There are many ways to make money with cryptocurrencies. One of the simplest is buying and selling these digital assets to obtain yields. This is what an investor does. Purchase today at a price, you expect this price to increase and sell for the difference in the operation.
But how long should you wait to get a good gain? This depends on you at all times. And this is where you must decide what your profile is. If your approach is to buy cryptocurrencies and wait for their value to increase over the years, then you are a holder.
This is an investor who buys cryptos with good arguments to grow in the future. The Holder waiting patiently for years until the crypto reaches the price he has projected and, just at that time, sells to withdraw his profits.
He does not care about the daily movements of the price of the asset. He trusts that time will give him the reason to earn money without much effort.
If your approach is to buy cryptocurrencies and earn quick money for the constant variations of its price, you are a trader. This is an active merchant who constantly buys and sells cryptocurrencies to get profits from market volatility.
A trader can win even if the asset lowers price, because he/she makes a prediction (increases or lowers the price) over a period of time. And if he succeeds the prediction, he earns money. He has to be constantly monitoring the price variations in a matter of minutes, hours or days. He must study the historical performance of the price to raise hypotheses about the movements of the future.
Portfolio dispersion in a chain ecosystem has no absolute dispersion effect, and the retention of crypto (stablecoin), not actual cash, is not cash, and the portfolio ratio control must be mechanically according to the principle that was first established.
Representatives' owner risks continued to rise (other projects, criticism of users pointing out problems, betting with prices a year later)
Trading requires a lot of market knowledge and presence of mind to take appropriate call according to the market while HODL requires great patience and long-term vision but its totally worth the wait.
Trading can be for short term or long term but it mostly
Both want to make money with cryptocurrencies, but they have different approaches and ways.