In this article, we will briefly tackle the pros and cons of short and long term cryptocurrency trading. Let’s start right away.
Short term trading
The main advantage of trading cryptocurrencies in the short term is that it offers a very good opportunity to make gains. Unlike fiat currency markets, where prices typically don’t change more than 1% per day, cryptocurrency prices can almost double overnight!
With cryptocurrencies having become so popular, there are now over 1,500 different cryptocurrencies to trade. This means one thing: more opportunities to make huge profits.
Large trading volumes are very important because they mean that you will always find a buyer or a seller! It means that a large amount of currency is exchanged more or less regularly in a defined cryptocurrency.
Since cryptocurrency markets are very volatile, prices can change very in a matter of minutes. This means that if you want to venture into trading crypto in the short term, you will need to dedicate more time to chart analysis.
Short-term cryptocurrency traders look for small gains in small price movements, so you will need to have a fairly good analytical ability. This means that you must be able to read trading charts and graphs. Which, if you’re a beginner, might take a bit of time to learn. Following webinars and consulting the educational materials is crucial. Take a sneak peek at the Voytegeon Review and see what this broker offers in terms of education but also other features.
Another disadvantage of short-term trading is that in order to get good returns, you need to make a fairly large investment. Which is something most beginners are hesitant to do.
However, nothing prevents you from trading on small sums, but you may be disappointed to only make a few euros in profit for a lot of time spent analyzing the curves.
Long term trading
One of the main perks of long-term cryptocurrency trading is that it is easy and requires little time. You don’t need to try to figure out complex trading charts or graphs. You’re just looking to hold onto your token for the long haul.
Unlike short-term trading, where you constantly have to spend time checking the price changes of the cryptocurrencies you hold, you can do this in your spare time. It’s simple, once you’ve purchased your token, all you have to do is wait!
Another big advantage of long-term cryptocurrency trading is that you don’t need a lot of money to get started. You can buy small quantities, as soon as you have some money available and you let them grow over a long period of time.
It also allows you to avoid the stress of market volatility, as you don’t have to worry about variations in short-term market price movements.
One of the downsides of long-term cryptocurrency trading is that you might miss a good opportunity for quick short-term gains.
Sometimes the value of coins goes up very quickly and then goes down. This is what short-term traders look for and use to be able to make quick profits.