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How To Make Money Trading Bitcoin | Indicators | Day 3 Of 5

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There is more than one way to make money with cryptocurrencies. Day trading and HODLing are some of the common ways most people use. However, these two are usually argued by many people on which is the best form of Bitcoin investment.

Basically, day trading involves buying and selling bitcoin on a daily basis while making profits off the price swings. Hodling involves buying bitcoin and holding it for a very long time.

Let's dig deep into the definition of both terms, things you need to know about them and lastly, we will consider the best Bitcoin investment you should consider.

You can also find out everything you need to know about the recent crash in Bitcoin price.

What is Day Trading?

In the crypto space, Day trading is a really great way to make money online. It can earn you profit on your investment as high as 5% to 10% in a day. It capitalizes on the price fluctuation of an asset which in this case is Bitcoin. Crypto traders purchase BTC and sell it when it reaches their speculated target to take profits in a single day.

Day trading allows you to trade altcoins to increase your accumulation of Bitcoin when the prices are cheap. However, there are things you should know about day trading and they include:

  • A person can buy Bitcoin and sell it on the same day to pick his profit.
  • Day trading requires in-depth knowledge of technical analysis, when to enter and exit a trade, and can be very hard for a beginner to grasp.
  • The risk of day trading outweighs the reward. You need to decide if you want to take the risk.
  • Experts and professionals that trade Bitcoin use tools like expensive software, hardware, and news services which a newbie might not be able to afford.
  • It requires a substantial amount of your time because you have to be very aware of news and happenings in the crypto space, and also price changes.

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What is HODLing?

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HODL stands for Hold on for Dear Life. Hodling is a form of investment where the investor allocates some funds to buy BTC with the hope that the price will rise to the moon. Investing in Bitcoin is like investing in every other asset like real estate, gold, stock, etc. you are buying at a low price and selling at a high price after hodling for a period of a year or more. In this form of investment, the investor must have a long-term mindset.

Buying Bitcoin and hodling it for a long period is quite easier, less risky, and doesn't require much knowledge like that of day trading. All you need to know is how to buy Bitcoin and how to sell it. However, there are some things you should also know about hodling and they include:

  • The long-term investment allows you to evaluate and manage your risk by assessing and researching the coin you are investing in and see if it has the potential to give you the profit you are aspiring for in the given period.
  • You don't invest in a coin if you are not comfortable with its functionality and the technology behind it.
  • You only invest the money you can lose without much regret, because this is the crypto market and anything can happen, you can be wiped out of a huge amount from your portfolio in one night.
  • It is not necessary to be on edge on the price of Bitcoin now and then. You don't need to always check your wallet because that can build fear in you, and you might be overclouded by fear and emotion and fall for FOMO.

In reality, long-term investment earns a massive profit. If you bought bitcoin this time last year, you will be at 225% profit if you sold your coins when it hit $63,000 this year. The price of bitcoin this time last year was $12,000 but now, it is currently trading at $34,000. No other investment option can give you such a massive ROI within a year.

Which is the best Bitcoin investment method

The best Bitcoin investment method is the hodling or long-term investment. It is very easy for you to make money passively as an investor without stress, and having to worry every time about what is happening in the crypto space.

HODLing allows you to buy Bitcoin with little knowledge, just knowledge of how & when to buy BTC, and how to take your profit with little risk. Day traders are usually distracted by the little profit they make daily and might miss the opportunity to earn massively.

However, if you are okay with the volatile nature of the market and your risk level is high, day trading strategy could work for you. You need to acquire enough knowledge and expertise to trade in Bitcoin and Altcoins. Plus you can always switch to hodling or long-term investment whenever you are ready.

In conclusion, whether you prefer hodling or day trading, it is important to only use a trusted cryptocurrency exchange to trade or invest in crypto assets. You also want a platform that allows you to liquidate your asset at your convenience. Remitano is the perfect exchange platform for day trading and hodling. You can easily day trade with Remitano P2P and use Remitano Invest to invest or hold different cryptocurrencies.

You should also know that if you can afford to be a day trader and also a HODLer, you should definitely go for it. Using both strategies will give you the opportunity to earn on a daily basis as a day trader and also earn massively on your long-term investments.

It is important that you should always do your research, and invest the money you can lose without much regret. If you are a beginner and you want to learn how to purchase Bitcoin, there are many articles on the Remitano forum that will guide you with practical examples.

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How To Make Money Trading Bitcoin | Indicators | Day 3 Of 5

Source: https://techpoint.africa/2021/06/29/day-trading-vs-hodling-bitcoin-which-is-the-best-way-to-make-money/

Posted by: townepelvery.blogspot.com

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