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

[BlackBoss_]

There is not much difference between spot traders and investors because here both parties buy a coin and hold it until they can make a profit. In case of investors, their investment period is very long but in case of traders it is not long. Trader has an objective that he will sell it if he gets some profit. But investors think of a very large amount of profit due to which they do not sell it easily. Holding period is less and more, this is basically the only difference between traders and investors. But the objective of both is the same which is to generate profit from there

They both can hold their bitcoins but how long they are able to hold their coins makes difference. Investors are more likely as as holders while traders don't plan to become investors or holders. It started with how they spent money, how they purchased bitcoins, and it decides how they will be able or not be able to hold their bitcoins later.

If they began with bad financial and risk management, even with spot trading they will have less possibility to hold their bitcoins a long time as same as investors or holders with better financial and risk management. If your finance is at risk, you will have to sell your bitcoin no matter how you began as an investor or trader.

[jostorres]

There is not much difference between spot traders and investors because here both parties buy a coin and hold it until they can make a profit. In case of investors, their investment period is very long but in case of traders it is not long. Trader has an objective that he will sell it if he gets some profit. But investors think of a very large amount of profit due to which they do not sell it easily. Holding period is less and more, this is basically the only difference between traders and investors. But the objective of both is the same which is to generate profit from there

The difference isn't just the time, it's the act itself. I have said before that traders are only there for a quick profit and look at the charts for it, whereas investors look at the whitepaper and how it is perceived. So, if you are looking at a chart, the candles, and make a decision based on that then you are a trader, of course time is important too because if you buy something today and sell it tomorrow that is trading and not investing, but that is not the only way to be a trader.

[Uruhara]

I believe that holders are always successful in the run than traders be it a spot or a future trader. Combining both method is good and that's if you wouldn't turn to a trader finally due to the losses you will experience in the market, uou might start tapping into your investment to trade. The volatile nature of the market makes trading veey risky.

In Bitcoin, holders will always win. However, in altcoins, this is not necessarily the case. Trading does indeed carry greater risks, even though it has the potential to generate quick profits, unlike long-term investments, which only yield profits in the long run or require a considerable amount of time.

Trading sometimes brings more losses to those who cannot properly control their own trades. Such as those who don't even know how to use stop-loss in risk management. They are usually those who initially buy at spot prices and then the price drops, leaving them holding assets that may not necessarily rise again, which is very risky and can lead to even greater losses. Traders should use stop losses or cut losses at a predetermined percentage. Unless we are confident that the asset will rise again, then holding it until the price rises again is indeed a better move.

[Frankolala]

Trading sometimes brings more losses to those who cannot properly control their own trades. Such as those who don't even know how to use stop-loss in risk management. They are usually those who initially buy at spot prices and then the price drops, leaving them holding assets that may not necessarily rise again, which is very risky and can lead to even greater losses. Traders should use stop losses or cut losses at a predetermined percentage. Unless we are confident that the asset will rise again, then holding it until the price rises again is indeed a better move.

Using stop loss will only limit your losses. You shouldn't forget that stop llss also has its own disadvantages. For instance, if you have already used stop loss and the price goes in reverse, you have already lost out. I think only bitcoin can give me that confidence of rising again in price after a dip and not altcoins.

[bangjoe]

Trading sometimes brings more losses to those who cannot properly control their own trades. Such as those who don't even know how to use stop-loss in risk management. They are usually those who initially buy at spot prices and then the price drops, leaving them holding assets that may not necessarily rise again, which is very risky and can lead to even greater losses. Traders should use stop losses or cut losses at a predetermined percentage. Unless we are confident that the asset will rise again, then holding it until the price rises again is indeed a better move.

Using stop loss will only limit your losses. You shouldn't forget that stop llss also has its own disadvantages. For instance, if you have already used stop loss and the price goes in reverse, you have already lost out. I think only bitcoin can give me that confidence of rising again in price after a dip and not altcoins.

It doesn't matter whether the price can reverse or not, the most important thing is to have a stop loss that is outside the scenario that was formed when the price reversed after our SL position was taken, but you also have to understand why this could happen and must be accepted because it is appropriate to have risk management and loss targets as limits.

There are no other words other than having to stick to bitcoin, altcoins are only a complement, you should understand that too, most of the altcoins cannot grow any better in the long term.

[tvplus006]

...I think only bitcoin can give me that confidence of rising again in price after a dip and not altcoins.

Yes, historically this is exactly what happens. But we should not forget that sometimes you will have to wait several years for this. That is why the price at which we buy is important, so that it does not happen that bitcoin was bought at the highest price, after which the trend changed to a bearish one.

[Rubuchi]

Trading sometimes brings more losses to those who cannot properly control their own trades. Such as those who don't even know how to use stop-loss in risk management. They are usually those who initially buy at spot prices and then the price drops, leaving them holding assets that may not necessarily rise again, which is very risky and can lead to even greater losses. Traders should use stop losses or cut losses at a predetermined percentage. Unless we are confident that the asset will rise again, then holding it until the price rises again is indeed a better move.

Using stop loss will only limit your losses. You shouldn't forget that stop llss also has its own disadvantages. For instance, if you have already used stop loss and the price goes in reverse, you have already lost out. I think only bitcoin can give me that confidence of rising again in price after a dip and not altcoins.

so advisably we should not be putting stop loss to our tradings unless it is bitcoin trading? My friend of mine is still using stop loss for most of the his trades and he is not complaining about it because he always says he has put everything into calculations so once it hits that calculated profit or calculated risk (loss) the system ends the trade.

[Barikui1]

So advisably we should not be putting stop loss to our tradings unless it is bitcoin trading? My friend of mine is still using stop loss for most of the his trades and he is not complaining about it because he always says he has put everything into calculations so once it hits that calculated profit or calculated risk (loss) the system ends the trade.

When you trading without utilizing stop loss or using an amount you can easily afford to lose, you are taking a dangerous risk that wouldn't end well if it goes against you, because no matter how good you are in trading, utilizing a risk management strategy is very important, if not, you will likely not stay long in the market because the market can easily turn against you very quick. So that your friends that are trading without stop loss, if they are not using an amount they can easily afford to lose, they will regret their actions in the nearest future because managing your risk properly is the only you stay long in the market regardless of you being profitable or not.