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

[ancafe]

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..

[Furball808]

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.

[tygeade]

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]

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.

[Awaklara]

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.

[Floxynice]

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.

[hafiztalha]

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.

Spot traders are the persons who are actively trading the token in which they deposit their Money and they want to earn money on daily basis because they are using different techniques and they are learning by losing their money because no one can learn spot trading with losing the money and if person is losing his money and he is stick on that trading  , he will apply different things And he will learn from many courses and those people who are successful in trading ,they will teach him more in less time .If person is want to get money on daily basis then there us risky path but people who are motivated and has no tension of money, they are earning or losing in a day and they are in credit due to their good mindset but investors have to invest more to get more money from the investment.

[PX-Z]

Investor is someone that hold an asset for long term period, spot trader on the other side depends if you use spot trader to set a price with higher price or low for you to buy or sell. Like if price is at $95k and you set the selling price to $195k then i guess you will be considered as investors too. Well, that's just a sample, but if you  regularly trade on spot so obviously, it's not an investors doing.

[Finebone]

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

A trader will always act like a trader because his aim is for the price of the asset he bought to increase and surpass the point he bought it from, and he will sell within a blink of an eye, but a real investor is only thinking long term, even though at the beginning the value of Bitcoin rose and his profit is already too enticing, he will never sell, because he knows that the value of his asset will skyrocket even more if he can hold it for years.
A real investor will mostly sell when his investment targets has been reached, not like a trader that walks away with profit once he feels ok with the profit gis investment has already given him.

[gunhell16]

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?

Even if we say you're left behind as a trader, you can't really be called a loser. While it's true that the only choice for investors may be to wait again, they only truly lose if they sell at a loss.
As long as you don't sell even if the value of the coin you're holding declines you haven't locked in a loss.

Just remember, as I’ve said before: as long as you don’t sell your crypto holdings, there’s still a high chance you’ll eventually profit. It will just take time, requiring patience
as you wait for the right conditions to unfold.

[Lanatsa]

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?

Even if we say you're left behind as a trader, you can't really be called a loser. While it's true that the only choice for investors may be to wait again, they only truly lose if they sell at a loss.
As long as you don't sell even if the value of the coin you're holding declines you haven't locked in a loss.

Just remember, as I’ve said before: as long as you don’t sell your crypto holdings, there’s still a high chance you’ll eventually profit. It will just take time, requiring patience
as you wait for the right conditions to unfold.

Spot traders and investors may look similar from a distance because both buy assets and hold them for a while but the real difference lies in their intentions mindset and time horizon a spot trader enters the market with a plan to profit from short term price movements they buy low and sell high within days or weeks depending on how the market behaves once they are caught in a decline they might be forced to hold their positions which temporarily makes them resemble investors but that’s only circumstantial and not by strategy.

An investor on the other hand enters with a completely different purpose they are not chasing quick profits but long term growth their main focus is on the potential of the asset over months or years they rely on fundamentals rather than daily charts or short term technical analysis their emotional state is also different a trader might panic when prices drop because short term volatility directly affects their capital flow while an investor sees the same drop as an opportunity to accumulate more knowing the long term trend will correct itself. The interesting thing is that sometimes a spot trader unintentionally becomes an investor when the market dips and they decide to wait it out this doesn’t mean they’ve completely changed their identity it only means they’ve adapted to market conditions to avoid losses it’s one of the natural transitions in the trading world when you realize that patience can sometimes save your portfolio.

[Josefjix]

A trader that accidentally becomes a holder when the price got dipped while waiting for upliftment is not an investor but a spot trader no matter the time it takes to gain profits.

An investor doesn't care about the price movement but purchases at every dip as much as he can, while waiting for a longer period of years to take profits depending on the agreement he made within himself.

No much differences, time of taking profit determines the difference between spot traders and investors. Investors might be in profits but decidea not to sell because target is not reached yet, but spot traders do the opposite and TP immediately.

[sokani]

~

An investment does not necessarily need to be held for long before it's called an investment. So, in my own opinion, spot traders are investors since their objectives is to make profit, and they are doing just that. The frequency at which spot traders conclude their trades shouldn't be used as a determining factor why they shouldn't be called investors.

[Franctoshi]

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 buys and hold coin with the aim of earning some profits within any given period of time you're already an investor for either short term, midterm or long term, They're all investors and it doesn't matter where you bought yours spot market, P2P, centralised and decentralised exchange, but what differentiate this investor from the other and their profit potentials are based on the duration of time that each of them are able to hold their investment portfolios.

[el kaka22]

Spot is type of trading, investor is usually length of trading. Meaning, if you buy something on spot trade now and sell it at night you are a short term trader, and if you buy it now and sell it a week later you are a trader, if you buy now but hold it for 5 years and sell later than you are an investor, all the same spot trading method. It means, you can be a spot trader while also being an investor, as long as you keep the distance between buying and selling very long.

However, what people usually mean when they say spot trader is a trader, someone who buys and sells within a week, so that they can make a quick profit ,instead of waiting for years to make a profit. Both are legit ways of making money if you know how to do it.

[jostorres]

If you buys and hold coin with the aim of earning some profits within any given period of time you're already an investor for either short term, midterm or long term, They're all investors and it doesn't matter where you bought yours spot market, P2P, centralised and decentralised exchange, but what differentiate this investor from the other and their profit potentials are based on the duration of time that each of them are able to hold their investment portfolios.

Even if a trader holds a position for mid or long term, he will still be considered as a trader and not investor because he will be ready to sell his position anytime he sees profit on his portfolio.

While an investor is prepared to hold the position for a really long time and will not consider closing his position just because he is able to see some profits. I think that is what differentiates a trader from investor. Investors are usually long term holders who will not really care about short term profits while traders will be running behind profit always and will instantly make their decision to close the position and book some profits.

Real debate here should be, who is the one making most of the profits? I think traders are able to make most profits as they are more active as compared to the investor. Even investors can make good profits with minimum risk but their profits will still be smaller as compared to the trader who was able to take higher risks.

[bigimann]

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.

Good points @OSAS4REAL, I'll like to add a little to what you have said.

The difference between a spot trader and an investor is simple and clear. A spot trader and an investor may use the same market, but their mindset is different. A trader focuses on short-term moves and accepts losses when the market flips. An investor plans for years, not days. When a trader is forced to hold, that’s usually a sign of poor risk management, not investing.

[traderethereum]

Traders spot is like a short term investor waiting for a while until the price increases again. They don't mind holding the coin but many traders can't predict what will happen to the coin. No one knows what will happen so if you want to trade, you should be careful in analyzing and trusting what others say.

Becoming short term investors is okay because you are waiting for the market to change direction so you can sell the coin at a profit.