Al little experiment, what is better - hodling or trading ?

[gunhell16]

Hi.

I got 0.001 BTC (worth today about 100 USD) from www.freebitco.in and I plan to make a small experiment with it. I will try, is it possible to increase this initial BTC amount (0.001) with trading: selling then BTC is overvalued and buying then BTC is undervalued.

I believe that Bitcoin will be worth at around million USD in 2040, but meanwhile it will be much much cheaper than today (hundred thousand USD). Is my holding then worth 1000 USD? Or more? Or less?

With great excitement,
Jaanus

Just don't limit yourself to how much you invest in Bitcoin, as long as you have extra, that's what you should buy or you should always allocate for bitcoin every time you make a profit.

It's up to you whether you save it monthly or weekly, as long as it's up to you, since you're the one who knows what you're really doing. Now, as for trading, there's no problem as long as you trade at your own risk and you should also accept that you also accept losing in trading because not every time you win.

[Dzwaafu11]

I got 0.001 BTC (worth today about 100 USD) from www.freebitco.in and I plan to make a small experiment with it. I will try, is it possible to increase this initial BTC amount (0.001) with trading: selling then BTC is overvalued and buying then BTC is undervalued.

Trading your asset to increase your bitcoin portfolio is something you should ask yourself if you can be able to do. Although if you are ready and willing to use the funds to trade, then you should know more about trading, have your own strategy and everything a trader needs before you jump into trading because trading is very risky, especially for a beginner trader.

So trading your bitcoin to increase the portfolio – that decision should be for you, although people may do that if they have the knowledge of trading, not beginners. Although if it’s me, I won’t trade the $100. I would rather keep holding the bitcoin, and when I have money to buy more bitcoin will do that but not use the $100 to trade, thinking that it will increase. I can say that is a risky decision; nobody will stop you from doing that since you said you can afford to lose the $100.

[jaberwock]

They are both unique and they have their own risks...I can't really say that one is better than the other because they work differently based on every individuals level of knowledge... holding is more of people who are into long term investments and trading on the other hand is more of a short term term investment..they are both profitable but it both involves taking risks and knowing how to keep it balanced

Trading is trading but short-term investment belongs to hodling category. There are traders who hold for a while but if that was the case, they better don't trade at all and just do short-term investing instead. It is shows that they are not yet ready on the level of risk that trading has to offer. This is the problem of most people or traders. They get too excited and lacks in patience to go on the process first.

The balance that you said at the end, can mean two things. That is; the balance in our daily life and balance on the holding or trading activity that we do. This is like saying we shouldn't be greedy because even if we win, we will still lose our profits if we won't stop.

[Negotiation]

Both approaches have their place and effectiveness many investors also successfully combine both approaches where they hold some long term investments and use some for short term trading. Those who are not well versed in the process and strategy of trading should not expect immediate profits rather they are more likely to experience consistent losses in the early stages of learning. And for those who are interested in long term investments and are not concerned about short term market fluctuations holding coins can be a relatively safe and stable strategy. Good quality coins have the potential to increase in value over time you should consider your situation and goals to decide which one is best for you.

[hyudien]

~

Just don't limit yourself to how much you invest in Bitcoin, as long as you have extra, that's what you should buy or you should always allocate for bitcoin every time you make a profit.

It's up to you whether you save it monthly or weekly, as long as it's up to you, since you're the one who knows what you're really doing. Now, as for trading, there's no problem as long as you trade at your own risk and you should also accept that you also accept losing in trading because not every time you win.

Simply hodl bitcoin is not complicated and very simple and provides breadth in long-term investment but when talking about trading then some beginners will feel the difficulty and the risk is very large. Based on the OP question, a better small trial would certainly fall on hodl.

[Hammer_Summer]

Actually Trading with tiny sums is a good method to learn without risking much. Timing the market can be tough though, given BTC is very volatile. As for the future if Bitcoin actually does hit a million by 2040 even holding that 0.001 may be worth a lot more than now. But it all relies on how the market moves and how consistent you are with your strategy.

[Mpamaegbu]

As for the future if Bitcoin actually does hit a million by 2040 even holding that 0.001 may be worth a lot more than now.

While hodling will benefit investors, trading will benefit the network as trades are carried out. It was for this reason that the famed 10,000 BTC was exchanged for just two pizzas. My argument has always been that if everyone decides not to sell their Bitcoin, no one will have an idea what Bitcoin value is today. Nothing is worth anything untill it's exposed to the dynamics of the market. Yes, Bitcoin will worth more in future but I rather not hodl all throughout without taking profit from time to time and then rebuying at low.

[alastantiger]

Trading your asset to increase your bitcoin portfolio is something you should ask yourself if you can be able to do. Although if you are ready and willing to use the funds to trade, then you should know more about trading, have your own strategy and everything a trader needs before you jump into trading because trading is very risky, especially for a beginner trader.

I don't recommend we trading to increase our portfolio but instead, investing is the right thing to do. We should be investing into getting better paying jobs that'll give us enough money to have spares to invest into our portfolio. Trading isn't a guarantee and I don't like to do things that doesn't have guaranteed because we can lose while doing those things. With jobs, we'll have assurance that we can get a specific amount of money monthly or weekly that'll be use to invest and then we can grow our portfolio to our desire taste.

Holding helps build your patience with trading makes you impatient because you can't be waiting for the market to give you profits while trading instead all you'll be concerned about is how to make profits with every movement of the market and when the market moves without you making a profit, you'll become angry.

[taufik123]

While hodling will benefit investors, trading will benefit the network as trades are carried out. It was for this reason that the famed 10,000 BTC was exchanged for just two pizzas. My argument has always been that if everyone decides not to sell their Bitcoin, no one will have an idea what Bitcoin value is today. Nothing is worth anything untill it's exposed to the dynamics of the market. Yes, Bitcoin will worth more in future but I rather not hodl all throughout without taking profit from time to time and then rebuying at low.

Both will definitely always be the case, where investors will always be there to hold their assets in Bitcoin until their price targets and traders are always making trades to make profits from the price fluctuations that occur.
It is indeed an advantage for the network or exchange but trading also provides advantages for those who trade correctly and professionally.

You probably won't be selling bitcoins anytime soon, and only accumulate Bitcoins when the price drops drastically and it looks like you have enough Bitcoin for you to hold on to in the long run.

But of course you have a target price that will be the point where you will sell it for the profit you expect, not hold it for the rest of your life.

[tvplus006]

...Holding helps build your patience with trading makes you impatient because you can't be waiting for the market to give you profits while trading instead all you'll be concerned about is how to make profits with every movement of the market and when the market moves without you making a profit, you'll become angry.

Hodl is not a panacea when investing in cryptocurrencies, as all coins are different in their technology. And if some coins have long-term potential, and over time their price may rise, then other coins are speculative and their price may not only decrease, but also disappear from the market altogether.

[reagansimms]

~~~

Hodl is not a panacea when investing in cryptocurrencies, as all coins are different in their technology. And if some coins have long-term potential, and over time their price may rise, then other coins are speculative and their price may not only decrease, but also disappear from the market altogether.

I agree with the sentence you used in the first verse, traders with small capital must be more active in monitoring market movements to gain profit from price movements that occur all the time. They also need to be patient and not panic easily if the price drops after making a purchase because market sentiment can change at any time. Preventing greater losses needs to be done by choosing top coins such as Bitcoin, its strong level of resistance can provide comfort for traders who have small capital. Traders also need to analyze the market carefully so as not to rush when making decisions, avoiding FOMO also needs to be done for trading discipline so as not to be tempted to make impulsive decisions.

[traderethereum]

Actually Trading with tiny sums is a good method to learn without risking much. Timing the market can be tough though, given BTC is very volatile. As for the future if Bitcoin actually does hit a million by 2040 even holding that 0.001 may be worth a lot more than now. But it all relies on how the market moves and how consistent you are with your strategy.

That is recommendation for those who new in trading. Using small money while they learn about the analysis and other things can help them to have time to understand. If they lose, their lose will not too big but they can learn from their mistake to improve their skill.

But if you think you are difficult to learn trading more details, you can just hodl Bitcoin without spending to anywhere. You use Bitcoin as your long term investment and still buying using DCA method. That help you to gain the big profit in the future especially when Bitcoin reach your target price. You should know that no one can force you to trade.

[Altryist]

Hi.

I got 0.001 BTC (worth today about 100 USD) from www.freebitco.in and I plan to make a small experiment with it. I will try, is it possible to increase this initial BTC amount (0.001) with trading: selling then BTC is overvalued and buying then BTC is undervalued.

I believe that Bitcoin will be worth at around million USD in 2040, but meanwhile it will be much much cheaper than today (hundred thousand USD). Is my holding then worth 1000 USD? Or more? Or less?

With great excitement,
Jaanus

If we are talking about Bitcoin, then there is nothing to think about, holding will almost certainly bring you better results, maybe an exception will be if you are a very good trader, but for most people holding will work better. If we are talking about holding altcoins, then this is a very bad idea in my opinion, especially if it is a long-term hold, then you still need to monitor the project, and with altcoins, everything usually goes down. So if this is advice for a beginner, then first - buy only Bitcoin, and second - do not try to trade, just hold.

[tvplus006]

If we are talking about Bitcoin, then there is nothing to think about, holding will almost certainly bring you better results, maybe an exception will be if you are a very good trader, but for most people holding will work better...

This is the main difference between holding and trading. The holding allows even a beginner who does not have special knowledge about cryptocurrencies to make a profit on a long-term basis if the coin is chosen correctly for investment. Trading is profitable only if the trader is really a professional in his field.

[Leahized]

Actually Trading with tiny sums is a good method to learn without risking much. Timing the market can be tough though, given BTC is very volatile. As for the future if Bitcoin actually does hit a million by 2040 even holding that 0.001 may be worth a lot more than now. But it all relies on how the market moves and how consistent you are with your strategy.

you think you are difficult to learn trading more details, you can just hodl Bitcoin without spending to anywhere. You use Bitcoin as your long term investment and still buying using DCA method. That help you to gain the big profit in the future especially when Bitcoin reach your target price. You should know that no one can force you to trade.

You may have forgotten that the money is more expensive for the holding than trading. Why do you think it can cost a lot of money to learn trading details? I think you can master everything very easily if you are in a hard work. Otherwise you will not be able to benefit even if you hold Bitcoin. Because it is the first time you need patience to learn trading. However, if you have a lot of money, you can do both the trade and holding. However, Risk is low for holding and Risk is higher in the trading. That is why one should go ahead with whatever choice and be careful all the time. So that everything can be dealt with before the bad situation in the market .

[EarnOnVictor]

I got 0.001 BTC (worth today about 100 USD) from www.freebitco.in and I plan to make a small experiment with it. I will try, is it possible to increase this initial BTC amount (0.001) with trading: selling then BTC is overvalued and buying then BTC is undervalued.

I believe that Bitcoin will be worth at around million USD in 2040, but meanwhile it will be much much cheaper than today (hundred thousand USD). Is my holding then worth 1000 USD? Or more? Or less?

If you prioritise the safety of your money, go for HODLing, but be sure that you zero your mind of that money and your profit won't be exciting after a long period of time. However, if you prioritise risk, especially when your AI is good at what it does, then go for trading. Supposing I'm the one, I will try my luck on trading and follow the strategy you explained, but with extra caution and more analysis. If you are lucky and successful enough, you might make multiples of this amount in just one year.

[coolcoinz]

If we are talking about Bitcoin, then there is nothing to think about, holding will almost certainly bring you better results, maybe an exception will be if you are a very good trader, but for most people holding will work better...

This is the main difference between holding and trading. The holding allows even a beginner who does not have special knowledge about cryptocurrencies to make a profit on a long-term basis if the coin is chosen correctly for investment. Trading is profitable only if the trader is really a professional in his field.

It's even better. If OP thinks it's eventually going to a million dollars, why not focus on doing something else and let the coin grow in a cold wallet?

We all have a certain amount of time to spend every day. We can dedicate this time to certain activities like working, trading, having fun, and so on. IMO trading is a bit counterproductive if you're a bull and believe it's going to appreciate to insane levels, the way Saylor predicts. It's better to look for ways to get capital, like through a business, taking loans, selling unneeded stuff. You're going to make more money this way than by trading. Let's say you can make 50% a year through trading. You have $10k to begin with, and you'll make 5k a year and bitcoin goes up 20% that year which is a very low number but I'm showing it to you on purpose. 
You can easily save up $5k and invest in bitcoin by simply working on it. By the end of the year you'll have $15k + whatever 20% gave you over the year, which could be between $2k and 3k. Being a very good, often lucky trader will more or less give you the same results as having a job and saving up in bitcoin, unless you have huge investment to begin with, like over $100k, which could allow you to make more money from trading.

With low starting capital you're going to do better saving up, working and doing DCA.

[dunfida]

If we are talking about Bitcoin, then there is nothing to think about, holding will almost certainly bring you better results, maybe an exception will be if you are a very good trader, but for most people holding will work better...

This is the main difference between holding and trading. The holding allows even a beginner who does not have special knowledge about cryptocurrencies to make a profit on a long-term basis if the coin is chosen correctly for investment. Trading is profitable only if the trader is really a professional in his field.

It's even better. If OP thinks it's eventually going to a million dollars, why not focus on doing something else and let the coin grow in a cold wallet?

We all have a certain amount of time to spend every day. We can dedicate this time to certain activities like working, trading, having fun, and so on. IMO trading is a bit counterproductive if you're a bull and believe it's going to appreciate to insane levels, the way Saylor predicts. It's better to look for ways to get capital, like through a business, taking loans, selling unneeded stuff. You're going to make more money this way than by trading. Let's say you can make 50% a year through trading. You have $10k to begin with, and you'll make 5k a year and bitcoin goes up 20% that year which is a very low number but I'm showing it to you on purpose.  
You can easily save up $5k and invest in bitcoin by simply working on it. By the end of the year you'll have $15k + whatever 20% gave you over the year, which could be between $2k and 3k. Being a very good, often lucky trader will more or less give you the same results as having a job and saving up in bitcoin, unless you have huge investment to begin with, like over $100k, which could allow you to make more money from trading.

With low starting capital you're going to do better saving up, working and doing DCA.

On the moment that we are just that still starting then these kind of questions or things will definitely be that pushed up into your mind on which you will be having that kind of confusion on what are the actions that you would be needing up to do for you to be able to have that maximize profits as much as possible. Also, each person does have that different level of tolerance when it comes to risks taking and management on which simply means that you would be needing up to consider on which method that makes you that yourself be comfortable whether you would become that a holder or you would be that become a short term trader. Not all will be having that courage on taking up that trading short term approach because volatility isnt something that you can deal on it on easy way and needed up for you to be serious. If you are still that having that hindrance on which one you would be trying out to deal with then this is the moment or time that you would be trying out to test out on which one works for you.

It all matters about on how you would be able to test out whether it will be that holding or trading actively on which it matters about on the risks management that you would be trying out to deal on with. If you are just that simply testing out on how you would be handling up your crypto investment then this will be the best approach on this one. You are the ones will be trying out on which one works for you and just like been said that risks tolerance will differ into each individual and thats why decisions will also vary too.

[Natalim]

If we are talking about Bitcoin, then there is nothing to think about, holding will almost certainly bring you better results, maybe an exception will be if you are a very good trader, but for most people holding will work better...

This is the main difference between holding and trading. The holding allows even a beginner who does not have special knowledge about cryptocurrencies to make a profit on a long-term basis if the coin is chosen correctly for investment. Trading is profitable only if the trader is really a professional in his field.

While holding could make an edge in the future, but trading could make you highly profitable as well, that is if you are inclined already on how to manage that kind of craft. However, since you are still in the beginner’s era, I suggest don’t rush into trading yet, otherwise all your funds will be put at risk of losing even by just a single mistake. Learn how to trade, but always put holding first as your priority.

[tvplus006]

While holding could make an edge in the future, but trading could make you highly profitable as well, that is if you are inclined already on how to manage that kind of craft...

Of course, trading brings much more profit on a short-term basis, but we should not forget that such traders, who receive stable profits, according to statistics, only 5% of the total number. So everyone should independently determine for themselves who they are: a trader or a holder.