Day Trading Vs. Long-term Crypto Hodling: The Benefits and Drawbacks

If you’re new to the world of cryptocurrencies, you’ve probably heard about two terms that seem similar: day trading and hodling. They’re both strategies for investing in cryptocurrency, but they have different benefits and drawbacks. 

In this article, we’ll go over what each one is and how it works. By the end of this post you’ll know which method is right for your needs.

What is Cryptocurrency Day Trading?

Day trading is a form of cryptocurrency trading in which you buy and sell a cryptocurrency within the same day. It is risky, but also profitable if done correctly.

The basic idea behind day trading is simple: buying low and selling high. If you can consistently buy at a lower price than you sold at, it is possible to make money with this strategy.

Day trading cryptocurrency can be a quick way to profit off of market fluctuations, but it also brings with it new risks. Trading pairs such as DOGE/USDT and SOLUSDT are different from investing in a cryptocurrency because you’re buying it not for its utility, but for the price movement alone. 

When you trade pairs, you’re buying and selling in rapid succession and taking advantage of minute market shifts. This is the quickest way to make a profit.

Benefits Of Crypto Day Trading

  • Cryptocurrency is highly volatile, which means there is the potential for massive gains (and losses). 
  • Cryptocurrency is relatively new, which means that the barrier to entry is relatively low. 
  • Cryptocurrency marketplaces are generally unregulated, which allows for greater flexibility in how trades are conducted.
  • Cryptocurrency can be traded anywhere and at any time, making it convenient if you have a busy schedule.

Drawbacks Of Crypto Day Trading

  • It takes a lot of work to really get good at cryptocurrency day trading. If you don’t have the time or patience to put in the research, you’re unlikely to make much money in this field.
  • Cryptocurrency prices can fluctuate widely in a very short period of time. If you’re not careful about your losses and risks, you could end up losing more money than you could make back in a very short amount of time.

What is a cryptocurrency hodling strategy?

A hodling strategy is a long-term, buy and hold approach to buying cryptocurrency. The idea behind this strategy is to avoid the volatility of the market by buying low and selling high over time.

Hodlers use their funds for daily expenses, like groceries or coffee, but they don’t spend money on things that depreciate over time like cars or homes. Instead, they can afford to wait years before cashing out—if ever—because their overall savings are growing in value with each passing day.

Benefits Of Long Term Crypto Hodling

  • HODLing crypto puts you in a better financial position than selling. If you sell your crypto now, you’ll be selling at prices that are down from their all-time highs.

  • It’s easy to forget about your crypto if you don’t have to check the prices every day. This can be great for your mental health.
  • If you don’t think of your crypto holdings as an investment or decide not to sell them, you’ll be able to truly appreciate their value over time without worrying that the price will fall further. You may even find that their value increases over time.

  • You’ll also find that others treat you differently when they know that you’re holding onto your investment – particularly if it’s been steadily increasing in value over time. 

Drawbacks Of Long-Term Crypto Hodling

  • The price of cryptocurrencies can fluctuate dramatically, so it’s possible to lose money if you don’t have a strategy.

  • Difficult to sell or trade your coins when you want to, especially if there is a lot of demand for them at that time. If this happens, you’ll have no choice but to wait until the market calms down before selling any coins at all—which could take months or even years.

Is it better to day trade cryptocurrency or hodl?

There’s no right or wrong answer, but it’s important to know the pros and cons of each before deciding what’s right for you. The best way to do this is by thinking about your goals.

  • If you’re looking to make a profit in the short run (i.e., making money in less than a year), day trading will probably be better for you. Day traders can often turn profits within 24 hours as they buy low and sell high, seeking short-term gains.

    That said, if all goes well, long-term investors can also see significant returns on their investments over time—especially if they’ve chosen cryptocurrencies with strong fundamentals like Bitcoin or Litecoin.

  • If you’re looking to make an investment that’ll yield rewards down the line (i.e., making money in more than a year), hodling is probably the way to go. It allows people who bought at higher prices to reap massive gains through compound interest. Those coins continue gaining value over time without having any additional work put into them beyond buying them once upon a time when they were cheap.


If you’re thinking of starting cryptocurrency trading, I would recommend that you do your own research and choose the method that feels most comfortable for you. Do not just copy someone else’s strategy blindly because it might not work for you. 

There are many different approaches to trading and investing in crypto, so find what works best for your personality type, risk tolerance level and time commitment. The main thing is to have fun with it.

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