There are two ways to have massive gains in just a short amount of time:
1. Buy and hold altcoins that have a small market cap that haven't rocketed that much yet.
2. Margin Trading or Leverage Trading.
Of course you can hold Bitcoin Cash, Ethereum and Bitcoin as well, but those are much slower moving than they did back in the early days while there is still potential gains for the massive gains like 10x or even 100x for them in the long run, it is going to be much longer than some of us we can wait. So for those of you all who want adrenaline rushes and to just get much faster gains or losses in a shorter period of time, those two options I mentioned above are the most apparent approaches.
Quick Overview
The Pros and Cons of Holding Altcoins
The Pros and Cons of Margin Trading
Consideration and Thoughts About Them
The Pros of Holding Altcoins
1. Lower Maintenance.
This requires lower maintenance than active trading or margin trading. You can just hold it. After you purchase those coins, you can just store them in your wallet without so much needs of management.
2. It Can Be a Source of Fun.
It is something that's fun for all coins because it's memeable. People like making fun or memes about DOGE coin and XRP and other coins all over Twitter. It's fun and creative and lots of memeability for these altcoin projects.
3. Lesser Risks.
It's a lesser risk compared to leverage in losing your money because while all coins can go to zero and drop a lot in just a day, it's very few and far in between for it to drop 100% of its value.
Usually it takes some time, it can go down and then back up and go down again if it's on a downtrend.
4. You Can Simply Do Math With It.
Compared to leverage trading, you can just simply calculate your profit or loss with just holding your coins. You can use different cryptocurrency portfolio app to track all your holdings and most of that applications are available in Google Play Store.
5. Opportunity to Arbitrage.
What I mean by that is that if you have like private information or unfettered access or better speed than people, then you can get in on projects earlier before they rockets, before everyone else comes in and then sells at the top.
The Cons of Holding Altcoins.
1. Managing in different exchanges.
You probably have to manage a lot of different exchanges and wallets. Like in the past when I buy and hold altcoins, I have 3 or 4 different wallets with own unique keys and it was really a hassle.
2. It's Very Hassle.
Because you are getting all these different altcoins, there's a lot more transactions needed to execute your plans. If you want to rebalance, you have to do that too which can take a lot of transactions.
3. Possibility of Rug Pull.
In terms of con, there are risks of exit scam and smart contract hacks.
Exit scam if the company has a lot of coins and decided to just exit and dump all their coins on the markets make, it go close to zero and no longer manage the project anymore.
That's always a possibility. We've seen that in the past before especially with the smaller ones and this really great scammers trying to get all of us. The other half of this is just smart contract hacks.
If they didn't take a good time auditing and just making sure their smart contract is solid, hackers may exploit those and might drain the tokens or print a lot more and make your token worthless.
4. Pressure in a Bear Market.
The point of holding altcoins is that, yes it could get you 10x or 100x return, but if it is on a downtrend, then it might not do well at all. Even if you hold, they'll just keep on losing the value and you're not sure which ones will ever recover because they're never guaranteed.
5. Difficulty in Chart Trading.
Some coins have a lot lower volume, it's manipulated and because of that it's harder to chart trade and use technical analysis. You just have to, like, speculate and cross your fingers.
The Pros of Margin Trading.
1. Sticking To a Known Cryptocurrency.
You can stick to BTC/USDT, BCH/USDT, ETH/USDT. You don't have to go into some random coins, you can stick to the ones you're familiar with, the most popular ones, the most established one.
2. More Suitable For Technical Analysts.
It is better for chart traders and technical analysts just because there's a lot more price discovery going on, a lot more volume, a larger market and other people partaking in this price discovery.
3. You Can Gain Profit in a Bull and Bear Market.
With margin or leverage trading, you can profit in both directions. You can open a long position or open a short position and profit in both ways of direction and that's not the case if you are just buying and holding. You can swing trade and sell it to fiat but that's about it. You can't make more USD value when it's dropping down.
4. You Can Start with Small Capital.
With leverage, you can also get larger gains with a smaller initial balance. That's the whole purpose of Leverage, with like 0.1 Bitcoin, you can trade as if you have one whole Bitcoin your balance.
5. Faster Pace.
It has faster action because if there's a lot of volatility, which usually in the crypto space there is, that's a trader's dream. You can utilize the volatility, have fast action and you don't have to wait a long time to go one way or another and see what's the result of your trade.
The Cons of Leverage Trading.
But there are some cons of course in leverage trading, right? There's two sides to every story in terms of margin trading.
1. It Needed More Time.
In leverage trading, a lot of active management is required. You have to pay close attention and you're doing it for a short time which usually people are, you should sit there and watch and manage it so that if it starts going the wrong direction, you can react.
2. You Can Lose Money Instantly.
You need to utilize things like stop losses properly or else you might get liquidated because with margin trading, you're pretty much borrowing money to trade bigger balance and if it goes the wrong direction, you don't set stop losses, they may take your underlying collateral at a certain level.
3. Requires Higher Fees.
One potential negative is that they do often have higher fees because you're charged a fee on the total amount including your leverage and margin rather than if you're just buying and holding, your fee is on that small balance.
That is something to keep in mind when calculating your both expected gains and losses for that.
Thoughts and Consideration.
Whether you are a leverage trader, margin trader or just simply holding any coins, either ways, you can still lose money especially when you have still have a very limited knowledge and understanding about cryptocurrencies. You need to manage your risks whenever you got into it and must have done a thorough research to avoid any possible losses in the future.
Any know how I will be work on read cash plz