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What Is Trade Coin and Hold Coin?

lnhngn 11/11/2021 23:11 599 views

What is Trade Coin? What is Hold Coin?

Buying and selling Bitcoin is a form of Bitcoin investment to benefit from the price difference. This form of cryptocurrency trading investment includes 2 popular ways as follows:

Long-term investment – ​​Hold coin

Hold Coin là gì? Nên có chiến thuật như thế nào để Hold thành công?

Hold coin is a form of investment towards the goal of “buy low, sell high”, that is, buy potential coins at a reasonable price and expect the cryptocurrency to increase in price after a while. intended to be profitable in the long run.

To hold coins, investors need:

  • Step 1 – Create a coin wallet: To store coins for a long time, you must find a place that provides electronic wallets such as online exchanges, or specialized software – equipment to help store cryptocurrencies.
  • Step 2 – Choose coins to hold: You choose coins that are trending and influential in the market, potential coins, or ICO coins, or junk coins, depending on your strategy.
  • Step 3 – Choose a time to buy coins: The best time is when the coin is in a long downtrend right away, or has just moved from the point of freezing to an uptrend again.

Short-term investment – ​​Trade coin

Trade coin là gì? Nên Trade coin nào? Kinh nghiệm trade coin hiệu quả

In opposition to Hold coin, Trade coin is aimed at investing to seek profit from price difference based on short-term fluctuations of cryptocurrency. You can follow this :

  • Buy low sell high (buy-long position): Place a buy order if the coin is expected to increase in price in the future.
  • Sell high buy low (short sell-short position): This is a way to profit against the normal trend. If an investor expects the price to fall in the future, they place a short order, then, when the price falls, the investor buys it back at a low price to profit from the price difference.

To trade coins, investors need:

  • Step 1 – Select coins to trade: This step is similar to holding coins, however, the coins that are often chosen in trade coins are usually those with strong value and high volatility.
  • Step 2 – Choose an exchange to trade coins: Trade coin is quite simple than holding coin, because you only need to choose a reputable exchange, open a contract (like a CFD contract) to be able to earn profits. based on the volatility of the coin without directly owning and storing the coin.
  • Step 3 – Learn how to use trading tools: To trade coins, investors need to understand how to do technical analysis, read charts… before trading.
  • Step 4 – Find a suitable position to start trading: Investors can buy when the price goes up, or sell when the price goes down when participating in trading coins to find profit.

Compare buying and selling coin trade and hold

Long-term investment – Hold coin

Long-term investment activity – Hold coin is usually suitable for investors who do not have much time and do not have in-depth knowledge of technical analysis. Typically, investors will hold the coin for months or years until the price reaches expectations and becomes profitable.

Advantages:

  • No pressure: Investors do not need to stress because they closely monitor the market like trading coins.
  • Low difficulty: The form of holding coins only requires investors to learn about coin potential, fundamental analysis of coins.

Disadvantages:

  • Large investment capital: Investors need large investment capital to be able to “buy and sell” when holding coins.
  • Profit only on one-way market: Investors only make profit when the cryptocurrency market raises up.
  • Waiting long time to be profitable.
  • Strong mentality: Investors must have a long-term view of the coin’s potential value, not be swayed by any erratic rise or fall of the coin in the short term.

Short-term investment – ​​Trade coin

Active investors will often prefer to trade coins for regular short-term profits rather than long-term holdings. You can invest in surfing bitcoin, ETH or any other currency with good volatility. However, to trade coins, investors need to patiently learn from experience before entering the market.

Advantages:

  • High profit-making frequency: With coin trading, investors can seek profits during the day, even in a few minutes if they know how to take advantage of the coin’s fluctuations.
  • High liquidity: Coin trading activities attract the participation of traders with a very large market size. Therefore, the liquidity is much higher than holding coins.
  • Low investment capital: If you participate in trading coins, you will be able to take advantage of leverage from online exchanges. Therefore, with a modest investment, you can amplify your potential profits.
  • Two-way profit: You may have the opportunity to profit when the market is up or down.

Disadvantages:

  • In-depth knowledge required: Investors need to understand technical analysis, read charts and other tools when trading coins.
  • Monitor the market continuously: To take advantage of the coin’s short waves, traders must observe the market continuously and treat this as a main occupation.
Hold coinTrade coin
InvestmentHighLow
Profit MarginAverageHigh
ProfitabilityWhen coin raisesWhen coin raises or reduces
LeverNoFlexible from 1:10 to 1:100
Other Cost Security costs, transaction costsCommission cost, cost difference

In summary, if you have huge investment, can wait patiently for long-term profits, do not have much time to monitor the coin market and have faith in a cryptocurrency, holding coins is the right investment for you. And if you are a newbie with little investment, looking to find regular profits in the coin market, trading coins will be suitable for you.


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lnhngn

"Don't invest in what you don't know. Learn first then invest"