HODLing vs Trading vs DCA: Which Is Better?

In crypto, everyone thinks their strategy is the best. Some say just HODL and never sell, others live on leverage trading, while some quietly DCA in the background. The truth? Each strategy has pros, cons, and fits different types of degens. Let’s break down how they work and when to use them.

What Is HODLing?

HODL = “Hold On for Dear Life.” It started as a typo in 2013 and became the ultimate crypto meme. Hodlers buy BTC, ETH, or SOL and don’t sell no matter what.

Pros of HODLing:

  • Simple: buy and forget.
  • Historically works with blue-chips like BTC/ETH.
  • Avoids panic trading and emotional mistakes.
  • You never miss the big runs (Bitcoin from $3k to $69k, ETH from $80 to $4k).

Cons of HODLing:

  • Massive drawdowns (BTC dropped 85% in 2018, ETH dropped 95%).
  • Dead coins don’t recover — hodling LUNA or FTT = zero.
  • You need patience. Sometimes years.

What Is Trading?

Trading = actively buying and selling to profit from short-term moves. Can be spot trading, leverage trading, or even scalping on memecoins.

Pros of Trading:

  • Potential for fast gains.
  • Works in both bull and bear markets.
  • Exciting — perfect for adrenaline junkies.

Cons of Trading:

  • 90% of traders lose money long-term.
  • Leverage = liquidation risk.
  • Stressful, addictive, and time-consuming.
  • Fees add up.

What Is Dollar Cost Averaging (DCA)?

DCA = buying a fixed amount regularly (daily, weekly, monthly) no matter the price.

Pros of DCA:

  • Reduces timing risk.
  • Builds a solid long-term stack.
  • Great for beginners and people with jobs.
  • Proven results if applied to BTC and ETH over multiple years.

Cons of DCA:

  • Boring — no quick 100x action.
  • Doesn’t protect you from dead coins.
  • If the market goes parabolic, lump-sum investing beats DCA.

Real-World Comparisons

  • The hodler who bought $1k of BTC in 2017 and never sold? Worth over $6k in 2025.
  • The trader who nailed the 2021 bull run with leverage? Maybe turned $1k into $50k… but many lost it all on the next dump.
  • The DCA investor who bought $100 BTC monthly since 2018? Total $8,400 invested, worth over $40k+ now, with less stress.

Which Strategy Is Better?

  • HODL: Best for blue-chip assets like BTC and ETH if you believe in long-term growth.
  • Trading: Best for skilled, disciplined degens who can handle risk and charts.
  • DCA: Best for beginners, busy people, and anyone who wants to sleep at night.

Pro move? Combine them. DCA into BTC/ETH as your base. Hodl a chunk long-term. Keep a small bag for degen trading and memes. That way you get stability, growth, and fun.

Final Thoughts: Know Your Style

There’s no one-size-fits-all. The right strategy depends on your risk tolerance, time, and goals. Some want life-changing moonshots, others want steady wealth.

Hodl if you believe in the tech. DCA if you want safe long-term gains. Trade if you’re ready for war. Or mix all three and balance degen with discipline.

Whatever you choose, remember: don’t invest more than you can afford to lose, always DYOR, and take profits when the market blesses you.

Survive the volatility, play your strategy, and wagmi. 🚀

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