It's interesting to note that many Bitcoin holders might not be fully capitalizing on the inherent volatility of this digital asset. The Bitcoin market can undergo price fluctuations of around 3 to 4 times in a single day, which offers ample opportunities for those who choose to engage in active trading.
While the common approach is to view Bitcoin solely as a long-term investment, it's worth considering an alternative perspective – that of an active trader. By delving into trading strategies, it's plausible to generate a daily income ranging from $20 to $30, provided one has a sound grasp of the market dynamics.
It's true that there is a lot of volatility in the crypto markets and that an experienced trader could take advantage of it. The question is how many of the long term investors that hold Bitcoin for the purpose of storing value are comfortable to trade short term? When we start day trading, we need to be a lot more active and check the market constantly. At least for me it's not really possible at the moment with my normal job to focus so much time on trading. In the end the risk of losing a large amount in a sudden price drop is much higher than the chances to make a few gains. Another issue of trading HODL Bitcoins is that the tax gains are being realised every time we are buying and selling our coins. Especially for some investors that hold their coins for several years this could lead to large tax bill that we would need to pay. Also, for anybody that is looking to take advantage of high volatility price movements there might be even better candidates in the alt coin market. Some coins that are not traded so actively might offer much higher returns when the prices jump.