Holding vs. Trading: Which One is Better for Beginners?

Everywhere you look these days, there’s someone trying to get into cryptocurrency. Learning the ropes of crypto staking and binance requires effort and time. And rushing into the cryptospace without adequate knowledge can result in losses.

Technically speaking, every crypto geek must understand the difference between holding and trading the digital currency. If you want to make a fortune in the field of binance and blockfi, you need to know when and how you should retain or withdraw your digital assets.

As a new investor or a hobbyist, you also need to understand whether a long term holding strategy is a wise decision for you. Poor decisions in the cryptospace can lead to bad outcomes, and while you may enjoy short-term profits, you’ll probably be unable to maintain the returns.

Let us explain the ins and outs of two basic crypto trading styles, namely hold and trade.

Leveraging the Time Sensitivity

Cryptospace is all about time and market sensitivity. Crypto investors are always joining heads via telegram groups or checking on cryptocurrency trends and market news. This allows them to gauge the right time to hold and trade.

Those who are brand new in the world of crypto trading may often average the opportunities and fail to recognize pitfalls and perks. Only “trading” or only “holding” are not very smart ways to trade in crypto. To make either of the strategy shine, there are some rules you must follow.

Let’s dig deeper to learn more about trading and holding cryptocurrency.

Trading Vs. Holding Cryptocurrency

HODL is a purposefully misspelled name given to the hold strategy in the crypto world. The flipside, i.e., buying and selling crypto holding is known as trading.

Cryptospace geeks generally favor the HODL strategy until or unless the market and price conditions are extremely favorable. However, HODL can be dangerous, especially for noobs. The best way to balance your risks and returns is to create a mix of trading and HODL-ing crypto. This way, you can diversify your investments and test buying and selling gradually.

HODL-ing: A Deeper Look

The two main issues HODL-ers face are profit generation scarcity and the inability to navigate the market volatility. In simple words, if you buy crypto and decide to HODL it for six months, you won’t be making any profits on your investment. Similarly, if the market crashes or becomes volatile, investors tend to get confused and lured into making untimely withdrawals.

So, is HODL-ing a lose-lose strategy? Well, not really. HODL-ing cryptocurrency is done best with an exodus plan. At Urban Crypto, you can find numerous easy-to-follow crypto guides and market trends that can help you curate a strategy mix. It enables you to sprinkle a dash of trading to avoid and prevent portfolio erosion and non-profitable investments.

Trading and Its Perks

Now that you know pretty much everything about crypto HODL-ing, let’s look at the flipside.

Sometimes, investors, especially the new ones, get too caught up in buying and preserving cryptocurrency that they totally miss several lucrative trading opportunities. As a result, they see peers making hefty gains but have no idea what they’re doing wrong.

While hoarding crypto is intoxicating and exciting, trading it is more fun. It’s easy, convenient, and excellent to understand the inner workings of cryptospace.

This strategy, however, isn’t as easy as it might seem. Your best bet is to rely on Simple Crypto News and Markets guides to learn which wallets and exchanges are ideal.

Since crypto is extremely volatile, your chances of getting as much as 2% gain can get real within two minutes after buying. And frankly speaking, if you learn to take advantage of this rapid buy and sell market, you can easily outsmart a HODL-er who’s usually stuck in the “what-if” space.

No matter what strategy you choose it’s imperative to dig deeper and learn all about cryptospace. From upcoming ICOs and currently trading currencies to market news and trends, you should keep tabs on the entire crypto trading space before making an investment decision.

To help you become a pro at crypto trading and staking, Urban Crypto brings you a highly informative and resourceful online platform to grow. It’s your go-to destination to check ongoing ICOs, upcoming ICOs, and completed ICOs. Moreover, you can find numerous easy guides to get started with binance, blockfi, coinbase, and more!

About the Author

The author of this post is an experienced cryptocurrency investor who regularly contributes to the Urban Crypto’s website. He has invested in several ICOs and knows how to exploit lucrative opportunities in the cryptospace. He curates easy guides for cryptocurrency beginners, and you can read them all a Urban Crypto’s blog.

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