Long-term Holding vs. Active Trading: The Choice

[Uhochi]

When it comes to investing in Bitcoin, two popular methods are known: long-term holding and active trading. Each method has its advantages and disadvantages, which I'd love us to discuss.

⚫Long-term Holding (HODLing)

This method offers lower stress or high BP because you simply buy and hold, no need to constantly monitor markets or study charts all the time. Also, Bitcoin's value increases over time.

A study by Coinbase found that 75% of Bitcoin investors hold for at least six months, while 50% hold for over a year. Also, according to Glassnode, the average Bitcoin investor holds for around 1.5 years before selling.

The disadvantage of HODLing is that prices may drop significantly in the short term, and if you're holding through market downturns, it means missing out on potential gains.

⚫Active Trading

This method offers potential for quick profits; you can buy low, sell high, and repeat. Also, you can adjust your strategy swiftly as market conditions change for bigger gains. And active trading can be engaging.

The disadvantage is that it can be stressful because of the constant market monitoring and quick decision-making. Also, constant transactions mean higher exchange and trading fees.


📌I think a hybrid approach is safe to try. Combine long-term holding with active trading. Hold a core amount long-term and trade a smaller portion actively.

What do you think?

[Charles-Tim]

When it comes to investing in Bitcoin, two popular methods are known: long-term holding and active trading. Each method has its advantages and disadvantages, which I'd love us to discuss.

Investing is different from trading.

Holding your coins for many months like 6 months or for years is known as investing. 3 to 6 months can be considered as short term holding while her more than that can be considered as king term.

Trading are if three types. Scalping which means to trade within second to few minutes. Day trading which means to leave the trade opened for like a day and many for many hours. Swing trading which means to leave the trade opened for many days or weeks.

This method offers potential for quick profits

And also offering potential losses.

[Commorant]

The disadvantage is that it can be stressful because of the constant market monitoring and quick decision-making. Also, constant transactions mean higher exchange and trading fees.

The stress is not enough to be called a disadvantage afterall, hodling requires more concern as to how you protect your coin from cyber theft. Anything that produces profit at the end will always require meticulousness.

📌I think a hybrid approach is safe to try. Combine long-term holding with active trading. Hold a core amount long-term and trade a smaller portion actively.

hybrid? There's something you really need to understand. These two strategies of investments require different level of skills; anyone can hodl coins and stay safe with it, but not everyone can trade.

[EclipseXcrypto]

Hybrid approach might jeopardize your bitcoin holdings for long term because the loss in trading  might see an investor loose coins meant to hold for long term. The knowledge required to buy Bitcoin and HODL for long term purpose is different from the knowledge a trader requires to be successful in trading, Don't be enticed by the short term gains of trading, the losses is greater. Holding Bitcoin for long-term is a more flexible approach to make profits, so a long as good strategy like (DCA) are applied and done consistently with right perspectives you can profit from holding bitcoin.