Trading vs Investing (The major differences)

[kramchers]

Isn't that when We do trade or We like to involve ourselves in trading it needs investment form? Perhaps, its differences is that when you do trade you can control everything in terms of buying and selling of when to buy, while on investing onceyou do it, all you need to do is to wait for your profit shares, dividend, or something incentives where you don't have any control once you made an action for investmen something like that unlike on Trading you have the capability to control your profit of when to withdraw or not.

[Vaculin]

Trading needs...
*focus
*more time
*Knowledge and skills

While investment just needs
*more time
*Knowledge and skills

That might explain why trading isn't for everyone and that because not all of us are able to spend more time, have focus, and are going to improve their knowledge and skills about this.

[cyriljundos]

Here is an infographic examining the differences between trading and investing under the key points of One's goal, philosophy, investment period, profit and tools.

Trading and investing are both profitable, when you want to invest in an ICO projects or coins you must invest higher amount of money so that it will back to you 3 or 4 times if the project is successful and it takes time . On the otherhand, trading alt coins is you are trafing coins in order for you to gain income,using right techniques and knowlege you will gain ptofit in short trades andd long term trades.

[el kaka22]

The biggest difference is the time put into it. In investment you spend a lot of time once and decide on something, then you make a purchase and just hold it as long as you want, in trading you constantly keep checking things and never stop checking them, that means we are talking about something that would be great for everyone if they do it right but horrible if they do it wrong, so we are talking about something that would take a lot of time and it will be very stressed to make that work.

If you are a good trader you could profit more than an investor, but if you are a bad trader you will lose money very quickly. Which is why I think it is quite obvious that it is a personal preference, whichever you pick there is money to be made or money to lose, it is all about which one you pick and how good you are in that thing you picked.

[isaac_clarke22]

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It came from here, in case anybody wonder where the image came from as well.

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Building wealth over time for investing somehow applies to trading as well, but it would differ at least from the timeframe that the profit was made. It would just be between long and short term.

[Kittygalore]

Trading and investing are both profitable and risky. It's all depends on how you trade and invest. Both needs patience but on trading you need strategy and you should understand the technical and fundamental analysis. In investing, you should have more patience and must have knowledge about the project that you want to invest.

Trading is riskier in my opinion since you are actively selling and buying bitcoin and the uncertainties in the market will be a spell that will either make you a profit and most of the time a loss. Investing in my opinion is much better since you don't have to stress over the management of your fund.

[iv4n]

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It came from here, in case anybody wonder where the image came from as well.

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Building wealth over time for investing somehow applies to trading as well, but it would differ at least from the timeframe that the profit was made. It would just be between long and short term.

Trading: "Generate returns by buying and selling securities"
Investing: "Reinvest profits and dividends by purchasing additional amounts of the underlying security"
Can anyone explain to me how this is not the same?

Basically, everything is an investment, you have some money and you wish to make more money (profit) over time! Time here is not important as your starting capital and your goals, and exactly that is the place anyone should start from! You need to know how much you have, how much money you can risk... and you need to have some goal! Depending on these two you will be able to know how much risk you are facing.

I will go even further and say that investing=gambling! If there's a risk of losing and the possibility of winning its gambling, this is like some definition!

[sarmrakib]

with this picture, it already provides an explanation without the need for you to be complicated explaining, because it is quite effective for beginners who do not understand the different flow of discussion. This is really helpful, but one thing you miss is that you don't include the source the image was taken from. oh or maybe it's your personal collection.

Yes i also have found that all the information between investment and trading are here .I think its a great a topic here to know about the difference with these two .However I always follow the investment way cause i think on trading we have always face the fluctuation on the other hand a long term investment with a good fundamental can give us a huge amount of profit always .

[andthereyou]

There are times when trading is more profitable than investing and vice versa. Also Timing is the key to be profitable either you trading or investing.

[conected]

Trading needs...
*focus
*more time
*Knowledge and skills

While investment just needs
*more time
*Knowledge and skills

That might explain why trading isn't for everyone and that because not all of us are able to spend more time, have focus, and are going to improve their knowledge and skills about this.

- If you compare the time to achieve success in trading and investment, the difference is not so much as what you compare, trading can take time to learn but the investment also takes time to wait, sometimes we can wait a few years to harvest from a project ideal. Talking about the rest of the differences, I strongly agree that trading requires a lot more skill as it focuses a lot on charts, along with the use of indicators while investment is only inclined to fundamental analysis, it is quite limited in terms of research methods

[bitgolden]

I strongly agree that trading requires a lot more skill as it focuses a lot on charts, along with the use of indicators while investment is only inclined to fundamental analysis, it is quite limited in terms of research methods

Trading requires cutting edge precision as it can be profitable in minutes to seconds also where investing just needs basic knowledge of what you do but it will get you profits after months to years of waiting. Simply, trading can be profitable when you are good in technical analysis whereas investing will be profitable when you are good in fundamental analysis.

There are times when trading is more profitable than investing and vice versa.

The highly profitable in short term usually comes with high risk as well. Investing can be highly profitable but that is not happening in quicker succession hence the risks are spread out which leads to less to no risk of losing capital in investments of we choose right assets like bitcoins.

[Ridwan Fauzi]

Trading is a good way for those who have a free time, I mean he has no work and just focus on trading and dedicates that trading is his main income. Because, trader especially day trader need a free time when he want to entry into the market. He needs several times to make a prediction and need several hours to take a profit from his prediction.

Different with investing, you don't need to make a predictions in detail. You just need to choose a good coin like bitcoin or ETH, buying it and choosing in the safe place like hardware wallet and etc and you can come back again later. You may need several years to get a good revenue, like you buy bitcoin at march a year ago and you can sell your bitcoin now and you get huge return from it.

[Zilon]

Trading involves both technical and fundamental analysis to predict the market trend while investment might not involve technical analysis because it's a long term asset accumulation which can be analyzed using fundamental analysis.

[wxa7115]

Trading and investment are very close. Yet few differences exist. My intention in saying the two are close is that we expect to profit. That profit can come from both trading and investment. The difference, as far as I'm concerned, is the risk and the time. The risk is higher in trade and lowers in investment. The investment is usually for a long time and the trade is for a short time. But there is no obstacle to that. Some trades are for a long time.

You bring an important point, trading and investing are similar but the main difference strives in the amount of risk that you are going to take between those two activities, trading is way more riskier while investing is safer, now this means that you can make more profits when you trade than when you invest but at the same time it means that the probabilities of success are way lower.

So which path should we take? It is my belief that every single person that has decided to come to this market should begin as an investor so they can reduce their risk and take the time to learn more about the markets in general, and then after a few years in which they have become successful investors they could try trading if they want but I'm pretty sure that at that time many people will just refuse because they like the idea of keeping their success intact, but many people do not do this and begin as traders and they lose most of their money because of this.

[beerlover]

It is my belief that every single person that has decided to come to this market should begin as an investor so they can reduce their risk and take the time to learn more about the markets in general, and then after a few years in which they have become successful investors they could try trading if they want

This sounds like a good suggestion. Rather than struggling with the day-trading kind of high risk one, beginners should opt for long-term holding so that they could understand how the bitcoin market is fluctuating over the years. Simply watching will be definitely a boring one for anyone but when you are having some position into some market and then watching the price movements will be much interesting and helping to learn something about the market movements.

When you are good at predicting possible market turning points, then that would be a right time to enter as a trader in the same market.

Most people are experiencing stock trading and then directly entering into crypto trading which must be a blunder mistake in my opinion. Even the basics of trading are same but market influencing factors are completely different like we do not have halving event in stock trading. So, understanding the fluctuations of crypto markets must be very important before entering as a trader.

[santiPOGI]

Nowadays if you are here in cryptocurrency Trading is one of the most effective methods here for us to earn Bitcoin or crypto. This is what I did now where I applied day trading while if you want to sit and relax without hassle or anything of course, Investing is the one very suitable for this type of person. But the risk was too high compared into Trading. But the advantage of Trading was that you can earn in a short period of time while on Investing is not but to wait in the long term.

[XZERO1]

Investing was/is always a better way of getting profit vs trading, I don't understand why so many people are so insistent to trade instead of investing which is a smarter method, the only exception would be when/if you're one of ~5% or less that are somehow better at trading and are getting better result that way, or if you have some kind of an insider information about a bunch of projects and know when they're going to pump or dump.

You should never trade anything that you're not willing to hold, because how's to say that coin/token that you just bought won't go down and even stay there for a long time?, and that means the project's fundamental should be solid and you should not buy just randomly anything that seems undervalued/cheap to you whether it's based on TA or any other factor.

[goldade]

You have, in the simplest way possible, explained with infographics the major differences between trading and investing. Those are practically the major differences. You, however, didn't mention one significant difference and that is the risk level of each of them.
It's very important to know that the risks associated with trading is quite high and it is quite easy to lose all trading if one does not understand the intricacies and the technicality of trading. Investing, on the other hand, is associated with low risk. The only risk involved is buying or storing up the right type of coins or asset because quite a lot of these assets don't have potential. Other than that, just hold for a long time until you've made significant gains

[AWMM24]

Trading and investing are both profitable and risky. It's all depends on how you trade and invest. Both needs patience but on trading you need strategy and you should understand the technical and fundamental analysis. In investing, you should have more patience and must have knowledge about the project that you want to invest.

i would prefer investing. Because manytimes i dammn sure about the profit and invest. So mine vote for Investing

[mersal]

Trading is like a job for that we need to work continuously to make money but as an investors we are not going to do any work, our money will work for you and it will keep compounding to generate more and more funds. In crypto market the investment period is much lesser compared to the traditional stock market profit making time period so this is the new ear of being an investor.