Crypto Trading for Long-Term Profit: HODLing vs. Trading

Subh Rath

February 24, 2023

When embarking on a new financial adventure, we must constantly consider the simplest and most convenient routes to the return on investment (ROI). Most novice investors look for instructions to read and follow to maximize profits.

When it comes to bitcoin trading, the same thing happens. Regarding cryptocurrency trading, it’s evidently a good way to make money in the long run. However, when you enter the crypto market with the same goal of acquiring long-term wealth, deciding whether to HODL or TRADE might be difficult. So, what should you do? Let’s explore below.

HODLing vs. Trading:

When first entering the bitcoin market, new investors typically choose to:

  • HODL


  • Trade

Regarding internet debate, beginning traders are better off with HODL. There’s some truth to that phrase, but if inexperienced traders aren’t careful, either of those approaches might be disastrous. It’s particularly because:

  • Beginners don’t know how to take profits from HODLing
  • Apart from complete beginners, many people still need to make it to being good traders, mainly because of the complexities of the crypto market. 

Now what? Is it truly a no-win situation for such beginners or stuck traders? Evidently not!  Instead, most seasoned investors and traders approve of HODLing with an exit strategy or trading while utilizing risk control and focusing on learning. To sum up, you may accomplish much more if you employ some strategic thinking.

Trading Peaks: Where Do You Stand? 

When it comes to trading, whether you’re new or a bit experienced in trading crypto, its important to be familiar with your trading habits and peak to make better decisions. Typically, this includes three categories of traders:

  • Day Trader:

Day trading, as the name implies, is making dozens of trades in a single day. This type of trader frequently uses technical analysis and sophisticated charting techniques to spot trading patterns and find strategic enter and exit chances. Day traders use this approach to make small profits through multiple currencies, stocks, and commodities trades in a single day. 

  • Swing Trader:

Swing trading involves placing trades based on daily or weekly fluctuations in stocks, commodities, and currencies. After detecting swings in stocks, commodities, and currencies over days, these investors either go all in/part in or all out/part out from their trades with carefully analyzed trading decisions.

  • Investor: 

Investors buy at the bottom and sell at the top of an asset’s market value. They also employ dollar cost averaging, which involves selling assets in increments as the price rises. Most of the time, their decisions are interchangeable for each investment approach. In any case, investors in the crypto trading world underline the need of: 

  • Taking profits to protect their capital
  • Assign Stop Loss to limit their losses

Which One To Choose As a Beginner?

All in all, if you have little experience, you should proceed with caution when it comes to crypto investment and/or trading. A conservative and cautious approach entails averaging gently into and out of positions. This limits a lot (but not all) of what can go wrong in the long run!

Once you’ve slowly analyzed the risks, it’s time to pick between HODLing and Trading. In this decision-making stage, you should be aware that:

  • HODLing is simple but has some severe issues (especially if you go all-in at the top or HODL through every all-time high).
  • In contrast, trading is more difficult and has more pitfalls to avoid, but it will train you to do what you’ll need to do later: “purchase and sell at appropriate periods to generate profits over time.”

This suggests that the most accessible approach for new investors is a variant of HODL known as “averaging into and out of positions.”

However, as one develops as a trader, the ability to trade properly becomes increasingly important. Therefore, as you proceed with your trading journey, it may make sense for a first-time crypto trader to start slowly with trading too. 

Learn Trading with Sniper School x AdLunam:

Do you want to be fully prepared before you set foot in the crypto trading world? Gone are the days when you had to acquire trading knowledge and training through self-experienced losses and to confuse online sources. With crypto trading being a popular online earning approach today, you can now access professional training in this niche thanks to Sniper School. 

Sniper School offers an all-encompassing approach to learning about crypto trading and investing. It is intended for novice and advanced users, with step-by-step instructions and interactive lessons that allow you to study at your own pace. Sniper School also serves as a forum for successful traders to share their knowledge and tactics. 

As a result, learners can keep up with the ever-changing markets as Sniper School shares insights from cryptocurrency leaders worldwide, ensuring that everyone is up to date with the newest information they need to prosper in this fascinating business.

What’s more? AdLunam recently announced its collaboration with Sniper School to make it’s classes accessible for more trading enthusiasts and new learners. With this collaboration, Sniper School offers free seats for AdLunam community. Hence, not only complete beginners but even those with existing experience in crypto trading can join the Sniper School to hone their skills with the help of the expert traders. 

So if you’re intrigued to be a part of this school – don’t miss this opportunity to learn from the best and become a pro trader. Happy Trading!
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