Long-term Vs Short-term Cryptocurrency Trading

One of the key considerations for crypto investors is whether to engage in long-term or short-term crypto trading investments. Long-term crypto investment is when you expect, based on a forecast, the price of the cryptocurrency to increase over time. In many cases, this investment is maintained between 6 months to 1 year. However, in some cases, investors could decide to hold this investment for several years. 

In contrast, short-term crypto investment involves holding stocks for a short period, including hours, days, or weeks. For instance, day trading is an aggressive form of short-term crypto investment. This involves buying and selling cryptocurrency and aiming to make profits before the day ends. Yet, you can adjust your day trading hours to match your schedule. 

Currently, long-term cryptocurrency trading is profitable and simple. However, you must understand the market before investing. It is worth pointing out that with so many trending cryptocurrencies on the market and the radical increase in the crypto market, the appreciation of assets brings incredible returns. 

Long-term and short-term crypto investment: advantages and disadvantages

For investors that are looking for quick potential investment, engaging in short-term crypto trading is a great option. As a short-term investor, you are looking at making quick profits. Besides this, Returns on Investment often compound quickly as long as your trading yields profits. Of course, this implies that less period is required to make a profit. For example, if you engage in day trading, you can make profits before you sleep at night.

Long-term investment works historically. In recent times, several indices reveal incredible return rates. For instance, Bitcoin has increased radically over the past 10 years since its inception. For investors that invested in the cryptocurrency when it was less than $1, selling the cryptocurrency at over $50,000 implies incredible returns even though the period required to achieve this can be daunting. As mentioned earlier, short-term investment will return profits within a short time. 

For long-term investment, investors are exposed to lower transaction fees. By adopting the long-term technique and embracing the long-term view, your action is not incurring any trading fee. In this case, you are leaving your investment once you make a purchase. An investor who trades for the long-term does not trade daily and this significantly reduces the fees that are incurred due to transactions. In addition, you can discover the best cryptocurrencies to invest in by visiting several platforms, including

Besides this, short-term investment is associated with high risks. When you move in and out of a crypto market, you are exposed to the risk of missing out on certain profitable opportunities. However, with long-term investment, you are constantly in the market. Besides this, even though volatility might cause the value of certain cryptocurrencies to fluctuate, there is a fair chance of digital currencies attaining a higher value over the long term. This presents a better opportunity to make profits since the effect of spikes is not as pronounced as trading in the short term.

Long-term Vs Short-term Investment strategy

There are certain objectives that must be considered before investing in cryptocurrencies. Some of these are listed as follows:

  • Do you wish to sell the crypto when it attains a certain value at a specific period.

  • Will you sell your crypto at once or at different times?

  • Will you trade any long-term vision you have for short-term trading? For instance, if the laws associated with an investment changes at any period, then it might become important to reconsider trading beforehand.

  • How convenient is it to do deep research on which cryptocurrency is good for the long-term and the best crypto for the short-term?


The cryptocurrency market has been on the rise in recent times. For this reason, it is important to consider the upsides and shortcomings of investing in cryptocurrencies in the long- and short-term. With this, you can determine the perfect strategy that will bring you the best return.

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Marcin Dragunov

A freelance writer covering many topics.

Published by
Marcin Dragunov

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