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Why You Should Be Holding Not Trading Crypto

Everyone wants to implement successful crypto trading. But let’s explore some details one should hold and not trade crypto assets.

Trading Crypto

Day trading and cryptocurrency hodling are common crypto investment strategies for getting the best return from owned assets. 

In the first case, day trading is a short-term and high-risk strategy where crypto investors buy and sell cryptocurrencies on the same day to profit from rapid price swings. 

On the contrary, trading cryptocurrency, in the long run, might be a much wiser decision.

With over 420 million crypto users worldwide it’s quite hard to decide when to buy or sell any digital asset.

Or perhaps one should keep them?

All in all, most of them are with very little value and unclear potential.

However, while all are prone to volatile price swings, experts point to one quality above all others which is UTILITY.

According to some industry experts, cryptocurrencies with utility are a smart investment for the long haul.

The most visible cryptocurrencies are those addressing or solving real world problems, such as the PRI Token. 

So a really valuable token should solve a problem of the crypto users as well.

And only this it’s possible to boost its value in the long run.

But let’s explore why one should hold and not trade crypto assets.

Here we go!

What is cryptocurrency trading in general?

Cryptocurrency trading is the process of buying, holding, and selling crypto assets.

There are many cryptocurrency exchanges, such as Coinbase, that let investors buy and sell cryptocurrencies. 

In some ways, it’s like trading stocks. You can buy low and sell high. 

Or you can decide the exact time when to buy or sell your e-assets. You can even decide the price of the trade. 

You just buy low and sell high. Cryptocurrency trading might be simpler than stock trading because it doesn’t require buying or selling an actual physical asset as stocks do. 

Here, all you have is an electronic asset in your digital wallet. 

However, trading cryptocurrency is risky because it’s volatile and not regulated by any governing body. And many people are concerned about cryptocurrencies’ future because of the current market slump.

Day Trading: The Pros and Cons

Day trading is an extremely risky strategy where crypto investors buy and sell cryptocurrencies on the same day to make profits from rapid price swings.

All in all, many cryptocurrency experts warn investors against day trading because it’s extremely risky and highly speculative. The biggest risk with this strategy is that you’ll lose all your money if the price of a cryptocurrency drops.

Another major risk with day trading is that you’ll be left with large amounts of cash but no cryptocurrency assets.

That’s because if you’re day trading and the price of a cryptocurrency increases dramatically, you could end up with a large amount of cash but no cryptocurrency assets.

Another major risk with day trading is that you’ll be left with large amounts of cash but no cryptocurrency assets.

That’s because if you’re day trading and the price of a cryptocurrency increases dramatically, you could end up with a large amount of cash but no cryptocurrency assets.

Cryptocurrency Trading: The Long-term Strategy

Investors who are interested in day trading or hodling digital assets but don’t have the time to do it properly should consider cryptocurrency trading as a long-term strategy.

With a long-term strategy, you should invest your funds in a cryptocurrency and hold it for a certain amount of time, perhaps a few months or even a few years. When the price of a cryptocurrency goes up significantly, you can sell your assets and make a profit.

While this strategy is riskier than day trading and hodling because you might not get a large profit if the price of a cryptocurrency doesn’t go up significantly, this is also a more passive strategy.

You don’t have to constantly monitor the price of a cryptocurrency and make decisions to buy and sell your assets. You can just sit back and enjoy the profits.

Related Article:  Crypto Glossary: Terms, Acronyms & Definitions

Should you hold or day trade during a crypto winter?

Many cryptocurrency experts warn investors against day trading during a crypto winter. During a crypto winter, many investors lose interest in cryptocurrencies.

So, there are very few buyers and the price of digital assets goes down significantly. It’s a good time to HODL your cryptocurrency assets as there will be fewer investors.

During a crypto winter, the prices of most cryptocurrencies go down significantly. However, you don’t have to panic and sell your assets at such a low price.

When the market picks up again, you can buy the same assets at a lower price.

How to Achieve a Successful Cryptocurrency Investing?

1. Explore crypto fundamentals

Get educated on the fundamentals and technical analysis of cryptocurrency trading. Crypto trading is quite a highly speculative market.

You need to be very knowledgeable about the fundamentals and technicals of a particular cryptocurrency to be successful in this market. Investing in a new cryptocurrency is extremely risky.

You can’t just pick a random cryptocurrency and invest your funds. It’s important to do your research and pick a profitable cryptocurrency that has a good fundamental outlook and a strong technical analysis.

2.  Store your cryptocurrency assets in the wallet

Pick a cryptocurrency wallet and store your cryptocurrency assets. A cryptocurrency wallet is a place where you store your cryptocurrency assets.

You can store your cryptocurrency assets in different wallets like Coinbase, Gemini, and others. It’s important to have a single wallet where you store all your cryptocurrency assets.

If you have different wallets, you might receive multiple notifications of a wallet transaction. That might confuse you and make you lose your trading decisions.

Choosing the Privateum wallet will allow you to stay away from situations like this. Keep your digital assets safe and secure.

3. Stay away from social media.

Most cryptocurrency experts warn investors against day trading on social media platforms like Facebook, Twitter, and other similar platforms. These platforms are flooded with advertisements and fake information.

So, you might get misleading information about a particular cryptocurrency. It’s dangerous to day trade on social media.

4. Be disciplined and systematic

Be disciplined and have a systematic trading strategy. Successful trading requires discipline and a systematic trading strategy to make trading decisions.

It’s important to stay away from day trading, holding, and investing your funds in a profitable cryptocurrency.

5. Have realistic financial goals and expectations

Successful trading requires an understanding of the market and realistic financial goals and expectations. It’s dangerous to invest in a risky cryptocurrency market with unrealistic financial goals and expectations.

6. Invest wisely

Cryptocurrency trading is quite a highly speculative market. It’s important to invest wisely in profitable cryptocurrencies with a good fundamental outlook and a good technical analysis.

Worth mentioning to stay away from day trading and holding and invest your funds in a profitable cryptocurrency.

Final Words

Cryptocurrencies are a new asset class and their prices are extremely volatile. That makes it difficult to predict the future prices of these assets.

That’s why you need to invest wisely and stay away from trading a random cryptocurrency without understanding its fundamentals and technical analysis.

If you succeed in investing in a profitable cryptocurrency, you can see huge returns over a few years.

However, if you’re day trading, it’s very difficult to make profits.

So, it’s important to pick a profitable cryptocurrency and invest your funds for a long time.

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