Trading vs HODL - Personal Experience for Newbies

[sunsilk]

Investing and trading is somewhat risky for every new investor or trader. Initially, an investor or trader does not have a complete understanding of these issues, due to which newbies make more mistakes in investing and trading. In the first instance new members need to get training and practical idea about investment first. Beginners need to use small amount of money first to get real idea. When they can get a fairly realistic idea of trading and investing with a small amount of money, they can start their main investment or trading. But in the beginning if one goes for direct investment or trading then they will not be able to do any good from their trading. So every trader and investor should get enough ideas and practical experience in the beginning.

IMHO, when someone invests he already takes it as something risky even before doing it. And someone who doesn't have knowledge upon doing so is actually a risk taker. But do they know that they can minimize the risk that before doing an investment, researching is going to give them an upperhand.

Just to make sure that your hard earned money will be used properly and wisely, those that invests without prior knowledge are truly taking the top risk.

And relating that to Bitcoin and trading, many of them doesn't mind going to the point of trading as soon as possible because of misbelief that they can make easy money there which is truly wrong and doesn't make sense.

OP is right. Let them experience how this market butchers those that are unprepared so they will see the importance of holding and winning.

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[Bd officer]

Hi everyone,

Bitcoin price is going up, resistances are being converted into supports. I want to share my advice and personal experience with beginners and newbies on this forum and explain what is good for them in the long term. If you are an experienced member/trader, take it lightly.

Alright, Newbie, I will start without wasting your time. Bitcoin Trading will never be profitable in the long term as compared to HODL.
You will never win or become a millionaire if you decide to take leverage, use Future Trading, or even Spot Trading. You can never catch every move perfectly.

If you are new and making a profit, that's called beginner's luck. That doesn't mean shit and no, you do not LEAVE your job to become a full-time trader.
Always collect Bitcoin, Spend at least 20% of your savings on collecting sats.

And once again, Leverage is your biggest enemy. Even 2x leverage is dangerous.
Bitcoin Halving is approaching, I would suggest all of you focus on buying more, avoiding selling, as these prices will never come in the future.


All the best! <3

Thank you for the very good advice. Lots of useful advice for those new to cryptocurrency. Trading is never suitable for beginners because they cannot analyze the market properly. Trading is not for everyone, only professional traders can analyze the market properly and profit from trading. Of course investing is better than trading, it has less risk. The halving will be in 2024 so now is the perfect time to invest in Bitcoin. If one does not invest in Bitcoin now, the price of Bitcoin today at $37k may not come to this price in the future and those who do not invest in Bitcoin now, will miss out on this price in the future. For example, Bitcoin had a very low price in 2010-1015 that many of us miss. It may also happen in the future that the price of Bitcoin may not fall below 100k. However, everyone should choose Bitcoin this time.

[BABY SHOES]

Alright, Newbie, I will start without wasting your time. Bitcoin Trading will never be profitable in the long term as compared to HODL.
You will never win or become a millionaire if you decide to take leverage, use Future Trading, or even Spot Trading. You can never catch every move perfectly.

That's what I think that trading is difficult to get long-term profits especially unskilled in trading then it is not the profit to get but will lose a lot because of taking high leverage so I have decided to stay HODL instead of trading in futures or spot.

If you are new and making a profit, that's called beginner's luck. That doesn't mean shit and no, you do not LEAVE your job to become a full-time trader.
Always collect Bitcoin, Spend at least 20% of your savings on collecting sats.

Sometimes beginners are always greedy when they get profits from their first trade, as a result increasing the trading capital for the sake of large profits again, it will be stuck later although I do not think that this is bad for beginners.
Yes I prefer to collect bitcoins from each allocation that has been determined, this will be much safer mentally than trading requires thoughts and pressure it will affect the psychology.

And once again, Leverage is your biggest enemy. Even 2x leverage is dangerous.
Bitcoin Halving is approaching, I would suggest all of you focus on buying more, avoiding selling, as these prices will never come in the future.

Buy BTC with DCA or lumpsum method, but DCA is a simple way where one can do it easily.
It's just a matter of practicing patience and being consistent all the time before the rally comes.

[corrado25]

Well, it is clear that for a beginner to come to this market and immediately start trading it is suicide. But none of us can influence this process. There will always be such cases when a person learned about crypto currency and immediately started trading or even investing. There are risks here and there. Even Investing in BTC does not guarantee that you will earn. You think that BTC will always repeat cycles in which it updates ATH, but didn't you think that it would end someday?

[348Judah]

Well, it is clear that for a beginner to come to this market and immediately start trading it is suicide.

That's true, how can someone think of making an investment all of a sudden without having any experience in it, trading could be a way of having a profitable investment but we cannot just embark on it like that without having any practical or technical how to do, this is the first thing that is expected of every newbies to allow time proof itself on them by learning to get ready before starting anything.

They can make use of the faucets to learn and have a start from somewhere, then after getting some level of experience, they can also started small, using a little amount they can afford to loose to start up with trades till they have enough and satisfactory knowledge in trading before taking it more higher.

[Luzin]

That's true, how can someone think of making an investment all of a sudden without having any experience in it, trading could be a way of having a profitable investment but we cannot just embark on it like that without having any practical or technical how to do, this is the first thing that is expected of every newbies to allow time proof itself on them by learning to get ready before starting anything.

But I started directly from a friend and made a deposit on the exchange around 40$. Not suicide, but I was prepared for the loss of those funds. Even in the past I didn't know demo account, I just learned directly to buy and sell then self-taught about the problem of Analysis. So I directly practice in exchange using small funds.
After understanding then you will feel comfortable trading.
I understand the meaning of trading is trading and in it there is a way of holding. If you mean trading is short-term trading and hold is long-term then you should do both. Because I did that.

[Gladitorcomeback]

Well, it is clear that for a beginner to come to this market and immediately start trading it is suicide. But none of us can influence this process. There will always be such cases when a person learned about crypto currency and immediately started trading or even investing. There are risks here and there.

You are right but fortunately I made a very good profit in the beginning without any knowledge of trading. I am living in area where no one was aware of crypto. I started searching in Youtube for online earning. In the beginning I lost small amount in the Ponzi schemes but later I joined free crypto airdrops and used money for trading I earned from airdrops. I remembered that I made 4x in just few days and I was not aware of basic trading  that time. Itall about luck but newbie should learned all technical skills of trading then enter into the trading world for low risk trading.

Even Investing in BTC does not guarantee that you will earn. You think that BTC will always repeat cycles in which it updates ATH, but didn't you think that it would end someday?

If we follow your advice then there It will stop the ways of investment because every investment can turn out be loss. Even if we invest in gold, silver, real estate it is possible that it end someday so I am not agree with your this point. Whenever we invest our goal is to make a good profit but at the same time we want a secure and minimum risk in investment. Usually when the greater number of people take interest in any assets we can call it secure and Bitcoin is the coin adopted by many people, firms and high liquidity is the main reason we could say that it will not end like other coins .

[bangjoe]

In fact, I see that most professional crypto traders resulting from their trading profits are collecting bitcoin, and especially now the Bitcoin trend has strengthened due to Halving, so it's more aik for beginners is to try to collect bitcoin first than trading.

If you want to learn trade, I think for beginners it is better to use 5% of the money deposited to the exchange to make trading, and it is also not good for a beginner to be active traders every day because it will only waste money, make a few moments for Learn trading and also use the smallest leverage that you can do so that your mental conditions run well, when everything does not match your calculations.
Beginners are very vulnerable to mistakes, so understand first before making a large risk.

[Zlantann]

Well, it is clear that for a beginner to come to this market and immediately start trading it is suicide. But none of us can influence this process. There will always be such cases when a person learned about crypto currency and immediately started trading or even investing. There are risks here and there. Even Investing in BTC does not guarantee that you will earn. You think that BTC will always repeat cycles in which it updates ATH, but didn't you think that it would end someday?

Newbies that fail to learn before engaging in trading will make costly mistakes. The best option is for beginners to start with investing and gradually learn about trading. But focusing on only Bitcoin investment will reduce the risk compared to other cryptocurrencies this is why newbies are encouraged to start with it. Profit is not guaranteed in almost all investments but Bitcoin has better chances of being profitable especially if it is held for a long time.

In fact, I see that most professional crypto traders resulting from their trading profits are collecting bitcoin, and especially now the Bitcoin trend has strengthened due to Halving, so it's more aik for beginners is to try to collect bitcoin first than trading.

I don't know why people prefer to start investing in Bitcoin when the price has started increasing. But they will be scared of buying Bitcoin during the bear period. The best time for newbies to invest in the sector is when the price is down but they wouldn't listen if you told them this truth last year. Now everybody is buying because of Fear of missing out and they might not get the best from such purchases.

[Kelward]

You are very correct OP, trading is like chasing peanuts when there is a bigger profit ahead of you, if only you could be patient and hodli your bitcoin. At this time like OP said, is a time for us to buy keep on stashing our bitcoin portfolio through DCA and wait till the bull run, instead of thinking on how to sell now and miss out in the bull run. Don't make decisions that will bring regrets in the nearest future.

Don't be deceived that you can use trading to increase your bitcoin because, you will end up losing it. Hodli is the road to success in your bitcoin journey as a beginner and even an old bitcoiner. Just see bitcoin as a normal investment that needs time to grow so that the profit will accumulate with the timeline of the investment and the size of it.

It's true, the advice is not just for beginners but for every member in this forum, even if you know the right thing to do, reminders won't hurt anybody. I agree very much that this is not the time to start chasing after a short time profit, its a time to see the bigger picture and embrace the long term which guarantees massive returns on investment. What's more interesting is that this long run is around the corner, halving, ATH then bull run, a long run has been cut short by nearness of time. Accumulate and hold bitcoin, till bull run, no need to for a none knowledgeable trader to take chances at accumulating bitcoin, through trading, the risk is much. To invest now carries very minimal risks, because price can slightly dump and pump, but the key is to focus on the coming bull run to cash in on huge profits.

[BitDane]

This is for newbies, so yeah I agree with @OP,  if we are new to the market, we will never have 100% success in trading so hodl is the best choice for us newbies and sell them at a profit.  (still we need to trade to realize our profit)

Bitcoin Trading will never be profitable in the long term as compared to HODL.

But for the seasoned traders this statement is a myth.  Trading in computation is way more profitable than just holding our Bitcoins.  We do not need to do day trade to say we are trading. Trading is simply buying and selling  regardless of the frequency or time frame, every time we buy and sell our holdings we do trade.  Even selling after a long hold is called trading, IMO.

In reality, you will never realize your profit if you just hodl.  you need to do trade in order to make profit by selling your holdings when profit is seen.

[AakZaki]

In fact, I see that most professional crypto traders resulting from their trading profits are collecting bitcoin, and especially now the Bitcoin trend has strengthened due to Halving, so it's more aik for beginners is to try to collect bitcoin first than trading.

If you want to learn trade, I think for beginners it is better to use 5% of the money deposited to the exchange to make trading, and it is also not good for a beginner to be active traders every day because it will only waste money, make a few moments for Learn trading and also use the smallest leverage that you can do so that your mental conditions run well, when everything does not match your calculations.
Beginners are very vulnerable to mistakes, so understand first before making a large risk.

Accumulating bitcoins gradually is the best strategy for both beginners and professionals. Because buying in stages will be very good for the long term. No emotions, no stressful moments and other negative things. The important thing is that there is a target to be achieved in the future.
Beginners don't necessarily trade every day, they just need to learn how to trade and yes 5% of the money can be used for trading so they can practice and understand how trading happens. This will shape their mentality to be better prepared for the crypto market.

[Bushdark]

In fact, I see that most professional crypto traders resulting from their trading profits are collecting bitcoin, and especially now the Bitcoin trend has strengthened due to Halving, so it's more aik for beginners is to try to collect bitcoin first than trading.

If you want to learn trade, I think for beginners it is better to use 5% of the money deposited to the exchange to make trading, and it is also not good for a beginner to be active traders every day because it will only waste money, make a few moments for Learn trading and also use the smallest leverage that you can do so that your mental conditions run well, when everything does not match your calculations.
Beginners are very vulnerable to mistakes, so understand first before making a large risk.

Accumulating bitcoins gradually is the best strategy for both beginners and professionals. Because buying in stages will be very good for the long term. No emotions, no stressful moments and other negative things. The important thing is that there is a target to be achieved in the future.
Beginners don't necessarily trade every day, they just need to learn how to trade and yes 5% of the money can be used for trading so they can practice and understand how trading happens. This will shape their mentality to be better prepared for the crypto market.

There are many ways we can accumulate bitcoin whether by staking or buying more holdings. Bitcoin is meant to be kept so that we can make some good profits from the market. Since it is certain that the bull market is loading gradually, it is very important for us to make plans and get ready for the bull market that is coming in months time. We can trade Bitcoin if we have the skill and understand how the Bitcoin market works if not loses can be incurred and gbis can affect us if there is no way we can adjust and make a better decisions that would make us benefits from the market.

[Agbamoni]

That's true, how can someone think of making an investment all of a sudden without having any experience in it, trading could be a way of having a profitable investment but we cannot just embark on it like that without having any practical or technical how to do, this is the first thing that is expected of every newbies to allow time proof itself on them by learning to get ready before starting anything.

But I started directly from a friend and made a deposit on the exchange around 40$. Not suicide, but I was prepared for the loss of those funds. Even in the past I didn't know demo account, I just learned directly to buy and sell then self-taught about the problem of Analysis. So I directly practice in exchange using small funds.
After understanding then you will feel comfortable trading.
I understand the meaning of trading is trading and in it there is a way of holding. If you mean trading is short-term trading and hold is long-term then you should do both. Because I did that.

Your friend have knowledge on Bitcoin investment or trading that is why you were comfortable enough to entrust your 40$. You can't tell me you would deposit your money in an exchange just to play with it there or gamble it. However, it is your decision which is suside, but as you said the money you used was something you could just forget, which means you were willing to profit or loss and you don't really care about the outcome then.

By now I believe your perception is different. You know what is right to do and how to approach investment. Because I know if you have a friend or brother you want to introduce to Bitcoin you won't advised him/her to start the same way you started, you now have a better option for them.

[Taskford]

In fact, I see that most professional crypto traders resulting from their trading profits are collecting bitcoin, and especially now the Bitcoin trend has strengthened due to Halving, so it's more aik for beginners is to try to collect bitcoin first than trading.

If you want to learn trade, I think for beginners it is better to use 5% of the money deposited to the exchange to make trading, and it is also not good for a beginner to be active traders every day because it will only waste money, make a few moments for Learn trading and also use the smallest leverage that you can do so that your mental conditions run well, when everything does not match your calculations.
Beginners are very vulnerable to mistakes, so understand first before making a large risk.

Accumulating bitcoins gradually is the best strategy for both beginners and professionals. Because buying in stages will be very good for the long term. No emotions, no stressful moments and other negative things. The important thing is that there is a target to be achieved in the future.
Beginners don't necessarily trade every day, they just need to learn how to trade and yes 5% of the money can be used for trading so they can practice and understand how trading happens. This will shape their mentality to be better prepared for the crypto market.

That would be the best solution for people can't afford to buy in bulk since buying gradually can potentially increase their volume to stake intended for holding and that would bring good result for them especially when certain hype regarding on bull run event will came since for sure all efforts for waiting to long will be rewarded at that time. Its also important that we have target set regarding on when to sell or what situation it will be so that we will have some basis on dropping decision if we are ready to take our profit and settle up for next round. Beginners might need to trade everyday since from that they can learn a lot and for sure once they experience how complex trading is for sure they can learn a lot of things that can help them to do better decision on their holdings or the trade they made.

Holding is for experience people since its really mentally stressful for a person doing that especially if he don't have experience to do so and seeing how market decline then he don't know what to do about it.

[knowngunman]

Hi everyone,

Bitcoin price is going up, resistances are being converted into supports. I want to share my advice and personal experience with beginners and newbies on this forum and explain what is good for them in the long term. If you are an experienced member/trader, take it lightly.

Alright, Newbie, I will start without wasting your time. Bitcoin Trading will never be profitable in the long term as compared to HODL.
You will never win or become a millionaire if you decide to take leverage, use Future Trading, or even Spot Trading. You can never catch every move perfectly.

I know trading is no way comparable to HODL but why not do both if you can? Combining trading and HODLing will go a long way and make you some profits. I am aware of the risk involved in trading but this sounds like discouragement to those who are interested in trading. Newbies and beginners just have to be careful when involving themselves in trading and learn about what it takes to be a trader. After all even the hodl is not risk free and no guarantee. If you have trading experience, it will even earn you more bitcoin to hold because when you make profit from trading, you will use part of it to increase your portfolio.

However, it's not advisable to even think of trading if you can not bear the risk involved because eventually you can not survive the damages it will cause you financially and emotionally. You don't need to trade before you can hold bitcoin. Just buy and store in your wallet in which you have the private keys in your possession. Remember, your keys are your coin and any mistakes that make you to lose it, consider your coins are gone.

[Obari]

I like it when I see reputable members still advising the newbies especially about holding and it also pains me to realize that I really don’t have any reasonable holdings as a result of my health and I pray to get better so I can actually channel all these funds to accumulating more of bitcoin as I’m pretty sure that the year(s) to come will be amazing for those who choose to buy and holding now as holding has proven to be one of the best ways to profit from bitcoin with minimal risk.

I’ve been a major fan of trading especially the synthetic indices and as a newbie, no matter how profitable you might seem from the initial stages without proper training, the losses will always tend to be greater than the profits and 20%been set aside is a very fair %that should enable investors comfortably invest in bitcoin without much stress.

[Vaculin]

 Newbies are not capable to trade in the market and expect sustainable profits just like professional traders. They don't have the skills and strategies that a good trader requires, and it needs a lot of exposure and experience in the market before you can say that you're good and profitable enough. So never stick with trading but focus on buying and long term hodling instead.

Bitcoin halving is nearly approaching and we have to maximize our bitcoin investment so we can also gain significant profits when we decide to sell. At least the risk with long term hodling is lesser, yet the profits are still huge and promising.

[Asiska02]

I really love and appreciate this advise a lot, it was short, direct and precise. All informations were helpful and duly acknowledged. This is not just for newbies and for members who have now yet experienced the halving and are anticipating to see one coming soon. This is an advise to call on all Bitcoin enthusiasts to shy away from what will make them miss out on the big opportunity in bitcoin by swaying away with the enticing offer or good testimony from people who have or may not have benefited through trading give. Keep accumulating those sats, their is better fortune in it than trading.

[BitDane]

Investing and trading is somewhat risky for every new investor or trader. Initially, an investor or trader does not have a complete understanding of these issues, due to which newbies make more mistakes in investing and trading. In the first instance new members need to get training and practical idea about investment first. Beginners need to use small amount of money first to get real idea. When they can get a fairly realistic idea of trading and investing with a small amount of money, they can start their main investment or trading. But in the beginning if one goes for direct investment or trading then they will not be able to do any good from their trading. So every trader and investor should get enough ideas and practical experience in the beginning.

IMHO, when someone invests he already takes it as something risky even before doing it. And someone who doesn't have knowledge upon doing so is actually a risk taker. But do they know that they can minimize the risk that before doing an investment, researching is going to give them an upperhand.

Not all, many investors are naive, thinking that when they invest they will definitely get a profit from their investment , then after they will learn the truth the hardway.  This is also one of the reasons why there are weak hands among the investors.  They are not prepared for the bad scenario and panic when they experience one which resulted of selling their Bitcoin holding just to "minimize their losses".  But little that they know that Bitcoin has the ability to recover and even surpassed its ATH, it is that it does not happen overnight.

Just to make sure that your hard earned money will be used properly and wisely, those that invests without prior knowledge are truly taking the top risk.

Yeah and they are the first one to buy during the peak and the first one to sell when the market become unfavorable.

And relating that to Bitcoin and trading, many of them doesn't mind going to the point of trading as soon as possible because of misbelief that they can make easy money there which is truly wrong and doesn't make sense.

Well, they can make money but not that easily.  Many of these newbies are enticed with huge profit and get hyped into investing  thinking that they will get profit if they just do trade.  I believe the misunderstanding are done by people who introduced Bitcoin but failed to remind the people about the risk and failed to inform them about how the Bitcoin market work.