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Active trading vs Passive trading

The distinction between ‘active’ trading and ‘passive’ trading comes down to your objective.

Active traders buy and sell crypto regularly. They are self-directed, in that they rely on their own analysis of crypto projects when deciding what to buy and sell. The objective is to increase returns by reacting swiftly to the peaks and dips in crypto prices. 

Passive traders seek to minimize their level of trading activity. While still self-directed, passive traders research and select a few crypto projects they would like buy and hold for the long term. The objective here is to have high conviction about a few crypto projects and then ignore the inevitable price volatility that will come. Some passive traders will want to take a large position in a crypto project they believe in. Others will use take an approach called dollar-cost averaging, where smaller amounts are added on a regular basis over time, so as to reduce volatility.

As a reminder, UNest strives to make it easy for members to build wealth through by making long-term investments. With UNest Plus, members can try out these strategies by making self-directed purchases of crypto. Interested to upgrade to UNest Plus? Visit our home screen in the UNest app.


This material is for informational purposes only and should not be construed as financial, legal, or tax advice. You should consult your own financial, legal, and tax advisors before engaging in any transaction. Information, including hypothetical projections of finances, may not take into account taxes, commissions, or other factors which may significantly affect potential outcomes. This material should not be considered an offer or recommendation to buy or sell a security. While information and sources are believed to be accurate, UNest does not guarantee the accuracy or completeness of any information or source provided herein and is under no obligation to update this information.