Cryptocurrencies fundamentals : Trade VS Buy and Hold

in #steemiteducation7 years ago

Hello Steemians,

Investing in the cryptocurrencies - as I described in my previous post Here – is a powerful tool to make money and attempting to profit from the crypto-market, it is literally the definition of making money work for you and bring you more money. However, in this post I want to make it clear about some finance fundamentals or market fundamentals, I would like to talk about some basics of investing: the difference between Trading and Buying and Holding.

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Trading:

Trading is really a good way to have a big income of money if you master it., It is based on profiting from the falling market, Buying at Lower price each time the market falls down and selling at a Highly price in a short period of time, are the main rules for this tool.

Difficulties:

The mysterious key in this option is that it is not easy to identify what is the bottom when you should buy the cryptocurrency and what is the High price to sell in it. It recommend more knowledge about some mathematical and technical analysis tools.

Buy and HODL:

The main rule of this option is that you should stay in the game and hold your cryptocurrencies as much as you can. Its goal is to build wealth over a long period of time.
It is Similar to trading but the difference between them is that Trading is just for buying and selling in a short time, instead of buying and Holding for which you keep your cryptocurrencies saved for a long time, even if the prices fluctuate, even if the prices start to fall down, all you should do is to hold your cryptocurrencies for an extended period of time (more than 1 year) because at the end the price will rebound again and any loses will eventually be recovered.

Difficulties:

The problem with this option is that: before you invest in some currencies you should search for its impact in the future and how it will help humanity, what is its additional value compared to other coins, you should also stay updated with the latest news in the blockchain.

As a conclusion, In the cryptocurrency there is no “ better ” way to make money, there is no “this way will let you make money more than another or faster than another” but there is just “make money”, as we have seen, any method has some advantages and some difficulties, it will only depends on your efforts and how much time, and how much energy you will put in them to make money, because at the end all the ways work.

Thank you for reading my post!
Don’t Forget to Upvote, Resteem and Follow.
Sincerely
@merosy

Take a look at My Previous Post :
The powerful tool to make money is : NOT WORKING FOR MONEY!

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Don't forget to use a healthy combination of the two! I hodl and trade. I often don't hodl the same crypto that I trade daily.

Yes @blck0 I totally agree with you!

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