Between holding and trading, I prefer holding, but you have to keep in mind whether you are going to trade short term or long term, if you are interested in trading long term then holding is better for you. Since I know about the risk of trading and there is a fear of losing money, I will not trade but hold. If I hold, it will be good for me in the future. I know that to trade I have to analyze and have knowledge about it, many times it is seen that despite having knowledge I can lose money. So I will say that I will invest for long term and when the market is good I will get good profit, I think it will be very good for me, so I will hold.
To find a clear cut answer about which option is better between trading or hodling, we have to see Bitcoin price chart. It's now very clear that price of Bitcoin goes exponentially up with time. If we have bought Bitcoin under 20k in Dec 2022 and HODL till start of this year then one can get a 5x return in less then three years. No bank or any other scheme gives that much profit in such short duration. If you go for short term trading then you might get profit but it's nothing compared to profit you get on long term investment.
The point you made is very good. Indeed, it all comes down to individual choice. Trading requires not only capital, but many other things, such as the ability to analyze the market
(technical analysis), having a good trading plan before entering the market, having proven psychological skills, etc. Of course, this carries greater risk, while holding for the long term doesn't require much preparation, just patience and income that can be used to gradually purchase specific assets like $BTC.