Short Term and Long Term Crypto Trading Strategies

Short Term and Long Term Crypto Trading Strategies

By Swapzone | Swapzone Blog | 17 Feb 2021

The quick growth of cryptocurrencies in the modern world is truly amazing. Since their invention, cryptocurrencies have taken the global economic structure by storm. It is very shocking to see how so many people and big organizations have jumped on this bandwagon. With this rapid growth, the world has to come up with different strategies and techniques which would bring high benefits to them. Two very popular crypto trading strategies are short term and long term trading. This article lays down all the pros and cons of different strategies.

Short Term Vs. Long Term

Short term trading is considered to be the most widely used method in trading businesses. This is mostly utilized by stock market investors and forex traders. It has also become very commonly used between crypto traders. Because of the rapid changes and value fluctuations in cryptocurrencies, an individual can gain tonnes of potential benefits. Around 1600 cryptocurrencies are traded through renowned platforms every day which shows the increasing potential of the crypto trading market.

There is also a high audience throughout the world that practices ‘day trading’ which involves the market performance of shares or cryptocurrencies at every minute. However, day traders are expected to stay vigilant on their screens for a long time, because they need to avail profiting trading opportunities in a short amount of time. Short-term trading can also be started with minimal investments so there is no need for huge capitals to begin a career in day trading.

The phrase 'term investments' means that one can get assets with the intention of selling them later in the future (this period can go as long as a year or even more). In 2013, a phrase was coined which was specifically dedicated to keeping the assets with themselves regardless of how volatile the market is. This term is called HODLing. The main difference between holding and a long term investment is that long term investment is something that involves many facts and reasons, whereas holding is keeping something for a longer period in the search of an increase of value.

Long term trading strategy is perfect for those who wish to deal with bonds and stocks etc. These common investment methods can become very fruitful when pursued in a long term plan. But one should be fully aware that this market becomes extremely volatile at one point. It is constantly changing and with these changes come risks. This means that if an individual has invested in the online market today, they can end up having no value the next day.

But this can be inverted as well, instead of the value decreasing, if the value increases then that will bring hefty profits to the investor overnight, and with long term trading, the market volatility can increase the value of crypto a number of times. However, if you are willing to commit for a long period of time the risk of loss is minimized, as you wait for the market to get mature. Unfortunately, there is always a threat of cyber attacks and thefts at digital crypto wallets which may bring the account balance to zero.

Long Term Crypto Investment: Pros

  • The drastic changes in the value of crypto can prove to be immensely fruitful for the investor.
  • If a crypto coin is mined in its early days, then that can give huge profit as well. Bitcoin is one living example of this fact, as its early investors amassed millions of dollars in profit when its value increased after a few years.
  • Cryptocurrency is completely and entirely decentralized. This means that the only person who is involved in the transactions is the investor. No bank or any member of the government can intervene. There are no extra charges, and the transactions through cryptocurrencies are more secured.

Long term crypto investment: Cons

  • Though the value of an asset can increase at any given moment, it can also decrease at the same time. Hence, all the investments may go in vain.
  • Despite all of the mentioned benefits, one has to realize that it is still digital money and still hold chances of being stolen or hacked into.
  • Mishaps can happen regarding remembering the password of the wallet that keeps all the funds, or in worst cases, someone else may recover the password of your account and use it under your name.    

Short Term Crypto Investment: Pros

  • A very prominent advantage of this method is that it is accessible at all times. Meaning that trade is possible from any place at any time. Unlike some, his market is available to all.
  • This market is highly expanded and active, as traders from all over the world are aggressively conducting trades and transactions through different cryptocurrencies.
  • This market does not require one to invest a large amount of money. A small $100 is enough to get started. It is advised to start with a small amount and then slowly build up the amount.
  • This market works differently as compared to all the other markets. The thing that differentiates the market from the others is that it takes a bit longer to fully get processed. People can utilize this time to think about their decision if they actually want to proceed with it or not.

Short Term Crypto Investment: Cons

  • Since this concept is very fresh to the people, it leaves a lot of room for people to manipulate it. There have been a few cases where a couple of trading platforms were hacked into and people lost their valuables that they had kept. In addition, they left no traces which could be used to track them.
  • Although the thought of it being accessible to a user at all times sounds very pleasing and beneficial, it can also prove to be bad since this way the user has to sit in front of screens for a prolonged period of time. Short term trading can be mentally exhausting and tiring for many individuals.
  • The rapid change in the value of crypto has been a constant concern for traders and investors. The reason for this is that many people have witnessed their wallets swept clean because of how unpredictable and volatile the world of crypto is.


Trading is proving to be a highly profitable practice in recent years, and the scope of online trading has significantly increased during the ongoing global pandemic. This is why more and more investors are now opting for different online crypto strategies. However, the decision for short term or long term crypto investment lies with every individual and their targeted goals. If an investor wishes to grow their portfolio over years and even decades, then long term investment is their automatic option.

On the other hand, short term investment strategy is practiced by those investors who are expecting to access immediate and safe trading results. Both these trading strategies have their advantages and disadvantages but individuals are expected to evaluate their financial condition and future goals before jumping on the trading boat, in order to have a more successful trading experience.


Swapzone is a cryptocurrency exchange aggregator that discovers and pinpoints the most relevant cryptocurrency exchange deals on the market. Exchange 300+ cryptos while saving your money and time.

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Swapzone is a cryptocurrency exchange deal aggregator. We do things that would help you get the most out of your crypto swaps, make an informed choice of platform, check the rates and fees right away, and have all your exchanges in one interface. Like an instant exchange, but better. Here we are writing everything we think about the crypto space. Also, posting guides and tutorials. Tune in!

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