When you enter the crypto or stock market world, one of the first big questions you’ll face is:
Should I hold or trade?
To be honest, there’s no one-size-fits-all answer here. Both strategies have their pros and cons, and the better choice depends on what kind of investor or trader you are. So, in this article, I’ll Walk you through both sides, holding and trading, in a simple, friendly way that even beginners can understand.
What Does “Holding” Mean?
“Holding” (or HODLing, as the crypto community loves to say) is when you buy an asset like Bitcoin or a altcoin and simply… wait. You don’t sell when the price goes up a little, and you don’t panic when it drops. You believe in the long-term growth and just sit tight.
People who hold often believe in the fundamentals of the asset. They think it will be worth much more in the future — maybe in 3, 5, or even 10 years.
Why People Love Holding:
- It’s simple and low-stress. You don’t need to stare at charts all day.
- Less risky if you believe in the long term. Historically, many top assets have gone up over time.
- Fewer fees. You don’t pay trading fees every day or week.
- Good for people with full-time jobs. You don’t need to be online 24/7.
But let’s be honest: holding also has its downsides. If the market crashes or your chosen asset turns out to be a bad one, you could wait years just to recover.
What About Trading?
Trading is more active. Traders buy and sell more often, sometimes within minutes (day trading), hours (swing trading), or days. The goal? Make profit from short-term price movements.
Some people love the thrill of trading. It’s fast-paced, full of action, and can be very rewarding. If you know what you’re doing.
Why People Love Trading:
- Potential for faster profits. Instead of waiting years, you might earn weekly.
- Exciting and engaging. It feels like a puzzle or game, and some find it addictive (in a good way).
- You can profit in bull and bear markets. Good traders can make money whether the price is going up or down.
However, here’s a truth many forget to mention. Becoming good at trading takes time, experience, and often… losses. Yes, even the best traders in the world have lost money when starting out. It’s a skill that requires learning, patience, and emotional control.
That’s why if you’re going to try trading, make sure you’re only using extra money, not your main savings or emergency funds.
Think of it like going to a workshop: you’re paying to learn, and part of that payment might come in the form of early mistakes. That’s totally normal.
So, Which One Is Better?
That’s the million-dollar question, right?
Honestly, it depends on you.
Let’s look at a few types of people:
If You’re Patient, Busy, or New
Holding might be a better choice. It’s easier to manage, less emotional, and doesn’t require technical analysis skills. If you believe in the future of the asset (like Ethereum or a big tech stock), just buy, hold, and breathe easy.
If You Love Charts, Have Time, and Can Handle Pressure
Trading could be your thing. You’ll need to learn how to read the market, manage risk, and control emotions. But if you do it right, it can bring quicker rewards and even become a full-time job. Just remember, your early trades are part of the learning journey, so be smart with your capital.
Can You Do Both?
Absolutely. In fact, many smart crypto investors combine both strategies. They hold a portion of their portfolio for long-term growth, while also setting aside some funds for short-term trades.
This hybrid method gives the best of both worlds: peace of mind from holding, and potential fast gains from trading.
Whether you choose to HODL or trade, what really matters is understanding your personality, goals, and risk tolerance. Don’t just follow hype. Start small, learn along the way, and adjust your strategy as you grow.
Both paths can be profitable. But only the right one will make you feel comfortable and consistent in the long run.
So, are you a calm HODLer or a sharp trader? Maybe a little bit of both?
Only you can decide, and that’s the fun part.
If there’s something you want me to cover next, just let me know. You can follow me here on my website and my Medium to get my latest updates as soon as they drop! You can also contact me through X @AskaraJr and Linkedin
