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HODL

Swing Trading or HODL? Which is more profitable?

Is Swing trading more profitable or Hodl? In this article, we want to examine this question. There are many questions about trading among traders and analysts. According to their desired strategy, each analyst and trader advocates and chooses one of the trading methods. Some people strongly believe in the HODL of a coin, currency, or asset; However, some traders can’t keep a currency or an asset for more than a few hours or days. In the meantime, some people use both of these methods.

But which one is right for you, or which one is right for you, depends in part on the details of each of these categories, as well as your purpose, strategy, and mood.

In this article, we will introduce and compare swing trading and hodl strategies, and at the end of the article, you decide to use the swing trading method or hold, or even both.

HODL or long-term investment

Swing trading or hoodle

In this way, you select the Coin and keep it for weeks without checking its price. During this period, severe positive and negative price fluctuations may occur. This does not matter to traders who have chosen a long-term investment strategy or a hodl and will not prevent them from sleeping comfortably. In this way, the person has invested in the future of that Coin, and the current price of that Coin does not matter to him. As a result, there will be no need to worry about falling or stagnant prices for several consecutive months.

Before buying any coin, make sure it is valuable. This is only possible through research. After doing enough research and making sure that Coin has the potential to grow in the future and is worth buying and maintaining, invest in it.

Common Mistakes in Long-Term Investment or Hodl

  • I am feeling worried in a sideways market.
  • Lack of adherence and observance of personal strategy
  • Follow the trading and subjective methods of others
  • Pay attention to the fears, doubts, and doubts of others
  • Investing in money is not worth it. You can not use it for a long time.
  • Failure to properly examine, analyze, and consider risk factors before entering into a transaction

This trading strategy will be right for you if you handle the above. Long-term investment or HODL only requires sufficient research to ensure that a project or digital currency is valuable. Once you have found the. right and suitable coin to invest in and make sure there is a bright future for that Coin, all you have to do is buy and maintain it

Note that price fluctuations and changes that occur during this period will not be significant for the Coin of your choice; So do not worry about them. You have invested in that Kevin’s future.

What is a HODL, and where did it come from?

The written structure of this word may seem strange to you. The word HODL is more like an item on a lab sheet than a cryptographic term. This word, Hodl, was originally the same word HOLD, the letters of which were changed based on an event. We will discuss the reasons for creating this term and its meaning.

What does HODL mean?

In cryptocurrencies, hodling means keeping cryptocurrencies for a long time. Most hodling occurs when the market fluctuates sharply, or the price of the target currency falls in a few consecutive days. The term was initially used only for the king of cryptocurrencies, bitcoin, but is now used for Atrium and other quinces. Of course, hodling is not limited to keeping currency. In other words, a hodl is a jigsaw puzzle consisting of buying bitcoin (or any other currency) at a very reasonable price and keeping it for a long time to make more profit and increase its value.

Where did HODL come from?

In December 2013, a: user named GameKyuubi posted an article titled

I Am Hodling

I’m hodling.

He went on to emphasize that this spelling mistake was intentional:

I mistyped the word twice. “Keep bitcoin trading out of your mind,” he continued. Holding bitcoins for a long time will make you much more profitable than trading. “A professional trader can hunt down bitcoins and sell them at the best price,” he wrote about why he offers hodling. But I declare that I am not a good trader, so I prefer to hodl.

Of course, there are other meanings for Hoodle in society. One of the most commonly used terms is “Hold On for Dear Life” (the initials of this phrase form the word HODL), which derives the meaning of “hold for a better life” from which What has been said does not seem to be a correct interpretation.

Why is it better to invest in bitcoin for a long time?

Let us tell you an important point before examining this. Traders operating in the capital or cryptocurrency market are divided into two categories. The first category is amateur traders, and the second category is intelligent traders. First-class traders sell their bitcoins as soon as the market declines, while smart traders are the ones who buy bitcoins at low prices. Although these intelligent traders sometimes buy and sell bitcoins several times a day, sometimes they keep them for several months and eventually sell them at the highest price. Since hodling is done like a long-term investment to make more profit, hodling can be considered a long-term investment.

What is the effect of HODL?

When a person keeps his cryptocurrency like Bitcoin for a long time, he looks at Bitcoin as a valuable asset and sees real profit in investing high and not in daily trades. This view has different effects on a person’s crypto life. These people are not looking for daily trading, so they have more peace in their lives. On the other hand, hoodies people are well acquainted with bitcoin fluctuations and do not make emotional decisions.

Hodlists are less prone to market fluctuations due to their limited sales, significantly reducing their risk of losing capital. Also, as the number of transactions decreases, the cost of their transaction fees decreases, thus maintaining their cryptographic reserve.

To learn more about the incredible impact of Bitcoin Hoodle or Hold, take a look at the Bitcoin price. Each bitcoin unit was close to $ 3,500 last year. Imagine a person who bought a bitcoin last year, kept it for a year and sold it for $ 11,000. In this case, the hood lumber has sold his bitcoin with a profit of more than 300%. Out of about 21 million extractable bitcoins, more than 18 million bitcoins have been extracted. Of that number, more than 12.5 million bitcoins have not been traded in the past year and have remained stagnant. These figures show that many people like to include hodl in their plans and are reluctant to change. Some people are hoping that one day the price of bitcoin will reach 100 thousand dollars or more, and for this reason, their names can be included in the list of hoodlums.

Swing trading

Unlike Hoodle’s swing trading strategy, the trader’s goal is to make a profit in the short term by buying and selling a coin. In this way, you make a profit by finding a downtrend in the market (or a drop in the price of a particular currency) and buying it before leaving that trend and entering the uptrend. Then you keep it for a few days or a few weeks or finally a month until it reaches a price ceiling or resistance range (or you think that amount of profit is enough), and then you will sell it.

Now you might be better able to tell if swing trading or a hodl is better. However, you have to decide whether you want to profit by swing trading or hodling. Let’s go a little further to make sure.

In the swing trading method and during the open position of the trading position, it is essential to pay attention to the status of the selected currency pair. For example, suppose you have chosen the BTC / TRX currency pair and want to buy TRX in a downward trend and at a reasonable price, and you want to sell it after a week and after the announcement of TRX. Bring it.

By the time TRX reaches a reasonable purchase price, you should be aware of the volatility of the cryptocurrencies against it (Bitcoin). If the digital currency (bitcoin in this example) is in a bearish trend until TRX reaches a reasonable purchase price, you will lose some of your capital.

Swing trading or hoodle

But if bitcoins are on an uptrend, you can keep your bitcoins until TRX reaches a reasonable purchase price and make more profit this way.

One of the essential points to consider when choosing a swing trading or hodl method is to swing trading or hodling the corners that you think will have a bright future; In that case, if the price drops after your purchase, you can keep it with a longer-term investment view.

Swing trading will be easier and more convenient considering the general conditions of the digital currency market and the recent days and weeks of coins that you intend to trade.

You can be a swing trader if you can get information about project development, follow the official Twitter account of various projects and be aware of their announcements, as well as know technically and by looking at charts that for example Flan coin in recent months It has been on an upward trend and has been experiencing adverse price movements for about two weeks now. All you have to do is examine and analyze the various factors and factors to conclude that there will be no further price drop for this Coin.

Pump and dump tricks in ciphers

There are so many pump and dump groups these days. These groups have thousands of contacts, and their inventory is several million bitcoins. In such groups, the group manager announces the news of listing and the possibility of buying a specific coin, on a particular day and time and to a specific exchange, in his group. When the appointed time arrives, a lot of capital will flow to the specified Coin. They then spread the news about Pump Ann coin in cyberspace and various groups and channels and attracted the attention of many audiences to that Coin and postponed the sale of tokens until then.

At the same time, many coin owners are selling coins, and due to the large volume of supply, selling Coin will be extremely difficult for ordinary users; Except at a much lower price!

So before choosing a swing trading method or hodl, you should also pay attention to this point.

Copy-trading in digital currency and its advantages and disadvantages

As you know, there are different strategies for use in financial markets, and people can choose a system based on their moods and goals. In previous articles, we mentioned scalp trading, position trading, swing trading, etc. This article will explain the Copy Trading strategy and its advantages and disadvantages. They use the copy trading strategy in their transactions when people do not precisely know a particular market or are not sufficiently skilled in that market. This strategy trading also applies to people who have little time available.

What is a copy trading strategy?

Strategy trading. In this method, the trader opens or closes his positions based on the other person’s positions, so to speak, by copying him. This process can be done automatically or manually, and it is the trader who decides how to manage this strategy.

Before starting copy trading, the most important thing is to analyze, review, and personal opinion about that market before investing natural capital.

Keep in mind that even if you decide to copy the positions of an experienced and skilled person, your capital is still at risk.

How does the copy trading strategy work?

This strategy is based on social networks and social trading systems. In this method, when a person opens a position, they publish information about it on the Internet. People can then decide if they intend to open a similar situation. Also, if the copy trading strategy is set automatically, there is no need for additional information or activity on the trader’s part, and this process happens automatically.

Copy trading

Usually, most people who advertise their trading positions have experience and skills in the relevant market. Most people who use the copy trading strategy do not have much experience in that market or are generally new to the financial markets.

Because price movements and fluctuations in the Forex market are small but repetitive and require constant control, the copy trading strategy is popular. Traders easily copy other people’s positions in this market instead of constantly scanning fast price movements and market fluctuations.

Examples of Copy Trading

To make the concept of copy trading strategy clearer, consider the following example:

Suppose the Brazilian domestic market has fallen, and you want to enter this market. Suppose you feel that you do not have enough information about the economy, politics, or laws of the Central Bank of Brazil to make an informed decision. In that case, you can use the copy trading strategy and use the information of experienced and skilled people in this market.

It would help if you also tried to gain experience and skills in this market simultaneously and not base your trades on other people’s strategies and positions. As mentioned earlier, even if you are unfamiliar with the market, it is a good idea to have your analysis before investing natural capital in a position copied from someone else.

HODL

Benefits of Copy Trading Strategy

  • This strategy allows you to operate in markets you are not familiar with.
  • In this strategy, you can use other people’s experiences or seasonal market trends that you would not usually pay much attention to.
  • Using this strategy, you can use the experiences of traders who have specific and registered records in the relevant market and use your time more and better.

Disadvantages of Copy Trading Strategy

  • This strategy makes people less motivated to research and studies relevant financial markets.
  • Copy-trading strategy does not eliminate the possibility of risk. In addition, some groups use this method to influence a specific market and thus make a profit for themselves.
  • This strategy may be helpful for people at the beginning of the activity, but it is not the only strategy available. But given the potential for very little profit, this strategy is very popular with some people.