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Long-term Trading and it's pros and cons

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kawsar80353 Klast year5 min read
 

All of us who are involved in the crypto market or are familiar with cryptocurrencies are familiar with long term and short term or other types of trading. Long-term investing in the crypto market involves buying tokens or coins to invest in them for a long period of time. This type of trading usually means when we buy a coin or token for a long period of time and sell it at a profit in the long term. This is usually for a long time. It is often used by investors to generate meaningful returns from the crypto market. A long-term investment strategy requires investors to identify tokens or coins that can deliver desired results against a long-term commitment to the company. Usually many traders buy a token or coin for a long period of time and expect to get good returns from it after a long period of time. For example, it is currently 2023. Many people buy tokens for the next Bitcoin halving and expect to get several times the profit from them.
 
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Advantages of Long-term Trading

 
When we are Hodling for a long period of time we don't always need to constantly check the price action. Many people buy different tokens or coins and set a price and put it with a sell target so that he does not have to look at the price list again and again. One of its advantages is that hodling avoids the stress and risk of dealing with volatility and increases our chances of enjoying long-term value appreciation. When we invest for the long term, we are protected from emotions such as FOMO and FUD, fear or greed or uncertainty or doubt or fear of missing out in the market. Usually when we hold for long period of time huge profit is made. Because we usually don't sell any coins at a loss but at a good profit. Usually only within a few years range in crypto.
 
 As currently all coins or tokens are very low in price. If there is something of good quality now or we buy the coin then it will give good quality return in next few years which will give us multiple profit. Which with any other asset is unlikely to generate such a high return on investment in just a few months. When we invest in a coin for a long period of time our target is to sell when it gives good profit. So there is no possibility of loss here. The most important thing is that when we invest for a long time we can implement our planned plans and we can adopt different strategies during that time. As a result of counterfeiting, we can bring several times the profit from this type of trading instead of making a loss.
 
Long-term crypto investment refers to the strategy of hodling. We usually buy some tokens or tokens in the market and hold them in our wallet for a long period of time hoping for good profit. The term hodling is crypto slang for buying and holding your cryptocurrencies so that you can profit from their long-term value appreciation. Because usually good quality coins or broken ones can be held for a long time to gain several times from them especially when Bitcoin halving. But of course, you have to invest with a lot of consideration in this type of investment. Because only without understanding one should not do business here. Of course, in order to keep any coin for a long time, we have to consider the market viability of the token first. Because at least we all know that crypto products and NFTs can be unregulated and highly risky. There may be no regulatory remedy for any loss from such transactions. Before making any investment decision one should research the token or coin thoroughly and consider various aspects of the investment.
 

Disadvantages of Long-term Trading

 

Bear markets often lead us to losses so we have to wait for a long time to profit there which requires a lot of patience. Moreover, there is a possibility of loss in this type of market. Investors must have adequate capital on hand in case of forced sales or unexpected liquidity needs. Holdings can still be risky. Although some cryptocurrencies such as Bitcoin and Ethereum are established investment assets, their history is still too short to confirm their long-term value to investors. Cryptocurrency regulation and future mass adoption are still too uncertain to consider digital assets as sound and reliable investments. For long term hoarding you need money bag assurance. Because your wallet can be stolen due to various cyber attacks or various reasons. Which can be a high risk. There is a high risk of losing access to private keys, which are essential for asset protection. Because these keys are very important if you fail to keep them safe or lose them you may lose your entire money.
 

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