Bitcoin Forum

Most times we confuse trading with investment and some times we mix the whole concept together staring lots of confusion in the minds of newbies who struggle to get a firm understanding about how the crypto industry operate.

Crypto trading:
Trading involves the buying of one commodity in exchange for another it could be something of either a higher value or lesser value. For example if you buy ETH in exchange for USD it's called Fx/crypto trading. If Bitcoin is exchanged for ETH then we can say Crypto trading has taken place and this requires lots of analysis.

Types of Trading:
We have basically 5 types of traders

• scalpers
• swing trading
• Day trading
• position trading
• Arbitrary Trading

Investors :
This are crypto experts who understands which coin or token will do well in the near future by studying previous chats or following up with news related to crypto generally. This also requires some level of technicality. This experts study coins newly listed in various exchanges, follow up on news released by their fellow experts as well as tweets by crypto influencers.

To study more on the two: https://cryptocurrencyfacts.com/the-difference-between-investing-and-trading/

Trading and investing (holding) are distinctly different while swing trading is like the intermediate but yet still trading.

Types of trading
1. Scalping
2. Day trading
3. Swing trading

These are the three major types of trading while the fourth one is Arbitrage.

4. Arbitrage

There is nothing like types of traders, it is types of trading, traders can decide to choice anyone they like. Some can first prefer day trading and later move to swing trading, some traders can even be holding and yet trading all the types depending on his/her analyses.

It all depends on where you get your article from both are correct. https://www.interactivecrypto.com/types-of-crypto-traders  (https://www.interactivecrypto.com/types-of-crypto-traders) you can refer to both traders and the trading process using the same types. I forgot to add fundamental trading as well as well as margin trading as you pointed out.

Simply everything is an investment! For trading you need money, so if you wish to trade and earn you need to invest some money! It's one of those risky investments where you can lose a lot! Why it's so hard for some people to understand this?!
You can invest in holding (it's a long-term investment) and that carries some risk as well, there's no risk-free investment in this world!


As I said, you invest in what you think it's best for you! That can be trading, holding (long-term)... that can be gambling! You invest to make a profit! And every investment carries a certain amount of risk!

I am an investor but that does make me an expert? I would say no. But I've got the experience on what should I do during the bears and bulls. It is the factor that gives us an advantage because we know how to react and what shall be done especially if the market doesn't look good.
While some are in panic during the corrections, investors are acting accordingly through buying because we know what's going to be the next scenario after it.

It's about the convenience that investment can give to you. It always ends up with long term benefits because you have a long term vision with your investments. If you want to take with the short term, it's also okay and you have to be that active in the market, do some daily trading or weekly or monthly. What I can advise you is to at least keep 5%-10% of your salary and put that into bitcoin. If you can't do that much in percentage then 1%-5% or any amount will do and keep doing that when you have money, do the dollar cost averaging strategy. That strategy is effective even a bear market sudden comes out.

We should bear our emotional side during bear market, because if we can't handle it and overcome fears there's a tendency that we're going to lose. Unpredictable market is what you're pertaining to so we shouldn't allow all negative thoughts lingers in our mind, it's a huge factors that affects our decision. Often time the market corrections made things worst if you can manage to control yourself on different situations.

In short this is actually on personal preference because we would surely stick into something that really gives us more convenience or really make use comfortable of our investments.
Some would be finding that taking it for short term is much more worthy and some do see or find that holding is much better than on actively trading just because they do lack up
some knowledge and skills on dealing with the market.Its on how you do really engage and on how you do look on what will really be beneficial for you or would really
align into your capacity.

Hmm, then what? Since we put money on trading, should we just consider it as a gamble and not an investment?

We should treat our trading just like how we handle any investment so the approach will be the same - properly managing it along the way. It's not confusing as long as you are focusing on your goal to build good trading winning stats.

And for newbies, it's already common to reach and experience the confusion stage because after all, they are newbies. You can't expect them to be a better person right away in the new environment that they are not used to.

Trading is hard and losses will cause success later. If you don't afford losses, you should not trade. The cost to learn trading is more expensive than to learn investing.

Investors must have mandatory characteristic of real investors. Confidence, patience and disciplined with their investment.

If a person has such characteristics, this one can succeed without understanding of technology. Just choose Bitcoin or Ethereum, because of belief, and get success.

However, I agree knowledge is very important. It supports investor decisions but a person who has knowledge but is lack of investor characteristics will end with failure.

To be an investor you have to have patience and control your emotions. The bull run in the market is good news for traders but not in the bear market market we will have to wait for the market to correct if you want to invest you have to take risks investors also want to know the risk in advance entrepreneurs need to know in advance what kind of risks there are in any business. Facing short term losses should not be your concern but should focus on your long term returns.

Investment and trading for me is almost the same the difference is when it comes trading you can make quick profits but if you are long term trader its like an investment as well because you hold your money and expecting a rise in the price in the near future from the projects/coins you preferred to trade. Wherein investing you need to wait until you reach the point where you can dump your profits. But if we will make a comparison it's almot the same to be honest, i mean its up to us which is good way in order to roll up our money.

As an investor, patience is really needed because it takes a long time to get the results or achieve the targets that have been set. in addition to patience and emotion, the capital used by investors must also be strong. The more investment capital used, the more profits will be made. as a long term investor there is no quick return, it does take a long time.

In addition to investing, we can also make short-term trades to get instant profits. Trading and investing can both be done at the same time.
As traders and investors, it is also necessary to know technical analysis and fundamentals.

That’s very true, a lot of people are confusing these two all the time. And where it gets difficult for newbies to understand is when people starts saying that there are just short term trading and long term trading. Along the line I noticed that some people uses long term trading to refer to HODL, which is the definition of the investment as you’ve explained it here. And then they use short term trading in reference to trading itself. I like the way you have broken it down, any newbie that comes across this will get to understand it really well.

Bear or bulls, it's all about how you'll act during those seasons for each trade you do or for each investment that you buy. Negative thoughts are inevitable and as I've said, it's how you deal with it but with experience, it should be nothing to you anymore because you've dealt with it for years and that should be enough for you to stay calm if you're pertaining to the bears that you don't want.

Yes, that's it. We have our own comfort zone and as well a way of dealing with the situation. If you're up to short term and that's your thing, it's where you have to focus. But if you're good and just fine having a long waiting game then you should stick to your long term plans.

It is also worthy to note that you can find a lot of investors who are not traders, but very few traders who are not investors.

Most traders have a portfolio that they have allocated for investments, it is just that because they are not completely patient on waiting alone for their investments to yield profit or not too satisfied with the profit margin, hence they seek to make more profits for themselves and their portfolio, so they branch into trading.

Most of us find ourselves in the position that we are forced to retrain from a trader to an investor. This happens when the coin has fallen very much in price, but we have no desire to fix the loss, and we continue to hold it until the price of the coin recovers. And in some cases, we become eternal investors, since some coins have no prospects for price recovery.

That is the way for us not to sell at a loss or because of panic seeing the market price is getting down. The investment can give us a profit in the future, especially if we hold potential coins such as bitcoin, ethereum, bnb, and else as those coins prices can increase.

But if you can buy low and sell high, that will be good as you can profit not just from the investment but also from trading. The small coin price will be okay as long as the price can move many times so you can apply the buy low and sell high strategy.

The same for me and others too. If you've not been effective with day trading, do not hesitate to quit with it already and have your focused somewhere like investing. And that's the sign for you that if it's not profitable, do look for a contingency plan where your time and effort would be more worth it than just investing in it. Choose where you are doing better so if you do better in investment, you don't have to change your ways or if you want to add some ways, don't leave investing and vice versa.

For that, it depends on the current status of that person. It's really hard to make good winning stats on day trading and even professionals aren't having perfect trades too but if there's a seriousness of pursuing profits from day trades, then try it even losing. It will take time and that's expected.

Try giving it a half a year or over a year test run and see if day trading does make sense to continue or not. Why that long? To be able to experience every trial, challenge, and difficulty along the way.

Investors trade too and they are traders. And all traders invest too. It's the duration of there investment of traders that only classifies traders. Which is long and short term traders

If the price of the coin you hold falls, then you will still experience Fomo due to the fact that you did not sell it earlier at a better price. And you will not worry less, despite the fact that this is a long-term investment. In this case, it is necessary to stay out of the market and focus on another occupation.

OP, you will do well to edit the error in the title of this thread – Taking vs investment. I believe you meant Trading. Having said that, let me quickly make a note on that. Trading is active Investment while Investment is dormant Trading. That's the simple way I look at it. Those who invest are also into business just like those who trade. It's the same way that some investors buy Bitcoin and hodl while others buy and trade them. People can lose money both ways. What matters is finding a nice place of entry and knowing when to exit the trade or investment. Without that knowledge, it will all result in loses for either option.

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Whatever the last option on that list –Arbitrary –  means is new to mean, except you meant Arbitrage Trader. And I believe that's what you wanted to write? Well, for me, I like the Swing, Day and Position Trading plans.

of several types of trading, if we decide to invest long-term, indeed we must be able to control emotions when prices decline. and because our initial goal is to invest, we don't need to worry and don't panic sell, it's only a matter of time, where we wait for fomo to happen. Moreover, what we hold are major coins, it is different if we invest in new projects, of course it will be more risky

This will depend on the person if he's too eager with day trading but that would be my action if it's not that effective to me anymore. I won't waste my time on it if I find myself throwing my time and money on it.
But as they say, if there's a will, there's a way, and if those people that are too eager and keep trying and trying again. I just wish them all the best and they might find themselves becoming one of the better traders in the market.

I think regret is the correct word when you missed selling the tokens for a better value and watch it drop further. Despite knowing the value of the tokens is expected to grow, it is hard to contain yourself.

I have experienced this myself. Actually, when doge's price was 80 cents or something like that, I felt greedy and didn't sell them because I wanted a dollar for each doge. As the price fall flat, I regretted my decisions a lot and ended up selling around 35-40 cents later.

The biggest problem was that doge is a meme coin and it was hard to see the futuristic value in it.

I'm a day trader and i learned a lot from the trading market or even I analyze the coins and their price to a range, but this is only my predictions and in trading no one knows the exact amount or we can say the profit is always there. but we can predict, so, it would be better for day traders to make much profit as i had already make from only day trading.

I think that if the Doge price had reached $ 1, you would not have recorded a profit and moved the sale price higher again. Some people call this greed, but in fact it is a natural desire of any trader to get a bigger profit. And if we can sell coins on target zones, then in the case of meme coins it is difficult to do this, since the hype does not have target zones.

Of course there is a difference between trading and investing, personally I worked in both types, so it can be said that both of them have positive and negative advantages. For trading, your profits are simple and you need to sit long in front of the computer and monitor indicators and follow the daily analyzes, but you get quick profits (of course there are losses too).
As for investing, it requires patience and time, but at the same time, you will not have to sit in front of the computer screen for long, and you will not need to monitor the indicators daily. You buy a coin, then put it in the wallet and forget it for a long period of time, but most of the time the profit is great.
So if you are the type who likes to follow the news of cryptocurrency and sit in front of the computer screen for a long time, I advise you to trade, but if you do not prefer to sit long in front of the computer and have other business, investment is your preferred option.

Although weird sounding, but that's true. Traders just invest and divest their assets quicker while investors do the same slowly. Another key difference is that investors have the financial freedom to block their money in the market while traders thrive at rotating the funds and making active income. An investor would wait for months to get the best price for their assets while a trader will settle for smaller profits because they need the funds to rotate.

I always feel like investors have a gigantic advantage over traders in the crypto market because it's hard to predict the movement but easier to evaluate a project in the long term.

People have different goals and desires so it is difficult to give a standard answer about why people become investors, it is obvious that one of the reasons is to make money, however if you really want to become a good investor then you really need to know in what you are investing in, this means that in the case of bitcoin you need to do everything that you can in order to understand bitcoin and why it is so valuable. and if you do this then it is going to be way easier for you to endure the bear market conditions that eventually appear in this market.

As long as you have strategies on whatever you are doing, you are fine day trading or what know the risk of it and once you are ok with that, you can start learning how to become an effective trader. Investing is good for long term hodler, they can afford to wait and they are willing to take the risk as well and I believe trader are also a hodler.

As I've tried to become a trader, it finds to be stressful than just an investor. Many times it happens that a trader becomes a long-term holder because of a huge dump happen and not being able to sell them at lose, I certainly experienced this one and I realize that traders will often lose than just an investor.

This really matters our choice, some just to think that trading will give them a good profit but just to surprise that later on, they get back to investing only. This could picture out that how hard is trading especially when you don't have deep knowledge in the crypto market.

When it comes to trading or investment, they are two very different ramifications, since market trading or speculation usually takes advantage of all market movements, as well as buying and selling higher or selling and buying lower, some combine it with margin. leveraged trading.

Others just prefer to buy and wait until the currency or stock rises, particularly this is something that only people decide where to go, if by market speculation or investment, some think that you can do both, but there are We have to have a lot of focus and follow the same rules that we impose on ourselves, we must do it because it is the only way that money is not lost, but I think that knowing that it is better goes very according to the personality type of the person .

In this case, a lot depends on how much time one or another trader can devote to trading. If a market participant has a main place of work that does not allow him to spend a lot of time in front of the terminal, then it is obvious that he will be engaged in investing, which does not require a lot of time every day.

Trading is quite difficult, investing is incredibly easy, you forgot that part in your text. I mean trading could be a lot more profitable if you know what you are doing, instead of holding you are buying when it is lower and selling when it is higher and if you keep doing that then you are going to make a great profit. However realize that "sitting in front of a computer" is literally meaning you have to be working very hard to make that profit and could still end up losing money doing it. It is very very tough and difficult, but what about investing long term?

You just buy and hold and do literally nothing else, you just buy, one action, that's it, the end. This is why I always liked holding as the greatest way to make money, you both do nothing at all to make money, and you still end up in profit, it is like a dream come true for many of us, making money by doing nothing.

As i'm a day trader and i had been following the best trading strategies and earning a lot from trading. But the main thing is patience whether someone is doing day trading or they are investing in log term coins they also needs patience in selling and buying the coins as well, so it would be better to do it like a business not gambling.

I prefer investment because investment does not need to keep checking the price of our coins. While trading takes a long time and must have good skills. If we are not smart in buying coins we can experience losses. While the investment risk is smaller and the profit is also large.

All the trading format mentioned is welcome and many times as a traders,  you perform one or more of these trade format.  There is no best format for trading,  you just trade what could favour you at any giving period!  Arbitage is a trade where you take advantage of two or more different prices on exchange, swing trade,  could happen without expecting and the trading possibilities are endless!

Mostly new people who get to engage into the crypto market and get what it takes to earn through this are having a hard time understanding and differentiating trading and investment and are mixing up the context which brings up a misconception that those two are just the same but differs on terminology being used. There are people who prefer trading rather that investment and vise versa and other people who takes both since both can be beneficial with different level of risks due to uncertainties since we are working on a highly volatile market.

Many traders end up becoming long term investors because they realize that the life of a trader is very hard, every single day you need to get results and you need to watch the markets and always apply your strategy perfectly every single time, this make trading a very difficult job and even some of the best traders get tired of the pressure and they decide to leave it behind and become investors despite the greater profits they can get by trading.

Majority of those people who had just started up trading will really be be that eager on dealing with price actively until they do realize that this isnt something simple that you could really pull off.
This is why they do really end up on holding or making themselves to be a holder or swing trader instead which i could definitely say since this is what i am when i was just starting.
It doesnt matter though on which one as long you do earn profits then that what matter most or the main priority no matter what methods or behavior you do have.

It doesn't really require checking all of the time but if you have invested heavily to a certain crypto then you're worried most of the time, and that's the reason why you have to check it from time to time.
And for trading, it doesn't really takes a long time as you do it. What's taking it long is how you will understand trading alone and how to be good with charts reading and technical analysis.

in trading indeed the profit that we make every day is not so much, but if we accumulate it every month, the results are also large, but it depends on our skills in trading. it's better to invest, where we don't have to think much, and just wait and reap the results. but for me it's even better to do both, because it's related to hobbies

What you are saying is correct. That is why we need to know when to stay out of the market, especially after we profit. If we do not sell at a high price and still believe that the price can increase in the long term, we do not panic to see the price fall because that is just a correction and after that, the price will start to rise again.

We already know that the market will still grow in the long run after the fall, but sometimes it will take years. WWhat if this time the bear market, which will definitely come sometime, lasts longer than the previous one? And I do not want to be among those investors again who did not leave the market in time and continued to hold unprofitable positions.

I am not the kind of long-term investor that hold crypto for several years. 'It commonly will take the longer time period is based on the bearish and bullish era. Where I will choose to buy some top coins before Bitcoin halving and keep it until months to rise up.
But, before doing so, actually, it is also valuable enough to do trading (although not a day-trade), but at least, I can take profits several times in a week and the profits can be sued again to increase my balance or capital for trading.