Cryptocurrency trading has gained immense popularity over the past few years, and with its popularity comes the need for effective strategies. Cryptocurrency trading is a high-risk, high-reward activity, and adopting the best strategies to minimize potential losses is crucial.
In the dynamic world of cryptocurrency trading, knowing the best cryptocurrency strategy is essential for protecting your investments and ensuring long-term success. One of the most important things to note about the cryptocurrency market is its volatility. So, it is essential as investors to study and know strategies that can help you win in either a bear or bull market.
So, if you are wondering what the best cryptocurrency strategy is to grow your money or trying to determine if it’s best to actively trade your crypto or to hold and wait for it to appreciate? Then this article is for you as it aims to introduce these investing strategies and offer some insights.
HODLing vs. Trading
Investors in the complex world of cryptocurrency have two options. You can Either hold onto your assets or exchange them for other currencies. Holding and trading are terms used interchangeably. It is critical to distinguish between them; the first is concerned with long-term preservation, whereas trading is concerned with making immediate profits. Deciding between holding or trading can be one of the toughest decisions for an investor, especially one new to the industry. This is because most investors fear losing out on profits if they choose to trade or lose their money if they hold. You can imagine losing out on a $50 increase because of a decision you made a few hours or minutes ago. It will certainly be heart-wrenching. So, to avoid “had I knows,” you must do your due diligence. Before diving into the pros and cons of trading and Hodling, we shall explain each concept.
For many, the formula for becoming a millionaire consists of long-term holding of a specific cryptocurrency. As a result, hold or holding is a trading strategy that involves storing investments for an extended time before selling them. Its strategy is founded on the belief that long-term market prices must rise. In many situations, investors hold their equities for years on the assumption that the stock will grow.
In a trading strategy, crypto traders tend to trade their assets frequently. This is because most investors are hurrying to grow their money and other crypto holdings. So they chose to trade their assets in order to avoid loss.
Now that we’ve established the key differences between holding and trading let’s compare the two to assist you in determining which one to pursue. We base our decisions on a few key aspects that every investor carefully considers when making financial decisions:
The complexity of executing each investment strategy is the first thing to compare. For many investors, holding is a basic and straightforward strategy to invest in, as it entails carefully purchasing and holding cryptocurrencies before selling them at a significant increase in value. Trading, on the other hand, is a slightly more complicated activity. This approach is far more active than the one before it. It entails continuously buying and selling your currencies by taking advantage of the market’s turbulence to make a profit at all times. Unless you are employing automated trading systems, you must maintain continual attention.
- Investment Time
When comparing trading versus holding, investment time is one of the most crucial criteria. Holding investment terms are relatively lengthy. They typically last months, years, or even decades. On the other hand, trading has a more dynamic character and keeps its investments for a shorter period. We’re talking days, hours, and even minutes here.
Holding is an option if you are patient and can wait patiently for a significant profit without losing your cool. Trading is better if you like to see money repeating to your portfolio day by day and enjoy modest dosages of success.
All investments include risk, and cryptocurrency investments are no different. Most often, holders invest large sums of money in the hopes that, over time, they will suffer a significant loss and win a significant sum. But things don’t always work out the way you plan. Compared to its values at the start of the year, the cryptocurrency market crashed by about 80% in 2018, which had a widespread unfavorable impact on this type of investment. Conversely, trading typically enables you to take advantage of market volatility and respond to abrupt changes. Trading, thus, does not call for a substantial capital input.
- Attention required
In holding, investors do not constantly control their assets. In general, they assume passive positions waiting for the moment they consider correct, which can take years, as explained above. The opposite happens in trading, where the principle is to take advantage of all the market fluctuations to continuously generate profits. For this, you must always remain alert, mostly if you do it manually.
Astro Africa: Best platform to trade cryptocurrency in Nigeria
In general, both HOLD and trading have perks and drawbacks, and it is up to the user to determine how they want to use their investment and the risks they are prepared to take. Now if you have decided to trade your currencies, it is best you do it on a safe and secure platform like Astro Africa. Astro Africa was specially created to help traders exchange their cryptocurrencies without dealing with the fear of losing their money or profits. And guess what? Trading on the platform is exceptionally easy. All you have to do is create an account. So hurry now, download the app, and begin the journey of smooth and seamless transactions by following the steps below.
- Create an account through our mobile app on either App Store, Google store, or website.
- Click on Sell crypto on your account dashboard
- You can sell Bitcoin, Ethereum, USDT (Tether) and BNB. Choose your preferred crypto.
- On the next page, choose your payout wallet (Naira or Cedi wallet), and enter the amount in dollars or BTC, the calculator will display the amount you will receive in your local currency, click on proceed if you agree with the terms.
- The system will provide a wallet address that you can either copy or scan the displayed bar code to get, click on “I have sent Bitcoin” when you sent the coin to the provided wallet address.
- Your wallet will be credited immediately after the Bitcoin transaction is verified.