Whether you are day-trading or hodling, there are a number of benefits and pitfalls that you should be aware of before investing in the cryptocurrency market.
There are a number of ways to go about crypto trading. You can go with a strategy that is short-term, meaning you are dealing accordingly with your investments on a daily basis, or long-term, which means you opt on holding on to your cryptocurrencies and profit from their value over a longer period of time. There are varied advantages and disadvantages to both crypto trading methods, and it’s worth having a look at them. Regardless of the strategy you choose, you should always plan your investment strategy based on your risk appetite.
Short-Term Crypto Trading: Benefits & Pitfalls
Short-term crypto trading refers to day trading, where crypto investors buy and sell their cryptocurrencies on the same day, hoping to gain a profit from the rapid price swings. It is associated with some high-risks that investors may need to take if they decide to commit to day crypto trading.
Long-Term Crypto Trading: Benefits & Pitfalls
Long-term crypto trading refers to the strategy of hodling. The term hodling is crypto slang
for buying and holding onto your cryptocurrencies, so you can make profit from their long-term value appreciation.
Risk Warning: Cryptocurrencies are highly volatile and trading can result in the loss of your invested funds. Before investing you should be aware that cryptocurrencies may not be suitable for all investors. You should therefore carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition and not invest money that you cannot afford to lose.
