When entering the world of cryptocurrencies, every investor quickly faces the big question:
👉 Is it better to trade daily (Day Trading) or simply buy and hold (HODL)?
Both approaches can be profitable, but they differ in risk, time commitment, and psychological pressure. In this article, we’ll explain the advantages and disadvantages of each strategy, and which option may be more suitable for you.
What is Day Trading?
Day Trading means buying and selling assets within the same day to take advantage of price fluctuations.
🔹 Example: You buy Bitcoin at €50,000 in the morning and sell it at €50,800 in the evening – profit €800.
Advantages:
Opportunity to profit quickly from small price movements.
Greater control – you decide when to open and close trades.
Possibility to use leverage to increase returns.
Disadvantages:
High risk – you can lose money quickly, especially with leverage.
Requires knowledge of technical analysis, indicators, and chart reading.
Stressful and time-consuming – you must monitor the market almost constantly.
Many beginners burn out fast, as they cannot handle losses emotionally.
What is HODL?
HODL means buying and holding cryptocurrency long-term, regardless of short-term price fluctuations.
The term originated from a typo of the word “HOLD” and has become part of crypto folklore.
🔹 Example: You buy Bitcoin in 2020 for €7,000 and keep it until 2025, when the price reaches €60,000.
Advantages:
No need to follow every market movement.
Less stress and lower time commitment.
Historically, the value of cryptocurrencies has grown in the long run (e.g. Bitcoin and Ethereum).
More suitable for beginners, as it doesn’t require complex knowledge.
Disadvantages:
Money is “locked” for a long time – no quick profits.
Large corrections can be psychologically challenging (e.g. Bitcoin dropped -80% in 2018).
Risk that a specific project may not survive long-term (many altcoins have disappeared).
How to Choose a Strategy?
Time and experience
If you have time to follow the market daily and enjoy chart analysis – Day Trading may suit you.
If you are a beginner and want to invest without extra stress – HODL is a safer choice.
Risk tolerance
Day Trading = high risk and fast emotions.
HODL = moderate risk and patience.
Capital
Day Trading often requires more capital and strong risk management.
HODL can be started with as little as €50–100, gradually building a portfolio.
The Combined Strategy – The Best of Both Worlds
Many experienced investors use a hybrid approach:
80% of capital invested in long-term HODL (BTC, ETH, etc.).
20% used for Day Trading or Swing Trading (medium-term trades).
This allows them to benefit from long-term market growth while also attempting to profit from short-term swings.
Historical Examples
HODL example: If you bought Bitcoin for €1,000 in 2015 (~€250 per BTC), by the 2021 bull run it would have turned into over €200,000.
Day Trading example: In 2021, there were days when BTC moved by €3,000–4,000 within a single day. An experienced trader could profit daily, while a beginner risked heavy losses.
Conclusion
There is no single right answer to which strategy is better.
👉 Day Trading can deliver quick gains but is risky and stressful.
👉 HODL is suited for long-term investors who believe in the future of cryptocurrencies and want calmer nights.
If you are a complete beginner – start with HODL and gradually learn the basics of trading as you progress.
Remember – the best strategy is the one that fits your lifestyle, goals, and risk tolerance.