Bitcoin Forum

Probably so many think if he invested in cryptocurrency, it means he has been trading too. Yet these two things are very different. Here are the differences of investing and trading according to Warren buffet and Jesse Livermore:

INVESTING (Warren Buffet)
- More concerned with a fundamental analysis ( ratio, cash flow, etc)
- Typically longer term buy and hold
- Much less sensitive to short-term price fluctuations
- Very little commission fees due to infrequent buys and sells
- In the mindset of " Part of the company"

TRADING (Jesse Livermore)
- Technical analysis based ( Chart patterns, indicators, etc)
- shorter term, many more transactions
- sensitive to short-term price fluctuations
- potential for larger returns in the short term
- More paid in commissions due to many transactions

which one are you?
I really appreciate if there is any additional difference between the two.

that's true and I think every activity in the crypto world will have its advantages and disadvantages as well as some of the differences you mentioned. But from each of these activities of course with the aim that is to gain profit and I personally prefer this long-term investment activities of course for several reasons and indeed it is. I do not have much time to continue monitoring the movement of crypto market because my busy in the real world because I think the trading activity we do is of course the first thing that is very important is we must have spare time to be able to continue to monitor the movement of crypto market.

I do both. I have coins that are for trading and I have coins that I will not sell until it reach a certain price or time to sell it.
It is easier to invest long term on stock as we know there are a lot of data available on stocks. You can really identify what are the blue chip companies, With crypto there are only a few choices that you can be certain that the price will rise over the years. There is not enough data that we can study.

I've read books and articles like that, I choose both, but I am more into trading let alone daily trade where many of the transactions I do and return fund are also quite big but the loss sometimes exists, I buy some big crypto like bitcoin, bitcoincash or ETH indeed for an investment where I hold it for as long as possible.

trading: is to sell and buy up to the specified price
investment: is to buy and hold up to a certain period of time
but both of them have in common that is looking for profits from the initial price when buying

I think to prefer one of them connected with a characteristic of the person. If you are quiet, patient - investing is your way. If you are mobile active - trading.

I'm into long term and I'm a typical  longer term buyer and holder so I prefer investing. Before these two in my thought are just the same, there is not that much difference but upon learning more about fundamentals of investing and trading I realized that I was wrong. Trading is more stressful but if you have enough time of doing so you can earn more than enough with it. Sometimes I do day trading when I'm in mood but if the market is collapsing I'll stay with my plan of just holding.

Both of process is before start you invest you currency. Then you start but before start know the both of process. It connect the most the people for more process.

Invest.
Before invest check the price then you invest. price is not easy guess. So before invest check the price everyday then you get more ideas and information. So plan to work and invest.  But if invest wait for the price increase if price is increases sell on time. So time to complete the process.

Trading
Trading also timing process. Trading is connect the all country people . So you connect properly. Before start the trading you know how handle the trading. Trading is not to easy to process. Time is important. So time to complete the transaction. If not complete it affects your account. Trading is connect the other country people. Most of the people use the trading of the exchange.

I think you have make a right view on what most of us here think the same. The investment analytical view show that the two are wide different from each other and in forex and stocks trading and investment we really understand this.

Better’ depends on the individual. Generally, trading demands more attention, time, experience and diligence. You don't keep positions for long time in trading.  Investments normally returns you regular payouts in the form of dividends year after year.

You examples are mostly applied  to the traditionsl markets ( like stocks and fores) which is pretty obvious because you are literaly quoting the traditional investors. The part about trading can be applied almost to every market because it is more about analyzing charts then anything else. But the point about investing is completely different from what people do with crypto. The investing that is done in traditional markets require way bigger amount of analysis and calculations while you should know something about the sphere of your company and its product. Comparing to traditional ftuff, Investing into altcoins is just a gambling. Don't think that you are an investor if you've been godling BTC for a year.

They may have different definitions but they only lead to one purpose. The goal behind people trading and investing are the same and that is to make a profit, build wealth over existing income. IF I choose between the two I would rather go to trading that is if I have the skills and knowledge about it. Investing will take time, trading can give you daily profit but way too risky if you lose. Well I guess both are risky in any ways.

Every person has their own positive and negative analysis. But I like the evaluation of Jesse Livermore because it gives the best direction in a short time. You and I both want to make a lot of money and look forward to the results as soon as possible, so Jesse Livermore is the best choice.

To do business, we need strong data and capital management capabilities, and we need lots of digital currency related expertise. I think most people will deal with it regularly. From the data of last year's big exchanges, there was a lot of active accounts, and there was a bigger increase at the end of last year. But it's hard for ordinary investors to make a profit through a deal. It would be better to invest in bitcoin for a long time, but few people can hold it for a long time.

You should add a mindset in the trading for a better comparison. I guess one can say that trading(traders) mostly are in the mindset of getting rich quick or in the mindset of a reseller? I thought of it that way because of short term trading's goal(buy high and sell low) being similar to a reseller's mindset. You should also add a comparison for the potential for returns. I suggest you put potential for massive returns in the long term, but low returns on the short term.

 :)  :)     I'm here for a long term and I'm a typical longer term to buy and an investment manage to get ready before its two .I think the same is not that much difference but when its learned most about a fundamentals of investing and trading .I did think that I really mistaken the trading was so stressful but if you had the real time of work so you earned much more than enough with it sometimes I did it on a trading day when I'm in mood but I think the market is collapsing I'll stay along with my plan of just holding .

I do both. I think if we buy and invest it will only get one profit but if I buy and then traded my money and I make withdrawal with dollar for long term, I will get profit 2 times. but what I do is risky because the price can not be read at any time.

Both is benefitting when one have time and money to put in. Investment sometimes are generally of higher values for long term while trading can be of comparatively a lower sum aswell. Also because trading is short term, most people, specially new traders would not like to put in allot of money, as the results are pretty fast and unpredictable, while in investment one is most of the timea assertained that profit will be made, and probably put in more money than compared to trading as investment has a comparatively less risk factor involved.

I agree, both things are expected to give you profit, but this two has a big difference, both taking a risk but have a different outcome and different process to be made. Trading is just waiting for the right value to sell and right time to buy. But investing is spending your money on an asset to produce more money.

Generally what you are doing in cryptocurrency market is trading because not only it is volatile and more profitable in the short term it cryptocurrencies which fundamental analysis is applied are limited. And this cryptocurrencies are tied to companies that their cryptos serves as stocks of their company. So it would make sense if you always buy and sell cryptocurrency rather than hold is in a longer time. You must always take advantage of its volatility.

I am definitely on the boat of investing. Most of the time I am thinking that I am making different trades but the thing is I am holding for longer terms thus making it theoretically an investment that we can grow into something better. Yes some good points to explain the whole thing as I spotted the difference in my way of investing and trading. I think both of them just differs from the fact that one keeps going on for the longer period of time while on the other hand trading is just more quicker and also carries some sort of risk I would say.

Investing and trading are two very different methods of attempting to profit in the financial markets. The goal of investing is to gradually build wealth over an extended period of time through the buying and holding of a portfolio of stocks, baskets of stocks, mutual funds, bonds and other investment instrument.Trading, on the other hand, involves the more frequent buying and selling of stock, commodities, currency pairs or other instruments, with the goal of generating returns that outperform buy-and-hold investing.

Yes, investment and trading are so different. For short, i understand it as like this

Investment = i say this as a future savings.
Trading = i use this for my  daily fulfillment.

And i do these two, i have to invest for my future savings where i need money when i can't work anymore. And i do the trading to get profit little by little and it for my daily fulfillment.

It seems to me that every bitcoin user uses both of these ways of earning. I have for example there is the main Fund which I never use for trade. This is my investment in the future. And I have another Fund that I use to trade on the stock exchange. This allows me to always have a small income for my daily needs.

Yes in investing you just invested you money on long term time period and just hodler and wait wait wait and after you a still wait wait and wait untill price goes high to make you good profit .
Trading very riskly and need a lot of expirience to work with that , but you could make money faster .

Hi,

Yes, that seems obvious.

Put simply: when you trade, you bet through your money and you don't really care about what you buy. When you invest (supposedly), you believe in a specific project and your objective, rather than making profit, should be to help a company.

When you trade you don't have any relationship with company owners and you don't care about long-term strategy. When you invest, you may give advice to company owners and for sur, you care about where your investment go (should be on long-term strategic project).

Today, many shareholders are merely traders and that's why many companies stop thinking over the long term. Shareholders don't care because the second the company is no longer profitable, they give up their shares. The problem is that most company owners don't realize the shareholder mindset is threatening for their long-term activity!

i do both but im more on long term than short term to less stress that giving me sometimes doing a short term giving me lot of stress because sometime  technical analysis might not work on crypto trading .

The big problem with trading is that at first it may seem easy to do you need to predict the direction the market is going to take and if you do that then you can make a lot of money but the truth is that is very difficult most traders lose money despite the fact that they take the time, effort and sometimes money in order to learn the secrets of trading not realizing there are not such secrets, no one is going to sell those secrets just for a few dollars, this is why your best option is to invest in a coin with strong fundamentals that eventually grows and gives you profits that way.

Good choice sir because when you mention about crypto there's no need to choose which is the best of the two because both investing and trading help you earn profit. Why do you join crypto if your not here for profit,is there another reason why? so why not do what suits you the best.

Better choose both of them and use the one when the time is right. I mean investing is always long term and I believe the investment is on going opportunity it can come to our door step at any time however its upto us whether to choose it or not. I always invest if the things are right, the time is right and the whole idea is right. If these three rights are there then I am pretty sure I have no concern in choosing the investment.

Trading is cyclic one. For instance the crypto market is dip down now and there is no way we can rely on the trading for now. The market is just dropping all the way down and thus making it look like worst to trade. So in such case I will never trade. In short my decision is about the time. If its right then its right if its not then just walk away.

for me investing iand trading is same you will take the risk because that both is too risky but theres a two types of trading one is long term trading and short term trading you will choose what will you want taking the risk to hold it or selling it when you want and in investing it is like you will invest in trading site invest to get more money.

In my opinion, this depends on the amount of your deposit. If you have 500$ in your pocket and you want to quickly disperse your deposit, short-term deals with maximum risks will be the best strategy. If you have, for example, 100k$ or more, it is better to apply the investor's strategy.