Trading and long-term investing

[Z_MBFM]

In the new situation, we almost equate trading and investing. Trading and long-term investing are two completely different things, let us discuss these issues in detail below.

Buying a coin is not considered an investment, if a person buys a particular coin and sells it for some profit then it is considered trading. Investing is when you buy a reliable coin and try to hold it for a long time.

The difference between trading and long-term investing,
Since investment is planned for a long term, small changes in the market do not affect an investor, as a result of which the investor does not care much about this small fluctuation in the market. In this case, trading is different, the main purpose of trading is to earn a small amount of profit, to earn this small amount of profit, a trader always has to keep an eye on the changes in the market and when the trader thinks that the market has come down relatively now and he should buy a coin, he buys a coin and when the profit is as expected, he sells it. It is wrong to think that a trader will profit by trading, many times it is seen that a trader is facing a lot of money loss for a small amount of profit. Even if the market goes down a lot after investing in a long term plan, it is normal for an investor, but for a trader, a small dumping of the market can cause a lot of loss.

I don't really have much knowledge about Trading and investing but as a beginner in the learning stage I understand that trading and Investing are two different things although they still some things in common. Like being disciplined to stick to your plan and not panic sell whenever the market goes side ways.

The differences can be found in the level of risk that both carries. Trading is usually more risky than investing and also trading requires more market and technical analysis. Trading requires frequent transacting while investing involves buying and waiting. Trading requires more allocation of time while Investing requires less time allocation.

The difference between trading and long-term investing is that trading requires a lot of technical analysis, while long-term investing does not require much technical analysis, but requires patience and the ability to invest for the long term. Although trading can be done with any coin, long-term investment cannot be done with all types of coins, in this case, only top-tier coins such as Bitcoin and other low-risk coins like it should be done because they can recover their losses in the long run. But in a nutshell, trading is very risky, but holding is easy money.

[Joy- maker]

When you're talking about long-term investment which is to buy and hodli, it's not any reliable coin that's worth holding for long term because I only know bitcoin as the only reliable coin that can increase in value overtime which is the only way to benefit from bitcoin. You can trade shitcoins because they are for short term profit and gambling, don't make the mistake to trade your bitcoin because the price will be more valuable than what you sold it in future.

you have really made a very good point here and OP and others should take note of this point of yours, because long term investment just as you have said above is not all about buying reliable coins just as OP mentioned earlier, because that's misleading. because I don't see any coin that is reliable apart from bitcoin that have already proven showed how reliable it can be  and how it is store of value with potential returns.  bitcoin value increases with time so I see no reasons why someone who have seen the potentials in bitcoin will still be trading bitcoin instead of buying and hold for long term. Shitcoins are coins will should be trading and gambling with for short term profits, and when dealing with those shitcoins always stake money you can afford lose to prevent your mental health from getting affected.

[Webutxo]

I think that trading is a short time profit and soon will lead to depresion when you start to lose sometimes I consider it as gambling
I always stick to investing on coins constantly every time I have the chance to

I also made a thread about the method that I use to stack Bitcoins  https://bitcointalk.org/index.php?topic=5559800.msg65832383#msg65832383

How is this true. As far as trading is concern, it's can give you long term money and short term money. The long term is the immediate opportunity it brings to you as a trader, like it's easy to make money during bull market like we are in right now than for you to make in a bear market. Holding coin in a bear market can give you loss and trading can continue to give money in bear market because you can short the market and makes money easy peazy.

[The Cryptovator]

I prefer both trading and long-term investments as well. Trading will give you a regular income, and if the market becomes a dump after buying your coins, then just consider them long-term investments. Because selling at a loss doesn't make much sense, but you can sell when you can buy more at lower prices. However, for trading you should have skill and knowledge about it. For long-term investment, you just need to buy and wait for your target. Keep in mind, you should have a target of sales. Otherwise you can't even make money from long-term investments as well.

I am holding ETH; once upon a time it was above $4K, and again it was back to $1400 only. So just imagine if I sold at high, then I could buy it back, and my holdings would be 3X the previous amount. So we must have a target of sales to cash out our profits. On the other hand, I had bought ARB for trading purposes, but it dumped hard. Now I consider it as a long-term investment since I don't want to sell at a huge loss.

[Gost ms]

I think that trading is a short time profit and soon will lead to depresion when you start to lose sometimes I consider it as gambling
I always stick to investing on coins constantly every time I have the chance to

I also made a thread about the method that I use to stack Bitcoins  https://bitcointalk.org/index.php?topic=5559800.msg65832383#msg65832383

How is this true. As far as trading is concern, it's can give you long term money and short term money. The long term is the immediate opportunity it brings to you as a trader, like it's easy to make money during bull market like we are in right now than for you to make in a bear market. Holding coin in a bear market can give you loss and trading can continue to give money in bear market because you can short the market and makes money easy peazy.

You may be misunderstanding. Because long-term investment is for a long time, such as keeping your holding period for 2 to 3 cycles. Short-term investment is for a very short time, such as trading. For example, if you are trading, if you trade for 1 minute, if you take it up, if it is up for 1 minute, you will win, if it goes down, you will lose.

No one should ever do short-term investment or trading. There is a lot of risk in short-term investment or trading, in which the risk of losing your money is much higher. But in long-term investment, the possibility of losing your money is much less. Although the future results can never be determined by looking at the past. But from the past to the present, the value of Bitcoin has increased a lot after each cycle of Bitcoin, it cannot be wrong. And currently the demand for Bitcoin is increasing a lot.

[tabas]

Holding coin in a bear market can give you loss

That is paper loss if you're in a loss during the bear market. But it won't be an immediate lose as long as you're holding it. And by the time that you start selling it at that time, you'll have it considered as an actual lose. So as long as you're holding it, whether you want to trade or hold/invest for long term, you're only going to lose once you start dumping or selling it.

trading can continue to give money in bear market because you can short the market and makes money easy peazy.

Yes, trading doesn't really choose what status of the market is. As long as you're a regular trader, bulls or bears, you'll be able to make it and for the ones who does futures, that's how they could do more money by shorting.

[SOKO-DEKE]

It is wrong to think that a trader will profit by trading, many times it is seen that a trader is facing a lot of money loss for a small amount of profit. Even if the market goes down a lot after investing in a long term plan, it is normal for an investor, but for a trader, a small dumping of the market can cause a lot of loss.

Many don’t know how risky trading is. They think it’s easy to make quick money from it, and that is the reason why they are always eager to become traders without first seeking proper knowledge.in fact, I always feel that those who want quick money are the ones taking the biggest risks by becoming traders. Because why would I choose a path that will stress me and my brain, when I could choose an easier one with less risk?

Investment is much easier to deal with. Just buy Bitcoin with money you can afford to lose, or money you won’t need in the near future. Secure your wallet properly, and possibly, in the future, you might make a reasonable profit from your Bitcoin investment.It’s not that traders aren’t making money, but the chances of losing money in trading seem higher than making a profit especially for those who don’t have proper knowledge about trading not like Bitcoin investment that can be start with only basic knowledge.

[AprilioMP]

In the new situation, we almost equate trading and investing. Trading and long-term investing are two completely different things, let us discuss these issues in detail below.

Buying a coin is not considered an investment, if a person buys a particular coin and sells it for some profit then it is considered trading. Investing is when you buy a reliable coin and try to hold it for a long time.
-

Yes, trading and investing are two different sides of the coin, but many often consider them the same. Perhaps they're judged from the perspective of profit, which is the goal.
Trading activities, carried out by someone called a trader, involve buying at a certain price and selling at a time deemed appropriate for resale for a profit. It continues like this.

It's no surprise that in investing, there's something called the DCA method, which doesn't focus on price when making a purchase.
I bought coin A because I believed it had proven to be a good hedge, so the minimum timeframe I considered for selling it was 5 years, or one period, that's what I said.

[Publictalk792]

Difference between trading and long term investing is very important to know especially with crypto, where line is mostly blurred. Investing is to buy good asset and intend to hold it over long period of time, that is, you do not worry about small and temporary changes in prices. Trading however, involves constantly watching market to try to make small, fast money, which is quite hard job and very risky since one can easily lose large profit in short time with making bad decision. So trading is difficult game, risky game, whereas long term investing is easier way, which involves patience and trust in future value of asset to get rid of stress due to short term drop in market.

[De Gramor]

Difference between trading and long term investing is very important to know especially with crypto, where line is mostly blurred. Investing is to buy good asset and intend to hold it over long period of time, that is, you do not worry about small and temporary changes in prices. Trading however, involves constantly watching market to try to make small, fast money, which is quite hard job and very risky since one can easily lose large profit in short time with making bad decision. So trading is difficult game, risky game, whereas long term investing is easier way, which involves patience and trust in future value of asset to get rid of stress due to short term drop in market.

You made a clear point, long term investing and trading are two different things but all have same goals which is profits. In addition, trading is quite risky and it needs more attention, dedication, commitment and understanding than long term investing but when one sacrifice time and the focus into it then the market will favour such person and the rewards will be massive. But it needs much sacrifice than investing.
While investing is just little knowledge and understanding and one is likely to acquire good profits when invested in the right and proper pair. Investing can be said to be risky too but it has lesser risk than trading but to be honest both are reliable activities to practice.

[Callido]

If you decide to trade that means you accept the part where you have to give and receive because the market will always take from you, after your carefully predicted market outcome. Difference between trading and long term investment is that traders are liable to lose their capital, while investors who practice long term investing are only going to face market volatility (bear seasons) but they won't lose their capital, afterwards the price will return to normal and exceed the entry price.

Doing the comparison, it is safer and less risky committing to long term investing than trading, not many end up successful traders but every investor that hold unto their investment are going to make profits after the long period of holding.

[moneystery]

Simply put, it depends on the approach... trading and investing are two different things, if someone focuses more on short-term gains, then that's trading, but when someone looks at the fundamental value of an asset and plans to invest for a longer period, then that's investing.
Since many people don't understand the difference between trading and investing, and they sometimes confuse the two, what they say ends up being confusing to others.

[Rustam Meraj]

Simply put, it depends on the approach... trading and investing are two different things, if someone focuses more on short-term gains, then that's trading, but when someone looks at the fundamental value of an asset and plans to invest for a longer period, then that's investing.
Since many people don't understand the difference between trading and investing, and they sometimes confuse the two, what they say ends up being confusing to others.

Basic difference between trading and investing is time and goal trading is aimed at fast and short term money on changes of prices on daily or weekly basis, and it is more risky and needs constant watching of market. Investing is aimed at long term riches over many years or decades, and it is usually less risky as it is based on basic value and growth of asset. Confusion is because people tend to mix up the two terms so that person who says to invest but fears every small price drop is in fact trading and this misguides new people to think that real investing is stressful, full time job as opposed to patient, long term strategy.

[JunaidAzizi]

You are right, they are both two different games with different mindsets. In trading, a trader pays full attention to the screen, noticing every wave. He knows that if he misses anything, his account will be wiped out. It's a quick pay job where you can earn small profits in very short time periods. In long-term investment, you come only for investment and then leave it for certain time periods. The investor does not care about the swings in the market, he will only see when the time comes.

[Franctoshi]

In the new situation, we almost equate trading and investing. Trading and long-term investing are two completely different things, let us discuss these issues in detail below.

Buying a coin is not considered an investment, if a person buys a particular coin and sells it for some profit then it is considered trading. Investing is when you buy a reliable coin and try to hold it for a long time.

The difference between trading and long-term investing,
Since investment is planned for a long term, small changes in the market do not affect an investor, as a result of which the investor does not care much about this small fluctuation in the market. In this case, trading is different, the main purpose of trading is to earn a small amount of profit, to earn this small amount of profit, a trader always has to keep an eye on the changes in the market and when the trader thinks that the market has come down relatively now and he should buy a coin, he buys a coin and when the profit is as expected, he sells it. It is wrong to think that a trader will profit by trading, many times it is seen that a trader is facing a lot of money loss for a small amount of profit. Even if the market goes down a lot after investing in a long term plan, it is normal for an investor, but for a trader, a small dumping of the market can cause a lot of loss.

“Trading” and “investment” are two different words and can't be the same thing, even when it comes to their connotative and  denotative meanings. “Trading” is buying and selling, and in the digital world, it's buying and selling digital assets. Now, if you talk about investment, it's a different thing. When you talk about investment, you're talking about  long-term growth. It means you've done  proper research and have entrusted the system with your money before considering making an investment.

[Outhue]

I will advice you handle both trading and investing as a long term plan of making money, normally it will take years for investment to turn rewarding for you, and learning how to trade takes a long time too, if you rush things up you will pay for it, this is why it matters to have a job aside that will sort out your bills and also make room for some investment.

While you are slowly investing it is also a good time to start taking trading classes or courses too, these things take time and that's why we have too many newbies making wrong decision because they lack patience, they always want to make money as quick as possible, while many others are jobless and they feel crypto is a place to make steady income, nothing will come that easy.

[Rockstarguy]

It is wrong to think that a trader will profit by trading, many times it is seen that a trader is facing a lot of money loss for a small amount of profit. Even if the market goes down a lot after investing in a long term plan, it is normal for an investor, but for a trader, a small dumping of the market can cause a lot of loss.

Trading is still profitable, but there are tasks that need to be met before one can make a profit in trading. Trading is not as easy as some people think; a good understanding is required, but the problem many have in trading is that they just want to make money so quickly without being ready to learn. If you must trade, be ready to learn first before starting trading.

However, if you are not interested in the learning process, you can choose to go into Bitcoin investments, which only require you to understand the volatility of the market. Trading is long-term, so invest and make a profit while you hold.

[Judith87403]

I see no reasons why someone who have seen the potentials in bitcoin will still be trading bitcoin instead of buying and hold for long term. Shitcoins are coins will should be trading and gambling with for short term profits, and when dealing with those shitcoins always stake money you can afford lose to prevent your mental health from getting affected.

You shouldn't be surprised to see people trading with bitcoin, as a matter of fact the economy have make most people to sell thier patient. As alot of people are now showing much concern in something that can profit them within a space of time, and since they are aware of the potential of bitcoin they think trading with bitcoin is just the same as holding it for long term investment. But they seems to be mistaken bitcoin for those shitcoin, so the earlier they know that bitcoin is not like those meme / shitcoin that you will just wake up one day only for you to discover that you're 7- 8x in profit. The same way you will Wake up one day to discover that you have lost everything,  so while making any decision is god to think twice not just doing it because you're inquisitive to make profit. The future is more important than the profit we are going to get for short term investment.

[laspol65]

Even if the market goes down a lot after investing in a long term plan, it is normal for an investor, but for a trader, a small dumping of the market can cause a lot of loss.

It must be admitted that the risk in trading is very high, because people rely on trading to earn a little cash but this can be completely wrong if the market goes to the dumping stage. However, investing is the most wise thing, but I want to explain by investing in Bitcoin, those who invest in Bitcoin and do it for a long time are the only ones who show wisdom. But I have seen many people lose money in trading, and eventually face a lot of debt. I also compare trading to gambling.

[Lidger]

When you're talking about long-term investment which is to buy and hodli, it's not any reliable coin that's worth holding for long term because I only know bitcoin as the only reliable coin that can increase in value overtime which is the only way to benefit from bitcoin. You can trade shitcoins because they are for short term profit and gambling, don't make the mistake to trade your bitcoin because the price will be more valuable than what you sold it in future.

you have really made a very good point here and OP and others should take note of this point of yours, because long term investment just as you have said above is not all about buying reliable coins just as OP mentioned earlier, because that's misleading. because I don't see any coin that is reliable apart from bitcoin that have already proven showed how reliable it can be  and how it is store of value with potential returns.  bitcoin value increases with time so I see no reasons why someone who have seen the potentials in bitcoin will still be trading bitcoin instead of buying and hold for long term. Shitcoins are coins will should be trading and gambling with for short term profits, and when dealing with those shitcoins always stake money you can afford lose to prevent your mental health from getting affected.

Those who have a certain idea of investment will never accept any coin other than Bitcoin for investment because other coins have no trust. Sometimes an investor may think that if he invests in any coin other than Bitcoin, his profit may be relatively higher than Bitcoin, but this is a completely wrong idea. Many times we say that the rise and fall of other coins in the market depends on Bitcoin, but this is not actually the case. I have seen many times that when the price of Bitcoin increases, the price of other coins increases relatively slightly, but when there is some dumping in the Bitcoin market, other coins in the market experience a big collapse, which is a big problem for investors.
This is not the only problem, if we invest in other coins in the market, our money is not safe because those coins may disappear from the market or these coins may become useless, but then we will have no choice but to regret it.