Na di 2 ways to Financial Growth: Trading vs Investing

[Agbe]

I no 2 use local language for am and na only di 1st sentence. But you go enjoy am and like am.

When we come 2 di financial markets, weti dey be say either di path of trading or investing. Both strategies na geared towards making money, but are inherently different in their approach, time investment and risk. To make it easier for you to decide what may be the best path, let’s look into each of these professions individually.

TRADING
Trading is often likened to a high-speed race. It’s quick, intense, and calls for quick decision making. Traders seek to capitalize on short-term price fluctuations in assets such as stocks, currencies, or commodities. Trading is mostly about the short term and rarely about long term. Some traders, known as scalpers, hold positions for just seconds or minutes, aiming to profit from tiny price changes. Day traders buy and sell within the same day, while swing traders may hold positions for several days or weeks to capitalise on short-term trends.
Trading cares less about long-term asset value and more about the direction of the market right at the moment. This is the reason traders strongly rely on technical analysis, which is basically the study of price charts, patterns, and the use of tools like indicators, RSI (Relative Strength Index), Candle stick pattern, etc making traders prone to market volatilily which makes trading risky. Traders need strong emotional discipline to handle the heat of making split-second trading decisions that can lose them thousands of dollars in the blink of an eye.

Additionally, frequent buying and selling lead to higher transaction costs, with brokers including things like commissions, spreads, and fees which can eat into profits. These costs can add up quickly, making it essential for traders to factor them into their strategies. There is long term and short term Traders and short term Traders are more than long term Traders. More details as you read further. 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.

Pros of Trading
1.With trading, there is potential for traders to generate significant returns in a short period of time by capitalizing on market volatily
2.Traders can easily adapt to market changes and switched between different assets and strategies as they rely mostly on technical analysis
3.Unlike investing, which relies mostly on price appreciation, trading allows for profit in any market direction. This means that even in a bullish market, traders can sell, profiting from liquidity grabs (retracement) before trend continuation.
4.In trading, there is availability of leverage (borrowed money) which can amplify traders return in a successful trade.
5. They used risk management tools like Take Profit and Stop Loss (TP/SL).

Cons of Trading
1.Trading is riskier than investing because the market is basically engineered to prey on traders. Short term positions are vulnerable to stop hunts, fake breakouts and liquidity grabs
2.Trading requires significant time and effort because traders need a deep understanding of market dynamics to monitor market conditions and actively manage trades and also stay updated on news and events that will likely impact the market.
3.The fast-paced nature of trading can take a toll on traders emotions. FOMO(Fear Of Missing Out) and greed can cloud judgement and lead to impulsive actions.
4.While leverage can amplify potential profits, it also amplifies potential losses.

INVESTING
If trading is a sprint, investing is more of a marathon. A more deliberate path to wealth, a slower path, focusing on your long-term story(the bigger picture) than hoping for a giant one-off windfall.
Investing is always about the long term. Investors purchase assets like stocks, bonds, or real estate hoping they will rise in value with time often through the sheer power of basic math: compounding. They are willing to wait years or even decades making asset owners generally less exposed to market swings and so lower risk than trading. Value investors look for stocks that are undervalued, growth investors look for stocks with high growth potential, whereas dividend investors aim stocks with regular dividend payouts.
Investments rely heavily on fundamental analysis to make decisions and they do so by digging into a company’s financial statements, evaluating its management team and it’s position withing the industry.
Contrary to trading, investors are less likely to come under pressure. What they need is patience as they know that markets will inevitably experience ups and downs.
 Lastly, Investment requires less transactions which automatically leads to lesser fees thus making investment a cost effective option for low risk takers.

Pros of Investing
1.Investing is less risky when compared to trading as it focuses more on long-term growth without fear of market volatility.
2.Investing requires less active management than trading.
3.Most investments, such as dividend-paying stocks and bonds, generate passive income streams, providing a steady flow of cash.
4.Many investments, such as dividend-paying stocks and bonds, generate passive income streams, providing a steady flow of cash.
5.Profits from investments are typically taxed at a lower rate than ordinary income.

Cons of Investing
1.Investing typically generates slower returns than trading, as it relies on long-term growth rather than short-term price fluctuations.
2.While investments are considered more stable over trading, they're not completely free from the risk of losing value when overall market conditions are poor. Investors endure prolonged drawdowns, while traders can profit from both rising and falling markets.
3.Investing involves little to no leverage which can reduce potential returns when compared to trading.

Conclusion:
Bitcoin being a digital currency in the world has been used in the trading field for a very large scale but seconded to the US dollar in general. But from the perspective of the youth, bitcoin is the highest trading currency digitally. The profit is depends on the mathematical calculation of the trading. Mostly the tools.

Investment in the area of store of value Bitcoin is the highest even more than the US dollar because it is volatile and US dollar is stable coin. But it is the longevity of the investment that determines the investor's profit. You can still make profit within a short period of time but it will not huge as the long term investment.

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. investors also used DCA tool to lessing their burden/heavy investment at once.

Na di main board own bi dis Two Paths to Financial Growth: Trading vs Investing

[Agbe]

Reserve

[Charles-Tim]

1.With trading, there is potential for traders to generate significant returns in a short period of time by capitalizing on market volatile

The reason some people called trading as gambling is because of the risks it has. Trading is very risky to the extent that almost all traders are losing. It is better for some people to avoid trading and be patient and invest in bitcoin when the price has already fallen significantly than to trade and continue to lose. Although, some people are good traders but they are not many.

[Amphenomenon]

1.Trading is riskier than investing because the market is basically engineered to prey on traders. Short term positions are vulnerable to stop hunts, fake breakouts and liquidity grabs

In recent times especially now, when we are in uncertainty of if either we are still in the bull run or the bear season or no altcoin season and government notably Trump and his men manipulating the market. Traders are suffering, I'm often seeing huge amounts being liquidated and this is the reason I  often don't like leverage, better still high or mid leverage.

This is the reason many would rate fundamental analysis over technical analysis, including traders. Also, there are no risk management for lower capital traders trading with less than  $100. It will take a lot of patience not to be affected by the emotion to grow quickly especially after hitting a lost.

Investment is better in growing lower capital with time in order to avoid the risk of losing your entire funds with time. Especially since you can be buying more through DCA strategy (a method for investment).

[Hatchy]

1.With trading, there is potential for traders to generate significant returns in a short period of time by capitalizing on market volatile

The reason some people called trading as gambling is because of the risks it has. Trading is very risky to the extent that almost all traders are losing. It is better for some people to avoid trading and be patient and invest in bitcoin when the price has already fallen significantly than to trade and continue to lose. Although, some people are good traders but they are not many.

Almost all? I'll assume you mean 25% of traders are profitable while the remaining are still trying to archive consistency.. if you put it this way, I'll agree with you but not almost all traders are losing. Yes even big traders also loss to the market as well. It's a continuous circle. You give and take, the market also gives and takes from you.

what differentiate a profitable trader from a non profitable one is that he is able to minimise his loss over time and maximise his wins. One good trade can literally cover up your losses. That's why traders employs risk management plan.

[Charles-Tim]

Almost all? I'll assume you mean 25% of traders are profitable while the remaining are still trying to archive consistency.. if you put it this way, I'll agree with you but not almost all traders are losing.
One good trade can literally cover up your losses. That's why traders employs risk management plan.

3 to 20% according to many researches. But I doubt if the research that stated 20% is accurate.

I saw a research that m only 3% of traders continue to make money without losing while just 1% among them was able to predict the market accurately without using more strategies for profit.

Let us discuss more about crypto trading.
According to a Binance post in 2024, 90% of traders are losing. While 95% are losing money in 2025. I do not know how true this is, but I have seen something similar online elsewhere.

what differentiate a profitable trader from a non profitable one is that he is able to minimise his loss over time and maximise his wins. One good trade can literally cover up your losses. That's why traders employs risk management plan.

I often hear this but I have not seen a trader around me that is very good like this but I have seen holders that got lucky very well.

[Futurexxx]

1.With trading, there is potential for traders to generate significant returns in a short period of time by capitalizing on market volatile

The reason some people called trading as gambling is because of the risks it has. Trading is very risky to the extent that almost all traders are losing. It is better for some people to avoid trading and be patient and invest in bitcoin when the price has already fallen significantly than to trade and continue to lose. Although, some people are good traders but they are not many.

Almost all? I'll assume you mean 25% of traders are profitable while the remaining are still trying to archive consistency.. if you put it this way, I'll agree with you but not almost all traders are losing. Yes even big traders also loss to the market as well. It's a continuous circle. You give and take, the market also gives and takes from you.

what differentiate a profitable trader from a non profitable one is that he is able to minimise his loss over time and maximise his wins. One good trade can literally cover up your losses. That's why traders employs risk management plan.

Wetin you talk here no be lie, in as much as most of us dy here dy complain this or that say trading dy dangerous and risky, people still dy make am from am on the steady, because I know two to four people wey trading nai be their full time job, even though e no good to depends on trading alone, you need another source of income, so that you no go enter trade when you no surpose enter base on say you need money chap chap.

One major reason wey dy make traders lose money is that, them dy mostly enter trade blindly, without having a proper knowledge on technical and fundamental analysis, once them just watch one or two videos for YouTube, them go just conclude say them don Sabi, when the losing don dy on the steady, them go begin say trading be like gambling, wey I know say na lie, knowledge and self control is needed to succeed in trading while in gambling na just based on luck.

[Mehmet69]

1.With trading, there is potential for traders to generate significant returns in a short period of time by capitalizing on market volatile

The reason some people called trading as gambling is because of the risks it has. Trading is very risky to the extent that almost all traders are losing. It is better for some people to avoid trading and be patient and invest in bitcoin when the price has already fallen significantly than to trade and continue to lose. Although, some people are good traders but they are not many.

Of course I agree with you. Today's traders look like they are gambling, not trading. The only reason for this is that they lose money frequently. We all know that trading can be a very good source of income for an expert. But today's youth find this trading very easy. They start spending money on it without being an expert in any subject.

Nowadays a young man starts a trading with his family's money. To understand, his family members have to tell him that trading is only about profit and profit. There is no risk of losing money. But the reality is completely different when he loses his first trade. After that he is afraid to trade properly. He forgets what his mentor taught him. This is one of the reasons why common people compare trading with gambling.

To the new youth. Come out of the world of dreams and embrace reality. Even if it takes more time, get proper trading education.

[Promocodeudo]

The reason some people called trading as gambling is because of the risks it has. Trading is very risky to the extent that almost all traders are losing. It is better for some people to avoid trading and be patient and invest in bitcoin when the price has already fallen significantly than to trade and continue to lose. Although, some people are good traders but they are not many.

You're right on the reason why people compare trading to gambling, both activities has similar thing in comon, the risk invyolve in both activities is very high, as a matter of fact there's no assurance that your profit is assured, profit are in both stuffs by chance or will I say luck, yea there's a high possibility of losing in trading and gambling, I think there's no difference between the two, personally I think there's no need of individuals being too quick to make quick money in Bitcoin as such seeing trading as the means to achieve that.

Although people are entitled to their decision on whether to invest in Bitcoin for a long-term or to get involved in trading which we see as a short term investment, your suggestion is very good if buying when the price is down is what will prevent people from trading fine although am an advocate of buying all the time with DCA method without minding the price at any given time or period, I don't know much about trading and I don't think I to even get involved but what I know is that every trader has either lost or will definitely lose so I don't think there's anything like good trader though I stand to be corrected.

[Jaycoinz]

1.With trading, there is potential for traders to generate significant returns in a short period of time by capitalizing on market volatile

The reason some people called trading as gambling is because of the risks it has. Trading is very risky to the extent that almost all traders are losing. It is better for some people to avoid trading and be patient and invest in bitcoin when the price has already fallen significantly than to trade and continue to lose. Although, some people are good traders but they are not many.

Almost all? I'll assume you mean 25% of traders are profitable while the remaining are still trying to archive consistency.. if you put it this way, I'll agree with you but not almost all traders are losing. Yes even big traders also loss to the market as well. It's a continuous circle. You give and take, the market also gives and takes from you.

what differentiate a profitable trader from a non profitable one is that he is able to minimise his loss over time and maximise his wins. One good trade can literally cover up your losses. That's why traders employs risk management plan.

Wetin you talk here no be lie, in as much as most of us dy here dy complain this or that say trading dy dangerous and risky, people still dy make am from am on the steady, because I know two to four people wey trading nai be their full time job, even though e no good to depends on trading alone, you need another source of income, so that you no go enter trade when you no surpose enter base on say you need money chap chap.

One major reason wey dy make traders lose money is that, them dy mostly enter trade blindly, without having a proper knowledge on technical and fundamental analysis, once them just watch one or two videos for YouTube, them go just conclude say them don Sabi, when the losing don dy on the steady, them go begin say trading be like gambling, wey I know say na lie, knowledge and self control is needed to succeed in trading while in gambling na just based on luck.

For me trading na advance gambling wether we like am or not because you no go know until you put your hand involved. The most annoying thing na when all those traders dey claim say dem be expert and dem get super channels wey if you join them you go get better signals and before you know people go still join them and then lose my money well well for me I just believe say trading na gambling and if you join am na loses you go get at the end.

[Charles-Tim]

For me trading na advance gambling wether we like am or not because you no go know until you put your hand involved. The most annoying thing na when all those traders dey claim say dem be expert and dem get super channels wey if you join them you go get better signals and before you know people go still join them and then lose my money well well for me I just believe say trading na gambling and if you join am na loses you go get at the end.

Trading is not gambling.

In fact, betting is also not gambling.

You really need to know the differences between them all.

Trading is very risky like betting and gambling but it is not the same and it requires different approaches. An example are banks, they do not gamble or bet but they trade.

[BIT-BENDER]

Good work Op the post was very insightful and educative but I would love to add that There are still other was to financial growth beyond trading and investment in fact the two(traders and investors )are sidelines that hope for the best on this they have put their trust in so I ask how about entrepreneurs those who create idea sell it to the general public and if their ideas solves real life problems it blows up? Since many people see Bitcoin as an investment the. Satoshi who ever he is can be likened to an entrepreneur because he created something that helps people solve financial problems now everyone wants a bit there by making gains for the investors.

Being an entrepreneur may be difficult to some people but for sure it's a very good way to financial growth infact many of the billionaires around created something that helps solve problems.

[CryptoHeadlineNews]

For me trading na advance gambling wether we like am or not because you no go know until you put your hand involved. The most annoying thing na when all those traders dey claim say dem be expert and dem get super channels wey if you join them you go get better signals and before you know people go still join them and then lose my money well well for me I just believe say trading na gambling and if you join am na loses you go get at the end.

Trading is not gambling.

In fact, betting is also not gambling.

You really need to know the differences between them all.

So in a nutshell, what are we supposed to call "Betting" then, since you claimed that "Betting" is not gambling? Because base on my knowledge, I'm actually sure that gambling is the process or act of staking or betting something of value at a risk with the intention of winning getting a reward. And betting also involves staking of something of value, of which the individual also stands the chance of either losing or gaining too.

[Sonia_123]

The truth is that both trading and investment are risky, but the one that has the higher risk is trading. Trading cannot be compared to investment, for a low  hw can start with investment gradually until he grows, but a trader can't do that.
An investor always have several choice to make when he his adopting a strategy which will help him buildups his portfolio gradually and grow, in terms of using the DCA strategy mainly to accumulate as a beginner in the investment and holding for a long-term of 4 years to 10 years or more in as much as you are able to secure your backup funds like emergency funds and reserve funds, lump sum or even buying the dip,which will enable him grow faster without having much cash flow, the risk is minimal no matter how much you buy Bitcoin in as much as it is for a long-term it is always profitable.
Unlike trading there is no room for that,you either have enough money to trade or you forget about it and very high in risk .

[DaNNy001]

For me trading na advance gambling wether we like am or not because you no go know until you put your hand involved. The most annoying thing na when all those traders dey claim say dem be expert and dem get super channels wey if you join them you go get better signals and before you know people go still join them and then lose my money well well for me I just believe say trading na gambling and if you join am na loses you go get at the end.

Trading is not gambling.

In fact, betting is also not gambling.

You really need to know the differences between them all.

So in a nutshell, what are we supposed to call "Betting" then, since you claimed that "Betting" is not gambling? Because base on my knowledge, I'm actually sure that gambling is the process or act of staking or betting something of value at a risk with the intention of winning getting a reward. And betting also involves staking of something of value, of which the individual also stands the chance of either losing or gaining too.

Now that you have pointed this out, I think I will also like to be lectured on the difference between the two because this definition of yours is exactly what I know and term as gambling although I don't know which one of the word can be used to generalize the whole act  but am certain that both trading, gambling and betting are all on similar line although people claim thousands of time that it's not the same but it's a personal approach for so person and I believe for me it's just that all of them are way too risky than the rewards.

[Richbased]

Trading is not gambling.

In fact, betting is also not gambling.

You really need to know the differences between them all.

Trading is very risky like betting and gambling but it is not the same and it requires different approaches. An example are banks, they do not gamble or bet but they trade.

No matter how you try to differentiate between trading, betting and gambling they are all still driving at same thing which is that your chances of making profits from them is under probability, which means that profit and loss takes a balance in between. When we are talking about gambling, it means a game of chances we play for profits and it is even wrong to say that betting is not gambling. I can agree with you about trading not being gambling in the sense that if you apply the right techniques, you will make profits and even when you lose, there are high chances for you to enter another trade and make profits again but i vehemently object that betting is not gambling. What is betting? predicting and staking on outcome of events through chances for profit making, so how is it different from gambling sir?

[Charles-Tim]

What is betting? predicting and staking on outcome of events through chances for profit making, so how is it different from gambling?

Betting means two people, things or in teams (groups) are competing against each other and people are betting on it. That is not gambling.

Gambling is when you are gambling on games like the casino games. You are not betting that this or that person, thing or in teams will be the winner. No competition in gambling but you are just playing games but you are also risking your money for it.

That is the reason on gambling sites that sport betting are in different section other than casinos because they are different from casino games.

All these things have differences. People will not argue because many gambling sites are also betting sites. But trading is entirely different and not similar to both gambling and betting in any way that the risk.

[Salahmu]

For me trading na advance gambling wether we like am or not because you no go know until you put your hand involved. The most annoying thing na when all those traders dey claim say dem be expert and dem get super channels wey if you join them you go get better signals and before you know people go still join them and then lose my money well well for me I just believe say trading na gambling and if you join am na loses you go get at the end.

No mate trading is not an advance gambling and why do you think is an advanced gambling by the way?, was there any place you will wager in trading?, i no that we normally say they have similarities and that's true  because of the risk but we cannot leave that to presume it as advance, meanwhile we don't have to trade to no any relationship about them and besides a lot of persons that trades could have acknowledged it if it was true, though I no say na because of those plenty money way you say you done loss na in they make you think say na advance one, so actually you should have just said the losing experiences is why you are comparing it to advance gambling, however In gambling players are the ones providing results but in traditing a whole lot of things are the reason for any results.

[CryptopreneurBrainboss]

No matter how you try to differentiate between trading, betting and gambling they are all still driving at same thing which is that your chances of making profits from them is under probability, which means that profit and loss takes a balance in between.

What will say about investing then since it fits into your description of what trading and gambling is?. There's always going to be two options for everything and that's to either make profits or losses but this shouldn't fit them into the same category because they're different from eachother. To make it simple, betting is for sports while gambling is for casino but people misplaced the too. Trading and investing are two ways you can chase the bag but one has more pros than the other and that's the one I'll recommend. Chasing financial growth, your mindset should be set on investing as it gives you more free time to do other things than when you focus on trading that it takes alot of your physical time and messes with you psychologically

[Y3shot]

1.With trading, there is potential for traders to generate significant returns in a short period of time by capitalizing on market volatile

The reason some people called trading as gambling is because of the risks it has. Trading is very risky to the extent that almost all traders are losing. It is better for some people to avoid trading and be patient and invest in bitcoin when the price has already fallen significantly than to trade and continue to lose. Although, some people are good traders but they are not many.

Even with the risk involve in trading for me I think it is still different from gambling.  People who consider trading as gambling goes in with the gambling mindset just only relying on luck to make profit. I know in trading you can't take away luck, I mean to conclude as if their is no luck, of course their are lucks in trading but you can't rely on luck if you don't have understanding in trading. Relying on luck in trading it is just the same thing as one who is gambling. The knowledge a trader has in trading is what makes trading different from trading .