading. Investing also is a long term trade and can be said to be similar to hodl.

Correct! If we do speak about HODL then it would pertain about long term aspect on which its true that there would really be some various conditions if we do speak about hold because we do have that hold position since the market is still that bearish but doesnt mean that holding it until the bull run happen but rather it would really be sell out on the time that the price would really be showing or giving out at least with those % gains on which it is really that still involving trading as long it do really have that buy and selling kind of act in a short time. It did really just turn out that people would be having that different meanings about holding but in generalization then it isnt really that much of a difference in between two.

It do really just differs on how its been executed and how its been done. It doesnt matter though because everything would really be according on someones preference and decisions
towards its market position because we know that it isnt something that would really be similar into each other. Each trading or investment decision will really be that depending on you
and outcomes will really vary too.

[Mpamaegbu]

Hodling and trading has always been a debate in the Bitcoin crypto space.Are they different? Of course yes.Hodling is a term used to describe owning Bitcoin in a wallet especially for a long period of time.While trading on the other hand refers to the selling and buying of Bitcoin through an exchange.

Despite how you want to make a wall of difference between them, I like to see them as the same. They're the same in the sense that both end up as the other – you hodl a trade and you also sell a hedl trade. One can hold a Bitcoin trade longer than the person whose intention is to even hodl from the beginning. What most people consider to term it "hodling" is where they find the Bitcoin – in a non-custodial wallet or a custodial wallet; and that's a wrong premise.

Don't forget to keep your keys safe 😁

Nice advice you had there but your laughing emotion made it look unserious.

[Silberman]

For me I still prefer to do holding despite knowing how to trade, since it's more riskier to do trading as you can get liquidated in just seconds, but in the other hand you could also profit quickly. Which I think it's not suitable for me, I would rather do hodling with the DCA method since I'm not the type of person that would analyze and always check the market cause it will drain me. Imagine working,studying and trading, it will literally affect your mental health as well your physical health. Maybe full time trading will be applicable as you can focus on the market.

I am in the same position, I dedicated a great deal of time to try to learn how to trade and I can say with confidence I have the knowledge necessary to do it, however being a trader is way more difficult than just having the right skills, you need to watch the market for hours and even days before you get a single signal, but when it happens you need to take action as fast as possible, and to me this is simply too taxing, so I prefer to be a long term holder instead.

[BVeyron]

Hodling and trading has always been a debate in the Bitcoin crypto space.Are they different? Of course yes.Hodling is a term used to describe owning Bitcoin in a wallet especially for a long period of time.While trading on the other hand refers to the selling and buying of Bitcoin through an exchange.
 Both Hodling and trading have some similarities such as ;

1. The use of wallets to store Bitcoin.
2. For both trading or hodling to be possible you must own Bitcoin. Although trading requires a minimum amount of coins, hodling does not.
3. Both require you to understand how to secure your coins to avoid hacks or loss of funds.

Nevertheless, despite these similarities hodling and trading are also distinct this is due to the fact that hodling is usually long termed ( hodling appreciates better during long term.) however trading returns come from short term fluctuations in the price of Bitcoin.Due to the uniqueness of Bitcoin,some  persons tend to choose hodling over trading due to some advantages such as;

1. Ease ; hodling Bitcoin saves you the stress of understanding marketing strategies and little price fluctuations As you only store the Bitcoin in your wallet without transacting.(successful trading requires constant research and experience)

2. Transaction Costs ; Hodling comes with a lower transaction cost which is from depositing the Bitcoin in your wallet. However trading incures cost due to frequent transactions especially when the network is congested.

3. Long-Term  Gains ;Over time Bitcoin  has shown promising potential in it's price.Hodling  helps you benefit from the long term potential of Which in most cases appreciates better than little price gains from trading.

4. Security; Hodling your Bitcoin gives you a better option of making use of offline wallets such as air gapped wallets or hardware wallets,As they deem more secure than online wallets
 
With all these being  said it is important to note that hodling shitcoin is not advisable due to their exponentially high volatility which may lead to severe loss if not properly managed.
Trading and hodling is always a choice as they indirectly serve as balance to the Bitcoin ecosystem.

Don't forget to keep your keys safe 😁

There are two main problems in cryptotrading. First of all, cryptotrading is quite risky, since altcoins are really unstable, and its nearly impossible to get some profit out of short-term deals in crypto, especially if the amount of money involved into trading is relatively small. Secondly, there is a problem with accounts: cryptotrading platforms store money on accounts, which dont belong to the traders, so the money safety is dependent on security facilities of the trading platform.

[Raflesia]

I think the context is not really appropriate because when we say trading, the comparison is definitely with Investment not with hodling because in the end when we say that we are investing then there will definitely be holding as a process.

On the other hand, when someone decides to invest then it is certain that they will hold their assets and will not trade because it is 2 different strategies so it will not be able to be done because when we trade then automatically our goal is not long-term investment and vice versa and I have that choice until now because I already have confidence about my investment in the next few years so I will definitely hold and become a hodler until my goal is achieved.

[Ever-young]

2. Transaction Costs ; Hodling comes with a lower transaction cost which is from depositing the Bitcoin in your wallet. However trading incures cost due to frequent transactions especially when the network is congested.

Aside from the fee which one is being charged when they purchase bitcoin and the fee which they are also being charged when they withdraw to their place of buying down to their private wallet, holding bitcoin only costs your security like what you are to do in other to protect the bitcoin and make sure it’s safe until when you decide to sell it, so I can say they bitcoin don’t have any fee attached to when you are holding it in your wallet, instead you have an advantage of making profit from it when you want to sell it off if you hold it for a long period of time.

The only place a holder will have to spend fee for holding is if their is some kind of upgrade on which wallet the holder is using and want to use a different one which he feels like it’s more secured than the previous one, that’s one the person have to spend some fee in moving it out from the current wallet to another one, although the fee charge is always very small.

[Peanutswar]

Will depend on your being active in the market if yes making a profit on a daily basis is ideal doing scalping or even a day trade this still consider like a week to get a profit but still in the short term if not holding for a long term is the most suitable only yo need is to make an investment, hold until you satisfied with the market price and take profit.
Those trades still consider a basic understanding with the TA this serves as a guide to you with a good entry and exit.

[Vaskiy]

Holding and Trading are different, better the market understanding better will be the profiting and lower will be the risk. When the focus is holding, the focus should be long term profit. When we think about trading it is possible to make short term profits, but the risk used to be higher than holding as the profit is generated out of the difference in buying and selling in the volatile market. Rather than keeping funds idle for long term it is good to make it use into trading and increase the holding volume. There is risk, over time we'll have better learning about the market and the same can help with profiting.

[sheenshane]

Holding and Trading are different, better the market understanding better will be the profiting and lower will be the risk. When the focus is holding, the focus should be long term profit. When we think about trading it is possible to make short term profits, but the risk used to be higher than holding as the profit is generated out of the difference in buying and selling in the volatile market. Rather than keeping funds idle for long term it is good to make it use into trading and increase the holding volume. There is risk, over time we'll have better learning about the market and the same can help with profiting.

I'd say, that both trading and holding aren't meant for everyone.
Why?  Because if you know trading and can do technical and fundamental analysis then go for trading but if you have zero knowledge in trading or skills, it could be holding would be your great option.

Yeah, both have risks but they have different result of outcome, while holding, you can control the risk and trading aren't.
IMO, I'd rather hold for a long term and wait for a perfect time than risking it that possibly losing all your money.

[bayu7adi]

As someone who prefers HODLing over daily trading, I see no inherent flaw in either approach. Whether for the long term or the short term, engaging with Bitcoin trading offers distinct opportunities.

The key differentiator lies in the level of experience required for trading. Day traders must possess the skill to analyze the market at all times. Every fluctuation in Bitcoin's price can translate into significant gains in the near future. However, the more frequent the trading, the more frequently a trader encounters associated risks. This aspect is not particularly appealing to me, as I haven't yet honed my ability to comprehend short-term market movements.

HODLing, on the other hand, necessitates a Dollar-Cost Averaging (DCA) approach to purchases, holding the asset until your target is met. Volatility can work in your favor by expediting your objectives if the price tends to rise. Fundamental analysis holds substantial influence over the end results, given that we're discussing long-term trading. Technical analysis appears less reliable for scrutiny, as it can be manipulated by influential market players.