The Difference Between Active and Passive Investing

When you start thinking about investing in the crypto industry, many of us start analyzing crypto gems and other important duties. However, there are two concepts you need to truly understand.

These concepts are active and passive investing.

What is Passive Investing?

Standard investment thinking is that if we can buy a crypto gem at a low price and sit HODL it for a long time we will have maximum gains.

This logic is somewhat correct, however, there is a bit of luck involved in it. Many Gems will not survive till the next bull run. For example, Trustpad, a decent Launchpad just got hacked 2 days back and its price went to near zero.

What is Active Investing?

Active investing means using multiple levers for extended gains. These include:

  • Riding the market’s ups and downs. Buy Low sell high and repeat.
  • Passive income through staking
  • Passive income to airdrops
  • Monthly Health checks and reorganizing the Portfolio
  • Buy the news, sell the event, and many more.

Passive Income gives you peace of mind. However Active investing is a hard grind! But hey! We are doing all the research for you, and you just need to action them.

How Much Have We Gained Extra Through Active Investing?

In about 2 months we have gained 8% extra than what we would have through Passive Investing. Our portfolio would have looked better if we had just HELD and not made any tweaks. Inside Altcoin Buzz Alpha, you can see how our actual portfolio looks today. FYI, we are in profit. You can get in here. Here are some stats:

  • This 5.3% would be a bigger number as the market moves up
  • If we consider the Gems tab, the 5.3% would become a bigger percentage

In a nutshell, Active Investing in a scientific way is always better considering both: Gains and Risk Management

Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.

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