Analyzing the ROI of Long-Term Crypto Investors and Day Traders

Cryptocurrencies are creating innovative investment opportunities for millions of users around the globe. At the time of writing, there are over 13,000 digital assets with a total market cap of $1.3T. Penetrating this market requires users to adopt long/short-term trading strategies. Long-term crypto investors (hodlers) represent users who take part in holding their digital coins. Essentially, hodlers believe that a certain cryptocurrency could become more valuable in the future. On the other hand, day traders work differently since they buy/sell cryptocurrencies daily. In that regard, the following article aims to highlight the ROI of both strategies to crypto investors. ROI Definition Return on Investment, commonly known as ROI, is a term that describes the profitability ratio of an asset. In the context of cryptocurrencies, ROI compares the purchasing cost of a digital currency with its returns. Users can determine the ROI of their investments once they adopt long/short-term trading strategies. Generally, a lower ROI means that profits are lower than the initial investment, while a higher ROI signifies rewarding the crypto investment. The ROI of Day Traders As mentioned above, day trading involves a day-to-day exercise of exchanging digital currencies. Here, investors mainly trade at different intervals. The short-term strategy can be profitable. An in-depth understanding of the market enables users to know when they can en...