Forbes says you should only invest 2% of your capital in Cryptos. I'm not talking about that. Let's say I have 10 000 USD to invest. My question is, how much of that should I use to trade with actively, versus how much should I use to HODL. Right now I'm thinking 50/50.
Some background info: I want to split my holdings over two accounts, one where I actively trade and one where HODL. That way I can have one account where I see its growth separating from the HODL one. Right now it's together, so I don't know if my trading is making a difference. I do think it is, but with the coins I'm HODLing, it seems to distort my figures.
I think the answer to this question depends on how much money you have to lose, how much capital you have and how risk-averse you are.
If you have more liquid capital than others you probably have many other investments making you money. You probably do not need to trade cryptos daily to grow your wealth and you can probably HODL more than others. Seeing crypto as more of a long-term investment and less as an income.
If you're trying to grow your capital via crypto trading you will probably HODL less than others. Cryptos become more of an income than an investment.
In my opinion, HODLing is less risky than trading, as I believe in the long-run cryptos like BTC will keep on increasing in value. But, with risk comes reward of course, so trading will grow your capital faster.
I trade with around 50% of my crypto portfolio and HODL the rest, but I will probably HODL a larger percentage as I grow my capital over time.
Awesome. I'm going to go with 50/50 too. That's going to boil down to keeping half of my money as TUSD and only using it to trade when there is a good trading opportunity (i.e. to farm, or to scalp etc). And hopefully, I will be able to actually see how that account grows etc, even if the HODL side of things don't grow.