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.

[laijsica]

OP your insight about bitcoin investment can be good example to get profit. I think most of the investors use these two methods because holding is a means of making sure profit for them and active trading can be a means of daily income for them.

Bitcoin Holding : Long-term Bitcoin holding can definitely be a safe investment for you that you might not expect in other traditional investments. If you review the past price history, you will see that the value of Bitcoin has been increasing steadily over the years. So if you can hold bitcoin for 4-10 years then you can get huge profit. But you should keep in mind that Bitcoin is volatile but you should continue holding.

Bitcoin Trading: Trading is much more risky than holding and you can lose your capital because trading is a short-term investment and the value may drop immediately after your purchase, so your capital is at greater risk. The current market price of Bitcoin is very disappointing for traders and the price may fall further. when the price of Bitcoin is increase is very positive for traders which can make them huge profits.

Above all Bitcoin can definitely be a positive investment for you but you should keep a long term investment horizon which can give you a lot of profit for the future. Your active trading can be relatively nerve wracking and raise your blood pressure while monitoring the daily market. So if you have a guaranteed alternative income, long-term bitcoin holdings may be the best decision for you.

[CryptoHeadlineNews]

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.

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.

And in addition to what Charles Tim has said, I will also like to add that we also have another form of trading called p2p trading and Future trading, whereby p2p stands for peer-to-peer, and it is the type of trade which involves buying or selling of crypto assets directly between two or more parties using either centralized & decentralized crypto exchanges as escrow to execute transactions for security. And p2p happens to be one of the most common type of trading, whereby a user who intends to buy or sell his Bitcoin into fiat currency could conveniently use it to execute his transaction successfully.

Secondly, Future trading, which happens to be another  type of trading with the use of contract whereby investors are allowed to buy on a speculated price in the future movement of a digital assets (i.e Bitcoin/Dollar, Bitcoin/Euro, Bitcoin/Pounds).

[Tmoonz]

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?

Trading can be very emotional, I prefer long term holding which is more like investment as when compared with trading perhaps Bitcoin is best performed when viewed on a long term perspective, thou patient is required and also the ability to increase your holding up to a reasonable amount and hold for as long as possibly 4 to 10 years or more where you can have the compounded value of your investment over a period of time of getting a substantial overall return of investment. Trading can be very complex and emotional devastating both for an experience one let alone a newbie.

[Nheer]

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.

Try to make more enquiries and have a better understanding before posting, Trading is different from investing (holding as you call it). I think you should focus more on learning for now so you don’t get wrong ideas about certain things.

Investing can be either short term or long term with the hope of earning profits. It will depend on the investment plan you design for yourself but long term investments are more profitable with lesser risk.

Market dip is not really a disadvantage because all investors suppose to be aware of market dips and that they are inevitable and that they are bound to happen at some point so investors are to include them in their plan what to do when there is a drop in price. Dips present investors the opportunity to accumulate more bitcoin at a more affordable price.

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.

Not including the high level of risk in trading proves to me you don’t know much about trading, the way it  offers quick profit is the way offers quick losses too.

[Obari]

It all depends on what favour the trader and I’ve seen a guy who does both long term and short holding because he has a wallet which he has held for some years now and constantly buys coin at every possible time and I think his already doing well for himself because he already knows how to maintain balance in the trading industry.

I think everyone would prefer to hold for much more longer time if they have all it takes to do so and what it really need and requires to hold coin for much more longer time is contentment and discipline and the ability to constantly practice the DCA method will help every actual investors and potential/intending investors to always try as much as possible to buy little fraction of bitcoin at every opportunity they get to do so because it always pays off.

[Jaycoinz]

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.

Anything concerning trading Bitcoin for short term is actually not advisable and that's my own naive take although some persons.might still say this method or move actually do work for them but am off that opinion because you might get some loses sometimes in trading and that might trigger you to even get back that coin you lost and before you know you have ended up trying to catch that win with all your savings.

[nelson4lov]

Hybrid approach is might not be the best approach for everybody. The reality is that all market participants are different and no-one market participation style is better than the other. Here's how I see it:

• If you're a long term believer and don't want to spend plenty of time opening, monitoring and closing trades, then it's not for you. If you don't also know how to trade, or at the bare minimum, Knowledge of trading fundamentals, there you are better off just buying and holding.
• Trading is just simply better for anyone that has the capacity and knowledge for it and don't like leaving money on the table. Quick profits and quick losses are the order of the day

Either strategy works. You just nerd conviction on one of them and you'd be good to go.

[CryptopreneurBrainboss]

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

Don't forget the potential lost of your crypto because of leaving them active on exchanges which are mostly CEX. You won't buy and send the crypto to your non custodial wallets as you're actively trading and would want to seize every opportunity that you have to take profits. Traders are expensive risk takers and they aren't the most successful in the industry. Trading exposes you to the market and the risk of losing your coins but investing don't and don't forget there's a big difference between trading and investing (don't confuse the two).

.📌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?

It's not the best method na investing (hodling) and it has proven that it's better than trading, short term investing or anytime you wan do. Hodling na him sure pass. People wey dey enjoy Bitcoin for the industry are hodlers. As you dey hodl e dey give you chance to do other things wey fit bring you money and diversify your portfolio. Trading go take most of your time and even though you wan dedicate a specific time for your trading so you fit dey use the other free times do other things e no go fit give you peace of mind as how if your investing are projected for a long term. All the market wahala no go just dey stress you.

[Hewlet]

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.

this is not really a disadvantage. Note that Bitcoin is a volatile asset and for that reason, it's normal to see price drop or some correction while you're still HODling and the simplest thing to do at such instance is to keep HODling till you've come out of such correction. If you even have the resource, it's during price drop that you can easily add up to the amount you're already holding. Your potential gain as a real time Bitcoin investor comes when you've accumulated a good amount of Bitcoin and so it's more appropriate to look at HODling from a longer term perspective which will bring along the line multiple of dips and bull up untill you've built up a good chunk of BTC and can comfortably sell when you're in good profit.

⚫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 issue with trading Bitcoin or buying Bitcoin and then selling it immediately you're in profit is that for most cases, it's not always easy to see Bitcoin at say $53k at the moment and In the next day or one week it's at $100k which would have placed the short term trader at 2× his profit. If it ever happens, it's always ones in a while and you can't really depend on such minimal possibilities as a trader. Maybe for other digital asset like some altcoins trading might be good for the short term and for some profit but Bitcoin is best looked at as a long termed asset.

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.

if you don't have a good amount you're putting into this, even while you're in profit and want to sell too soon, you have to factor in the charges that comes with trading with a small amount of Bitcoin and if you don't know what you're doing, you might spend your small profit as charges

[Hatchy]

What do you think?

I usually don't advise people to go into trading, that because of the risk involved in trading the market. Just like you stated,trading requires you steadily monitor the market and try to ride along it's wave. But then when you go into the long term hold, you don't go through theses stress as you make profit from holding more than a year or 2 of purchasing. Both of them come with disadvantages but trading has a more significant risk when you don't know how. It takes time and experience to make short term profit from trading. So if you don't have such experience just stick with the long term hold.

[Obim34]

What do you think?

I usually don't advise people to go into trading, that because of the risk involved in trading the market. Just like you stated,trading requires you steadily monitor the market and try to ride along it's wave. But then when you go into the long term hold, you don't go through theses stress as you make profit from holding more than a year or 2 of purchasing. Both of them come with disadvantages but trading has a more significant risk when you don't know how. It takes time and experience to make short term profit from trading. So if you don't have such experience just stick with the long term hold.

People can also be subjected to what they choose to do, in most cases a user might decide to go on both trade and holding. Holding is most preferred because it doesn't ignite the possibility of losing funds unlike trading which stands between the line of either profit or loss. We only can encourage more people to choose the path were they are potentially filled to make profits without having doubt especially to those who have a small funded account. Anyone going into trading should aswell know the risk and benefits and benefits able to bear possible losses.

[Coyster]

Hybrid approach no go fit work for everybody, particularly because of limited amount of funds. Me i dey always tell newbies make dem no trade, e better for dem to buy bitcoin and if dem don dey in the network for sometime and within that time they try to acquire trading skills, then dem fit begin trading small small. Personally, i prefer long term hodling, it is a safer approach and you only have to learn how to keep your assets safely, you go fit also adopt the DCA strategy and accumulate your bitcoins gradually.

[SOKO-DEKE]

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.

It is normal for the price of Bitcoin to change due to its nature of volatility. When holding, and in the process the price drop, I don't see it as a disadvantage because that’s Bitcoin nature, and everyone in to Bitcoin investment must know that the price can change anytime. So, if the price of Bitcoin is down significantly, the best thing to do is to continue holding for the best time you can make  reasonable amount profits. The only way someone can avoid selling in the short term is to only invest what they can afford to lose. Once it is money someone can afford to lose, holding for a long time may not seriously be a problem when market is not doing fine when you have plan to sell it.

⚫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.

Trading is not an easy thing, and it is not that easy to make quick profits from trading just like that repeatedly. Even with proper knowledge, someone cannot continue making profits trading because it is very hard to deal with. This is one of the reasons they always warn newbies that they should not be involved in trading unless they have learned and gained proper knowledge. I am not discouraging people from trading, but that is the truth. One more thing: when trading, know the type of coins to trade because some coins are just for scamming people. If possible, I would advise starters to only trade Bitcoin.

[DiMarxist]

Trading is to make quick money while investment is to make money or gain in a long time. If the trader is very good in trading then it is good for him to make profit from the trading but if he is not too good for trading then I advise him to invest. As for I am not good in trading so I chose investment and it is for long term investment. Trading is too dangerous for me. Though bitcoin price is not stable and it is volatile but if you are investing foe long term then you will not regret investing in it.
Trading is not for newbies and it is not for inexperienced traders and it is good for those who have the experience so that they won't lose when trading before in investment your don't need much but if you like to learn deeper and you can do it. But the basic knowledge of bitcoin can give you the investment plan.

[Stepstowealth]

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.

If you decide to become a holder, you need to ignore any disadvantage that it may have, ignore  market movement and just know that the market will always go back up even if it goes down. If you are able to accept this, you will be a very good holder who does not respond to Fear, uncertainty and doubt.
Why we for our side dey sabi worry when bitcoin price dey drop, na because say our economy dey poor and every money matters to us, so once value of bitcoin wey we get dey drop, we dun start to panic, we need to stop that kind thing. 

[Ishicryptic]

📌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?

I agree with this summation, a person can become a Bitcoin hodler and a trader, it just requires having adequate knowledge about how Bitcoin works and learning the necessary skills to be a good trader. A Bitcoin trader can make profit from crypto trading and diversify it into Bitcoin investment, that is why I think that it is a good idea to trade and hodl Bitcoin at the same time. The major difference between the two is that trading is for short term profit, although loses can occur while hodling or investment is for long term profit if the investors will hodl for long term. Also trading requires learning trading analysis to avoid or minimize loses while Bitcoin investment doesn't require much technical skills, an investor basically needs to understand how to secure their wallet private keys and occasionally monitor Bitcoin price from the Blockchain.