Day Trading vs. Long-Term Cryptocurrency Hodling: Equitable Analysis | by LBank Exchange | LBank | Jan, 2023

From the LBank blog.

Day Trading vs. Long-Term Cryptocurrency Hodling
  • Potentially big profits for leverage positions
  • Traders can make profits regardless of the market conditions
  • Faster profit gains
  • More flexible: No long-term speculation is involved in foreign exchange day trading. This results in a more flexible timetable for the investor,
  • Emotions might set in, causing traders to invest more than they can afford to lose;
  • Self-discipline can be challenging to utilize
  • Large leverage positions can lead to massive losses.
  • Actively analyzing and paying constant attention to the market.
  • Tax compliance can be daunting.
  • More time to analyze the asset: Analysis can be done in maybe a few minutes to a few hours a week, and when a good trading opportunity is identified
  • Trading is less risky: long-term hodling avoids all the price movements
  • Reduces emotions like FOMO and FUD
  • Long-term trading enables traders to defer their tax liability.
  • Traders often feel stuck during bear markets, as the adrenaline to sell often sets in, especially at a loss;
  • Little profits for traders with little capital
  • Long-term hodling can be risky as some assets may not have good potential and backing.
  • Security is another major drawback. It is important for traders to go for a highly secure crypto exchange to avoid common hacks and breaches.

This article came directly from the LBank blog, found on—-69b5b1a654b1—4

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