 What is going on ladies and gentlemen welcome back to Bitcoin daily for another video today as you can see in the title We are going over hodl versus trading Alright guys hodl versus trading is what we're covering today We get this question all the time almost everyone that answers this space is pretty much a beginner And they're always wondering like what's hodl and what's trading what's the difference what's more profitable where can they make more money What's safer you know so they always have a lot of questions We hope that this video can answer all your questions because if you're watching this right now that you probably have the same exact questions So before we get started please we ask to give this video a like Drop a comment and give us a follow turn on those alerts That helps us so much to continue to grow this channel and help the crypto community as we give you know we put these tutorials and free content out every single day So let's jump right into it ya let's do this So first of all things to note it is not a good idea to borrow money via loans to invest in bitcoin or other cryptocurrencies It's an even worse idea to purchase cryptocurrencies with credit cards as they will charge you cash advance fees and sometimes a higher interest rate Do not invest money that you can't afford to lose Let me read it one more time do not invest money that you can't afford to lose Very very important The majority of cryptocurrencies aren't going to survive If you're invested in a cryptocurrency that goes to zero you're not going to get bailed out Conduct extensive research on the coins you're looking at and be careful of recommendations you find on social media Alright and then one more note that's not on there but I feel it's something that I should you know tell you guys I am not a financial advisor and this is not financial advice Okay guys just make sure you note that these are just I'm just putting what I've gained as far as knowledge in my opinions And what my experience is trading But I am not a financial advisor and this is not financial advice So let's jump right into it HODL the long-term strategy what is HODLing? HODL itself is cryptocurrency slang which originated when you evidently when an evidently drunk bitcoin talk user Made a post where they misspelled HODL in the face of falling bitcoin prices in 2013 So in a previous video the nine terms I think it was called nine terms that you should know if you're I'll tell you guys right now If you guys look at this video right here nine terms every crypto trader should know That we go over actually exactly that form and how that all happened So if you guys want more on this story you guys can check that video out HODL is essentially a long-term approach where you purchase and hold bitcoin and other cryptocurrencies Without regard for short-term fluctuations in price It involves investing in one off or regular sums of bitcoin and other cryptocurrencies Holding the investment for a long-term period for example one plus year or until another condition is met This is the lowest effort and easiest strategy to adopt It's based on the assumption that the price of bitcoin and some other cryptocurrencies will see a rise in real value over long-term time periods This approach completely ignores short-term volatility which is an inherent feature of the cryptocurrency markets Even if the price of bitcoin drops off a cliff investors committed to the HODL strategy shouldn't do anything unless the fundamentals have changed Once you've set yourself up with HODLing this is a passive investment strategy So this strategy is simple but not stupid Despite its simplicity HODLing shouldn't be goal-less you should and might want to consider the following points First thing, what cryptocurrencies are long-term winners? That's the first thing you should be asking As I've already touched on most cryptocurrencies are going to collapse This solution might become redundant, another cryptocurrency might do a better job Critical members of the team might leave the project, etc. There's a bunch of reasons why a project can collapse If you're intending to HODL a cryptocurrency for long-term you need to be confident about where you're putting your money and have a rationale for why it'll increase in value Number two, how are you going to invest? You have fewer options to consider here You could invest in chunks whenever you want regardless of what the price is doing You could determine price levels you'd be happy to buy into your cryptocurrency at An example, buy the dip, right, BTFD You could set up automatic regular investments into your chosen cryptocurrency like dollar cost averaging So we have a video on this as well guys that we'll touch on You don't have to pick one path, you could do a combination of all the above So yeah, those are different options that you have for putting your money in Now what are the conditions for pulling your money out? When you invest money into anything, you likely have aspirations that it'll grow in real value But when are you going to cash out and realize these profits? Are you going to cash out in 5 years, 10 years, or is there a specific price point where you'll cash out instead? You can also determine what percentage or fiat value you draw out under certain conditions Your cryptocurrency investment could go the other direction too If you're not prepared to lose all of your investment, then do you want to have predefined conditions where you exit the market? So those are all questions that you guys should be asking before even investing You should have an answer to every single one of these questions before you even invest So why might you huddle instead of trading? One reason could be you don't have the time or motivation to actively invest in cryptocurrencies And you just want to easily gain some long term exposure to projects you care about Another thing is you want to invest in some cryptocurrencies which you think have strong long term potential Maybe you aren't confident in your technical analysis ability and have no interest in learning how it works That happens all the time Some people just don't care to learn the skill and they just want to make money So they rather huddle So if this is the approach that you want to take, how do you actually invest in Bitcoin or any other cryptocurrency you're interested in? So again, we have videos on this guys We've covered all of this for you guys We've been slowly creating these videos every single day and covering all these base points So that once you're ready to go, once you have your money ready to go, ready to jump in Boom, you just watch our videos and you're all set So the two different videos that I recommend for you to watch is the top 10 Bitcoin questions answered So this is Bitcoin for dummies, Bitcoin for beginners These are all super super the most basic questions that you can think of I answer them here including what is Bitcoin What is a wallet, how to receive and send Bitcoin How do you buy Bitcoin, how to turn fiat into Bitcoin, how to turn Bitcoin into fiat All of that is covered in this video So I highly highly recommend it Then the next video I recommend is this one Is now a good time to buy Bitcoin This covers dollar cost averaging It shows you exactly how to dollar cost average and it shows you why it's a proven strategy Which you will be profitable in over the long term And it shows you why 99% of or actually 100% of people that have used this strategy have profited I can tell you 100% of people who have used this strategy for over a year have profited and are profitable So those are two strategies that I recommend you guys to go over And two videos that I recommend you guys to watch Now trading, the short term strategy So first of all what is trading Trading is a short term approach where you're looking to maximize your returns And beat any gains which could be achieved by just holding cryptocurrencies This is a high effort approach which can be time intensive It embraces the volatility of the marketplace as price fluctuations offer the opportunity to profit From drastic changes in prices over short time periods This is the opposite of the long term strategy I defined before Which looks to evade short term volatility In order to trade you need to have some level of technical analysis ability You need a firm understanding of how the market works You also need to put time into monitoring the markets and searching for opportunities you can take advantage of Because cryptocurrency markets are fast moving and always on Alright so for trading the number one thing is following rules and being disciplined about it So the first thing you should be asking when looking for a trade setup is where's the opportunity You need to look for what cryptocurrencies have short term and medium term potential The cryptocurrency market is massive There's more than a thousand projects listed on coin market cap How will you know or find what coins to trade? You need to decide that based on your edge and criteria for trading a currency or asset For us we stick with high volume and high market cap coins and trade strictly based on technical analysis So I don't really trade based on fundamentals If I like a project and a project's potential and fundamentals I usually just invest long term in those projects But for everything else like I'm usually just in and out of trades I'm day trading So the next question is what's your trading plan? This is probably the most important question that you will have on trading Before entering any trade you need to know exactly where you're entering and why Then you must also know exactly where you're exiting when you're wrong Because face it you will be wrong many times and of course where you're taking profit when you're right Then you need to incorporate risk reward and position sizing to tie it all together So those are all different things that you need when you're trading You need to be able to hit all of those when trading You should know answers to all these questions before you ever even jump into a trade So why trade? Why not just Hado? It seems so much easier Why trade? So you might want to trade if you're confident in your own technical analysis ability And want to leverage it to generate bigger ROI If you have spare time to search for opportunities and monitor fast moving cryptocurrency markets With the right system and rules you won't have to spend much time watching the market So it is time intended as I said before especially when you're new Because you really need to be paying a lot more attention But once you become profit once you kind of figure it out once it starts clicking for you It really doesn't take much time you just kind of I come every morning I glance over the charts it takes me five to ten minutes If I see something I like I'm a market so I set up alerts on my chart And I'm alerted straight to my phone if the price gets to that point So I scan 10-20 different charts within a 15-20-30 minute period Depending how long I take looking at the chart And if I see the setups I'm looking for then I spend more time on it If not then I move on to the next one it's that quick Another reason is you've got a decent amount of capital Which can be leveraged to generate sizable gains from small percentage movements Or better yet once you're a profitable trader you can use leverage With your capital to make even more gains on small moves So for an example if you've been hodling this year you're up 80% in profit give or take If you bought bitcoin January 1st 2020 at this point give or take You're up around 80% in profit because that's what bitcoin is year to date right now But if you were trading every rise and fall you'd be making profits on both sides of the market And if you use leverage then you'd be making even more So that's why trading can make sense for some people Because now you're not only trading when it's going up You're not only gaining from when it moves up But you're gaining when it moves up then you're selling when it goes down Then you're buying again when it goes up then you're selling you know what I mean You're keeping that money every time it drops down you're not losing value on that Because you're not holding it right so you're only gaining value as it rises So that's why it makes sense to trade and that's why it's so much more profitable If you're a profitable trader remember that's a big if So what should you do? What is right depends on your circumstances motivations and goals What's right for one person is the exact opposite of what another should do 99% of investors in crypto have been profitable hodling Unless you bought of course at all time highs in 2017-18 And never averaged down or if you sold That's the only way you're losing trader really A losing hodler or holder is if you sell before you should right And then another thing to keep in mind another number to keep in mind 90% of traders are not profitable So what should you do? Well I can tell you what I do right So I hold about 30 to 50% of all my investments passively in cryptocurrencies That I think have long-term potential and are safe bets It's mainly just Bitcoin and Ethereum I'm not looking to do anything with this bunch for a few years regardless of what happens So 30 to 50% of my portfolio is locked up in Bitcoin and Ethereum Those are the two my two safest bets The two coins I believe in the most The two projects I believe in the most So I have the majority in Bitcoin My second biggest holding is Ethereum So Bitcoin and Ethereum make up about 50% of my portfolio at any given time It could be between 30 to 50% it ranges Sometimes I cash out you know stuff like that There's no exact number I know people want exact numbers There's no exact numbers in trading guys So it's ranges between 30 to 50% I use about 5% for medium term bets Or what I like to call lottery tickets On coins which are undervalued or volatile If I think a cryptocurrency is overvalued I might take everything out and keep it liquid So that I can take advantage if when the market corrects I use around 20% on other top 10 market cap coins And any other project that I believe in So again this changes all the time And then I use about 30% of my capital Of my full portfolio to actively trade the markets Okay Oh yeah and then I keep about I try to keep around 10% cash to BTFD If you don't know what that means By the effing dip So I think that's pretty much it for that So you guys could you know look at Use my numbers as a starting point And then just kind of configure it And make it your own you know However you prefer So the bottom line of hodling versus trading If you don't have a lot of experience You should enter crypto investing And or trading with caution A conservative and cautious approach Involves averaging slowly into positions And out of them If you do this you limit your risk Successful investing is all about managing risk Very important Hoddling is easy but has some serious Logistical problems Especially for those who go all in at the top Or who hodled through every all time high Trading is harder and has more pitfalls To watch out for But it'll set you on a path Where you'll be conditioning yourself To do what you'll need to do eventually And that is buy and sell at opportune times To realize profits over time Given this we can say that A slightly nuanced version of hodl Where you average into and out of positions Is the most beginner friendly strategy As one progresses in their journey They're going to want to be able to trade effectively And can make sense for even an inexperienced crypto investor To ease into trading out of the gate If you're going to trade Start with small trades like 1% Of your entire portfolio per trade And no more than a few trades a week Use stops and start learning about technical analysis We have many many many tutorials On trading in our trading tutorial playlist And we even and we are posting more every week So if you can get down the basics Like how to tell a bear market from a bull market And what sorts of targets you're looking for To take profits or to buy You will start approaching a point where A buy and hold everything only strategy Will likely no longer be your best choice That is to say almost every cryptocurrency investor Will benefit from refining both a long term hodl strategy And a shorter term trading strategy Hodl might be the best strategy for a new investor But by the top and hodl to zero Is actually one of the worst possible strategies That can think of Since this is true we can't just fall back On hodl period We need to have a slightly more nuanced strategy That accounts for the reality of things That reality being most will get into the crypto market Late and hodling will simply mean Exposing themselves to pressure To the pressure to sell over time At a loss Alright guys so that is the end of it I hope you guys I hope this made sense for you guys I hope you guys picked up something out of this Which is why I created it Because I get this question all the time Remember guys to follow us And drop a like, drop a comment Tell us how your day was Tell us what you learned Tell us what you want to learn And we'll keep looking for more And creating more videos for you guys Again if you guys need any Have any questions We drop videos 5 times a week guys 5 days a week You can just look through this You will see all of our videos We have about 50 videos up right now And we're constantly putting more videos We do updates on the news We do market analysis We do top trade setups That you can trade every week We show you how to make $100 a day With a $1000 account You know all sorts of tutorials How much money you need to make $100 Like there's so many different things That we do guys We have tutorials on exchanges So if you're trying to decide To use trading tutorials Like how to trade using the Fibonacci retracement The ultimate guide to cryptocurrency taxes Guys we do it all So anything you need to know With cryptocurrencies We are here for you guys Appreciate you guys spending time with us today Spending your valuable time And that's pretty much it We will see you on the next one Guys peace and love I'm out