Short-Term vs. Long-Term Crypto Investment: Which Do You Prefer?

[Suba]

Simply put, we can find two types of investors: short-term and long-term. Although short-term investors are generally also long-term investors, long-term investors are not necessarily short-term investors. Short-term crypto investors or traders often need to be able to exploit and profit from price fluctuations that change every second. Therefore, traders also need analytical skills.

Long-term investments are free; investors simply need to hold them in a wallet for a long period of time. Crypto trading, on the other hand, incurs trading fees, which are charged on each transaction and are subject to income tax deductions.

So, whether short-term or long-term, each investor's risk profile must be tailored to their own advantages and disadvantages.

 

[Webster]

Simply put, we can find two types of investors: short-term and long-term. Although short-term investors are generally also long-term investors, long-term investors are not necessarily short-term investors. Short-term crypto investors or traders often need to be able to exploit and profit from price fluctuations that change every second. Therefore, traders also need analytical skills.

Long-term investments are free; investors simply need to hold them in a wallet for a long period of time. Crypto trading, on the other hand, incurs trading fees, which are charged on each transaction and are subject to income tax deductions.

So, whether short-term or long-term, each investor's risk profile must be tailored to their own advantages and disadvantages.

Its' the same as with stocks and other securities; what are your plans?

Is it day trading, long-term investment, etc? Once you decide that question, then you can start looking at what's out there.