Trading VS Holding Cryptocurrencies: Which is the Better Investment Strategy?
In this video, I'll be sharing my thoughts on the raging debate in the cryptocurrency community about the merits of day trading cryptocurrencies as opposed to long-term holding or "HODLing" them.
***I am in the process of adding many of my videos from YouTube on to DTube. Apologies for any posts that you've already seen before!
Original date of upload: June 6th 2017
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Day trading is too stressful for me. I rather HODL. So far it has been working for me. However, I do like to have some staking coins that give small rewards for holding.
“Don’t trade bitcoin or altcoins , just buy and hold and you’ll get rich.”
Well, if we look back in hindsight over the past few years it’s obvious that if you bought Bitcoin in the $200’s and were still holding above $2,000 that would be an incredible return.
So yes, the “buy and hope” strategy works well when markets have incredible gains – and Bitcoin has been the best performing market on the planet for the past few years.
But if we look at the total number of people around the world that own bitcoin (which I have no clue exactly how many people there are), the fact is that only a small percentage of those people bought and held bitcoin from below $200’s.
There’s a large majority of new people that have purchased bitcoin for the first time above $1,000 – that’s why the price went from $1k to $3k in just a few weeks. It didn’t just magically happen. People had to buy at those levels for the price to go up.
And because of human nature, people tend to buy into something when it’s hot or popular. That usually means when the price is high. And a very high percentage of those people that buy high end up panic selling when bitcoin’s price falls by 50%+.
The same thing happened in 2008 during the financial crisis. A lot of people were buying the stock market at all-time highs. Many of them were doing it because Jim Cramer was pumping the hell out of stocks right before the crash. Then a lot of people sold their stocks when they fell by 50% and missed out on the biggest bull market of the century.
If you’ve been in bitcoin for a few years, then you know how volatile the price can be. Bitcoin’s had several bubbles. The beautiful thing is that, so far, after every bubble price has recovered and made a new higher high. So yes, in theory, if you time it right (which is very hard to do), and buy on panics and hold long-term you’d have made great returns.
insightful as always!
I like to day trade a small amount and then add the profits to my Hodling wallet.
With this volatility day trading can be death or glory...I rather hold to be honest, but I admit that if you combine the two, it can be a bomb!
I'd always prefer buying and holding a lot of low-price coins. Why? Because if you buy something at 0.03-0.04 USD lets say, You dont have to spend a lot of money to get a lot coins and that's okay. Another plus is the price wont probably go down to 0.00 but will increase just because other people like me decided that the coin's price is low and it is worth buying. The chance to double/triple/etc your money is a bigger. A coin going from 0.04 to 0.08 can happen and is way more possible than Bitcoin going from 17k to 34k, isn't it? Of course all of this is just my opinion. Best wishes, Sveto.
I have recently let go of some coins when I see a bit of profit. Didn't hold very long since Bitcoin was down for number of days until the last two days that I see it in green. Bitcoin is affecting everything. I will buy in to level up when my coin is falling. I had even just use my falling coins to buy steem when my litecoin fell like crazy. True that hodl for long term can profit and we must just be patient!
what happened to binance will make most traders learns how to HODL
lol for a day or two
I have hodl positions and trade positions.
to be honest, i do both. i like to get in on promising projects early and hold them for long term. but scalping and trading daily can make you dough in any market.