Intra-day trading and long-term trading are two types of common trading practices found in crypto space. Here are the major differences between the two methods.
As the title suggests, long-term trading involves holding cryptocurrencies for a longer period in the range of years. This is aimed at compounding the wealth with capital appreciation. In intraday trading, the traders are found trading all through the day.
If an intraday trader buys Bitcoin at $25,000, and the price immediately surges to $27,000, then the trader would immediately sell to acquire $2000 profit. Whereas a long-term trader would hold the Bitcoin for years, no matter what.
One would need a higher level of experience and skills to yield good profit in intraday trading. Hence, the level of risks associated with intraday trading is also huge. But long-term traders can have minimal or even no experience. Because all they need to do is just invest and hold for years.
When it comes to loss, both the trading practices can lead to severe setbacks due to the highly volatile cryptocurrency market. While intraday traders are prone to daily setbacks during a bearish market, long-term traders might be affected by unforeseen regulations that lead to the downfall of a cryptocurrency. Either way, one must lose sight of the daily market activities to constantly stay ahead.
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