Wed. Oct 20th, 2021

DAPUcases

Direct Apollo Partnership And Use Cases

Are You A Holder, Profit Taker or Trader? 1st Amazing Gains Ahead

3 min read

A holder and profit taker in crypto is different from trading. Knowing when to take profit can drive investors into a stressful state because of taking profits too early, thus, resulting in missed profits with further rises. At some point, it is healthy to take some profits.

There are holders, traders, and profit-takers in this digital class, pretty much like every other asset class you’ve ever heard of on NASDAQ, Robinhood, and other trading platforms. But with digital assets (cryptocurrencies), things can get a lot more exciting at a flash. They are exciting in ways we rarely witnessed with other asset classes such as equities, fixed income, and money market. Excitement equals volatility. 

Holders

All digital assets have holders who bought in at a reasonable price and waits for a substantial percentage before taking profits. Most holders have other financial backings such as businesses and good jobs to keep them afloat while refusing to cash out at 20%, 30%, and 50% gains. Holders await millionaire status before diving into their portfolio or a particular asset they are confident will skyrocket or, in crypto terms, moon. Holders are a unique set of investors. They are believers and dedicated supporters of their investment projects. Some create articles, write blogs, create YouTube channels, social platforms (Discord, forums), and podcasts to support their investment projects. 

Crypto holding is less risky because holders are not busy trying to time the market for profit moments. But, holding assets for the perfect time can lead to frustration and stressful moments when a favorite coin is showing weaknesses and not performing steadily. In other words, it remains on a downtrend for months or, in some cases, years. Also, project delays or releases are not helpful when holding for extended periods. It plays with the mind when other coins are gaining significantly in returns and community growth. 

Historic GSX Giveaway Competition. Win 1st Magnificent Weekly Prize

Profit Takers

Profit takers are also holders but have a different perspective on long-term investing. They tend to take profits within their leading portfolio at intervals when they recognize substantial gains, and it is healthy to take profits. 

Profit takers are not risk-takers, nor are they traders. They are likely to cash a small percent of their holdings when gaining 300 and 400 percent returns. According to some, it is a psychological thing to hold and show their gains and build confidence within their investment. They often immediately buy back into the project when it drops a few percentages. That usually increases the number of assets they hold with minimal risk of losing. 

Traders

Trading is the riskiest of investing in any asset class. Trading is investing but investing with the intent to sell at target gains over a short period. Traders jump from project to project daily or weekly. Depends on the amount of money they set aside to trade, earning 10% or 20% will satisfy their day. 

Projects that excite traders the most are those with endorsements or partnerships with celebrities and private and government institutions. It is attractive because they know new investors will hurriedly buy and try to hold that asset. They follow the market trends of who is doing what, when, where, and how. 

Investopedia says, “Investing or trading in Bitcoin or other cryptocurrencies can be intimidating at first. There is frequent news about scams and people losing money. While this is true, and many scams have happened and continue to happen, it has never been so simple to invest in and safely trade in cryptocurrency as it is today.”

Like holders, trading creates platforms, and they teach trading skills while building their favorite trading assets communities with their popularity. They live on the principle that what goes up must come down. And that’s what makes trading a risky business and a rewarding one because traders are not dependent on a particular asset for profits. 

Competition of the World’s 1st Largest Crypto Giveaway is a Blast

Are You A Holder, Profit Taker or Trader?

You must be able to identify your callings when investing in digital assets. Know what you want from cryptocurrencies and when you want profits, and what coins will give you your dream goals—research assets before investing.

0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
0
Would love your thoughts, please comment.x
()
x
Skip to toolbar