Do traders make more money than holders?

[kidoseagle0312]

To me, trading seems like its good because you can make consistent income.  Holding bitcoin, you aren't making money even if price goes up. 


Let say a person has $10,000 to trade.  Right now this person can buy 1.1 bitcoin or so. 


To make it simple, let's make 1 btc = $5000.


This person buys 2 btc for $10000.  Im going to exclude the trading fee for this part.


Now the price of btc goes up to say $5500 in say a few days.  The trader now sells 2 btc for $11000.  Fee is 0.25 percent so $27.50 fee.  Now balance is $10972.50.  So at the moment the trader has made $972.50.  Now he watches the price and it goes up to $6000.  Of course he say man if i waited, could made about $972.50 more.  Well he isn't doing anything as the trader now wants the price to drop.  Now let say btc drops to say $5000, then to say $4500.  He now buys about 2.4x bitcoin with his current balance.  Say price stays around that mark for a while.  Then prices goes to $5200.  He then sells all the btc for usd or usdt.  Here, he would make around $1200 or so.  I just estimated the profit here and estimated the fee.  But this person now has a balance of $12172.50 or so.  And btc price is back to the original price it was earlier.


So here... this person has made around $2000 trading btc... while the btc price started at $5000 to start... went to $5500... went to as high as say $6000... but he sold it at $5500.  Then bought it again when price dipped to $4500.  Then let say at the lowest point it went to say $4200.  But as price went back to $5000, he sold it all. 


So a holder... does not profit at all.  Someone who bought btc at $5000.... and have these fluctuations of as high as $6000 and as low as $4200 during this time span made no money.  Let say this person bought btc at 5k and look at the price movements but would not sell at all during this time.  Yet the trader... made around $2000 in profit trading btc here.  Now if price dipped or went down and the trader couldn't sell, yes he is down money.  But unless he sells the btc... he isn't down money.


So wouldn't this mean being a trader is more lucrative than being a holder?  You can make consistent money monthly it seems if btc keeps on fluctuating in prices.  Of course if price keeps dropping, well its hard to make any money since it would be hard to sell it above buy price.


However, people say trading seems to be stressful.  Is it?  I mean, all you are doing is looking at the btc price... it either goes up , down or stays around the same.  Its not like you have to analyze it daily or something... do you agree?  Now let say its altcoins... that would seem like ton of work because you have to research all the coins.  And those coins have high fluctuations no where compared to bitcoin.


So if you trade, should you only trade bitcoin?  Or bitcoin and other big name coins like litecoin, etc?  Should you avoid any coin that is not in the top 20 for example?

I think it is wrong that we must only trade bitcoin, There are lot of altcoins out there were we can make profit.
Even the coins is not belong at the top 20 we can still able to get earnings. Then, the rest of your statement was quite true and
correct. So for me Traders or Holders are just the same in terms of getting profit so it doesn't matter in which of these two are
make more money.

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[emberbekas]

So if you trade, should you only trade bitcoin?  Or bitcoin and other big name coins like litecoin, etc?  Should you avoid any coin that is not in the top 20 for example?

For active trading, daily trade, use one or two coins would be easy to manage. While the other good coins, the top 20, are good for long term trading. Bitcoin is so fluctuate and it can reach a wide range in daily basis. That is why I prefer to trade bitcoin against fiat.

[Golftech]

Both are different ways how we can gain a profit it's depending to us or to a person how they manage their trading or hodls. So i think we don't need arguing about that. Because what ever we choose between trading or hodling still we are the one decide to make a profit.

Always be like that, the users who will decide whatever trading practice that will suit to their position, making money around this market can be done both ways, some do short trade and earned decent while others are trying to maximize the profits so they will just continue holding and wait for the blowout and harvest the full benefits.

[mr_random]

Holders might make money more than traders when they got lucky holding a good quality coin or altcoin,
But you know holders do not make money everyday like traders, and traders can make more money when compounding the profit they made in their trades, so it just depends.

There is no big difference except the timeframe and money management. Long term traders check the monthly charts in 2 weeks but day traders check the H1 timeframe in every 3-4 hour.  Making money is an arguable depending on the experience and trading strategy specifications. Day traders take advantage of the hourly market movement, throughout the time, swing traders come back to check the new price illustrations on H4 timeframe.

[bastian466]

It is possible for traders to get money faster by trading because trading can do many transactions depending on the opportunity, but if you hold it, it takes a long time depending on the time specified

[The Cryptovator]

Holding and trading both is different things. Traders are getting benefits instantly but holders are getting benefits slowly. Traders might lose huge but holder might not lose if they hold till recover fund. So traders are at on risk more than holders. If holders have enough patience they no need to lose fund. Also this is applicable for traders. Hold and trade both run on different way. Eventually I want to say, traders earn more than holders it's true, and traders are losing more than holders this is also true. Because someone always losing other side on the trading.

[Rasel5209]

I tell don't worry about her price. If you have enough money you buy and keep it safety store after you will forgotten it. Btc price up and down but after time you seen that it price highly increase. Other if you have enough knowledge about coin you can trade and make more money. Trade is risky so I tell you buy and hold it.

[Naida_BR]

To me, trading seems like its good because you can make consistent income.  Holding bitcoin, you aren't making money even if price goes up. 


Let say a person has $10,000 to trade.  Right now this person can buy 1.1 bitcoin or so. 


To make it simple, let's make 1 btc = $5000.


This person buys 2 btc for $10000.  Im going to exclude the trading fee for this part.


Now the price of btc goes up to say $5500 in say a few days.  The trader now sells 2 btc for $11000.  Fee is 0.25 percent so $27.50 fee.  Now balance is $10972.50.  So at the moment the trader has made $972.50.  Now he watches the price and it goes up to $6000.  Of course he say man if i waited, could made about $972.50 more.  Well he isn't doing anything as the trader now wants the price to drop.  Now let say btc drops to say $5000, then to say $4500.  He now buys about 2.4x bitcoin with his current balance.  Say price stays around that mark for a while.  Then prices goes to $5200.  He then sells all the btc for usd or usdt.  Here, he would make around $1200 or so.  I just estimated the profit here and estimated the fee.  But this person now has a balance of $12172.50 or so.  And btc price is back to the original price it was earlier.


So here... this person has made around $2000 trading btc... while the btc price started at $5000 to start... went to $5500... went to as high as say $6000... but he sold it at $5500.  Then bought it again when price dipped to $4500.  Then let say at the lowest point it went to say $4200.  But as price went back to $5000, he sold it all. 


So a holder... does not profit at all.  Someone who bought btc at $5000.... and have these fluctuations of as high as $6000 and as low as $4200 during this time span made no money.  Let say this person bought btc at 5k and look at the price movements but would not sell at all during this time.  Yet the trader... made around $2000 in profit trading btc here.  Now if price dipped or went down and the trader couldn't sell, yes he is down money.  But unless he sells the btc... he isn't down money.


So wouldn't this mean being a trader is more lucrative than being a holder?  You can make consistent money monthly it seems if btc keeps on fluctuating in prices.  Of course if price keeps dropping, well its hard to make any money since it would be hard to sell it above buy price.


However, people say trading seems to be stressful.  Is it?  I mean, all you are doing is looking at the btc price... it either goes up , down or stays around the same.  Its not like you have to analyze it daily or something... do you agree?  Now let say its altcoins... that would seem like ton of work because you have to research all the coins.  And those coins have high fluctuations no where compared to bitcoin.


So if you trade, should you only trade bitcoin?  Or bitcoin and other big name coins like litecoin, etc?  Should you avoid any coin that is not in the top 20 for example?

Traders can make more money that long term holders but with the same ease that they can win them, they can lose it as well.
Hodling is something safe and profits are ensured,due to the volatility of the market. If you are trading, a wrong call can make you lose everything in a blink of an eye. It's similar to gambling.

[michellee]

It is possible for traders to get money faster by trading because trading can do many transactions depending on the opportunity, but if you hold it, it takes a long time depending on the time specified

That will depend on how good that trader skills on selecting the coins at the market. Without having good skills to detect the profitable coin, a trader cannot make a profit, and they will not make more money than holders. Sometimes, holders make more money because they can hold a big amount of one or more coins and once the price increase, they sell their coins at a higher price. The traders could trade on those coins, and if they don't have skills, their profit will be less than the holders.

[bastian466]

It is possible for traders to get money faster by trading because trading can do many transactions depending on the opportunity, but if you hold it, it takes a long time depending on the time specified

That will depend on how good that trader skills on selecting the coins at the market. Without having good skills to detect the profitable coin, a trader cannot make a profit, and they will not make more money than holders. Sometimes, holders make more money because they can hold a big amount of one or more coins and once the price increase, they sell their coins at a higher price. The traders could trade on those coins, and if they don't have skills, their profit will be less than the holders.

Holding also must have the skill to choose coins that can move up in the future if choosing the wrong coin that is not active the demand is less then the price will not go up it can actually go down

[gabbie2010]

It is possible for traders to get money faster by trading because trading can do many transactions depending on the opportunity, but if you hold it, it takes a long time depending on the time specified

That will depend on how good that trader skills on selecting the coins at the market. Without having good skills to detect the profitable coin, a trader cannot make a profit, and they will not make more money than holders. Sometimes, holders make more money because they can hold a big amount of one or more coins and once the price increase, they sell their coins at a higher price. The traders could trade on those coins, and if they don't have skills, their profit will be less than the holders.

Holding also must have the skill to choose coins that can move up in the future if choosing the wrong coin that is not active the demand is less then the price will not go up it can actually go down

You are quite right a hodler must not just buy any coin without researching and skillfully spotting the potentially pumping coin whose chances of going up is bright I believed majorities of newbies hodlers will dwell much on buying btc and eth which require no skill for hodling.
I also agreed that skillful traders do make money consistently than hodlers while deploying their strategies taking profits with some losses irrespective of the condition of the market whether bullish or bearish a trader makes money while a hodler might even wait for a very long time to make money due to the unfavorable condition of the market.

[Wolfwar]

I have always believed that a trader has a lot more profit than any other participant in the cryptocurrency market.  Although even in previous years, investors could make a very large profit and quickly enough if the ico company ended quickly and the coins soared several times in the market.  But for traders you still need to have a lot of experience and a large amount of start-up capital in order to immediately get a good income.

[BUK2016]

Actually they are different from one another and if to be compare it must be similar, but will like to cross examin the two. Trade is either daily or weeks or months trade but holding can either be a short or a long term hold. That of the trade if done with professional skills will earn more than the hold because of the market volatility.

What do you mean by weekly and  monthly trading buddy? If you buy a coin and you intend to hold for a month I will refer to such situation as a short time hodl and should not be regarded as trading.

[Harlot]

Just to give my two cents with the argument. From what I know early adopters or the ones who have bought and mined Bitcoin during its early stages are the most likely to be the one who are called whales now. They are not called early adopters for no reason then believing in Bitcoin during its time when nobody even knows about it. They became instant millionaires just by hodling it for 9 years and have made more compared to any stocks in any market today. But if we are talking about the general people here it still varies on each trader and nobody really has an edge to anyone as it depends o  what they really earn from it.

[nowlscor18]

Trader made money more than holders when there's a good market for every coins. But it's not a continuous process to have and sometimes there's a problem which will occur. Trading volume will not be good all the time, it might fall down. Holders will only suffer waiting but not knowing their asset increase at very expensive value.

[Zer0Sum]

It is very easy to apply basic logic here:

(a)  hodl requires zero skill, in fact, the total inability to make a decision is considered positive

(b)  successful trading in any financial market requires elite skills

So now the question is... do elite professionals make more money than zombies?

[princerepon]

To me, trading seems like its good because you can make consistent income.  Holding bitcoin, you aren't making money even if price goes up. 


Let say a person has $10,000 to trade.  Right now this person can buy 1.1 bitcoin or so. 


To make it simple, let's make 1 btc = $5000.


This person buys 2 btc for $10000.  Im going to exclude the trading fee for this part.


Now the price of btc goes up to say $5500 in say a few days.  The trader now sells 2 btc for $11000.  Fee is 0.25 percent so $27.50 fee.  Now balance is $10972.50.  So at the moment the trader has made $972.50.  Now he watches the price and it goes up to $6000.  Of course he say man if i waited, could made about $972.50 more.  Well he isn't doing anything as the trader now wants the price to drop.  Now let say btc drops to say $5000, then to say $4500.  He now buys about 2.4x bitcoin with his current balance.  Say price stays around that mark for a while.  Then prices goes to $5200.  He then sells all the btc for usd or usdt.  Here, he would make around $1200 or so.  I just estimated the profit here and estimated the fee.  But this person now has a balance of $12172.50 or so.  And btc price is back to the original price it was earlier.

[-snip-]

I think it's hard to judge that way. You can make more money if have idea and much experience about what you are doing. Now you invest on a project and hold there coin and you don't know that they are scammers you loose other hand you start trade without proper knowledge you loose you money again. So you can earn more money if you have such a good experience.

[EdenHazard]

What we gonna do is to make some more points and holding isn't a solution to be but just only a safe keep we'll do.
Trading is quite difficult and a risky stand but it looks profitable when it really be going good. But then, we need to understand that trading will always not be at winning and sometimes we suffer losses

Did you have a strategy when you get lost from your trading and you keep your asset and move the strategy to hold? I often to use this strategy. This is what I like when I become a cryptocurrencie trader rather than forex trader, I don't need to sell my asset if my strategy gone wrong and I keep it and hold it until the price come back to up. So, for strategies to trade in cryptocurrencies you don't only know a lot about technical analysts and fundamental analyst, but more than that you have to know and control your patience because it is really needed.

[jrrsparkles]

Literally investors are making more money than any kind of crypto related people because investors are not doing any effort other than giving their money to buy cryptocurrencies. But a share trader can only make profit in short term and it might we spend in very short time as well so in long term we are not going to have anything and our pocket.

[romero121]

It is not the hodlers, not the traders making profit. The profiting takes place with reference to the market prediction. There were users who have profited big through holding and trading, along side there are people who have missed their profiting through trading and holding.

With trading when the prediction amd the reality coincide the user will get profit, and if the prediction about the market goes away from the reality automatically it'll cause loss or the user need to maintain patience until reaching the targeted price.

With holding profit happens without any effort, but on just keeping it safe on the wallet. Here too hodlers miss opportunity of profiting expecting for bigger growth or holding with time target even when the price reaches the peak value.