Are you new to investing and buying and selling coins?
Have heard of it but don't know how Hold coin is different from Trade coin?
What is Hold coin, Trade coin? Hold coin and Trade coin are both investment methods of buying and selling coins, but the investment methods are completely opposite.
In this article, Tra Dao Crypto (@Trà Đạo Crypto ) will explain what the term Hold coin is? What is Trade coin? Helps you understand how to choose the right coin investment form for yourself.
What is Hold coin?
Explain the term Hold coin
Holding coin is buying and holding coins without selling them immediately, waiting for an opportunity to increase in price to sell for a profit. Depending on your investment strategy, the holding period for coins can last several months or several years.
The main feature of holding coins is buying and storing. During that period you will not sell no matter how much the price drops.
Simply put, Hold coin is a form of long-term investment, different from short-term investment which is trade coin.
Top 3 ways to optimize profits when holding coins:
Price moving average (DCA).
Staking and Farming.
Join Launchpad.
Who is Hold Coin suitable for?
Suitable for everyone because holding coins is very simple and easy to do. Even people who are “tech-blind” or not good at technical analysis can still hold coins.
However, you need to be quick with information on the market to find potential coins. Join the community and follow Crypto Tea Ceremony News Channel on Telegram to not miss any news.
Below are some characteristics of hold coin players:
Love investing in coins, but don't have the time or experience to trade effectively.
People who are patient and steadfast are not affected by price fluctuations.
Have idle money that does not need to be used at the present time.
If you want to hold traditional coins, you need to have a storage wallet, remember the wallet password, etc. But now derivatives exchanges are developing, you just need to create an exchange account to hold coins.
Suggest:
🔗 Detailed instructions for registering an OKX exchange account using a computer.
🔗 What is a Hold coin? Top 3 highly effective methods of holding coins.
What is Trade coin?
Explain the term Trade coin
Trade coin is short-term investment, buying and selling coins even within 1-2 minutes when you see a profit.
The difference between a professional trader and an amateur trader lies in the coin trading strategy. A professional trader will make steady profits over the long term, rather than a lucky person who makes profits in just a few trades.
Top 5 popular coin trading strategies:
Trade coins based on news.
Trade coins rely on technical analysis.
High-frequency trading (HFT).
Scalping.
Range trading.
In this article, we will not go into detail about each coin trading strategy.
Who is Trade Coin suitable for?
Trade coin is not for newcomers to the crypto market. However, you can absolutely Join the community to learn from predecessors and “surf” following signals from the community.
Below are some characteristics of trade coin players:
People who have a lot of time with the market and observe the market continuously.
You may have a low initial investment but take advantage of leverage to get big profits.
Make profits whether the market goes up or down.
Skills in chart analysis, technical analysis, understanding of indicators (Bollinger Bands), RSI, MACD, candlestick charts, etc.
In fact, to start Trade coin is very easy, simply buy and sell. But how to find new buying and selling points is something that requires accumulating experience.
Combine Hold coin and Trade coin
To be successful in the crypto market, you should combine both methods. The crypto market has 3 coin investment schools as follows:
Pure Hold coin.
Pure Trade coin.
Combine Hold coin and Trade coin.
If you decide to be both a Trader and a Holder, capital allocation is very important.
The best way to allocate capital effectively when combining Hold coin and Trade coin is to split it into 2 accounts. How much depends on each person's ability and purpose.
Which form of investment should new investors choose?
Before choosing a form of coin investment, you should reassess yourself in terms of: Investment purpose, Personal capacity and Investment time.
Surely everyone who invests wants to make a profit, however, some people want to make a profit immediately, some people want to invest in the culture behind the project to make bigger profits. So which form of investment will you choose?
Example 1: You choose to Hold Bitcoin because you believe in Bitcoin's potential, believing that Bitcoin has the potential to become another asset class that appears for the first time in the world. So, you actively hold Bitcoin for long periods of time.
Example 2: For Memecoin or Shitcoin (junk coin), you choose Trade coin, because of the "crazy and irregular" price fluctuations of these coins. Through price fluctuations, you trade coins to make quick profits through the waves of the market.
See more: 🔗 Instructions for buying Bitcoin and investing in Altcoins on OKX using a computer.
Epilogue
Hold coin and Trade coin are considered introductory lessons for investors new to the crypto market.
Trading coins is not something you buy and sell immediately afterward. The selling period may last several days depending on how much profit you want to make.
If you have any questions, please leave a comment below or Join the Tra Dao Crypto community for the best support.
Don't miss out on basic to advanced crypto knowledge. By saving the DETAILED CRYPTO INVESTMENT MANUAL compiled by the Tea Ceremony Crypto team (@Trà Đạo Crypto ).
