There is a phenomenon in the crypto world where a large proportion of people engage in trading currencies, while those who hold onto currencies are few and far between. However, in the end, it is often these holders who truly profit from the crypto market. Essentially, trading currencies is about buying and selling in short-term transactions to make a profit, while holding currencies is different; it involves recognizing the investment value of a particular coin, continuously buying, and waiting for appreciation. Due to the low entry barrier for trading, it is relatively easy to get started and can yield profits in a short period of time, which is why most investors, especially newcomers, tend to prefer trading over holding. Looking at the entire investment market, this phenomenon is nearly universal; short-term trading is the choice of the majority. Once they taste a bit of success, they become obsessed with trading. People naturally have a gambler's mentality; after making a little profit, they become overly confident and increase their positions. Conversely, after incurring a small loss, they are filled with anxiety and their mindset nearly collapses, falling into a vicious cycle, where the final outcome can only be to cut losses and exit the market.
