In this article we will explain which type of trading is perfect. Should we go with the Long Term Trading or Short term.
Before 2015-16 it was not tough to choose between these two because at that time coin’s backend team was genuine and honest to their work.
So it was not easy for a coin to become dead.
So here we will explain both of these ways in more detailed so that every confused newbies in the cryptocurrency field can choose the perfect way to trade and make lots of profit.
Which Is Good Short Term Or Long Term Trading?
This question is very complicated and we can’t directly give an answer.
And also even a good and experienced trader will never choose directly one of them because both of them are good at their place and both of them are worst at their place.
But there are some points which can help you to figure out the perfect type of trading for you to choose.
If you are a student in any school, college or university or you have a job in your practical life. And if you are honest with your work as a student or employee then surely you will not have much time to manage your Bitcoin or cryptocurrency related trading work.
If you are in this situation then surely you should go with Long Term Trading instead of short term trading.
But if your job is not much time consuming and you have much free time then you can go with short term trading.
So we can say, if you don’t have any job or have much free time then you can go with short term trading easily.
Short Term Trading
There are many benefits or we can say advantage if we will go with the short term trading strategy innthe cryptocurrency trading.
Benefits Of Short Term Trading
Cryptocurrency trading for the short term has lots of beneficial factors.
And these beneficial factors can be understood when we go through short term trading in cryptocurrency.
But still it is better to know about the main main advantage of short term trading.
If you will go through short term trading then you can make lots of profit in a very small interval of time.
For short term trading you don’t need to wait for your investment to give a result. And also in short term trading you can achieve a very high return if your analysis is good.
You can make a particular amount of profit on a daily basis like a job in practical life.
- Profit in small interval of time
- Don’t need to wait for long term
- High return in small time with good analysis
- Daily income like practical life job
Disadvantage In Short Term Trading
No doubt that everything in this world has its two sides. If one side is positive then another side will have a negative impact on the same time.
In the short term trading in cryptocurrency work we need lots of experience in history about the market of almost all coins which are doing well in the cryptocurrency market.
And these experiences help us to predict the price up and down easily.
So if you have less experience or don’t know much about the history of particular numbers of coins then it will not be easy for you to start your short term trading as a profitable result.
In short term trading, you also need to remain aware about the news in the cryptocurrency field about new activity by the coin’s team. Because these news helps us to predict the pump/dump in the price of the coin more easily.
- Need Lots of experience of trading
- Need to keep eye on about the coin’s team activity
Long Term Trading
Advantage of Long Term Trading
Long term trading is a better type of cryptocurrency trading for those who have very less time in their busy life schedule.
Here there are numbers of beneficial factors which forces us to go with Long Term Trading.
In Long Term Trading we don’t need to waste time to see the price of the coin. So with Long Term Trading we can do our daily life works easily without taking much tension about the coin’s market price up and down on a daily basis.
Profit in Long Term Trading results into high amount of profit in compassion with the short term trading.
- We don’t need much time to consume for trading
- More profitable than short term trading
Disadvantage In Long Term Trading
Since long term trading is much profitable but still there are few factors which makes Long term trading wastage of money but we can solve these problems.
Sometimes we choose those coins to hold for the long term which are not really good and result in a dead coin after long term.
And second thing which is not good in Long Term Trading is “time” , we need to wait for the long term until we get profit which is not a good sign of trading for those who want to make money in a short time.
Time to wait to get profit is not fix in long term trading in cryptocurrency because a coin can take even two to three years to rise in the crypto market.
- Coins may result in dead coins after a long term.
- Need to wait for long term to get profit.
- Time to wait for the long term is not fixed.
Solution Of Problems In Short Term And Long Term Trading
In short term trading, beside experience we can see the hype of the coin’s upcoming projects. But we should do better and deep analysis about the upcoming projects about the coin because sometimes few people spread wrong news about a particular coin and try to manipulate the market of a particular coin in their own way by creating fake hype.So always do perfect research about every news item in this field of cryptocurrency.In long term trading before to go with the coin for long, we should do deep analysis. We should check the coin’s team history work and how much the concept of the coin’s road map resembles the practical to implement.If you will choose a perfect coin then, in the future you will never face any type of loss in any coin.
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