Do traders make more money than holders?

[jerry0]

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?

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[jerry0]

Also if you have a lot of money, it seems like you could possibly make mid 5 figures doing this?  Say you have like $250000 in capital.  I mean if you keep buying at x price and selling it a few percentage higher than you got it, seems like you can make 3k here and there.  Or 25k here and there.  Of course you can lose if price drops and never goes up.


But say bitcoin for the year is 5k and went up to 10k.  If someone has 2 btc... and they keep holding it, they made no money until they sell.  If they sell, they make 10k profit.  But wouldn't a trader be making a lot more than 10k ... probably in the 30k to maybe 80k region if they keep waiting for the lows to buy and sell at the highs etc?


Im curious how much money you should get minimum if you want to make say 50k usd a year.  I mean, its probably like 200k at least right?

[BitMaxz]

There's a wrong move in your last part that is why you are thinking that you are not making any profit.

If you have patience you can hold but if there's an opportunity then grab. The price of bitcoin isn't stable there are sometimes ups and downs what you need to do is to focus on buying every time the price drop.

Let's say you bought bitcoin at $5k then the price after a day drop to $4200 your next move is not selling them you should buy more so you should have backup money so that you can buy bitcoin at a cheaper price.

Now, look at the market these days the price of bitcoin keeps increasing so if you keep do this procedure you can make a large profit with your investment.

Don't focus only on bitcoin there are many serious projects out there are good to invest just like Zcoin, Beam or Grin coin some of the coins is not listed on top 20 but listed on top 200.

Hodl is another choice if you can wait for a long time but they are doing this after bear market so that they can buy bitcoin at a lower price. Now those holders are waiting for block halving because as an old price graph every block halving we always see a massive price increase just like 2014 and 2018.

Look at this image as sample



That is why they keep holding bitcoin because they believe that it will happen again after block halving.

[carlfebz2]

Do both things where you do have some stash for long term holds at the same time you are engage on doing some short trades.Profitability would be on both ways.
When it comes to shorter ones then no doubt that traders can really get profits in a short span of time even on gradual basis but if its already being compounded then its
already considered to be decent but for holders patience thing would really be a serious matter.

[olamidey]

Apart form bitcoin, Ethereum and the major altcoins like the top 20. Holding atcoiy for along time could result into heavy losses.  Most traders make more than holders. Most projects have gone down in red below tthe selling price and as such, it's a loss holding those coins.

[pixie85]

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.

You forgot some important things

Trader needs to put in time. If the price goes up and then down the hodler didn't profit but he also didn't put any effort into it. He could be at work earning money when you are trading.

For a trader to gain more than a hodler there has to be an up and down swing. What if the price keeps going up and the trader sold at 5500 but next week it's at 6000 and then 7? A hodler is making money without any effort and the trader is buying back at higher prices losing money on fees every time.

[jigzaheedcoin]

Apart form bitcoin, Ethereum and the major altcoins like the top 20. Holding atcoiy for along time could result into heavy losses.  Most traders make more than holders. Most projects have gone down in red below tthe selling price and as such, it's a loss holding those coins.

Same scenario both of them will earn a lot of money if they're hardworking. Traders also could become holders if they should follow the same method of what the holders did. Most importantly they learn how to control their emotions.

[samcrypto]

This is too hard to answer even if you put many explanation or any analysis you can't still say that being a trader are more profitable that being a hodler. I mean we have different approach on investing, some are trading with good coins and some are trading with cheaper coins and most of us holds bitcoin while many newbies holds shitcoins. So for me, those who make a lot of money are the one who create good decision and strategies no matter what you are, a hodler or a trader it will still depend on your action.

[bysmf2000]

both will be able to generate more profits but I am more inclined to choose trade especially if we have the expertise and ability to trade.

[marcbitcoins]

I believe traders will make more profits as long as they are hard workers and have lot of knowledges in trading.It is not easy to be a traders specially if you are day traders as it will spend much of your time in monitoring but its worth it specially if you are trading good coins only.

[bittraffic]

I believe traders will make more profits as long as they are hard workers and have lot of knowledges in trading.It is not easy to be a traders specially if you are day traders as it will spend much of your time in monitoring but its worth it specially if you are trading good coins only.

Its true but its not really that easy to trade. I have been losing money while day trading due the expectation. Though I'm using the charts and indicators, it really isn't as effective as I can see, maybe its just me but I find it very unpredictable. I have to expect the price will drop again to $8,500 before buying back but until then I'm keeping my stablecoin. If it really continues to rise, I'd be moving to another coin.

[Kevin43]

traders make profit when they are making consistent profits they look for fluctuations while investors dont care about fluctuations there view will be for holding for many days in long run they willl make profits ,

traders story is simple they make profits today and lose another day , making money as trader is difficult than as a investor     

[arpon11]

I believe traders will make more profits as long as they are hard workers and have lot of knowledges in trading.It is not easy to be a traders specially if you are day traders as it will spend much of your time in monitoring but its worth it specially if you are trading good coins only.

We should add how risky it is to "day trade". Many people will think that day trading is less risk and by putting few dollars they want to make 200 or 100% profits in just a month and at the end lose everything.. Holding is less risk to me and we can see from what happens of recent. We need to be patience for long term in other to make millions from holding and the only way to make this is to select the right coins and invest when is at the bottom and hold for a very long time and you will become a millionaire. No matter how bitcoin get dump and the bearish conditions that prevail last year we can still see that bitcoin has make great progress and you should still be in profits if you are among those that buy bitcoin in 2014 to 2016 ending.

[Indrawan77]

Theoretically the trading will make more money than holder, but it also depends on your skill, make the wrong movement could mean you are going to lose money, and you need to be active in trdaing so you can make money, you can trade whatever coin you like each of the coin got different momentum of rising, alt coin can be more profitable than the top coin

[jerry0]

Would it make sense to say trading altcoin probably is the best idea then as oppose to btc?  Because there are huge fluctations?  Of course risk is much higher etc?  Also do most traders in the end keep btc... or it in usd or usdt?  If you do bitcoin or litecoin, it will be in usd and thus fiat.  But if its altcoin, it has to go to btc first... then either stay btc or usdt or going to usd.  What happens there?  Because if you don't trade it for fiat... which is usd... then you aren't really in profit in terms of cashing out.  Because with usdt, you still have to convert it back to btc and then to usd right?


Could you convert tether directly to usd right now without going through btc?  Thus you have to pay another trading fee to go from usdt to btc to usd as oppose to usdt to usd..

[perla]

If i can figure it out, maybe yes. But it is depends on what money that holders use to make investment. Because holders only rely on their investment and traders can do any improvement with his result every time it can make profit.

[michellee]

Unfortunately, not all traders can do as you said. Many of them are too greedy to make more money from trading, and they don't know when to exit the trading. Besides that, to trade like what you describe, we need to have skills which not all traders have because the traders should know when the time to enter and exit the market so he can be able to make a profit. That will work if we have skills, money, time to analyze, controlling ourselves related to the market.

[MadeinCoin]

Yes I think it's true, that being a trader is more profitable than being a holder. But waiting in my opinion it has a different perspective for everyone. For example, like a billionaire kid holding a $ 10 bitcoin and now worth millions of dollars. I think he is a strong holder. source from: https://www.cnbc.com/2017/06/20/bitcoin-millionaire-erik-finman-says-going-to-college-isnt-worth-it.html
Even though my perspective is more profitable than the holder, it does not mean fully true but it depends on each perspective.

[Korkorjkk]

They are both profitable. Imagine buying Bitcoin for $8,000 and selling it at $9,500 and someone buys it at $8,000 and holds till the price shoots up to $10,000 or $20,000. So who will make much money here...the holder or the day trader?

[rose9696]

I don't think we can compare like that. Because this financial market always has the struggle to become rich, a profitable trader will make another trader lose. there is always victory in the market.
For the holders, there will be winners when judging correctly and there will be losers in wrong judgment.
we can only compare risk and safety. I think hold will be less risky because it doesn't need too much technical trading knowledge.