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...
