Those who invest in cryptocurrencies usually have two options: hodle or trade. Or what is the same, they can buy several Bitcoins and save them waiting for it to increase in price, or they can perform high-frequency trading, buying and selling Bitcoins for other currencies on an exchange. So far, both activities have been very profitable. However, for Scott Melker, Hodlear is more profitable than trading in the long term, as he comments in the Tweet of the day:
Hodlear or trade, there is the dilemma
For those who do not participate in the crypto world, the cryptocurrency market has the appearance of an exclusive territory for traders. And the thing is, trading has become one of the favorite activities of crypto users. With millions of people around the world carrying out buying and selling operations in one of the dozens of exchanges that exist. Looking to make a profit with the price differential between virtual currencies.
However, this is not the only option for members of the crypto community. Well, for most users, Bitcoin does not have value only as a speculative instrument for trading. Rather, cryptocurrency is the financial asset par excellence of the future, and therefore it is worth saving the virtual currency (hodlear), and waiting for it to rise in value.
Until now, both activities have coexisted within the crypto market, each generating profits in its own way. But, for seasoned investors like Scott Melker, in the long term hodleing certainly makes more sense than trading, as he put it on his Twitter account:
«You will probably accumulate more wealth in dollars by investing in bitcoin than by trading, with or without leverage«.
Thus, Scott Melker would once again demonstrate his confidence in the long-term value of Bitcoin. Which, for the analyst, will continue to increase in the coming years, which will make trading much more profitable than trading for those who want to invest in the crypto market.