This is where things get a little more interesting.
The disadvantages involved in HODLing are probably fairly apparent. Firstly, you won’t be able to make profits on the frequent value fluctuations that occur around the clock as it simply isn’t practical to keep shifting your Litecoin. Secondly, HODLing will only allow you to make a profit if the value of your chosen crypto increases – there’s always the chance that the price may drop, leaving you at a loss.
Trading Litecoin is done via an exchange or broker and these allow both short and long selling – in other words speculating either a price increase or decrease. This kind of trading is done with a much shorter turnaround than with HODLing – successful cryptocurrency traders will often make numerous transactions in a single day. When trading in this way, you never actually own the underlying asset. Instead, you speculate on price movements via contracts for difference (CFDs).