Holder vs. Trading Strategy: Understanding the Differences and Conclusions in Cryptocurrency Investment
Holder is one of the investment methods commonly used in the cryptocurrency world. As the name suggests, shareholders seek long-term profits just like gold and real estate investors.
Therefore, a holder or bearer is a person who holds or has coins to keep and has no intention of selling them in the near future. It is very easy for holders to buy tokens and tokens and then forget about them.
Because they only want to own and save, the average holder forgets to take profits or sells the asset when the price is good. Because the number of tokens and coins they hold and handle is very large.
Meanwhile, long-term trading is a trading activity with the aim of long-term "profit". Unlike shareholders, traders continuously monitor the chart pairs they trade, even on a monthly basis.
Simply put, holders really keep their coins and don't care about the price and from a trading perspective they will constantly monitor the chart to see price movements and if the price reaches their target then they will sell.
Trading is where people buy and sell assets in the crypto or financial market to make a profit, in this case all people trade voluntarily, and make decisions based on the market or price movements as well as buying or selling.
Someone who trades usually makes a profit by selling an asset at a more expensive price than when purchasing it.
The basic concept of changes in asset prices is changes in market supply and demand. Assuming other things don't change, the greater the demand for an asset, the price of that asset should rise. and vice versa.
In the cryptocurrency market, holders are people who hold coins for the long term, this is similar to investing in gold or other things, and they even forget to take profits because they rarely look at the market. And while trading people are people who buy or sell an asset with the intention of making a profit in a short period of time.
Upvoted! Thank you for supporting witness @jswit.