Cryptocurrency is becoming more and popular as time goes can this trend being what it is. It would eventually turn out to be a life skill when you are able to know the do’s and dont’s when it comes to cryptocurrency trading.
A warning, however, making trades in cryptocurrency will make or break you. This is because a lot of people have made a hefty amount of money, while others have lost everything. That’s how tricky it can get. Luckily, we’re going to talk about just how to avoid the latter with this cryptocurrency trading guide!
Short-term Trading Vs. Long-term Trading
Short-term trading can be considered as a few minutes to a few months. You might be able to use this because you might think that the price might go up in a short interval of time. Also, if you’re looking for a quick profit and a high margin for success, short-term trading might be best for you.
Long-term trading is the opposite of short-term trading as it talks about trading in the long run. Despite the market fluctuations and all the tell tale signs that it’s about to plummet, you still HODL or hold on for dear life.
Advantages and disadvantages of short and long-term trading
As mentioned earlier, there are risks that you take when dealing with cryptocurrency trading. That’s why you should know what trade you should be doing instead of needlessly spending your money. So here are the differences that you should know to save that hard-earned money.
Short-term cryptocurrency offers a high percentage of success, unlike long-term trading. This is because, unlike long-term trading, you wouldn’t need to wait to get the results since it usually doesn’t take long. In short, there are more opportunities to gain more profit than a loss at this point.
Long-term trading advantages are that if you risk enough in the right trade, you can gain a substantial profit compared to all the short-term businesses combined. An example would be that the people who invested in Bitcoin back in 2011 sold for $0.35 and, in 2017, skyrocket to the amount of almost $20,000 per coin each!
You also don’t need a lot of money to get started with long-term trades. Just leave it be and let it grow over time. This can allow you to avoid the stress of the market volatility compared to short-term trading, which you have to know every currency that’s out there to get the best deal.
No matter what you choose, deciding on those two trades alone will define what type of cryptocurrency trader you are. Depending on where you succeed, both transactions will determine what kind of trader you will be.
Of course, you must explore the waters a bit more and take risks that you usually wouldn’t take to grasp the entirety of cryptocurrency, as such in all things worth exploring. There you have it, the cryptocurrency trading guide that will eventually lead you to success!