**Long-term holding vs Frequent trading: Your returns are so different**
Many newcomers in the crypto space feel an urge to trade every day when they see the fluctuations in K-lines, but this actually just means giving fees to the exchanges. Experienced players all know one principle:
**Less trading = Save money = Make money**
The strategy of buying and holding seems very boring, but in the long run, it's absolutely great:
1️⃣ **Fee Blood Profit**: You have to pay a fee for each transaction, which means two fees for a round trip. Trading 100 times a year vs trading 5 times, the saved fees are enough to cover a lot of losses.
2️⃣ **Tax Haven**: The tax rate for long-term holdings (usually over 1 year) in most regions is much lower than that for short-term trades. Some people trade frequently throughout the year, ultimately losing 30% of their profits to taxes, while long-term holdings may only incur a 10% tax.
3️⃣ **Compound Interest Snowball**: Once you buy quality assets, don't move them; reinvest dividends or earnings. The longer you wait, the more terrifying the growth becomes. This is why Buffett became the richest by holding onto his positions.
4️⃣ **Low psychological cost**: No need to watch the market every day, no need to guess market sentiment, and no need to endure the psychological torture of frequent trading.
**But don't be foolish in holding**: The key is to choose the right assets. Select those with good fundamentals and long-term growth potential; not all coins are worth holding for the long term. You should also regularly check your portfolio and make timely adjustments if any investment deteriorates.
In simple terms: select good assets → diversify risks → regularly review → patiently wait. This set of strategies earns much more than chasing fluctuations in prices every day.
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**Long-term holding vs Frequent trading: Your returns are so different**
Many newcomers in the crypto space feel an urge to trade every day when they see the fluctuations in K-lines, but this actually just means giving fees to the exchanges. Experienced players all know one principle:
**Less trading = Save money = Make money**
The strategy of buying and holding seems very boring, but in the long run, it's absolutely great:
1️⃣ **Fee Blood Profit**: You have to pay a fee for each transaction, which means two fees for a round trip. Trading 100 times a year vs trading 5 times, the saved fees are enough to cover a lot of losses.
2️⃣ **Tax Haven**: The tax rate for long-term holdings (usually over 1 year) in most regions is much lower than that for short-term trades. Some people trade frequently throughout the year, ultimately losing 30% of their profits to taxes, while long-term holdings may only incur a 10% tax.
3️⃣ **Compound Interest Snowball**: Once you buy quality assets, don't move them; reinvest dividends or earnings. The longer you wait, the more terrifying the growth becomes. This is why Buffett became the richest by holding onto his positions.
4️⃣ **Low psychological cost**: No need to watch the market every day, no need to guess market sentiment, and no need to endure the psychological torture of frequent trading.
**But don't be foolish in holding**: The key is to choose the right assets. Select those with good fundamentals and long-term growth potential; not all coins are worth holding for the long term. You should also regularly check your portfolio and make timely adjustments if any investment deteriorates.
In simple terms: select good assets → diversify risks → regularly review → patiently wait. This set of strategies earns much more than chasing fluctuations in prices every day.