What difference is there between a Spot Trader and an Investor?

[Osas4real]

The reason for this question is that if a trader who trade on spots is left behind by the market in the case of price decline, that trader would be forced to HODL waiting for the market to recover before selling to make profit... And this is more like a short term investment thereby transforming the spot trader to an investor.... Because an investor buys and HODL either for a long term/short term duration.
So, do you think of more differences between these two or a Spot trader is more like a Jnr Investor?

[shinratensei_]

Like as you said some people who buy spot sometime get trapped and accidentally become investor. Honestly the term investor isn't that special. If you expect a capital growth from the asset you invested you are an investor. As simple as that.
Whether you accidentally become investor because you got whales dumping on your position or doing DCA for long term. You're an investor. I only think of traders as people who buy and set SL/TP though.

[Oshosondy]

The reason for this question is that if a trader who trade on spots is left behind by the market in the case of price decline, that trader would be forced to HODL waiting for the market to recover before selling to make profit... And this is more like a short term investment thereby transforming the spot trader to an investor.... Because an investor buys and HODL either for a long term/short term duration.
So, do you think of more differences between these two or a Spot trader is more like a Jnr Investor?

If you are opening and closing positions or converting stable coin to unstable coins and converting it back within few seconds to few minutes, that is scalping.

If you are opening and closing positions or converting stable coin to unstable coins and converting it back within hours to a day, that is day trading.

If you are opening and closing positions or converting stable coin to unstable coins and converting it back within some days to weeks, that is swing trading.

If it is getting to months like 3 to 6 months, that is short rer investment.

Six months and higher is long term investment.


Let me now answer your question

A person can be a trader or and an investor.

[AVE5]

Like as you said some people who buy spot sometime get trapped and accidentally become investor. Honestly the term investor isn't that special. If you expect a capital growth from the asset you invested you are an investor. As simple as that.
Whether you accidentally become investor because you got whales dumping on your position or doing DCA for long term. You're an investor. I only think of traders as people who buy and set SL/TP though.

Your points are clear. In the very simple term, spot traders buys and holds to sell at a tangible profits without being liquidated but if price swings against their expectations, they'd have to continue holding and keep spotting on the market in other to catch an interesting price before they sells.
They're not timely limited in their trading activities and when price volatilities hasn't been favorable to their wills, they've no choice than to hodl but yet inconsistent while they're being driven by Fomo. Those with good psychological composures may even Dca and genetically turns investors avoiding the risk of selling at lost

[Alphakilo]

The reason for this question is that if a trader who trade on spots is left behind by the market in the case of price decline, that trader would be forced to HODL waiting for the market to recover before selling to make profit... And this is more like a short term investment thereby transforming the spot trader to an investor.... Because an investor buys and HODL either for a long term/short term duration.
So, do you think of more differences between these two or a Spot trader is more like a Jnr Investor?

From my basic understanding I would differentiate both a spot trader and an investor by several factors and that includes that a spot trader is in the market for quick profit while the investor is in it for the journey not just the immediate returns.

Another difference has to do with the fact that a spot trader focuses more on the price hence why when the market drops, they wait until it rises before selling. While the investor would aim to focus more on the value of the asset they have invested in.

Lastly would be that the spot trader has risk tolerance for trades that have risks in quick gains and losses whereas the investor aims to build patience and discipline inorder to achieve their long term investment goals.

[tvplus006]

The reason for this question is that if a trader who trade on spots is left behind by the market in the case of price decline, that trader would be forced to HODL waiting for the market to recover before selling to make profit... And this is more like a short term investment thereby transforming the spot trader to an investor...

The trader goal is to make a profit in a short period of time, unlike an investor: who buys assets in the hope of making a profit due to a long-term price increase. For this reason, if the price moves in the opposite direction to the expectation, the trader closes such an order with a loss, rather than holding it for months or years.

[Mpamaegbu]

The reason for this question is that if a trader who trade on spots is left behind by the market in the case of price decline, that trader would be forced to HODL waiting for the market to recover before selling to make profit...

Such a person can conveniently be said to be unlucky as they became an investor by situation/condition. However, when that happens; the accidental investor won't be comfortable because not being able to sell off when they should will be tying down their funds for other trades they should be going into. Investment isn't done without proper planning for it. It's not something that happens haphazardly. Again, like I've argued on other threads that every investor is a trader. At every point of purchase and sell off, that's trading. I still stand to be contradicted. 

[programmer3666]

The reason for this question is that if a trader who trade on spots is left behind by the market in the case of price decline, that trader would be forced to HODL waiting for the market to recover before selling to make profit... And this is more like a short term investment thereby transforming the spot trader to an investor.... Because an investor buys and HODL either for a long term/short term duration.
So, do you think of more differences between these two or a Spot trader is more like a Jnr Investor?

well!! a spot trader & an investor may use the same market but their mindset is just completely different because a spot trader buys with the intention of selling soon like in days, weeks or even hours later their decisions are driven by short term price movements, charts and quick opportunities when the market goes against them and they are forced to hold, that is not investing!! it is just a trader stuck in a bad position but an investor on the other hand just buys with a long term conviction from the beginning they are not reacting to every dip they expect volatility and plan to hold for months or years!! their focus is growth, fundamentals and long term value not daily price swings

[Mrbluntzy]

So, do you think of more differences between these two or a Spot trader is more like a Jnr Investor?

The difference between both terms have already been defined by you and the example you gave also explains it. When an entity decides to put their money into anything that will return profits to them in a short or long term, that can be said an investment, so I would think that a trader is also investing his money but in a different method of predicting price movement to earn short term profits, while a holder is also some investing into coins, but expects profit after a long term. Both of them are investors but to be more specific when making reference, you should say a holder or a trader. Another explanation is that traders are scanning the market 24/7 to have a quick buy and a quick sell but holders are disciplined to stock their coins in a wallet for a long period of time without selling it.

[Perfectbaby]

There is no much difference between investor and trader because I have seen someone who has decided to invest on a particular for longer term and when he did, the coin pumped about 50x what he did immediately he noticed that was to sell off 70 percent of total holdings he has in his possession after taking quick profits. This shows that such person is equally a trader/investor because he has made quick profits from his investment within few days of buy that coin. Those who are known as traders are the people who are constantly selling and buy on a regular basis, then investors can be taken as those who buy and sells within months or yearly intervals. 

[Solosanz]

Personally someone can be call as a real trader if they able to trade with short or long position correctly.

Why? because we don't know where the market will move at and having a skill to trade short/long will make you able to make money in any condition unlike ordinary gamblers who make money when the market is bull.

Investor is someone who didn't sell their coins in some period of time.

[Frankolala]

A trader that later hodli his bitcoin because of market dip is a wise trader because he prefers to be patient and not to sell at loss. Only if he can extend that patience for 4 years, it will be good for him.

Six months and higher is long term investment.

I wouldn't consider anyone hodling bitcoin for six months as a long-term holder but a short-term hodler. You should be able to hold bitcoin for at least one circle before you can be considered to be a long-term hodler. Personally, I take from eight years and above as long-term hodler.

[Hamza2424]

The reason for this question is that if a trader who trade on spots is left behind by the market in the case of price decline, that trader would be forced to HODL waiting for the market to recover before selling to make profit... And this is more like a short term investment thereby transforming the spot trader to an investor.... Because an investor buys and HODL either for a long term/short term duration.
So, do you think of more differences between these two or a Spot trader is more like a Jnr Investor?

You are have a good question bro and to be clear, most traders uses stop loss so when they set a SL and price hit it, their trade closes and they don't have to hold the token anymore because that's what professional traders are doing they don't risk they don't hold or marry a coin they trade, they lose or make profit.

Now there come some tokens that they are holding for long term and they are also dcaing in it, so those tokens they invested as holders, but if they want to book short term profit they can do whatever they want it depends on the choice, no body is restricted to the functionality of one.

[Findingnemo]

An investor is nothing but a long-term trader. The only difference between trader and an investor is that their mindset, when someone say that I am becoming an investor then they will be ready to play the long games which will help them to be pateint when the market crashed terribly but as trader they might have to depend on the earnings from trading so even if their strategy to sell high is real they might be forced to sell at a loss.

[SmartGold01]

So, do you think of more differences between these two or a Spot trader is more like a Jnr Investor?

They are they are the same and as a matter of facts, investors are those who holds for years maybe like from 4 years above, we can call such people a long term investors or holders while those who holds for immediate profits can be liken as scalpers or swing traders those who takes profits from every little changes in the market. At same time can called them traders/investors who hold for a specific time frame to make little profits from the market changes.

[Issa56]

The reason for this question is that if a trader who trade on spots is left behind by the market in the case of price decline, that trader would be forced to HODL waiting for the market to recover before selling to make profit...

You should know that trading is completely different from holding. Traders always want to take their profits within a short period of time, but if you are investing, you know that you won’t be selling Wetin short period of time irrespective of the market condition.

When some traders enters the market, and the market goes against their trade, some might be holding for it to bounce back, but some traders might end up selling at loss. If you are a trader, immediately the market recovers you going to be selling, but if you are a holder, even if the market recovers, you won’t be selling.

[Stalker22]

A spot trader stuck holding the bag after a bad dip isnt an investor.  They are just a trader who messed up and is now hoping for good luck.

Failed their trade, ignored their stop-loss, and is now HODLing by accident out of sheer desperation to avoid realizing a loss.  Its ridiculous to even compare it to an investor.

[rbynxx]

The reason for this question is that if a trader who trade on spots is left behind by the market in the case of price decline, that trader would be forced to HODL waiting for the market to recover before selling to make profit... And this is more like a short term investment thereby transforming the spot trader to an investor.... Because an investor buys and HODL either for a long term/short term duration.
So, do you think of more differences between these two or a Spot trader is more like a Jnr Investor?

Traders are throw who trade whether what's the mood of the market. If someone was forced to HODL because they buy at spot, we can't really judge if they're an investor already considering there are traders like swing traders who keep their buys long term because they have target. There's a huge difference tbh because investors are in it long term while traders if they are spot or not, they'll flip it more like in the shorter term.

[Gaza13]

The difference only lies in the time for taking profits, whether it is a spot trader or a junior investor. For spot traders they are not just waiting for a market reversal to occur, but they also see quite significant opportunities if they buy or re-accumulate the assets at their lowest prices. Their main goal, as spot traders, is to capitalize on the fluctuations or volatility of the asset's price, whether daily, weekly, or monthly, without having to hold the asset for a long time, if they have already made a profit. And vice versa, while junior investors only focus on doubling the value of their investments over time, and don't really care about short term volatility.

[shield132]

The reason for this question is that if a trader who trade on spots is left behind by the market in the case of price decline, that trader would be forced to HODL waiting for the market to recover before selling to make profit... And this is more like a short term investment thereby transforming the spot trader to an investor.... Because an investor buys and HODL either for a long term/short term duration.
So, do you think of more differences between these two or a Spot trader is more like a Jnr Investor?

I'd call them accidental investors   Btw it's part of the trading and that's how I trade. At first, I was doing real spot trading, I was actively buying and selling but the market doesn't always go in the direction that you predict, so sometimes, instead of selling the coin at a lower price, it's better to forget it and hold it for years. Btw this applies mostly to Bitcoin, Eth and similar coins, not altcoins because altcoins are very unpredictable.

Btw trader might accidentally become an investor but that also indicates that he is not a trader at all, he is very bad at trading but an investor will not become a trader because investors hold long-term, for years. They frequently buy coins to hold more.