Crypto 101: Day Trade, Swing Trade, or HODL?

in #crypto6 years ago

How Does One Trade When Starting in Crypto
Well to simplify this question I feel that we should define some trading techniques first and then let you be the judge of what works best for your own portfolio. Whether you Day Trade, Swing Trade, or HODL there are distinct advantages and disadvantages when comparing the three...

Day Trading
This is exactly what it sounds like. You ultimately trade "Shorts" during the day. These trading periods could last from minutes up to a few hours, but are ultimately used for cultivating smaller profits over and over again throughout the day. While this method can bring some quick profits it can be very demanding as well as time consuming. I tried my hand at this approach when I first entered crypto and found myself studying candle stick charts for hours and never being able to walk away from my computer or phone.

Don't get me wrong I got some decent profits at times, but had just as many losses. The problem was it interfered with my day job and I personally didn't have the time nor the money to execute short trades over and over that would really justify all the time I was putting in. If this is something you have the time and initial money for, it can be very exciting and rewarding if done correctly.

Swing Trading
This Method worked better for my personal situation as far as making money sooner than later without having to sit in front of my computer screen all day. Swing trades involve investing in trades that last for a period of 7-10 days or "Longs". With both methods I highly recommend learning how to correctly read and analyze trading candlestick charts unless of course you feel like strait up gambling! The profits from these trades can be a little better than the previous method if executed correctly.

My suggestion for using either method is start off by not using any real money and see how well you can interpret trading charts. Once you have reached level of confidence that you can execute trades, setup proper stop losses, and determine when to take profits; then and only then should you start using real money!

HODL (Hold On For Dear Life)
This is exactly what is sounds like and is also a major part of my trading strategy overall. With this method I research crypto projects heavily. If there is a legitimate use case, a solid team, and a working product then there are grounds for me to invest. These are investments that I truly believe will be successful in the long run and can put my money behind with peace of mind. Bottom line if you don't even have working code then I'm not buying. Ideas are nice, but there of a lot of those. Show me something that's needed and working and Ill show you my long term attention.

Anyway you choose to invest learn the basics, do your homework, and don't expect to get rich over night! Never invest money you can't afford to lose!!!

Happy Trading

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Yes Bitcoin now going to up

@buil5 maybe something will change

Im not quite following?

Nice! i need your advice..... Are you familiar with SciDex btw? Would love to hear your opinion about it!

My opinion on ICO's in general in not to invest. Even if the company seems promising your investment will be tied up for a while, and you have no guarantee if the token wont just dump the second it goes into beta. Like I stated. Show me a working product and Ill show you my interest. Do your research. Hope this helps!

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