Cryptocurrency Investment Strategies
HODLing vs. Trading
HODLing
"HODL" is a playful misspelling of "hold" and means keeping your cryptocurrency for a long time, regardless of market fluctuations. This strategy is based on the belief that, over time, the value will increase. Think of it like planting a tree and waiting for it to grow. You don’t worry about daily changes in the weather; you trust that, with time, the tree will grow and bear fruit.
Trading
Trading involves buying and selling cryptocurrency frequently to take advantage of short-term price movements. Traders aim to profit from these price changes by making multiple transactions over short periods. Trading is like being a stockbroker buying and selling stocks every day based on market trends. It’s more active and involves trying to make quick profits from daily price changes.