AskLeo - When It Comes To Crypto Are You a Trader, an Investor or a HODLer?

I don't know if you've noticed, but there's been a shift in the crypto vibe lately. We seem to have transitioned from a bearish to a bullish sentiment, all thanks to Ripple "partially winning" the case against the SEC. However, not everyone is convinced that this is a full-blown bull market just yet...

In my opinion, we're currently experiencing a "failed rally" market phase. BTC has failed, for now, to break through the $31k resistance level, and altcoins aren't exactly setting off fireworks. Personally, I wasn't expecting anything too spectacular at this point.

I believe the real show will kick off sometime in late 2024, although in the world of crypto, nothing is certain.

Let's talk about the three types of crypto market participants I'm aware of in this #askleo post: the investor, the HODLer, and the trader.

I've personally encountered individuals who trade their entire portfolio—I used to be one of them at some point—and I must say that this strategy isn't very productive. I have a friend who does it with leverage, but the risks are high.

Then there are the HODLers—those who buy crypto, particularly Bitcoin, and refuse to ever sell. These hardcore believers often have a funny approach, preferring to hold onto their crypto assets instead of spending them, remaining completely outside the traditional financial system.

Lastly, we have the category of investors, which is where I believe I belong. These individuals buy when prices are low and sell when everything is skyrocketing. They have a well-executed plan, regardless of whether it takes two months or three months to achieve their targets.

Now, you might be wondering which strategy is the best. Personally, I believe being an investor pays off in the long term, but it's crucial to be a skilled one who maximizes profits during bull markets and knows when to buy the fear during bear markets.

I recall reading that investors often outperform traders, and as for HODLing, there are only a few coins that I would hold onto for years, like BTC, HIVE, and a handful of others. For the rest, particularly the riskier shitcoins, HODLing can be quite risky.

So, what about you? What type of crypto market participant are you?

Thanks for your attention,
Adrian