Is Buy and Hold Really the Best Strategy in Crypto?

Azrael

New member
Some people say that Buy and Hold is the best strategy and can't be beaten. They hear phrases like “95% of traders lose money” and automatically assume that all trading is bad and markets can not be outperformed.

In my Medium post, I’m going to show you, that holding might not be the best option if you put in a little bit of work. To do that, I compare Buy and Hold returns for 25 coins with several basic trend-following strategies in different time periods (over 3.5 years of data and then a little extra).

READ THE POST HERE!

The source code of strategies and raw test results (CSV) is pushed to my Github.

Let me know what you think! Thanks!

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Waylon

New member
When it comes to the crypto market I personally don't think there is a best strategy out there as it will always depend on the trader doing it and if he has the time to do this. Yeah buy and hold in your results might look like the worst thing to do and there will be no analysis involve but some people here don't have the time to have their own trading style that's why they are doing it due to lack of time and knowledge with TA. Hodlers still have a chance to maximize their profits by just waiting for the right time to buy rather than just buying right away (I'm referring to DCA).
 

Micah

New member
Buying and hold are just an alternative of day trading. There are still risks when you buy and hold it for how many days/months/years.
If you also planning to sell what you bought before, it's still trading but it's just really takes too much time, compared to day trading which for me there is much more risk compared to buying and holding it for a long time.
 

Junior

New member
I will categorically state that if I had not sat there and done absolutely nothing I would have far fewer coins than I have now. Every time I thought 'hmm, maybe I should make some moves here' they would've turned out to be a heap of shit.

The one thing I wish I had done differently is DCA'd but after that I still would've held only.

People seem to arrive here believing trading or timing the market is the default option and they're guaranteed to 'win'. It should be the polar opposite.
 

Gordon

New member
not always the purchase has to hold for a long time, if you already feel that the price can be profitable, do the sale and carry out such a strategy if necessary. so the purchase does not always have to hold for a long time depending on the circumstances at that time, because we can analyze with programs that are indeed widely available and do not need to be afraid to make new breakthroughs, because that action can be an important lesson for further action and in the future.
 

Legacy

New member
Not the best strategy but It will be best for those who has no courage in trading alts.
Though "just holding" has it's own corresponding risk, but It has a different level of risk than short trading and other investment strategy.
The best investment strategy in crypto depends on your passion and enthusiasm to engage where your interest comes from. When you don't want to work that much to gain profit, then I can say trading is the best and the very least you can do.
 

Ulises

New member
Some people say that Buy and Hold is the best strategy and can't be beaten. They hear phrases like “95% of traders lose money” and automatically assume that all trading is bad and markets can not be outperformed.

In my Medium post, I’m going to show you, that holding might not be the best option if you put in a little bit of work. To do that, I compare Buy and Hold returns for 25 coins with several basic trend-following strategies in different time periods (over 3.5 years of data and then a little extra).

READ THE POST HERE!

The source code of strategies and raw test results (CSV) is pushed to my Github.

Let me know what you think! Thanks!

View attachment 7
At the end of the day everything depends on your skills and how long are you willing to work to improve them, it is obvious that if you are a good trader and you can outperform the markets that you are going to be capable of earning more money than someone that just hold their coins, but how many people are capable of doing this? This is where the statistic about the 95% of traders being long term losers becomes important.

This is because it is way easier to become a reasonable good investor that earns money by buying and holding their coins for a very long time than it is to become a good trader and not only it is easier it is way faster as well, at least in terms of the time that you need to dedicate to the activity, and when you take that into account then it is obvious why people prefer to become long term holders.
 

Brayan

New member
For me its not the best option you can much higher profit trading it in short term trading than holding it for long term and praying that it will soon increase in the price you think its good for you to exit. In short term trading you can earn even daily this is not only In bitcoin buy also on other Altcoins.
 

Bellamy

New member
Not everyone can do daytrade, not everyone have the time either, it also depend on your size of bag and the exchanges listing the coin. Some big bags cant just sell on some exchanges, so they have to hold and ladder out of the coin. The profitable strategy most times is Hodl, hand it over at OTC with average price for sale, usually this takes time because of the volatility of the space. Trading bitcoin can only give good profit by Hodling unlike the small cap coins
 

Eliseo

New member
My strategy is mostly holding to tokens particularly the ones that I know will have the potential to 100x. Spot trading is a good option when you know the tokens experience the ups and downs for most of the time.

If you are just trading for USD, you'd best try the margin trading. BTC/USDT is best for it and eventually buy BTC with the earned USD but lke you said not everyone can foresee charts trend.
 

Ledger

New member
Actually a very informative medium article but i would say that this is somewhat a little bit advanced for some specially if you do really read it up but for those people who do already had the grasp in trading
will really likely able to get it with no problems.

Buy low and sell high might really be that too very basic strategy but it do really works but to know that there are lots of variations on where this buy and sell should be applied and it all goes or vary
into each trader on how they do deal with volatility with corresponding strategy that they made.

It doesnt matter generally as long you do profit then thats whats important.
 

Ayden

New member
Well there are various factors of a successful investment with crypto, first of your target profit let's say 30% or 20%, second is with the coin, is the coin would be volatile enough to pump or dump? is the coin able to give you your target profit? lastly is the time or time range, this is the very vital of the factors that I've said, time will always tell apart from your target and selected coin. let's say to got a target profit with a right coin but you don't know when to sell out or you expected short.
 

Damian

New member
Everything depends on 2 facts: how much you have spend on crypto and how long you are going to hold. Holding less than half a year is useless. Holding equivalent of less than 100$ is useless. Better spend this hundred on any instant benefit.
 

Bennett

New member
I think buy and hold strategy will only apply to some assets/token, Not everyone can get the way of buying and holding like not every token is suitable for that kind of strategy and just holding it means that you are giving your trust to that certain token. I myself only hold 2 coins and it is Bitcoin and Ethereum because longevity wise I believe that I can profit on both of them. As a trader, I like trading big coins but I ain't holding it for too long because I know I can make better profits in trading them. Each coin has different potentials you just need to find them then learn the strategies and how to execute it.
 

Brooks

New member
True. Buy and hold might be the most old and basic strategy in trading but if you are comfortable and still making profits from it, then go on. I believe some traders are just too rush and becomes greedy to make more profits in just a short period of time but still end up regretting because they all lose their capital. The result of trading depends on how a single trader manages its own strategies and works on it.
Actually a very informative medium article but i would say that this is somewhat a little bit advanced for some specially if you do really read it up but for those people who do already had the grasp in trading
will really likely able to get it with no problems.

Buy low and sell high might really be that too very basic strategy but it do really works but to know that there are lots of variations on where this buy and sell should be applied and it all goes or vary
into each trader on how they do deal with volatility with corresponding strategy that they made.

It doesnt matter generally as long you do profit then thats whats important.
 
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