Both involves risk even though holding tends to be lot more easier than trading but if you have the right mindset and the right knowledge you can still earn passively from trading. Holding sometimes takes longer time to yield profit and it requires lots of patience and in the absence of this patience opportunities would be lost consistently
Everything has risk. Risk is bigger if you invest in altcoins long term.You will not know they will survive after 4 or 5 years. I am not sure that you will get profit if you invest in altcoins in 1 or 2 years.
Bitcoin is best for investment. Investment is for people who have patience and disciplined.
It depends on what type of trader you are, Holding is bad if you are an aggresive trader but good for casual trader that aims for long like investing in Bitcoin.
Aggressive traders might have less profit than aggressive investors. I know the feeling of winning, emotion it brings from trading but I want to be safe and don't want to have aggressive emotions with trading.
There is a risk to cut-loss or take profit early then enter late which result to less profit and more hassle compared when you just hold it. It's a case to case basis too on what coin you are holding because there different types of price behavior of coins & tokens. So make sure to choose a coin that fit to your trading style, Not all coins is good for holding and scalping.
It is very true for altcoins and many investors think they can invest in meme tokens, NFTs and they see potential from such tokens. If price falls, they try to calm down and think they will get capital back in they hold those tokens long term.
I don't know but I believe most of those tokens are not good for long term holding.