There are two main forms of crypto trading to perform when it comes to trading through a crypto exchange platform. These are called long-term and short-term crypto trading methods.
Today, we’re going to look into the differences between these two crypto trading methods. The goal is for you to know which kind you’d rather use in the near future. (Though you can use both with different trades at the same time, of course)
What do you know about crypto exchange in Singapore?
Let’s get right into it, shall we?
Short-Term Crypto Trading
Short-term crypto trading involves taking a volatile cryptocurrency and buying up a certain amount to resell in only a few weeks or months. Doing so is likely to provide you with a small profit, though it can go either way.
The risks involved with short-term crypto trading are not as high as with long-term crypto trading, however, the rewards are equally limited. You will not make a huge profit out of such a trade, but you are also equally unlikely to lose a huge amount of money.
Long-Term Crypto Trading
Long-term crypto trading involves buying up a cryptocurrency and holding on to it for at least a year or longer. The potential rewards for such a trade are very high but only if the currency you chose increases in value during that time.
Should your cryptocurrency depreciate over the years, you will have lost a substantial amount of money. However, you can continue to hold onto it until the time comes for it to appreciate. These trades are best made when you will not need to cash them in for the foreseeable future.
Which is for You?
At the end of the day, if you’re looking to make a little bit of extra money, a short-term crypto trade is more up your alley. However, if you have a decent amount of money that you won’t need for anything important for quite some time, you can go ahead and put it into a long-term crypto trade. You won’t get anything out of it for quite a while, but the rewards are well worth the wait!
Stay safe and happy crypto trading!