Knowing whether you should trade futures or hold cryptocurrencies will depend on your goals, experience and risk tolerance. Here are my thoughts on the matter, I hope they can help you make a better decision.

FUTURES

Advantages:
-Highly lucrative if you master technical analysis and have a solid and effective strategy with a 50% win ratio over a 1:2 risk ratio.
-It allows you to take advantage of short-term movements, both upward and downward.
-Using leverage and knowing how to use it, you can obtain high returns with little initial capital.

Disadvantages:
-Leverage can amplify losses if you don't know how to use it.
-It is more time-consuming and requires a solid understanding of the markets.
-You need an extremely disciplined risk management system (stop-loss, hedging, partial margin closure, etc.).

If you decide to trade futures, practice first with a demo account and limit the capital allocated to this type of trading to a fraction of your portfolio no greater than (5-10%), do not pretend to be a professional trader, if you burn or lose a 100k demo account, what makes you think that you will not burn an account of 1000 or less.

HOLDING

Advantages:
- Proven strategy to generate long-term wealth with less stress.
- You don't need to constantly monitor the market.
- Reduces transaction costs and allows you to benefit from compound interest.

Disadvantages:-

You won't get immediate profits.

-You need to withstand volatility without panic selling.
-You can still suffer large losses if the market does not recover.

Holding is ideal if you have a long time horizon and prefer to build wealth without worrying too much about daily fluctuations, thinking about selling a better position and because in solid assets the market tends to recover and continue growing, although this is not always synonymous with guarantee.

CONCLUSIONS

If you are just starting out, it may help to consider a combination of both strategies:

Let's say if you have an account with $1000 or less you allocate...

1. 80% in holding: Investing in assets in a diversified manner with a good portfolio and with a view to growth over time, perhaps medium to long term and with recurring funding when the asset decreases in value for an improvement in the position and growth of the assets.

2. 20% for active trading and futures: With the idea of ​​taking advantage of short-term opportunities both up and down, but making sure to master the tools, technical analysis and having an effective strategy of at least 50% profit ratio before risking significant capital that does not exceed 5% risk in each position with this section or portfolio of your account.

Choose your path based on your financial goals, your willingness to take risks, and the time you can devote to actively managing your portfolio. Remember, don't play the trader... 90% of futures traders end up losing all or a significant portion of their money.

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