Trading VS investing: pros & cons you should know

[Slow death]

I think that a person should think about doing both, there are a hundred times when the price drops a lot and the person can buy and sell when the price increases and make a profit, the person does not need to be stuck in the hodl that also has its risks when price drops a lot and stays stagnant for years and doesn't increase. there are scenarios of great disadvantage of making hodl, for example if a person buys bitcoin for the price of $60,000 and then the price drops to $32000 and only 3 years later the price goes back to $60,000 it means that the person only spent 3 years with loss, so it is advantageous to do both

[tygeade]

If you have a job that you’re doing then investment will be a better option to go with. Unless you have plans to leave your job and maybe face cryptocurrency as a full time job, then day-trading will be a good option to go with. When it comes to investment it takes a long time, and not everyone can have that kind of patience that is required, that's why you will see a lot of people going into day trading.

The good thing with investment is that there isn’t much risk involved in it like you would face when you’re into day-trading. Day trading requires working everyday and investing and making use of your money every time and that puts you in a position of losing it at anytime.

[Theones]

I think is not as straight forward as it is generally presented.  The fact that you buy low does not mean you will sell high at any given opportunity.  Trading could be stages and different layers.  I could  buy and hold in order to sell in years to come while I  keep buying low and adding to my stock! I could trade in a circle having established such circle and that does not mean I am investing, I am only taking advantage of opportunity presented to me by market forces!

There is no straight guide for trading and investment. Everyone has its own strategy and it works for the owner only. Like what profits you may not be profitable for me. 
To me trading is something like gambling, you win sometimes and lose most of the times. There are not many who remain profitable in short term trading. While its not the case in investment, if you have courage to hold your coins for long term, there are bright chances that you will get profit.

[AakZaki]

I think that a person should think about doing both, there are a hundred times when the price drops a lot and the person can buy and sell when the price increases and make a profit, the person does not need to be stuck in the hodl that also has its risks when price drops a lot and stays stagnant for years and doesn't increase. there are scenarios of great disadvantage of making hodl, for example if a person buys bitcoin for the price of $60,000 and then the price drops to $32000 and only 3 years later the price goes back to $60,000 it means that the person only spent 3 years with loss, so it is advantageous to do both

a strategy is a must have before making a decision to invest or trade in crypto. As a holder and want to make long-term investments, you must really enter at the right price, don't buy when the price is already above. wait until the price deep and enter.
stuck in high prices will take a long time to return to recovery, this will also affect psychology.

[crzy]

There’s a lot of things to be consider before you actually understand what’s your goal in this market because many of us are doing the same things, trading and investing simply because we already knew how the market works and we’re ready for the risk. Both of this strategies have their own risk level, everyone should know it and analyze if its work for you, though trading is not that easy but it can be more profitable than to investing, depends on the skills that you’ve got.

[milewilda]

I think that a person should think about doing both, there are a hundred times when the price drops a lot and the person can buy and sell when the price increases and make a profit, the person does not need to be stuck in the hodl that also has its risks when price drops a lot and stays stagnant for years and doesn't increase. there are scenarios of great disadvantage of making hodl, for example if a person buys bitcoin for the price of $60,000 and then the price drops to $32000 and only 3 years later the price goes back to $60,000 it means that the person only spent 3 years with loss, so it is advantageous to do both

a strategy is a must have before making a decision to invest or trade in crypto. As a holder and want to make long-term investments, you must really enter at the right price, don't buy when the price is already above. wait until the price deep and enter.
stuck in high prices will take a long time to return to recovery, this will also affect psychology.

You wont really able to create strategy when you are just starting or just simply being a noob but somehow you can attain those things when you do have actual experience on doing this.
You cant really get it on first time but as long you do make out some engagement then this is where the game begins. Everything does need sufficient information and knowledge at the same time.
Trading and Investing is somewhat the same on general sense but basing up on how much time and effort you could only gave out because not all does have ample time
on dealing  with things aside from their own jobs and work.

[nelson4lov]

There’s a lot of things to be consider before you actually understand what’s your goal in this market because many of us are doing the same things, trading and investing simply because we already knew how the market works and we’re ready for the risk. Both of this strategies have their own risk level, everyone should know it and analyze if its work for you, though trading is not that easy but it can be more profitable than to investing, depends on the skills that you’ve got.

I'm not really sure which one is "better" so I'll just give an instance of a past event. I know plenty big time traders that spent several years to build their portfolio to over $1M but someone would just lucky to invest in a shitcoin and make insane gains. I know of someone who made around $19M from shiba Inu. At the end of the day, it depends the situation. Some situations require trading, others investing would be more feasible.

[Marcorey]

Trading can make profits in a short period of time, but it has greater risk than investment. Trading requires more time and money. It is necessary to observe price fluctuations and short-term price changes in the cryptocurrency market at any time, buy when the price of cryptocurrency is low and sell when the price is highest. Obtain high profits through the volatility characteristics of cryptocurrencies.
Investing requires observing market trends to speculate on future price changes, buying currency and holding it for a long time to earn income when the price rises. Long-term investors do not have to pay attention to market prices all the time, put assets in their wallets and wait for currency prices to rise.

[AakZaki]

You wont really able to create strategy when you are just starting or just simply being a noob but somehow you can attain those things when you do have actual experience on doing this.
You cant really get it on first time but as long you do make out some engagement then this is where the game begins. Everything does need sufficient information and knowledge at the same time.
Trading and Investing is somewhat the same on general sense but basing up on how much time and effort you could only gave out because not all does have ample time
on dealing  with things aside from their own jobs and work.

Strategy can't be done instantly, beginners won't be able to do it. But I continue to learn before entering the market, so I already understand what I have to do. The way other people learn will certainly be different. Trading and investing is all I have learned so far and I already understand the flow.

[ReiMomo]

I would like to understand if trading does not require investment into it? Then why we should have a topic as Trading vs investing? Either you go for a long tern trade or day trade, you invest your money on a coin right? Am I right or we should call this as something else? Trading requires money right?

So better we can say as Pros & Cons of Investing on Day trade vs Investing on a Long term Trade?

[Oilacris]

I would like to understand if trading does not require investment into it? Then why we should have a topic as Trading vs investing? Either you go for a long tern trade or day trade, you invest your money on a coin right? Am I right or we should call this as something else? Trading requires money right?

So better we can say as Pros & Cons of Investing on Day trade vs Investing on a Long term Trade?

You do actually have a point because trading is indeed an investment because we do have put up money on this one which means it is really included on the category which i can say that it is just the same when we do talk

about pros and cons but do differ out on some aspects but at least it is still needing generally for you to done make out some good research and make out good analysis for you to take advantage.

You cant just dive in without sufficient knowledge and skills but somehow you can acquire these things along the way.

[el kaka22]

Nobody mentions character but there is a good case it could be your personality that decides it. I tried trading, I really wanted to be a trader, I love how some guys have like 9 monitors and trade all day and then make money and that's whole their job. I know a friend who is literally like that, he has a room to himself at his home, his wife obviously let him create his room because that is how he made money and he always made enough money, and then some, so he was allowed his own room which is awesome when you are a married man I know.

So he just goes in there every morning, trades fully all day and then gets out during dinner and eats dinner and just spends time with his wife rest of the day until he sleeps and does this every day. That sounds like a great deal, if he made good enough then he doesn't even work for a while and just enjoys life. However I suck at it, I couldn't be like that even if I tried.

[Trouvaille]

Both trading and investment are risky. However, the risk of trading is greater than that of investment. Trading is short-term. It makes profits through currency price fluctuations. Therefore it is necessary to always pay attention to market changes to determine the best time to trade, if improper operations can easily lead to losses. When investing buy a currency that you think has development potential and hold it for a long time, waiting for the value to increase over time and finally make a profit.

[sarmrakib]

For large trading capital, diversifying the portfolio and using long-term investment strategies are worth but small balance holders should focus on short-term market performance. Both versions of trading have some advantages&disadvantages, traders should decide which side covers their style or needs.

Capital may limit your activities but you can really play any term that you want because it will always depend on your strategies. Trading and investing are both risky so for newbies they can’t do this both since they are still lack of experience and they might lose everything if they take such risk. For a more safety, go for investing on good coins that’s more worth it.

It is true that trading and investing both are always risky way to earn .Newbie are always struggle on this field mostly .That's why they need to learn first then gradually start with small amount .After having much knowledge they can put some good fund for this .It is a good suggestion to invest on top and coin but there is nothing sure that can give you a good return .Any coin can get dump and make you a huge losses .So that need to start trading and investing that's how you can earn gradually but remember DOYR always before invest or trading .

[perfect999]

Consider the pros and cons of investing in cryptocurrency and trading, as well as your profit goals to find the right option for you.
Here's an overview for you.

<snip>

For sure this was useful and thanks for making this post. There is no area of making wealth that can be easy, you will have to work really hard for it. In investing in cryptocurrency, the return on investment is going to take a long time for sure and if you can’t have patience for a long time, then it’s best not to go for it.

You have to know technical analysis and also have patience, create the plans of what you want to achieve and have patience while you stick to that plan. Then as for trading, the daily earnings or return might be small, but you should avoid greed. When you sum up those little winnings, you will come to realize that within a month you have achieved a lot.

[Coin_trader]

Both trading and investment are risky. However, the risk of trading is greater than that of investment. Trading is short-term. It makes profits through currency price fluctuations. Therefore it is necessary to always pay attention to market changes to determine the best time to trade, if improper operations can easily lead to losses. When investing buy a currency that you think has development potential and hold it for a long time, waiting for the value to increase over time and finally make a profit.

It depends on the token/coin you are going to use on this example since this topic is subjective. It's true that trading is more risky than investment often times but there are some scenario especially on crypto that you will suffer more if you hold longer when the startup company slow down there development and slowly abandoning the project due to lack of operational funds. Only few token/coin in crypto are really good for long term investment and the rest is worthy a trade to gain profit and avoid huge loss.

[LUCKMCFLY]

Great article and contribution Karl! As always, thank you very much for bringing it, I tend to be a bit more conservative, I really like long-term trading and accordingly I like the part that cites the following:

* Suited for long term goals
Investing focuses on long-term profit or gains that are often bigger compared to trading. Price drops don’t concern investors for long term investments in cryptocurrency since they look at the trends in the long run and know that prices can rise again in the future.

Cons

Although for profit taking it usually takes a long time, I see this investment as safer, especially if it is made based on BTC, of course this is well focused on almost investment.

What sometimes I find very difficult is to trade in the short term, because naturally I am very slow and I do not usually react so quickly to the market, so my chances of losing increase.

[rosemariefrancis]

If I have to compare investing and trading on the basis of difficulty, I will  say trading is difficult because it needs analytical and fundamental skills, whereas in investing you just have to hold bitcoin through all the volatile ups and downs.