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Author Topic: What difference is there between a Spot Trader and an Investor?  (Read 167 times)
ancafe
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November 15, 2025, 12:13:50 PM
 #21

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?
Spot traders buy and sell their assets to profit, but sometimes this doesn't work out well because the coin price may drop midway through, forcing them to wait for the price to rise again to profit. Investors generally buy and hold assets for the long term, according to their own strategies, hoping to achieve substantial returns from their investments. Like most Bitcoin investors, most buy and hold assets until Bitcoin reaches its next all-time high (ATH), as that's a common investment move.

This is my view, although others may have differing perspectives on the question. I believe that every individual can be a trader or investor with different styles and approaches, depending on how their positions can be profitable. From various perspectives, perhaps what most people desire most, whether they are investors, spot traders, or otherwise is profit..

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Furball808
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November 15, 2025, 12:24:33 PM
 #22

Does it matter what has he become? Originally, he is a spot trader and he categorizes himself as such. He embodies the principles of a spot trader and just because he is caught or trapped in an unideal situation doesn't make him an investor imo because it is just temporary and he would surely go back to spot trading once an opportunity opens up.
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November 15, 2025, 01:23:30 PM
 #23

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?
Investors are checking the fundamentals whereas traders do check only technical things. A short term investor will look for favourable trend to continue but investors will not mind the changes in trend and will ensure about no changes in fundamentals. This way short term investors are still traders because they will not bear a change in trend but investors will continue regardless of changes in trend.

Traders can be targeting to book profits within minutes or hours or a day or weeks or months. But, investors believe into the future so they will take years to book profits. You can still assume that investors are long term traders but never checking any technical things.

palle11
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November 15, 2025, 02:17:01 PM
 #24

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?

It is explained already by you from what you have seen from the volatility of the market. The names may not matter again from the direction of the market or from what is happening in the market. As we know it, a spot trader expects to sell or buy from short market movement like a daily trader but it is different from an investor. An investor looks at the market holistically using news, emotional sentiment and fundamentals of the market including companies who are coming in or going out of the market to decide the range of their hodling time. So if a spot trader is trapped, he hodls back, at such time may be considered as a short time investor pending when the price comes back to his range. But it might also be longer causing him serious losses.

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Awaklara
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November 15, 2025, 03:59:09 PM
 #25

So, do you think of more differences between these two or a Spot trader is more like a Jnr Investor?
In terms of planning, it is definitely different. Although short-term traders might temporarily hold the coins they trade, I think they would not make long-term plans. When there is a possibility of the price returning to the purchase price, there is the consideration to sell even if they do not make a profit. Traders will pay more attention to holding time and tend to perform short-term analysis or speculation, setting a selling price to minimize losses. 

The goal might be the same, which is to make a profit over a certain period. But in terms of planning, of course, it is different.

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Floxynice
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November 15, 2025, 04:39:15 PM
 #26

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?
Everything here is centered on the intentions and plans of both the investor and the trader. We both know that the intentions are different, a single situation where the trader gets caught up in the dip does not make him an investor overnight, hodling a little longer is just his way of trying to manage risks to avoid losses. Yea, it just means that their trade did not go as planned, so the short term hodling is a way of trying to fix it. That is what we call strategy.

The intention of the spot trader is to take advantage of price movements at any point; he does not expect dips to meet him along the way. But the investor on the other hand mostly focuses on long time values. Investors know themselves and will never think that they are traders.

R


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