Do You Believe, "Passive Investors Make More Than Active Investors?"

[Catenaccio]

Most of the youtube videos you watches out there doesn't have any quality to show that they are really making cool cash via day trading, you think day trading is that easily and so cheap as you may have think?

They show people what they are favorite to watch. Profit, massive profit, they shown in in their videos but it is similar to gambling. The bottom line is what is your net result, not short term result after some trades or some bets. In fact, with some trades or bets, profit can be gained but in long run, it's hard to achieve positive net-result.

Youtubers simply don't show their long history of trading or gambling, only a snapshot to show they get profit.

Boiling down to Warren Buffet, I don't know how knowledgeable he is towards bitcoin but I understood from him is that the volatility of Bitcoin doesn't allow him to freely have the final decision to invest in bitcoin since he thought that his investment could worth zero or even lose about 50 percent of his investment.

He is too old to adapt to new technology and evolution but he is smart and experienced to stay away from what he thinks too risky. With very huge capital managed by Berkshire Hathaway, he does not need to chase for high ROIs like small investors who are finding life-changing investment assets.

[aTriz]

I've been watching many YouTube videos on how to make lots of money through day trading.
Those videos are quite impressive and compelling.

However, I've read what Warren Buffet (an American businessman and philanthropist, widely considered the most successful investor of the 20th century) thinks about short-term investing, which is quite negative.
By the way, he also thinks BTC has no intrinsic value and cryptocurrency is just gambling.

https://www.investors.com/news/warren-buffett-bashes-bitcoin-as-gambling-token-bitcoin-price-hovers-near-30000/#:~:text=%22Something%20like%20bitcoin%2C%20it%20is,intrinsic%20value%2C%22%20Buffett%20said.

Warren Buffet is a boomer after all. I don't think how he became successful would work at this time now.. or it might work but it's gonna take decades like how he did.
so if you want some quick success then go with passive investment. or if you have enough patience then go with Active investments.
Both have their risks so be careful about that.

[Xampeuu]

I've been watching many YouTube videos on how to make lots of money through day trading.
Those videos are quite impressive and compelling.

However, I've read what Warren Buffet (an American businessman and philanthropist, widely considered the most successful investor of the 20th century) thinks about short-term investing, which is quite negative.
By the way, he also thinks BTC has no intrinsic value and cryptocurrency is just gambling.

https://www.investors.com/news/warren-buffett-bashes-bitcoin-as-gambling-token-bitcoin-price-hovers-near-30000/#:~:text=%22Something%20like%20bitcoin%2C%20it%20is,intrinsic%20value%2C%22%20Buffett%20said.

Warren Buffet is a boomer after all. I don't think how he became successful would work at this time now.. or it might work but it's gonna take decades like how he did.
so if you want some quick success then go with passive investment. or if you have enough patience then go with Active investments.
Both have their risks so be careful about that.

It would be better to choose between passive investment and active investment which can also be done together, considering that passive investment does not seem to require thought and activities that take up time and energy. Indeed, both have different levels of risk, but as long as we can manage it, the risk seems to be a friend that we can minimize. What is certain is that we here don't just imagine that this is a place where it's easy and fast to get money

[tvplus006]

Passive investing gives me more profit than active trading...My experience tells me something I was not good at trading but rather be good at investing. However, this never means that even if we are a passive investor but didn't make it the right way, it is not profitable anymore. Maybe my experience is the same as others and can be the opposite as well.

Whether it is right or wrong, the one that can answer this is ourselves. We can assess ourselves where are good at because some people showcase more impressive trading results than investing. Because I already know where I can make more money.

Not every member of the forum, in contrast to you, can stay away from trading. There are especially many such traders among beginners who want to earn a lot in a short time. Such traders cannot remain without a deal and if there are free funds in their wallet, they will definitely use them to open new orders.

[jaberwock]

How much money you can earn depends on your investment. If you invest a large amount of Bitcoin and are successful enough to invest, your earnings will increase. Usually the amount of money I earn will depend on my investments. You can earn as much as you succeed in investing. A cousin of mine became an overnight owner of a lot of money when he caught on to passive investing. But I have not done passive investing. I think passive investors are much less stressful than active investors. If we want to be stress free then of course we can invest passively.

When we say investment, it's not only limited to money but also time, effort and etc... that you put in. Doesn't matter if you are passive or active investor but as long as you do those, your earnings are going to be high. Your cousin is lucky. I don't think it can be achieved on a normal investment but he might have invested on a ponzi, shitcoin, or something? He need to be wise though if it's his first time.

Since, the money can be returned and we can even lose more if we will let our greed to control us. Investments are usually passive but maybe the active ones is when use a DCA strategy for example and we buy per week or shorter periods of time. 

[KingsDen]

As for passive investors if they're making more money, for me it's possible and if I'm comparing myself as a trader then I'll probably make less than just simply holding because it's stress free and I like more being passive than active because it's likely that you'll get to lose more and that's proven.

I believe that passive investors can make more money in some circumstances. For instance, a passive earner might have the opportunity to earn from 5 different sources since they are not spare heading anyone. This will not be possible for an active investor to multi task and still maintain efficiency. This is where I rate passive investment over an active investment. Anyone who can earn passively from upto 3 sources should be somewhat comfortable.

I've been watching many YouTube videos on how to make lots of money through day trading.

However, I've read what Warren Buffet (an American businessman and philanthropist, widely considered the most successful investor of the 20th century) thinks about short-term investing, which is quite negative.

It sounds confusing to think trading is investing and investing includes what is called as short term investing.

Investment must be long term to be matched with its correct definition. When you call it is a short term investment, it is no longer investment but speculation. Day trading is different than speculation and let me explain.

Trading has nothing to do with expectation that price will rise more, the project will grow up more. You can trade with long or short, sell high buy low and enjoy short term price bounce.

Speculation has something relates to price growth, project growth but you don't plan to hold a coin too long, just speculate it is time to have the coin because you see price will rise soon. It is still different than investment that relates to strong belief that the project will grow up in long term.

I think you are just contracting the whole thing
There's trading;
There's short term investment;
There's long term investment.

• Someone who takes advantage of the daily price fluctuations to make money is a day trader 
• Someone who buys a coin and in the next month or 2 observes that the coin has given 12% and decided to sell is a short term investor
• Someone who bought a coin and hold for 6months and above to 2, 3, 5yrs is a long term investor 

.
If there's something I'm missing, please let me know.

[kamvreto]

~snip~I think you are just contracting the whole thing
There's trading;
There's short term investment;
There's long term investment.

• Someone who takes advantage of the daily price fluctuations to make money is a day trader 
• Someone who buys a coin and in the next month or 2 observes that the coin has given 12% and decided to sell is a short term investor
• Someone who bought a coin and hold for 6months and above to 2, 3, 5yrs is a long term investor 

.
If there's something I'm missing, please let me know.

Just need to adjust which one is more suitable to apply. Day trading may look easy, but it can't be done by those who don't understand market analysis and reading. I prefer to make short or long term investments for potential coins or become a Holder of Bitcoin because it will be profitable in the future. Becoming a trader is not easy, it requires fairly good trading knowledge and mastering all kinds of tools and indicators that will be used. traders not only sell and buy, but there will be strict analysis carried out.

[lalabotax]

I've been watching many YouTube videos on how to make lots of money through day trading.
Those videos are quite impressive and compelling.

In my opinion, this will depend on each individual's ability to optimize all opportunities for passive investment or active trading). And this is also most likely related to how much assets you hold for the long term. Because, however, when we only have assets with a fairly small amount, when we decide to invest in the long term, we should be able to calculate the size of the increase. which we will get from our capital funds later. So this will make us understand whether it is worth it or not. And this also depends on our opportunity and ability to survive.

Apart from that, if capital is too small or not large enough, some people also prefer to choose active investors or in this case carry out large investments in spot or other trading. Indeed, some people actually have the ability to get extra profits from this trading activity, as long as they are willing to continue learning and working hard. It won't be easy, believe me, trading is very risky and not easy. So it really takes more seriousness and understanding to get results that meet expectations. If not, then it is impossible to be successful.

[_BlackStar]

-snip-

Not every member of the forum, in contrast to you, can stay away from trading. There are especially many such traders among beginners who want to earn a lot in a short time. Such traders cannot remain without a deal and if there are free funds in their wallet, they will definitely use them to open new orders.

That's right - I'm not like him, meaning I tend to prefer being a passive investor rather than an active trader. It doesn't matter why we are different - it just shows that each user's goals in the market are different. The size of the profits generated from passive investments does not affect my interest in changing plans – but trading is not a bad choice if they are experienced enough.

If a trader can make 2% profit every week - that means they can make 8% profit every month. In a year this trader can make 96% profits from trading - but passive investors may be able to make lower or higher percentage profits than that without spending much time on the market in the same period.

[Captain Corporate]

I agree some others here, "active" is a dubious term that is not really covering everyone. I get that it looks and sounds like it would be, but its not, because not everyone as good at being active as others. SO passive is better. Its really an easy thing, it doesn't really hurt you or do anything to harm you, as long as you can keep it holding then you should be fine and nothing will change. You should just simply end up with something that will benefit you, and that means we are going to end up with something that will benefit everyone if you hold. Obviously its hard emotional when you see it lower but we should not cause concern with those since the bull is right around the corner.

[shinratensei_]

I agree some others here, "active" is a dubious term that is not really covering everyone. I get that it looks and sounds like it would be, but its not, because not everyone as good at being active as others. SO passive is better. Its really an easy thing, it doesn't really hurt you or do anything to harm you, as long as you can keep it holding then you should be fine and nothing will change. You should just simply end up with something that will benefit you, and that means we are going to end up with something that will benefit everyone if you hold. Obviously its hard emotional when you see it lower but we should not cause concern with those since the bull is right around the corner.

basically holding as long as the coin itself got potential its already obvious win if we invest at good price, when it literally dumps to the bottom, even better if it surpass all time low then we are already in the winning position.
thats the thing with holding, we don't lose even if the market dumps if we don't sell, we can jsut continue holding and wait until the price climbs up then thats when we are winning big time.
its that easy but many people are get distracted once they've reached certain price point wanting to sell for some small profit but true holder know to always keep up until it hits all time high.
just like how many people are holding solana when it was at the very bottom and sell it at all time low basically made 10x profit with that alone.
at the end of the day it could also means that passive investors make much more money because they are faithful and also not easily shaken, active investors are usually always watching the chart 24/7.

[Sebas.tian]

You think all those videos you watch on YouTube are real, well I know that some investors make passive income from their short term investment but you can't use it to compare what long term investors will achieve when their time come, which will be more massive than short term investors. I will advice you to embrace long term trading if you have the knowledge, because is profitable to those that exercise patience with their trading to wait for the right time to come before they can trade to make some reasonable incomes from the market. If you concentrate on this forum very well than YouTube, I believe you will get more impact since you are looking for impart of cryptocurrency trading because there are many experts traders here who can train you to become a potential traders in the future.

[BitcoinTurk]

If I need to comment based on the amount of earnings, I can easily state that the answer will vary depending on the capital of two people who have passive and active income but if I need to comment in terms of percentage, the size of the situation will change. In fact, I can both claim that people with active income earn more and equally claim that people with passive income earn more across different scenarios. For example, let's say there is a house worth 500,000 euros that generates passive rental income. Of course, the rental income of this house will vary depending on the size, location, country, innovation and style of the house but it will not yield more than a few thousand euros per month. If a trader who actively trades earns more than this amount, even with a lower capital, we can easily claim that active income provides more profit. Of course, in this example, it is important to remember that passive income is a guarantee of continuity but active income isn't a guarantee of continuity. In summary, I can state that the answer to this question may vary depending on capital, preferred income method and continuity.

[justdimin]

If I need to comment based on the amount of earnings, I can easily state that the answer will vary depending on the capital of two people who have passive and active income but if I need to comment in terms of percentage, the size of the situation will change. In fact, I can both claim that people with active income earn more and equally claim that people with passive income earn more across different scenarios. For example, let's say there is a house worth 500,000 euros that generates passive rental income. Of course, the rental income of this house will vary depending on the size, location, country, innovation and style of the house but it will not yield more than a few thousand euros per month. If a trader who actively trades earns more than this amount, even with a lower capital, we can easily claim that active income provides more profit. Of course, in this example, it is important to remember that passive income is a guarantee of continuity but active income isn't a guarantee of continuity. In summary, I can state that the answer to this question may vary depending on capital, preferred income method and continuity.

Active trader "may" earn more, or may end up losing more, there is really no way to know and each trade makes different amounts of money. You can gather 100 traders to a room, and ask them how they did in the past six months and you will find that 90%+ of them did quite different from each other, only a few would have similar results. This is why it would make sense if you could end up with something that would benefit you, it should be a lot better to have a return that would not be all that easy.

I hope that we could reach to a point where we could make some good return, and it should not be all that simple for people to say traders make more than holders or make less than them, it's all different person to person in the end.

[KingsDen]

~snip~I think you are just contracting the whole thing
There's trading;
There's short term investment;
There's long term investment.

• Someone who takes advantage of the daily price fluctuations to make money is a day trader 
• Someone who buys a coin and in the next month or 2 observes that the coin has given 12% and decided to sell is a short term investor
• Someone who bought a coin and hold for 6months and above to 2, 3, 5yrs is a long term investor 

.
If there's something I'm missing, please let me know.

Just need to adjust which one is more suitable to apply. Day trading may look easy, but it can't be done by those who don't understand market analysis and reading. I prefer to make short or long term investments for potential coins or become a Holder of Bitcoin because it will be profitable in the future. Becoming a trader is not easy, it requires fairly good trading knowledge and mastering all kinds of tools and indicators that will be used. traders not only sell and buy, but there will be strict analysis carried out.

Being a day trader is somewhat a difficult thing to do but if done correctly gives daily profits. No matter how little daily profits are, the good part of it is that it accumulates and become something huge. Day trading as you have said is a skill that needs to be learnt extensively. If you are a successful day trader, you must have had some stories to tell from your newbie days. I am not sure there's a successful trader who had not made some mistakes at one point or the other during their learning period. Unless someone who learnt under serious mentorship.

One thing about day trading is that each and everyone of us must have tried it at a time before giving up. We had all thought it is the easiest and simplest way to be rich in the cryptocurrency industry. I stopped trading for three reasons;

• I am just an average or below average trader
• My emotion fluctuates when I enter a trade
• I do not consider day trading as a passive way of earning as it requires my time and eyes always on screen.

But in all, many people are successful day traders, especially those who came from the background of Forex.

[BitcoinTurk]

Active trader "may" earn more, or may end up losing more, there is really no way to know and each trade makes different amounts of money. You can gather 100 traders to a room, and ask them how they did in the past six months and you will find that 90%+ of them did quite different from each other, only a few would have similar results. This is why it would make sense if you could end up with something that would benefit you, it should be a lot better to have a return that would not be all that easy.

I hope that we could reach to a point where we could make some good return, and it should not be all that simple for people to say traders make more than holders or make less than them, it's all different person to person in the end.

Yes, this is actually the main issue I want to talk about. Unfortunately, a trader who actively trades cannot know how much profit or loss he/she will make each month until the end of the month because there is no fixed return from actively trading. For this reason, I made a hypothetical example by thinking about possibilities and probabilities. I would like to point out that I completely agree with the example you gave because it is very unlikely that two or more traders will earn exactly the same or similar amounts of profit.

At this point, the following method may be preferred to compare both income methods;

For example, the average annual earnings of a trader with 10 different active income traders and a trader with 10 different passive income traders can be calculated. In this way we can specifically compare the average annual income of active traders whose net earnings are never known and the income of passive traders whose earnings are almost constant. Of course, this will not be a complete generalization because the calculations and comparison will only depend on annual income.

[dzungmobile]

I've been watching many YouTube videos on how to make lots of money through day trading.

Trading is not investing and traders are not investors.

Invest means you must proactively invest your money by doing due diligent research. It is what I call as proactively investment. I have no idea what are passive investors and active investors. Maybe you implied about proactive investors as active investors that I can agree with you. But I totally disagree with you on passive investors. You invest and get passive income but you are not passive investor.

However, I've read what Warren Buffet (an American businessman and philanthropist, widely considered the most successful investor of the 20th century) thinks about short-term investing, which is quite negative.
By the way, he also thinks BTC has no intrinsic value and cryptocurrency is just gambling.

Each era will have different people who are considered as icons and legends. Warren Buffet simply does not belong to cryptocurrency and blockchain era.

[Webetcoins]

I've been watching many YouTube videos on how to make lots of money through day trading.
Those videos are quite impressive and compelling.

However, I've read what Warren Buffet (an American businessman and philanthropist, widely considered the most successful investor of the 20th century) thinks about short-term investing, which is quite negative.
By the way, he also thinks BTC has no intrinsic value and cryptocurrency is just gambling.

He is an experienced businessman and probably knows more about specific crafts than most of us, however, that doesn't necessarily mean what he says should apply to every single entity or individual because you can't copy someone else's business or investment strategies and expect to have the same results as them and the results can greatly vary based on several factors and metrics such as investment time, market conditions, understanding of the craft, and much more.

So, the amount of profit one might earn doesn't always depend on the type of investment or the time of it and there are many things one needs to consider before they make their financial decisions. You need to make sure that you understand the investment type that you are choosing to maximize higher profit probabilities.

[South Park]

If I need to comment based on the amount of earnings, I can easily state that the answer will vary depending on the capital of two people who have passive and active income but if I need to comment in terms of percentage, the size of the situation will change. In fact, I can both claim that people with active income earn more and equally claim that people with passive income earn more across different scenarios. For example, let's say there is a house worth 500,000 euros that generates passive rental income. Of course, the rental income of this house will vary depending on the size, location, country, innovation and style of the house but it will not yield more than a few thousand euros per month. If a trader who actively trades earns more than this amount, even with a lower capital, we can easily claim that active income provides more profit. Of course, in this example, it is important to remember that passive income is a guarantee of continuity but active income isn't a guarantee of continuity. In summary, I can state that the answer to this question may vary depending on capital, preferred income method and continuity.

Active trader "may" earn more, or may end up losing more, there is really no way to know and each trade makes different amounts of money. You can gather 100 traders to a room, and ask them how they did in the past six months and you will find that 90%+ of them did quite different from each other, only a few would have similar results. This is why it would make sense if you could end up with something that would benefit you, it should be a lot better to have a return that would not be all that easy.

I hope that we could reach to a point where we could make some good return, and it should not be all that simple for people to say traders make more than holders or make less than them, it's all different person to person in the end.

And that is because the understanding each one of those traders have of the markets is different so it is natural that they obtain different results as well, this also explains why those that are trying to rely on the knowledge of other traders or even copy their strategies rarely do well, because the way that trader understands the market is different from their own understanding, and it is really difficult for them to make that adjustment and comprehend all the nuances of a strategy that is not their own.

[Yamifoud]

I can't believe the results will favor passive investors because some traders did a good job and made a huge profit as well. Maybe if we think about safety, that would be investing but the question is which one earns more? We can't point out which one because that also depends on us. Like if choose investing, it means that we know this is what we are good at, and the same thing if we choose trading. Well, taking the two will help us determine which one is more profitable but I don't think it is necessary instead, make it straight to which line we prefer.

Whether it was not the most profitable at least we know we can make it. It was not all about earning a lot but at least, we earn some.