Before now, I have always been getting it wrong about cryptocurrency. A friend recently opened my eyes to see how I could have increase little coins I have to fortune overtime by day-trading. But I am no that type. I had always thought I could only make fortune in crypto by hodling a certain coin for long.
13 months ago, I bought SNTR worth about $100 hoping that in few months I'll wallow in milliions of dollars like Ian Balina , but the reverse is often the case in the subsequent ones I bought. Sad fact, $100 worth of SNTR 13 months ago now less than $2.
Recently, I watched several videos of how to analyse a coin or token to invest in, gained some good knowledge of the basics. I discovered day-trading tokens like DX token and AWC could have actually make me what I hope to be If i had the right information. But its never too late. Yet, I am drowned in mentality that hodling for long can only be the fortune I hope for. Reason I need help.
long-term hold investing:
Pros:
Reduced tax rate thanks to long-term capital gains.
More hands-off than short-term trading.
Allows for cost averaging.
Forces you to research projects thoroughly.
Less paperwork involved for income reporting.
Cons:
You may miss out on large gains.
Not as exciting as day crypto trading.
Harder to make daily gains or income.
day trading:
Pros:
Potential for big gains.
Can potentially provide you a new income stream.
More exciting than a long-term holding.
Cons:
Carries higher risk than a long-term holding.
Higher tax rates.
More paperwork is involved.
You could end up holding a useless coin when it dumps.
Hope it can help.
Thank you for the headstarts. That's a bang of advice. But how could day trading make one end up hodling shit coin when dump? Since he sells everyday and keep track of coin.