Hold or daily trade? This is a question that many digital investment enthusiasts ask themselves, and may even be confused at times when they want to buy and sell. The world of currencies has given you the opportunity to earn money in different ways. Daily trading and maintenance (HODLing) is one of the most common of these methods and requires a completely different strategy. These two strategies have always been debated by digital currency activists and have always been about which is the best type of investment in Bitcoin; There have been disagreements.
In short, daily trading means buying and selling bitcoins on a daily basisPay and take advantage of the profit from price fluctuations. Holding means buying bitcoin and keeping it for a very long time. But which one would be your right choice? In the following, we will become more familiar with these two perspectives.
Topics of this training
- What is a daily trade?
- What is HODL?
- What is the best way to invest in Bitcoin?
- Concluding remarks
What is a daily trade?
In the crypto space, daily trading is a great way to make money online. In this way, about 5 to 10 percent of the original capital can be obtained in one day. In this way, you make a profit from the daily fluctuations of assets. Traders buy bitcoins at a price and when the price reaches their target, they sell it to make a profit in one day.
With the help of daily trading, you can buy and sell altcoins, which are usually cheaper than bitcoins; Increase the total amount of your bitcoins. Of course, this is ideal, and there are some things to know about daily trading:
- You can buy bitcoins and sell them on the same day to make a select profit, but this requires in-depth technical knowledge. In fact, with the help of technical knowledge and chart analysis, you can determine when to enter and exit a trade. This knowledge is very challenging for beginners and often the financial risk of a transaction outweighs the benefits. So always remember this and use the loss limit .
- Experts in the field have access to expensive tools, software, hardware, and news that a novice can often not afford.
- To become a trader, you need to spend a lot of time in this field and review news, events and price changes. In general, daily trading is a full-time job and requires just as much time.
What is HODL?
Hoodle is a form of investment in which the investor allocates funds to buy bitcoin in the hope that its price will skyrocket and make the desired profit. Investing in this way is just like investing in any other asset such as property, gold, stocks, and so on. You buy this asset at a lower price and sell it at a higher price after a longer period of time. The person’s vision in this method is much longer than the daily trade.
Buying and storing bitcoins for a long time is much easier and less risky than daily trades and does not require much knowledge. All you need to know is how to buy and sell bitcoin. However, it is not bad to know some things in this regard:
- Long-term investing helps you to evaluate and research the right currency for which you have invested; Pay and evaluate and manage the resulting risk, and finally you will be able to assess the reality and profitability of this asset in a given time.
- If you choose this strategy, do not forget to invest in a digital currency whose performance and technology are in line with your vision.
- In addition, invest only money in this area that you can lose without any regrets, because anything in this market is possible.
- With this strategy, you do not have to worry about falling prices and get excited about rising prices. It is even recommended that you look less at your wallet to avoid fumigation.
It has been proven that long-term investment will bring huge profits. For example, in 2020, by buying Bitcoin until 2021, you could share in its 225% profit. No other investment in a year would bring you such a profit.
What is the best way to invest in Bitcoin?
The best way to invest in Bitcoin seems to be long-term maintenance. The most important reason is that market stress will not affect you and will be added to your capital in a practical way, and on the other hand, you can pay more for your work and life!
This way, you can enter the market without any special technical knowledge and enjoy your investment, regardless of the micro and daily fluctuations of Bitcoin. All you need to know is when and how to buy bitcoin and how to make a lot of money with a little risk.
Too often, day traders are so focused on small daily profits that they miss out on great market opportunities. Of course, do not forget that if you know the volatile nature of the market well and you have high risk and you like to spend a lot of time and energy in this area, daily trading will be the right strategy for you. To do this, you will need sufficient knowledge and expertise of bitcoins and altcoins , and you can play the hoodle whenever you are ready.
Concluding remarks
Both the Huddle strategy and the daily trading strategy both require a secure platform such as the exchange so that you can trade in it safely.
If you can manage both strategies at the same time, do not hesitate to take advantage of both to make money on a daily basis and also make huge profits from your long-term investments.
Of course, never forget to do your research before doing anything and only invest money in such a market that you know that with its possible loss, your daily life will not be disrupted.