Two Paths to Financial Growth: Trading vs Investing

[doomloop]

For now, BTC is the ultimate store of value.

May it become the ultimate coin for other things? We will find it out in the future, but its nature dictates how we interact and use it.

There are lots of store of value and some are also good not just Bitcoin but each has their own advantage and disadvantages. BTC is highly volatile and this can be its disadvantage when it comes to store of value because our money can go down easily but because it is highly volatile, it can also recover very quickly. BTC is the ultimate coin here in the crypto industry because it is first and the most decentralized but again like I said earlier, it also has its laggy which must the reason why alts and tokens are invented. It is not the nature of BTC but it is our nature on how we interact and use it. Like for example, my nature is I like to use Bitcoin regularly like a typical currency. I know for some it was the opposite. They only HODL their BTC, hoping to earn more profit out of it.

[$weetne$$]

Unlike the fiat that relies on the central bank and governments for its stability, Bitcoin is decentralised and independent on control which is both it's strength and its weakness.

With this point, what this is supposed to tell you or anyone that wants to choose between the two is that investing is the best way to go and not trading. Many people will be interested in trading because it is going to give you profits quickly but things that comes quickly do not use to last that long but anything that takes its time before it comes, it would not just go without giving you time to be able to recover or prepare for its departure so you can stop it from happening and that is what investing in Bitcoin is going to give you. It will help you to build yourself and be receiving good profits longer than trading will ever give to you. If you have the privilege to be capable of doing the two, that is your luck but always know that investing is better than trading.

[Davidvictorson]

But for me it's difficult --- not able to do both, therefore do not want to take more risk in trading especially those that use leverage, then it's better to invest with less risk, I don't even mind about patience because it's part of future profits.

Because in trading once lost more than $2000 in the past, therefore to decide to stop and not focus on trading anymore.

That's correct. Most people that I know who started with investing in bitcoin and decided to go into trading along side it maybe because they thought that have become competent and can manage the two usually end up giving one more attention than the other and they will eventually, give up one to focus completely on the other. And more often they leave trading to focus on investing, the safest option.

[mirakal]

But for me it's difficult --- not able to do both, therefore do not want to take more risk in trading especially those that use leverage, then it's better to invest with less risk, I don't even mind about patience because it's part of future profits.

Because in trading once lost more than $2000 in the past, therefore to decide to stop and not focus on trading anymore.

That's correct. Most people that I know who started with investing in bitcoin and decided to go into trading along side it maybe because they thought that have become competent and can manage the two usually end up giving one more attention than the other and they will eventually, give up one to focus completely on the other. And more often they leave trading to focus on investing, the safest option.

Where there is safest and less stress option, that would be where investors and traders stick to. And obviously, that’s not trading but majority chose to stay hodling. Although we can find reputable traders here and made huge profits there, but that does not change the fact that they are still hodling for their future profits.

[Wexnident]

~

Personally, I'd say trading is for people who have more time (and experience preferably) to analyze and stuff and investing for people who have a regular job and just wants to grow their money passively. There may be differences in rates of growth in investing but that's what makes it a great thing imo for financial growth/

I find it very hard to put the 2 side by side. Trading is quick growth at a much lower probability of success, and in my experience on this forum and in crypto trading, its the path to quick loss.

Sorry OP but I can't see any correlation for comparison. Within investing you have just so many ways as well, that has enough correlation for comparison. But trading as a way for financial growth? No man, not right.

It's just a riskier option vs a stabler option. Strictly speaking it's more like a job than financial growth really since rather than letting time make your money be richer, it's you yourself making decisions to make it richer so I guess it's no surprise you don't think it's a way to financial growth. Just that compared to regular blue collar jobs, it has a higher ceiling since, well, the ceiling is pretty much whatever your captal is for the most part.

[slaman29]

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Sorry OP but I can't see any correlation for comparison. Within investing you have just so many ways as well, that has enough correlation for comparison. But trading as a way for financial growth? No man, not right.

It's just a riskier option vs a stabler option. Strictly speaking it's more like a job than financial growth really since rather than letting time make your money be richer, it's you yourself making decisions to make it richer so I guess it's no surprise you don't think it's a way to financial growth. Just that compared to regular blue collar jobs, it has a higher ceiling since, well, the ceiling is pretty much whatever your captal is for the most part.

Gambling is a riskier option vs a stabler option then if we use this comparison. Honestly, financial growth gurus who see trading as an option must be living in a different world.

If you're talking about capital being the most part, well, isn't that true for any investment, any business venture?

Still can't believe people here think of trading like this, but I guess thats the reality of crypto especially. The exchanges won

[Synchronice]

Additionally, frequent buying and selling lead to higher transaction costs, with brokers including things like commissions, spreads, and fees which can eat into profits.

Actually, this is not a problem if you are a profitable trader. When you trade a lot, it can also count as wagering in certain exchanges and the more you wager, the more rewards and VIP treatment you get, so, this is actually good.

Crypto Trading is much more riskier than Fiat Trading because of  it volatile nature. Crypto is unpredictable currency, mostly bitcoin while fiat currency is stable currency so traders in bitcoin can't predict the nearest outcome of the market.

No risk, no reward! Crypto trading is risky but the reward can be a goddamn good. Bitcoin is really superior to fiat, you can buy it and relax, you are almost guaranteed that this currency will grow further because countries plan to create a Bitcoin Strategic reserves. Some US states already approved to save up to 10% of their treasury in Bitcoins.

Overall, everyone should use the strategy that they succeed the most but to my mind, steady growth is better than quick moves for the highest percentage of population. You can make lots of mistakes during day trading because we are humans, have emotions and it's hard to not sell your coins when the price is going down. In the end, slow and steady wins the race!

[tbct_mt2]

No risk, no reward! Crypto trading is risky but the reward can be a goddamn good. Bitcoin is really superior to fiat, you can buy it and relax, you are almost guaranteed that this currency will grow further because countries plan to create a Bitcoin Strategic reserves. Some US states already approved to save up to 10% of their treasury in Bitcoins.

Don't let "No risk, no reward" pulling you down to the mud of loss because trading is really hard to manage and get profit. You must be so knowledgeable, experienced and professional to get profit in trading.

If you don't want to take very high risk with trading, and also know about fact that most traders are losers in the market, you will not want to do "Take risk, take reward". You can try with very small capital for trading, but afford to lose it and make sure you don't want to revenge the market by increasing your trading capital time to time.

You can try for several times and if you still fail, forget trading and return to investment that is safer and more easily get profit.

[CroverNo01]

Gambling is a riskier option vs a stabler option then if we use this comparison. Honestly, financial growth gurus who see trading as an option must be living in a different world.

If you're talking about capital being the most part, well, isn't that true for any investment, any business venture?

Still can't believe people here think of trading like this, but I guess thats the reality of crypto especially. The exchanges won

There's trading and also investing in the market. We do the examining research and choose the path to follow in our quest for financial growth. I'm sticking to investing because it comes more with different sectors and we can maintain our sanity in the space. Unlike trading that can cause confusion, we often doubt our own principles and trading strategies because the market moves against our angle. We tend to know what's best for us the moment we enter the market, we know ourselves vividly and wouldn't lie to ourselves.

Everyone trades and invest because nobody is been reluctant not when the market have provided every means of making it to the very top. Then why sit around doing absolutely nothing? Trades can be open and close depending if it favors our very selves in the market.

[slaman29]

Still can't believe people here think of trading like this, but I guess thats the reality of crypto especially. The exchanges won

Everyone trades and invest because nobody is been reluctant not when the market have provided every means of making it to the very top. Then why sit around doing absolutely nothing? Trades can be open and close depending if it favors our very selves in the market.

Everyone? You trying to say that everybody does both? Or you trying to say that those who have money do both? Either you're a spammer or you really believe that all people who have crypto because they're investing are also trying to trade.

You want to know who sits around doing absolutely nothing? Very rich people who don't trade and only invest.

[TheUltraElite]

I dont think the dichotomy is that clear but it is indeed overlapping. Traders are also investors and those who invest also trade at certain points of their journey.

Essentially we can break down trading based on the duration of orders being kept open as
1. Short Term Trading
2. Mid to Long Term Trading.

The second one is close to Investors. But I guess we put the term more commonly on the people who are into lower risk assets for a long term period.

[SmartGold01]

Essentially we can break down trading based on the duration of orders being kept open as
1. Short Term Trading
2. Mid to Long Term Trading.

The second one is close to Investors. But I guess we put the term more commonly on the people who are into lower risk assets for a long term period.

You are right and it's just like having it coming true so quickly and having it coming slowly, and of course those who are that mindful on how they risk would go for mid or long term trading but this also depends on the level of their equity to hold on long position.
For spot trading then I see no much difference as it's investment.

[Koadharber]

But for me it's difficult --- not able to do both, therefore do not want to take more risk in trading especially those that use leverage, then it's better to invest with less risk, I don't even mind about patience because it's part of future profits.

Because in trading once lost more than $2000 in the past, therefore to decide to stop and not focus on trading anymore.

That's correct. Most people that I know who started with investing in bitcoin and decided to go into trading along side it maybe because they thought that have become competent and can manage the two usually end up giving one more attention than the other and they will eventually, give up one to focus completely on the other. And more often they leave trading to focus on investing, the safest option.

All matters on how you would be that able to make out adjustments on which it will be neither choosing up one or you would really be that doing both. It doesnt matter on which one because these things will really be leading out into that financial growth on which this is something that you must really be that needing up to consider on which path you would really be that taking. It all matters on how you would really be doing out such act because people do usually easily gives up when they do experience few failures on which this simply means that you are the ones will really be that making up that kind action on which you do know that this will really be that giving out that chance for financial freedom once you do able to have that grasps into it. Trading isnt easy, investing isnt easy but if you do able to have that kind of grasps then you will be able to have that kind of opportunity to have a life on which it is something more better than before.

It is really just that basing up on how well you do get involved and learned up these things accordingly and not really just that easily gives up when you do face up challenges. It will really be depending into someones sustain and perseverance.

[Cryptohygenic]

Thank you for this article.
There are people who are both traders and investors. They are able to manage and balance both and there are people who are only traders and others only investors. It is not easy do both at the same time but if that is what works for you then fine.

That is a sure that there are certainly people who basically focus on investments while some others are rested on trading. It is just all about where they feel they are better off and also considering the risks of their financial managements and funding of the resources.
To me I think anyone who can trade can actually invest because trading has the utmost risk taking while investment is just of patient which can be a course of mere adaption (patient) that can't be compared to trading with the involvement of skills with a highily technical knowledge.
So I think there are also people who can navigate between both sides of investing and trading. It will just be matter of source generating the funds for the trades and also investing.

[Finestream]

But for me it's difficult --- not able to do both, therefore do not want to take more risk in trading especially those that use leverage, then it's better to invest with less risk, I don't even mind about patience because it's part of future profits.

Because in trading once lost more than $2000 in the past, therefore to decide to stop and not focus on trading anymore.

That's correct. Most people that I know who started with investing in bitcoin and decided to go into trading along side it maybe because they thought that have become competent and can manage the two usually end up giving one more attention than the other and they will eventually, give up one to focus completely on the other. And more often they leave trading to focus on investing, the safest option.

It’s really a great practice if one decides to invest and then later on start to risk in trading as well. Both can bring massive profits in the near future. However, not everyone has given the talent and ability to trade and endure those trading losses.

Some may be good on investing alone but have no sufficient knowledge and interest to continue with trading. I am talking on the newbies these days, as they rush on trading without long term preparation and end up leaving trading because they can’t bear with their losses anymore.

[$crypto$]

But for me it's difficult --- not able to do both, therefore do not want to take more risk in trading especially those that use leverage, then it's better to invest with less risk, I don't even mind about patience because it's part of future profits.

Because in trading once lost more than $2000 in the past, therefore to decide to stop and not focus on trading anymore.

That's correct. Most people that I know who started with investing in bitcoin and decided to go into trading along side it maybe because they thought that have become competent and can manage the two usually end up giving one more attention than the other and they will eventually, give up one to focus completely on the other. And more often they leave trading to focus on investing, the safest option.

I think it's fine to trade as a side income as long as you don't get too aggressive because the risk here is too big, which is a concern where they want to chase losses like gambling sometimes there are also traders who have this kind of thinking.

So just focus on one of them --- investment --- is much safer and risk-free if we don't sell it.

[Dr.Bitcoin_Strange]

For those that really have a professional skill in trading, they surely make more money more than investor but like you have already explained it, there's risk attached to trading and also to invest. In trading, you are not getting a passive income because you are working, making analysis, looking at the screen for long hours so that you can come up with good trades, but if you invest, you just site back and relax while your profit  is automatically growing. The waiting time might be long for you to get a certain profit but at least you are not stressing or doing any work to get your return on investment.
It's also possible that one can do both of them and management them efficiently, for example, someone can be a trader and at same time, investing and holding Bitcoin.

[jcojci]

But for me it's difficult --- not able to do both, therefore do not want to take more risk in trading especially those that use leverage, then it's better to invest with less risk, I don't even mind about patience because it's part of future profits.

Because in trading once lost more than $2000 in the past, therefore to decide to stop and not focus on trading anymore.

That's correct. Most people that I know who started with investing in bitcoin and decided to go into trading along side it maybe because they thought that have become competent and can manage the two usually end up giving one more attention than the other and they will eventually, give up one to focus completely on the other. And more often they leave trading to focus on investing, the safest option.

I think it's fine to trade as a side income as long as you don't get too aggressive because the risk here is too big, which is a concern where they want to chase losses like gambling sometimes there are also traders who have this kind of thinking.

So just focus on one of them --- investment --- is much safer and risk-free if we don't sell it.

And the important thing is they have a will to learn more details about trading and investment, if they want to do both. But if they think trading is so difficult for them, they don't have to force themselves and it is better to select investment. Most people leave the learning side without think that is the important thing.

I always suggest my friends who want to involve in Bitcoin by investing especially using DCA because that is not too difficult. But many of them interest with trading and try to learn it although I already tell them that it is not easy to have skill in trading. But they still want to try so I just let them know by themselves.

[Negotiation]

We need to strike a balance between the two I think it is easy to make money if you have good trading skills and understand the signals but it is true that trading is much more risky than investing because short term market changes and volatility can quickly lead you to financial losses. Successful trading requires in depth knowledge of technical analysis market trends and strategies. It can be time consuming and a bit complicated also both trading and investing have their own advantages and disadvantages if you want quick profits and are ready to take risks then trading may be good for you. And if you want long term financial stability and growth with low risk then investing may be a good option but it requires patience and a long wait.

[justdimin]

There are people who are both traders and investors. They are able to manage and balance both and there are people who are only traders and others only investors. It is not easy do both at the same time but if that is what works for you then fine.

Everyone want to shine at every possible methods to maximize the chances of multiplying their money which means everyone opt for both trading and investing but time will push almost all of them into investor category over the time. People with enough knowledge on money management turn into investor just after one or two attempt of being a trader and all others must be still trying out with their committed/disposable capital even after third failure. I mean, even basically we want to be both investor and trader, the market volatility never let anyone to remain a trader forever.

not able to do both, therefore do not want to take more risk in trading especially those that use leverage, then it's better to invest with less risk, I don't even mind about patience because it's part of future profits.

Even in spot markets, I could not sustain in trading; I could not image about the state of my capital with leverage. Patience is key everywhere, not just in investing, we could expect a cow to milk from day one since its birth.