Buy, hold and pray. The loser's idea of what investing is.

Have you ever heard that quote? The one I started this post with?

Take that quote, fold it into a ball and throw it out the window. At least for cryptocurrencies.

Buying and holding(probably not with praying though, but that's ok) in cryptocurrencies has been the biggest profit bringer for investors.

If you put $10 into BTC in 2009, and you completely forgot about it until today(very easy, considering it's $10),if you had sold at current market price you would currently have $55000 in your account.

Nice right? 55000% gains in 11 years. Try getting that in Stocks just for holding!

Then there's trading. The fast method of getting those big bucks.

Trading is the act of buying and selling assets within a shorter period than buying and holding. You might hold on to a position for about 6 months before closing it, and that still counts as trading. Anything longer though is holding.

Traders are divided into:

• Swing traders: They can hold on to their positions for longer than a day.
• Day traders: They can hold on to their positions for a whole day, but no longer than that.
• Scalpers: They try to get smaller profits multiple times in a day instead of one large profit maybe once in a week.
• Position trader: These traders can hold onto a position for longer than a week.

As you can see, traders usually hold shorter term positions than hodlers.

So which is best for cryptocurrencies?

The answer to that is subjective.

It depends on the investor or owner of the money.

If you have your own business or an automatic source of income, or you are willing to make trading cryptocurrencies your source of income, then trading might be for you. You'd need s lot of time everyday to look at charts constantly and make your decision.

If you however have a day job and just want to invest in crypto, but don't have all day to look at charts and can only afford to look at charts once or twice a month, then hodling is for you.

Thanks for reading!