How to Differentiate Between Trader and Investor

[yazher]

Both are good in the industry of Crypto especially the traders who are actively making the exchanges alive when they move their coins by trading it to another coins. that is why we have a lot of these guys than the investors. they have their own group with their respective exchanges. like for example most of the group of traders you can see in the Telegram. While investors are those who carefully research the project to invest their money to prevent massive loss on scam coins. Yeah, most of the scammers victims are those who invest without knowledge a.k.a the newbie investors. But when they learn a lot about how this industry works, they will likely become one of the most important people in the Crypto industry.

[jossiel]

You have answered your question.

But what I personally see to be the major difference between the crypto investor and trader is the length of coin holding of the two. While investor is in for the long term, the trader is in for the short term.

I don't have any explanation but you have simply defined the major difference of a trader and an investor.

I wouldn't say the main difference is in the length of the holding, the trader is the guy who deals with the markets, while the investor is the guy who brings the capital.

The trader can buy and sell assets to make a profit while risk other money, but the investor can decide to put that money in other businesses.

Yup, that's true.

And every opinion counts as we deal with certain markets like cryptocurrencies. Yogee is right about trading for others and that's the brokers or fund managers. I think OP is just telling about individuality of traders and investors.

Traders also bring capital to the market as they trade for their own benefit.

[TalkStar]

Basically without the length of holding there isn't much difference between traders and investors. Both of them are investors actually and have got same value for crypto industry. Usually we call them traders who hold their investment for a shorter period and try to make profits on a regular basis. In this case they run after quick and instant profits rather than holding longer. On the other hand specific investors hold their coins for long time and waiting for a good return.  

You need some extra skills to be a regular based trader but to be a investors that isn't mandatory.   

[Negotiation]

You are right there is not much difference between business and investment Doing business requires both Those who do business do business to invest. Due to this, it is possible to get more return on investment. Most traders prefer long term investment but short term investment is better for newcomers Both business and investment tend to be profitable.

[devindeysel]

Generally speaking the time period which they hold stocks in their portfolio and the tools of study is the difference

Traders: for a few minutes to few months max, and they mostly use Technical Analysis ( chart and price movement study )

Investors: hold for 12 months a beyond ,even years and they mostly use Fundamental Analysis (studying companies business data and financials)

Investing and Trading are two very different methods of making profits in the financial markets.

[Wenbing]

Update:
How short is the short term and how long is the long term for trader and investor respectively?

But what I personally see to be the major difference between the crypto investor and trader is the length of coin holding of the two. While investor is in for the long term, the trader is in for the short term.

Anyways, let me allow you to comment. What's the major difference between these two actors in the crypto industry?

I have made a simple difference table that is distinguished from 4 main points, maybe someone wants to add it welcome

I believe most of the areas of differences interwoven . both investors and traders buy and sell to get good ROI.

[moderator's note: consecutive posts merged]

[Findingnemo]

Basically a trader is nothing but a short term investor, both aim for profits but the time span of their investment will decide their status. Investors don't sell and buy every day or too often, they just wait and analyze and keep waiting for the right time but a trader will keep buying and selling even if they can able to make profits which won't be worth in longer term.

[Jawhead999]

How short is the short term and how long is the long term for trader and investor respectively?

This is a subjective questions, I believe everyone have their own opinion and view about it.

For me short term is usually less than 1-4 weeks and anything beyond 12 months is considered as long term. How about you? I'm curious about your opinions too.

[Twentyonepaylots]

How short is the short term and how long is the long term for trader and investor respectively?

This is a subjective questions, I believe everyone have their own opinion and view about it.

The question is subjective because you only think of the cryptocurrencies, yes we don't have that much terms on these things but in finance operation they have period to consider whether long term or short term.

For me short term is usually less than 1-4 weeks and anything beyond 12 months is considered as long term. How about you? I'm curious about your opinions too.

The subjectivity depends on you, if you know that there is a finance term then you'll probably say that it is an objective one.

So here, in financial operations before you consider that the investment is long term or short term, there must be a length or time period. What considered Long-term investment is at 3 years and above, in short term this might just be long for a year or less.

[LUCKMCFLY]

The market speculator follows the price as it goes down or rises, it just follows that direction or, as a great all-time speculator named Jesse Livermore said, the good speculator only follows the direction of the line of least resistance. What the investor does is buy and wait as long as it takes until the stock or cryptocurrency rises in price to make a profit.

[Wenbing]

~~~
... trading is adrenaline for sure.

If I understand that line of expression, do mean to say that trading is a hormonal activity because adrenaline is a hormone responsible for ecstasy.
So, that means with trading success one can trade more because it hormonally cause someone to trade.

Is that correct?


Update:
We have known the difference between a crypto investor and trader satisfactorily, but there is one actor called arbitragers.
Who are arbitragers in the crypto trading?

[moderator's note: consecutive posts merged]

[skarais]

Who are arbitragers in the crypto trading?

arbitrage can be made by anyone, both investors and traders. But most of those who use the arbitrage system are day traders who find profit opportunities by using two different exchanges and price difference between the two exchanges.. Because investors rarely store their assets on the exchange, I believe that this arbitrage is mostly carried out by day traders.

[libert19]

I expected more 'meat' in this post, anyway this pretty much sums up.

A trader can be investor, but not every investor can be a trader.

I made this quote on my own, does it make sense?  

[Alucard1]

Investors and traders are both needed of the crypto world, it maintains the circulation of the bitcoin which is what bitcoin needs.

Investors are simply those people who keep their money for short term or long term, they have to wait for the price of the bitcoin to increase and get profit, it is just simply pulling out your investment or assets into fiat when the price of the bitcoin gets high.

Traders are more complicated than investors and it really risky for me compared to investors, they are the ones who buy and sell cryptocurrency or do exchanging.

To be a good trader you may read this thread https://bitcointalk.org/index.php?topic=5208379.0

[Oshosondy]

But what I personally see to be the major difference between the crypto investor and trader is the length of coin holding of the two. While investor is in for the long term, the trader is in for the short term.

Anyways, let me allow you to comment. What's the major difference between these two actors in the crypto industry?

I have made a simple difference table that is distinguished from 4 main points, maybe someone wants to add it welcome

Nice one, but one point of correction, for holding, you also need technical analyses. Technical analysis is a prerequisite to a successful trading or holding.

[tvplus006]

... not that too familiar about traders because I am not doing that method, but I tried it before way back 2019. Traders are those who seem and buy bitcoin, it is too complicated for me compared to investing so I prefer doing investment than trading.

No, the trader does not necessarily buy bitcoin. There are many trading pairs of different cryptocurrencies on each of the cryptocurrency exchanges. But every trader has their own favorite coin or several coins that they prefer to work with. Investing is also trading, but only for a longer period.

[Asuspawer09]

The difference between investor and trader are in below:-

Investor:
1. Long term holder.
2. Generally, investors hold big portfolio than a trader
3. They can invest any project at any time, for example, in Private sell, during icos, Take a partnership with some projects, etc.
4. Investors thinks deeply more than trader imo

Trader:
1. Genarally traders hold for short periods.
2. Always keep busy in buy sell  
3. Trader portfolio is smaller than an investor.

These are some possible difference between investor and trader in my opinion, Maybe there are more differents.

On point. Investors keep on investing in specifics cryptocurrency for long term investment which is I think good choice when investing in popular cryptocurrencies.

I'm guessing traders could get more profit since they are buying and selling cryptocurrencies in a short term investment, But still depend if their coin choices were pumping in the market. If you're lucky you could earn hundreds of dollars in a day in trading altcoins, compared to long term investors.

[finaleshot2016]

On what I understand about those two terms is;
Investors are willing wait even it takes too long until they gain the desire goal, like reaching another ATH or making their own money with huge perecentage grow. Traders are for short term, they're observing the market 24/7 to make profit on minimal changes. They're the typical buy and sell users in the market. Therefore, investors are for long-term while traders are short-terms.