Is Hodling the Best Strategy in Crypto?

Is Buy and Hold Really the Best Strategy in Crypto? Here’s what influences a crypto trader to buy-and-hold.

Is Hodling the Best Strategy in Crypto?

Every trader or investor’s ultimate purpose in entering the crypto market is to seek rewarding profit. In general, new inventors will tend to buy-and-hold cryptocurrency to gain returns.

HODLing may be easy, but it has serious logistical problems, especially for those who go all in or persistently hodl through all-time high. And in the crypto space where prices move up and down every second, hodling doesn’t seem like the best strategy to gain outsized returns.

To know if HODLing is the best strategy, let’s look at 3 key points of hodling in the crypto market.

Time Is The Essence

The buy-and-hold method requires keeping cryptocurrency for a long period of time. Short term market fluctuations are insignificant as token holders will hold their investment for months or even years rather than making quick, buy-and-sell trades. Such an investment approach requires patience and careful decision making because you are counting on a crypto’s long-term prospects.

Holding may be perfect for beginners because you would spend lesser time researching and monitoring the market but there is no saying whether your anticipated crypto price will rise over time in the volatile market. Hodling also means taking a long time to gain any profits.

Unlike HODLing, crypto trading is able to give immediate rewards to investors when they buy low and sell high. However, trading can be slightly riskier than buy-and-hold, which brings us to our next point.

The Risk Is Higher Than You Think!

There is no doubt that both HODLing and trading implies certain risk, but as a smart investor, you should be looking to minimise your risk for the greater profit.

Trading involves a higher risk in comparison to holding as the market is volatile and unpredictable, one wrong move and traders may lose all their capital. HODLing may be the safe move but that would also mean missing out on earning opportunities.

There is also another investment strategy that involves crypto trading with minimum risk. Arbitrage trading takes advantage of the price discrepancy in the crypto market, giving traders maximum profits for the lowest risk possible.

No Skill, No Gain?

While you should do thorough research before investing in any cryptocurrencies, hodling is relatively easier because you do not need to constantly watch the charts and worry about fluctuations.

But sometimes beginners tend to deviate from their plan or strategy when tokens are performing well, taking the profit before a big run or they would just hodl through even when they should be selling. Therefore, emotional discipline is needed when it comes to hodling. In fact, both long-term investing and trading requires skill and accumulated experience to make wise strategies.

The Best Strategy For All Kind Of Investor

If you don’t have a lot of experience but you are ready to venture more into the crypto market by using tactics other than hodling, you should try out arbitrage copy trading that involves copying trading patterns of expert traders.

Arbitrage trading in Altimates is known to be risk-free and suitable for new traders and copy trading will allow you to learn from experts while earning at the same time! Apart from copy trades, Altimates also offers other useful tools to facilitate arbitrage trading, such as market signal & tracking, 30 day AI market prediction, AI auto trade, etc.

Zero-risk Platform for All

Arbitrage trading can be zero-risk with Altimates leading you through the way. In your perilous journey to reap a fortune, let Altimates be the one to guide you forward.

To find out more about arbitrage and Altimates, check out the links below: