July 23, 2024


There are multiple ways for you to participate in the cryptocurrency market. One method is to purchase and hodl for the long run with the expectation that you have picked a solid token.

The other available option is that you can regularly trade the highs and lows of the digital asset.

 It is important to note that neither is guaranteed to make you money, as any type of investment carries a degree of risk. Additionally, trading consistently requires a higher level of knowledge, skill, and a greater amount of time.

Let’s now look at how you can make an informed decision on whether to buy or trade cryptocurrency CFDs. Libertex, a multi-award-winning online broker that offers trading crypto CFDs among other asset classes in one account.

Buy and hodl

Many cryptocurrency participants throughout the years have been choosing to buy and hodl tokens.

Buying and hodling are what many people throughout the years have chosen to do with cryptocurrencies. When you buy cryptocurrency on a digital asset exchange, it is very much like investing in any other physical asset.

You will become an owner of the underlying instrument, which at a later date you can then sell, should the value of the asset rise.

What to consider when buying

●      When you buy a cryptocurrency you own the underlying asset and will be purchasing your chosen amount of that crypto at full market value.

●      Depending on the jurisdictions where you live, you may have to pay some sort of tax on any profits.

●      You will purchase crypto on a digital exchange, which will require you to open a virtual crypto wallet to store your digital assets.

●      It can be costly to withdraw or fund your crypto wallet, some exchanges charge fees for doing so.

●      Then setting up an account and going through the process of purchasing crypto can be time-consuming and at times overly complicated.

Buying and hodling cryptocurrency can lead to substantial profits, but it is all a matter of timing. As with anything, it does come with risk and there are never any guarantees in such a volatile market.

Trading cryptocurrency

Now when it comes to cryptocurrency trading, this is more of a short-term strategy. Trading will be leveraging the short-term market volatility of crypto-asset price change for a possible profit.

You can look at trading crypto CFDs, Libertex, a multi-award winning online broker, offers cryptocurrency CFDs among other asset classes in one account. Contracts for Difference, also known as CFDs, are derivative product that allows you to speculate on a variety of financial market assets.

You can take a trade on whether you believe the price is going to rise or fall, without needing to take direct ownership of the underlying asset.

You do not need to open an account with a cryptocurrency exchange or a crypto wallet to trade. Libertex obtains the cryptocurrency prices from the most reliable exchanges, to ensure accuracy and competitiveness.

When looking at trading cryptocurrency the time frames range from minutes to days. Rewards do tend to be faster, however, crypto trading does require a lot of effort.

It requires a decent amount of work put in and possibly having a bit of luck. It can be very profitable due to the high volatility of the cryptocurrency market, but of course, also comes with equal risk.

Trade analysis and timing

When trading cryptocurrency, traders will typically need to carry out some form of trade analysis. A process of evaluating the asset fundamentally or technically to potentially spot profitable trading opportunities.

In terms of fundamentally, as a trader, you would be digesting all direct news related to the crypto you are looking to trade. Any new developments that could have an impact on its price, negatively or positively.

On the technical side, you would be considering various factors by viewing the charts, analysing historical trends, price action, and potentially more.

Cryptocurrency traders in comparison to investors will generally be trading more frequently. This is because they will be constantly observing the asset’s price movements for opportunities to make gains.

The high frequency does potentially make trading more lucrative, however, it can also be riskier as it requires constant monitoring of the market.

Here are some benefits of trading crypto CFDs

●      When you trade crypto CFDs you can go long (‘buy’) as well as short (‘sell’).

●      You will not own the underlying asset, so no need to set up a virtual crypto wallet.

●      When you trade crypto CFDs, you get leverage, which means you can have a larger exposure to the market with less upfront capital. Do note that leverage can magnify profits as well as losses.


Whether you decide to buy and hold or trade cryptocurrency, there is no right or wrong answer. It will entirely depend on your preference and the time you have available. Both routes require research, knowledge, and skill, with perhaps a stroke of luck to become consistently profitable. 

Arguably, buying and holding cryptocurrencies is easier and less time-consuming. Although wrong decisions can still be made when choosing a coin to invest in, nothing is guaranteed in financial markets.

One key tip is to watch your emotions, keeping these at bay in both scenarios. Emotions can hamper things, do try to ensure rationality, regardless of whether you decide to buy or trade cryptocurrency.

Whichever route you go down, do not make any rash or rushed decisions, be sure to consider the risks. On a final note, as always never invest more than you can afford to lose.

Trade for more: Libertex

Part of the Libertex Group, Libertex is a broker that is regulated by the Cyprus Securities and Exchange Commission, offering the ability to trade CFDs with underlying assets being commodities, Forex, ETFs, cryptocurrencies, and others. Libertex also offers commission-free investments in real stocks, do note market spreads apply.

Since its inception, Libertex has collected 40 prestigious international awards and recognitions, which include “The Most Trusted Broker in Europe” (Ultimate Fintech Awards, 2022).

Libertex is the Official Trading Partner of Tottenham Hotspur FC and Bayern FC bringing the exciting worlds of football and trading together.

Libertex Group has grown into a diverse group of companies since founded in 1997, serving millions of clients in many countries all over the world.

For more information about Libertex visit their website.

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 62.2% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.


All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.


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