Is it better to invest or trade Bitcoin?

[Dr.Bitcoin_Strange]

OP, you have already said that both are profitable; yeah, they are, but trading puts you at risk of losing your money if the market goes against your direction, while investing always keeps your money intact while you wait for the bull market to set in. There's one thing that can enable you to engage in trading and investing at once, and that is your financial state (your financial capabilities). If you have so much money to play around with in the market for some short-term profit, you can ingage in trading while also investing some funds in Bitcoin that are held in your cold storage. There are some traders who trade and make profit, but they usually do experience losses too because it's one characteristic of trading, but holders don't lose unless they sell cheap. The difference is clear.

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[HajiBagi]

The answer depends on your preference, each provides commensurate returns. We know that trading requires more complex strategies and takes more time. If you want to get started, some things you need to prepare include:

- Trading: technical and fundamental analysis, mental/psychological training.
- Investments: How to secure assets and maintain privacy.

Both have benefits, but I believe investing in bitcoin is a better option for me than trading it. Trading is also beneficial, but it requires more knowledge before you can engage in it. Since I don't know much about trading, even though I've seen many others try, I've concluded that it's not something I should do. While both trading and investing in bitcoin carry some risk, I believe that trading carries a greater risk than investing. While investing in bitcoin can provide you with peace of mind and allow you to know exactly how much bitcoin you own, trading is extremely dangerous and can result in losses at any time.

I'm not saying this to discourage people from trading bitcoin; rather, I'm saying it based on my observations and the experiences of many new members of this forum. I was surprised to see a new member ask how to learn how to trade bitcoin in the forum, as I assumed that before asking so many questions about it, a newbie would know better than to ask such a question. In any case, trading bitcoin is not inherently bad, but it's not a good idea for a new member to do so.

[Blitzboy]

The answer depends on your preference, each provides commensurate returns. We know that trading requires more complex strategies and takes more time. If you want to get started, some things you need to prepare include:

- Trading: technical and fundamental analysis, mental/psychological training.
- Investments: How to secure assets and maintain privacy.

Both have benefits, but I believe investing in bitcoin is a better option for me than trading it. Trading is also beneficial, but it requires more knowledge before you can engage in it. Since I don't know much about trading, even though I've seen many others try, I've concluded that it's not something I should do. While both trading and investing in bitcoin carry some risk, I believe that trading carries a greater risk than investing. While investing in bitcoin can provide you with peace of mind and allow you to know exactly how much bitcoin you own, trading is extremely dangerous and can result in losses at any time.

I'm not saying this to discourage people from trading bitcoin; rather, I'm saying it based on my observations and the experiences of many new members of this forum. I was surprised to see a new member ask how to learn how to trade bitcoin in the forum, as I assumed that before asking so many questions about it, a newbie would know better than to ask such a question. In any case, trading bitcoin is not inherently bad, but it's not a good idea for a new member to do so.

There is no doubt that both investing and trading in bitcoin have their own risks and benefits. A common point of view is that trading is riskier and needs more elaborate knowledge. Investing, on the other hand, is seen as a safer, if slower, way to get rich. Yes, investing, accumulating, investing. Your point about the higher risks of trading and the need to be careful is very smart.

I'd like to press you on one more point, though: I find it strange that new members ask for trading tips. Shouldnt forums be welcoming spaces for questions and learning? Assuming that a newcomer should naturally know more goes against the whole point of sharing information with others. The world of crypto is complicated and big, so no question should be seen as too early or not necessary.

[kro55]

The answer depends on your preference, each provides commensurate returns. We know that trading requires more complex strategies and takes more time. If you want to get started, some things you need to prepare include:

- Trading: technical and fundamental analysis, mental/psychological training.
- Investments: How to secure assets and maintain privacy.

Both have benefits, but I believe investing in bitcoin is a better option for me than trading it. Trading is also beneficial, but it requires more knowledge before you can engage in it. Since I don't know much about trading, even though I've seen many others try, I've concluded that it's not something I should do. While both trading and investing in bitcoin carry some risk, I believe that trading carries a greater risk than investing. While investing in bitcoin can provide you with peace of mind and allow you to know exactly how much bitcoin you own, trading is extremely dangerous and can result in losses at any time.

I'm not saying this to discourage people from trading bitcoin; rather, I'm saying it based on my observations and the experiences of many new members of this forum. I was surprised to see a new member ask how to learn how to trade bitcoin in the forum, as I assumed that before asking so many questions about it, a newbie would know better than to ask such a question. In any case, trading bitcoin is not inherently bad, but it's not a good idea for a new member to do so.

But the greater the risk, the higher the chance of receiving profit, so trading also has outstanding advantages compared to investing. But trading is extremely difficult and not too many people can make money from trading so most people will choose long-term investing rather than trading. But that doesn't mean we're saying that trading is meaningless as some people say. For me, trading and investing are both profitable methods and it will depend on each person's choice. We should not criticize trading because we are investors and vice versa, we should respect each other.

[Salahmu]

But the greater the risk, the higher the chance of receiving profit, so trading also has outstanding advantages compared to investing. But trading is extremely difficult and not too many people can make money from trading so most people will choose long-term investing rather than trading.

Yeah actually you are very correct because irrespective of how we feel trading is very profitable we should also consider the factor that could make it work which is knowledge, because unlike investment, knowledge is what defines every good traders because the need to understand the fundamental and technical analysis of the market is very important.

So just like you said one of the factors that should be consider is the risk involved on trading because in as much as there is a very high chance of making money from trading there is also a high chance of blowing your trading account.

Perhaps that's why is always advice able for beginners who doesn't have much knowledge about trading to consider learning and being knowledgeable enough before venturing into trading because trading is so complex that no matter how experienced you are on trading the possibility of losing trade sometimes is certain.

However for me I prefer investment instead if trading because I have no much knowledge about it, so with investment you are free from emotional panic we feel seeing our trading going against our direction so the best way to have a rest of mind is investment.

[BlockchainWizard]

...
Which one is better if I want to invest and trade bitcoins.

If you plan to invest and trade in Bitcoins, it is important to consider your own goals and risk tolerance. Investing is long-term and has a lower risk tendency, while trading is short-term and involves higher risk. Both approaches can be profitable if the right strategy is followed. It might make sense to start with a mix of both and adjust your strategy over time.

[gabbie2010]

Which one is better if I want to invest and trade bitcoins.

As a newbie with zero idea or knowledge of trading Bitcoin and other cryptocurrency the best bet is to invest in Bitcoin, however you should also take into consideration the best and perfect period to invest in it by avoiding buying at the peak else you may ended up hodling your coin for a very long period of time to breakeven, meanwhile in the past few months the price of Bitcoin was around $16K+ which was a perfect period to buy and accumulate now it price is above $34K a massive 100% rise thus it's a long term investment with a guaranteed profit unlike trading which might lead to a massive loss if you are not well skilled and have a wide range of trading experience though trading might provide a short term profit, however the risk in it is second to none judging from personal experience.

[Obari]

Which one is better if I want to invest and trade bitcoins.

Trading bitcoin in bear season is definitely not among the plans, it's very risky and traders tend to lose quite significant amounts of money. For illustration, one can be 100% confident of a trade after mapping Technical and Fundamental analysis, and at the end of the day, the market doesn't go as plan. I would choose investing because it's stress-free and we creates more time to anticipate in promising projects other than settling for lesser results. Investment have saved me countless times from liquidating my account with bitcoin trading, the earlier one understand how the market operates, the better and reduced ratio of losses.

[kro55]

But the greater the risk, the higher the chance of receiving profit, so trading also has outstanding advantages compared to investing. But trading is extremely difficult and not too many people can make money from trading so most people will choose long-term investing rather than trading.

Yeah actually you are very correct because irrespective of how we feel trading is very profitable we should also consider the factor that could make it work which is knowledge, because unlike investment, knowledge is what defines every good traders because the need to understand the fundamental and technical analysis of the market is very important.

So just like you said one of the factors that should be consider is the risk involved on trading because in as much as there is a very high chance of making money from trading there is also a high chance of blowing your trading account.

Perhaps that's why is always advice able for beginners who doesn't have much knowledge about trading to consider learning and being knowledgeable enough before venturing into trading because trading is so complex that no matter how experienced you are on trading the possibility of losing trade sometimes is certain.

However for me I prefer investment instead if trading because I have no much knowledge about it, so with investment you are free from emotional panic we feel seeing our trading going against our direction so the best way to have a rest of mind is investment.

I also choose to invest and most people here also choose to invest instead of trading. But we also don't need to criticize traders or chase away those who intend to become traders because that is also a way to make money in this market. There are also people who have had success with it, trading is not completely bad for us to stay away from it. When giving advice to someone, we just need to give the pros and cons of the two methods and let them choose according to their preferences. We should not decide for them or force them to follow our thoughts.

[libert19]

Trading can be profitable but imo it's still a risky venture. Historically, it's better to hold BTC, only holders would be reaping huge profits from BTC price appreciation right now provided they kept their wallets secure.

Also, investment & holding doesn't require much knowledge except security whereas if you don't know what you are doing in trading, you lose, also it has third party risks such as exchange holding your money.

Trading never worked for me, so I prefer holding BTC and swapping it into stable coins when it feels like it's significantly down and I know it will go back up. Never ever hold alts (may be except few prominent coins like Ethereum), you will become a bag holder.

[kotajikikox]

All of us who are involved in cryptocurrency have heard and know to some extent about investing and trading.But I know that there are risks in investing and trading.To do these you need to know some basic things and gain experience.The main difference between investing and trading is the investment period, methodology, risk-taking propensity. Whether you are an investor or a trader depends on your financial needs and investment goals. Investing is long-term and involves low risk, while trading is short-term and involves high risk. Both methods can be profitable if the right strategy is adopted.
Which one is better if I want to invest and trade bitcoins.

Have tried using Bitcoin as trading tools when the volatility seems to be going meaning when the market completely goes up and down but i doubt that will do that again because instead of trading , I will keep them holding for better result .

and instead of using bitcoin , i will use altcoins instead because they are fast moving(but fast dropping also)
since you already knew the risk then I think you are good to go and choose which one to use , but my advise still stand to HOLD and not to trade.

[thecodebear]

Invest in Bitcoin long term with the money you want to grow long term.

And if you have money you want to use for generating income in the short term use that for trading. Only trade from the end of the bear market to early in the bull market, meaning this cycle 2023, 2024, and early 2025.

[Gideon66]

All of us who are involved in cryptocurrency have heard and know to some extent about investing and trading.But I know that there are risks in investing and trading.To do these you need to know some basic things and gain experience.The main difference between investing and trading is the investment period, methodology, risk-taking propensity. Whether you are an investor or a trader depends on your financial needs and investment goals. Investing is long-term and involves low risk, while trading is short-term and involves high risk. Both methods can be profitable if the right strategy is adopted.
Which one is better if I want to invest and trade bitcoins.

I will say investing in Bitcoin Is a better idea considered to be a long term strategy , has you know the price of Bitcoin is highly volatile and. Can experience large increase.

[Silver005]

It's a common question: should you invest or trade Bitcoin? On the surface, the answer seems simple: investing is for the long term, and trading is for the short term. But there's more to the answer than that. In this article, we'll explore the pros and cons of both approaches, to help you decide which is right for you.
Investing   Bitcoin: Pros and Cons
- The biggest pro of investing in Bitcoin is the potential for long-term growth. The value of Bitcoin has increased exponentially over the past few years, and there's no reason to think it won't continue to do so.

Trading Bitcoin: Pros and Cons
- Trading Bitcoin can be more profitable in the short term, as you can take advantage of market fluctuations to make quick profits. But it's also more risky, as you could lose money if the market goes against you.
- Another pro of trading Bitcoin is that it's more flexible than investing. You can buy and sell Bitcoin as often as you like, and you're not tied to a long-term commitment.
- One of the biggest cons of trading Bitcoin is the high fees.

[Ryu_Ar1]

I do both, because investing is an excellent option to make a better investment, it is better than investing in real estate, or any business, but based on what I can do, I always put money in to see if I can trade. , but a very long-term trade, I buy 3mBTC today and I hope it goes up a lot so that I can transfer it to USD, only if it goes up, otherwise I'll leave it there until it goes up, but it's not my thing, and that's like an investment , because trading for me is doing it in the short term, in 1 mnutps in 5 mintuops that for me is trading, the rest is a long-term investment, those who know how to do tading are something else.

While that's good, I still feel that focusing on one is the best and I don't want to suggest that trading is wrong but it would be better if the main choice was to stay in Investments.
This may just be my thoughts that do not like trading because I use bitcoin as an investment but in any case and with the amount of evidence that exists today I think it would be very good if indeed you do in one alone although indeed in this case trading can also be profitable every day but I think no matter how smart we are in doing momentum and analysis still in trading we will be at a point where we are wrong in predictions and this is detrimental to yourself. But if indeed the choice of both according to you is right and worth doing then indeed you are ready with the consequences of both greater.

[serjent05]

The answer depends on your preference, each provides commensurate returns. We know that trading requires more complex strategies and takes more time. If you want to get started, some things you need to prepare include:

- Trading: technical and fundamental analysis, mental/psychological training.
- Investments: How to secure assets and maintain privacy.

Both have benefits, but I believe investing in bitcoin is a better option for me than trading it. Trading is also beneficial, but it requires more knowledge before you can engage in it. Since I don't know much about trading, even though I've seen many others try, I've concluded that it's not something I should do. While both trading and investing in bitcoin carry some risk, I believe that trading carries a greater risk than investing. While investing in bitcoin can provide you with peace of mind and allow you to know exactly how much bitcoin you own, trading is extremely dangerous and can result in losses at any time.

If one has the knowledge of trading, it is way more beneficial than just holding. The reason is that in trading, we can make our portfolio grow bigger while we are waiting for our exit selling price.  Even thought there is more risk in trading, if we have the ability to minimize risk we will end up with higher profit in certain magnitude.  Holding is the safest but also can bring the lower profit compared a successful trading activitives.

I'm not saying this to discourage people from trading bitcoin; rather, I'm saying it based on my observations and the experiences of many new members of this forum. I was surprised to see a new member ask how to learn how to trade bitcoin in the forum, as I assumed that before asking so many questions about it, a newbie would know better than to ask such a question. In any case, trading bitcoin is not inherently bad, but it's not a good idea for a new member to do so.

I understand that holding bring more success to people who are new to trading and have less knowledge about the market movement.  Aside from that, there is no surprise in asking new comers how to trade, it is the initial step in learning and in due time, they may have a full grasp of trading knowledge and profit with trading activity.

[Richbased]

Yeah actually you are very correct because irrespective of how we feel trading is very profitable we should also consider the factor that could make it work which is knowledge, because unlike investment, knowledge is what defines every good traders because the need to understand the fundamental and technical analysis of the market is very important.

You are right no matter how smart one is in trading if the right knowledge and techniques aint applied you may find it difficult. Moreover, trading had it's on ethics as their are some basic principles a good trader needs to follow in other to become a successful trader. It is important for a forex trader to know the basic concept in trading as most times as we seek to make profits we also incur loses due to market fluctuations.

[JayJuanGee]

~

Technically traders are still investors. Because rather than accumulating bitcoins by direct purchase and then waiting for it to gain in value, traders try to make profit from the market by predicting it's movement. The aim of everyone is to make profit from bitcoins, and buying bitcoins (investment), trading or even mining bitcoins are all ways to profit. They are all good.

Investing in bitcoins does not require as much technical knowledge as trading and mining bitcoin demand.

You have mixed up ideas, if you want to describe everything as the same and just means to make money, which largely means that you do not understand the difference between trading and investing.

Sure, there might be some overlap in the ways that some people might conduct trading and/or investing, but you did not describe such overlap, and you merely just proclaimed that they are the sane because they are just ways to make money... a ridiculous assertion, and I should not spend any time elaborating further than I already did.   nuff said.

Long-term investment is the wiser choice. With it, you won't have to worry about complex analyses like day traders who must always be ready in front of their computers, gazing at candlestick charts. Long-term investment can be done at any time; you simply buy and then almost forget about it, so your emotions don't get mixed up when bearish prices come early. I am very confident that, in the end, the price of BTC will rise as well.

In long-term investments, you will have more time to focus on other productive matters. This way, your income will come from various sources, making you wealthier more quickly.

That is a good point.  A really great way to make money is by investing, but if someone is fairly new to investing then they might not have very much money to start.  So in that regard, if they can figure out ways to increase their earnings, then they can fold those earnings into bitcoin (or any other long term investments that they believe to be suitable to their situation and views).

It would be difficult to generate money from trading and also to be able to fold that money back into the investment, but surely not impossible, yet one of the major problems is that a person needs to have some resources to pay for living expenses, and so if there is no separate income then the money would come from the trading, but it would not be easy to build up the value in the position, including possibilities of compounding values of the account if some or all of the profits have to continually be withdrawn to pay for living expenses.

As long as Bitcoin is not an instant money generator, waiting is the most appropriate approach. There's no need to rush for quick profits because network growth and wider adoption also take time. Fundamentally, Bitcoin holds great promise for the future.

Yep.. the punchline it takes time, and there is a large value in compounding.. but that can take time too... even though there might be some short periods of UPward spurts, there can also be long period of drawdown that make it difficult to do anything beyond either just HODLing through the rough period or adding to the position during the extended drawdown periods.

Yes. They are not mutually exclusive.

Yes.  Some of the practices regarding trading and investing could overlap, but it also quite helpful to attempt to consider them in variations of their more pure form in order to also understand some of the areas in which they might overlap.

Which one is better if I want to invest and trade bitcoins.

As a beginner, investing and holding is better than trading when your knowledge is zero. You can combine both if you have enough time for them, you don't have to choose just one and no one is forcing you to do that. Divide your capital in half to hold bitcoin and the other half for daily trading or divide it in the ratio you feel is right for you. Personally, I don't spend all my time on the market so I just hold and the rest of the time I work on my businesses. Whether you hold or trade, don't just depend on the market, always have a job with outside income that will be good for your investments.

Probably the newbie trader should mostly invest, but if he cannot resist trading, then he could limit his budget to trade up to 5% of the size of his BTC stash for learning purposes, and surely if he is adventurous, then maybe he could do up to 10% of the size of his BTC stash, but alloting 50% to trading as you suggest seems totally crazy, even for an experienced trader.. but yeah people do play with their BTC stash in those kinds of ways, and if there are not fairly stringent and reasonable limits in place (that surely can get adjusted from time to time), the allotment of how much to trading versus how much to investing becomes one slippery slope that largely devolves into gambling and likely loss of everything, or close to it... so just say no to such nonsense by attempting to set reasonable and reasoned limits right from the start rather than just winging it with some outrageous 50/50  kind of allocation.... don't get me wrong, 50/50 might work out for someone who is either really experienced or who might say 50/50 of new capital can be divided in that way, but not 50/50 of the whole BTC position... that comes off as crazy and/or like degenerate gambling.. and surely many folks who get into trading are degenerate gamblers to be trading such a great investment like bitcoin in the first place seems crazy.. even though trading and gambling with shitcoins does not necessarily seem as crazy, on the surface..

I see trading as a waste of time and lack of rest of mind, all the time you are reading charts and looking at bitcoin price and at the end, you might still run at loss. Trading comes with little profit and it is very risky, because the probability of running at loss is higher than making profit. Bitcoin is not a get rich quick scheme due to its volatile nature. One of the basic concept of bitcoin is that you should only invest the the amount of money that you can afford to lose, and that you should invest for a long period of time. This is because if you invest with the amount that you can afford to lose, you wouldn't panic and sell your coins when bitcoin price goes below your entry point, you will ignore that fear and leave your bitcoin in your wallet. The best way to make profit on bitcoin is to go on a long term bitcoin journey and use DCA method regularly to increase your bitcoin, because bitcoin price will keep pumping till infinity.

It also cannot be said that bitcoin trading is a waste of time and money. Just because we can't profit from trading doesn't mean others can't either. I couldn't do that either, but I remember even on our forum there were some people claiming that they could make money from trading and even consider it a source of income to support their families. That proves that not everyone will lose money when trading.

Trading or investing long-term depends on each person's preferences, you are a long-term holder but you should not say trading is bad. You and I can't make money trading, but maybe OP is better than us?

I think that you are better off to assume that someone is either not profitable or that they are doing worse than a simple DCA strategy if they are living off of trading, absence strong and convincing evidence to the contrary... and sure there is no reason to grill anyone but to have them back up their claims and figure out when they started, and then project out DCA and see how it compares to where they are at. in terms of percentages.  There is no reason that anyone necessarily needs to get into personal specifics, but if they are claiming to be profitable, they better have some numbers otherwise, I am going to take it with a pretty BIG ass grain of salt... meaning that I am probably going to believe that they are not beating DCA.. especially if we start to get into comparisons of 6 years or longer..  It  is like the gambler who conveniently tells you about all of the wins, but doesn't account for the losses.

All of us who are involved in cryptocurrency have heard and know to some extent about investing and trading.But I know that there are risks in investing and trading.To do these you need to know some basic things and gain experience.The main difference between investing and trading is the investment period, methodology, risk-taking propensity. Whether you are an investor or a trader depends on your financial needs and investment goals. Investing is long-term and involves low risk, while trading is short-term and involves high risk. Both methods can be profitable if the right strategy is adopted.
Which one is better if I want to invest and trade bitcoins.

Normally, beginners engage first in bitcoin investing not only because it's low risk, but it's more stress free and only needs short preparation before you are capable to invest. As long as you know you understand your investment, and you are aware on how to secure your bitcoin in your wallet for long term, then I don't think it will be hard for you to succeed on your investment. But with bitcoin trading, not only its high risky, but it also needs long term preparation and practice so you can be well-skilled and experienced in trading. And since it's high risk, the more you put bigger capital, the higher the risk of losing. That is why if you want to trade, do it with a small amount of capital first.

However, you can also do both if you want. That is if you are well capable to combat the losses because you have obtained adequate knowledge and experience on both aspects. Both have actually their own risks, and you can only lessen their risks if you possess the right attitude and use the perfect strategies that will work on them.

Position size too, and so the overall budget should be looked at when determining how much to put into bitcoin, and probably less than 1% would be allowed for trading while learning and then perhaps go up to 5% at a later date and maybe maximize out at 10% absent some ways of dealing with the losses and the gains and especially in bitcoin, an underlying presumption should be that bitcoin is going up and going up forever, so the trades need to account for that, even if there are well times in which BTC has decently long periods of down and sideways, too.

[Essential10]

Personally I don't like trading. Even if you educate yourself about trading strategies, market analysis and risk management before you dive into trading, there is still a fear of losing money. Bitcoin has gained significant attention and acceptance in recent years. It has the potential to revolutionize the financial industry and has already made an impact as a store of value and a potential hedge against inflation. With the rise of digital wallets and the increasing acceptance of cryptocurrencies by merchants, the utility of Bitcoin as a medium of exchange is becoming more apparent. As its value continues to rise, I think Bitcoin should be invested. But I believe it is good to HOLD in bitcoins and it will be in the future everyone uses bitcoins.

[EluguHcman]

Investing is long-term and involves low risk, while trading is short-term and involves high risk. Both methods can be profitable if the right strategy is adopted.

With taking your description of what Investing and Trading maybe according to your view, I am rather not going to make any contrary review on what difference it could be at my end.

Which one is better if I want to invest and trade bitcoins.[/quote]
With after learning and acquiring the affirmed cryptos basic skills, then you have realized that there are two categories of investments in the industry which are the Investing and Trading, it is then left for you to decide which one is best fitted for you depending on your investment capital and your goal of investment if a long-term or a short-term investment. You have already aware about the risks and the rates of income involved do don't get convinced by anyone recommending you to one because you might be unfit in time to hodl for a long time or unfit to taking the risky decisions.

However, as you insinuated that you want to trade and Invest that is to say you want to go into two of the affirmed Bitcoin categories. That is always a safer choice making if one could have a long-term running investment that is projected for the future with no point of compromising the long-terms goal with the ability to hodl for the period of specific long-term and also have a short-term investment that is to offer quicker incomes so as to support your financial needs.
So, I would say if you think your capital is enough to ride on the both sides then you are good to Invest and also Trade on the Bitcoin investment.
Money funded in investments with the goals to generate more money is never a waste.
Good luck.