In a bid to prove my friends wrong, I came to a very, very great realisation of which method is best to get "crypto rich".

There are basically two things you can do with crypto: You can either buy and hodl, or buy and trade.(Don't say stake, because staking is a form of mining.)

I'm predominantly a trader, although whenever I buy at the top, I become a hodler.😅

However, for the cause of this experiment, I became both of these things actively.

The premise of the experiment was simple: Which is more profitable to carry out? Hodling or trading?

To answer this question scientifically, I decided to spend $1000 on Bitcoin, but split it into two parts. One for holding and one for trading.

Bitcoin's price was around $4000 back then(this was a year ago, incase I forgot to mention it), so $1000 got me about 0.29BTC. I split it into two halves, sent one over to my Binance account, and one part over to my Ledger.

Here's how that turned out.

A few disclaimers though:

• I bought $150 worth of BNB, and traded that continuously while trading my Bitcoin. This was to ensure that fees didn't affect my readings. I got this money through a twitter giveaway, which was perfect timing.
• I didn't factor in Binance's withdrawal fee(0.005BTC) since I don't plan on withdrawing this money yet.
• The screenshot you will see of my current account balance will have about $20 worth of BNB, and $50 worth of ETH in it. So you can subtract those values from the actual value if you're a perfectionist.(I'm not judging)

Ok. Here are my results after 1 year and 5 days of trading, and holding.

First, the unexciting one. Hodling.

I sent 0.145BTC to my Ledger on the 20th of March, 2019. Today, that figure remains the same, but is now worth about $960. That's a $460 gain in one year and five days, or an amazing 92% gain. Great stuff.

Now, to the exciting part. My trading account.

I sent 0.145BTC to my Binance trading account the same day I sent some to my Ledger. However, I now have a little over $5000 worth of Bitcoin there. See for yourself.

Of course, remember my ETH and BNB figures from above. But this is still a very decent value.

In the course of one year, I moved from 0.149 to 0.820BTC, a massive 450% ROI. Amazing!

I did this through a multitude of trading pairs, the majority of which were altcoins against BTC. I day traded alts against BTC, and then position traded half of my account value in the BTC/USDT market for further gains. It was a dream come true for a strategy.

What does this experiment show us?

It simply shows us that the days of holding crypto for massive returns are over. Yes, you can 2x or even 3x your account by holding, bit trading gives you more money over time.

However, trading will only be favourable if you have experience in it. I did have 5 years of experience prior to this experiment, although I only had about 1 year, 6 months experience trading crypto. I used to trade futures predominantly.

If you don't have any experience and you don't wish to have experience, you can stick with hodling. It's still pretty profitable if you have a ton of money. 92% on a $40000 account would have been $36800, a very enticing figure.

However, if you have the skills AND the money, 450% on that same $40000 account would be an even better $180000. Juicier! 

Whichever way you go, it only goes to show that crypto is very profitable, regardless of the rather frequent falls it sustains.

Thanks for reading!