Day Trading vs HODLing: Which Strategy Makes More Money?

Most of the time, the issue with a whole lot of people is the fact that they always think investing in cryptocurrency is just about guess work. No it is not so, it is really about you finding the right strategies. For some people, they offer the holding strategy and for some people, they prefer day trading.

Even though both of them have their side, I want to talk about them today. Day trading involves buying and selling assets within short timeframes, sometimes even minutes, to profit from price fluctuations. HODLing refers to buying and holding an asset for a long period, ignoring short-term price movements.

Let me briefly explain deeply on what day trading is actually. Day trading means when you enter and exit trade within a day. You will need to analyse your charts, you will need to follow news and you will need to make fast decisions if you want to be a day trader as that is something I have come to learn actually.

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There are some advantages involved in it like Quick Profits where people like Traders can make money every day if they play their cards right. Not only that, you can also make compounding opportunities which will help you to actually reinvesting daily profits can multiply earnings over time.

Now let me talk about the other aspect which is Hodling. This is actually a very long term investment strategy because you will need to buy a particular asset and hold it for so long and same as day trading, it has a whole lot of advantages of hodling. Advantages like Less Stress where Investors don’t need to watch the market daily.

It also helps to give fewer transaction fees where as a buyer, you can Buy and hold reduces trading costs. Not only that, it can give you Compounding Value whereby Over years, the value of good investments tends to grow due to market cycles and economic growth.

Now let me answer the big question as which strategy is the best for you. Well, The answer depends on several factors, including market conditions, individual skill, time commitment, and risk tolerance.Day trading can be more profitable, but only for those with strong technical analysis skills, emotional discipline, and a deep understanding of the market.

Some professional traders can make consistent profits, especially in volatile markets like cryptocurrencies and Forex. However, according to multiple studies, over 90% of day traders lose money, especially beginners. The margin for error is small, and emotional decisions can lead to big losses.
While for me, HODLing, on the other hand, has a more favorable track record for the average investor.

Take Bitcoin, for example: despite several major crashes, long-term holders who bought BTC in 2013 or even 2017 have seen massive returns. In the stock market, Warren Buffett’s “buy and hold” philosophy has built one of the largest fortunes in the world.