Difference of Trading and Investing?

[Goms]

The best way to explain it is to make a good statement rather than making a long and very technical definition that is hard for the reader to understand. So here is my explanation "  All trading is an investment but not all investment is trading". It simply means that even trading itself is considered as investment. But investment has many forms aside from just trading, it could be investment in networking, loans, business and many more.

That is even harder for a newbie to understand!

OP when you are trading, you are actually investing your money(or coins) as well.

In the real world people see investment as when you buy something and wait for the price to rise before selling - the same thing applies to those who hold bitcoins for a long time, they are waiting for the price to rise.

Now we have the day-traders who buy a coin and sell within a few days, they make "small" profits daily or weekly because the price of all coins changes everyday - if you check any exchange you will see the 24hour-high and 24hour-low prices.
This is how day-traders operate.

[ufaiz50]

Investing is an effort to make money during the time period long
Trading is an attempt to make money during the term short
Investment depends on the fundamentals to decide to buy or not investors can only make money when the price is going up, and while traders can make money in the market UP or DOWN

[angaper]

I have been a Forex trader for several years and in this case I fulfill both functions, as I perform trading operations directly in the market, making my own decisions and managing my capital under my own rules.  But on the other hand I also use to manage some funds of investors who have no interference in my trading decisions since they are just limited to entrust their capital to generate returns.

[loreykyutt05]

The difference between in these two is that trading is on your own, you'll be the one who will make strategy and you are the one who's responsible on it, while investing is you invest money to a business and you will just wait for your money to grow.But somehow, its also risky you have to find and study the business first before you invest you money.

[NUFCrichard]

It's pretty easy here in Germany.  Investing in Bitcoin is a tax free enterprise. You can buy your Crypto, hold it for 1 year or longer, then sell and it is tax free.
If you are trading then you will not hold for 1 year, so you will have to pay tax on any profits you make.

It's all basically time frame and mentality. The cuts offs are arbitrary, you can trade once every few weeks and you are trader, I think if you buy with the plan to sell in the near future, it is a trade.
If you buy and hope to hold long term, you are an investor. 

I would propose the cut off as being - if you hold your coins on an exchange, you are trading.

[SamsungBitcoin]

Investing in trading and investing without doing anything is different, investing in trading just adding your money in risk but it can gives you more income than investing without doing nothing, higher risk equals more income.

[rchstr]

Trading is just playing in the market you buy stocks and then when the price of the stocks get up you will sell it. While on investing this is a long term. You buy stocks and wait for your earnings.

[CoinFoxs]

Investing is when you give money to other company or people and trading is you spend your money and earn money on the basis of your personal skills and your knowledge about the specific currency which you choose for trading. Both will give you profit, you just need to work hard and smart and don't invest your money in businesses from where you get loss instead of profit.

[shield132]

Guys sorry for this question above but I would like to ask here that

What is the difference of Trading to Investing?

though I know that I can search it in google but I want an answer from those people who have already experienced this two.
Thank you.

I hope you can help me in my confusion..

Ok, I'll explain you shortly and in detail. When you are trading, you are depend on your choosen currency, profit is different from any trade and you have to choose right time to sell and buy your currency. There is chanse of both, profit and lost, at least you need good skills in trading and luck. So what's about investing, I hope you don't mean bitcoin investing websites. For example someone is going to build great hotel but it worths millions and for that, there is need of some people to fill budget and if project is good and it makes profit, than this profit will be different for every investor, it depends on how much they invested.

[icecube45]

Maybe the most striking difference is the time frame. Trade suitable for short-term, while the investment is suitable for the long-term. The focus of trade and investment is also different. In trading we focus on the stock price to make a profit by always seeing fluctuations. If the main focus of investment is the company's health because although fluctuating, but the most important is the company's health, because a healthy company will always be profitable. Maybe it's the difference that I know.

[Slark]

Op you should use search function before you posted this question. A lot of awfully similar topics were discussed many times in the past.
Look here:

- https://bitcointalk.org/index.php?topic=1547630.0 - Which one is good, trading or investing?
- https://bitcointalk.org/index.php?topic=1091696.0 - Best investment place? Mining or Investing or Trading?
- https://bitcointalk.org/index.php?topic=1165958.0 - Best Investments
- https://bitcointalk.org/index.php?topic=1388675.0 - What is your best investment strategy?
- https://bitcointalk.org/index.php?topic=1196225.0 - What is the best way to invest/grow your Bitcoins?

I am sure there are more threads like that, this is what I found during my short search.
These topics might provide you with info on  investing, trading, differences between them and people's opinions.

[traderethereum]

Guys sorry for this question above but I would like to ask here that

What is the difference of Trading to Investing?

though I know that I can search it in google but I want an answer from those people who have already experienced this two.
Thank you.

I hope you can help me in my confusion..

its different description because trading is something that we are doing with watching and make analysis about the trend of the market and investing is something that we want to make our money more grow than we have. i think i am doing well with trading and investing although the final result, my profit is not big as the other.

[justdimin]

investing is the purchase of an "item" or "commodity" for the long term rise in value.  trading is short term and involved a more structured quest for quicker changes in value, or at least it should

In other words when a trading lasts for long haul it turns as an investment.
Trading and investing are similar things when are not considering the time constrain, but based on risk levels we can differentiate them but for that we again will be in need of time. With long time requirement, investments are less riskier compared to trading.

Again in other words : Trading is an active one whereas investing is a passive one.
Trading may have more risk involved as it is an active one and also short term based. Investing will have minimum risks as it will be long term based so fluctuations are not considered.

[pinkpanther03]

Guys sorry for this question above but I would like to ask here that

What is the difference of Trading to Investing?

though I know that I can search it in google but I want an answer from those people who have already experienced this two.
Thank you.

I hope you can help me in my confusion..

Well You don't need to be confuse between Trading and Investing, In fact this two are very important for each every bitcoin enthusiast. Because, we cannot grow our coins quickly if we will not going to invest first in the coins that we like to invest in. And we cannot trade if we will not going to exchange platform to play there.

[Wandering Soul~]

I think the main difference is in trading you are actively doing something and in Investing it only requires a little effort . As for the risks, They are both risky and you should do some researching if you're planning to try it but I thnk investing are more risky, Aside from the fact that there are many scam investing schemes, It requires a lot of time and you can't really manage the risks unlike trading that even if you dont have that much capital you can make the most of it especially when you day trade .

[Bitcoinsummoner]

I think the main difference is in trading you are actively doing something and in Investing it only requires a little effort . As for the risks, They are both risky and you should do some researching if you're planning to try it but I thnk investing are more risky, Aside from the fact that there are many scam investing schemes, It requires a lot of time and you can't really manage the risks unlike trading that even if you dont have that much capital you can make the most of it especially when you day trade .

I think if you are trading and buying altcoin it is an investment but yeah there is a risk but it is depends in your performance how you mange your trading strategy.. not only investment in ponzi that we can call investment. also trading is investment or just holding bitcoin we can say its investment..
So there is no different because they are connected..

[bitbunnny]

There could be difference between these two things but in practice  usualy there is no much difference because trading could be type of investment. You invest your funds in buying Bitcoins and then you trade it on exchangers to make some priofit, on the basic principle buy low, sell high. Anything where you put your funds to make profit could be called investment.

[youdacapt]

There could be difference between these two things but in practice  usualy there is no much difference because trading could be type of investment. You invest your funds in buying Bitcoins and then you trade it on exchangers to make some priofit, on the basic principle buy low, sell high. Anything where you put your funds to make profit could be called investment.

Yup, it's like that. But my understanding, investment is to provide money - not doing anything - and I benefit from a percentage of profits. Investments are not always shaped pyramid schemes (such as mining).

For trading, I could also invest. But it still needs fundamental analysis and calculation (working). So I assume this is not an investment in the real sense.

Anything where you put your funds to make profit could be called investment-deposits

[gabmen]

Guys sorry for this question above but I would like to ask here that

What is the difference of Trading to Investing?

though I know that I can search it in google but I want an answer from those people who have already experienced this two.
Thank you.

I hope you can help me in my confusion..

For me, in a way these two are similar to each other. Trading is where we apply the buy low sell high principle and it would be all about the right timing. I guess it's the same way with investing though it's more on business. In trading we deal with altcoins while investing covers a more general and broader aspect of business

[lordquanta]

Guys sorry for this question above but I would like to ask here that

What is the difference of Trading to Investing?

though I know that I can search it in google but I want an answer from those people who have already experienced this two.
Thank you.

I hope you can help me in my confusion..

For me, in a way these two are similar to each other. Trading is where we apply the buy low sell high principle and it would be all about the right timing. I guess it's the same way with investing though it's more on business. In trading we deal with altcoins while investing covers a more general and broader aspect of business

Lot of threads running on forum has explained the trading n investment in different way. As far is investments are considered they could be short term or long term. Same applies to the trading as well. One could trade on intra-day basis or one could look for long term selling period.  Purchase at low price and hold till price reach to the expected levels. Even if price does reach in a day. Holding duration could 1 day, week, month. Trading and investment are not explicitly time-bound. In fact if real difference is who is behind the wheel. Who is making the decisions. In trading individual(owner) himself call the shots. In case of investment, decisions are taken by a broker, investment-manager, investment-house. In investments, investors assumes that broker/invest-mgr knows better than him and allows him to invest/gamble.