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

[TheUltraElite]

Spot traders become investors for the long term, it is how the system is. It is safer and carries less risk.

Compare that to non-spot trading, those trading methods are essentially gambling. Your luck runs out, you will lose money. At least in spot trading you still hold the asset in your custody, with possibility of better prices in future.

Short term investing does not really work out. Its more of day trading.

[fullhdpixel]

Spot traders become investors for the long term, it is how the system is. It is safer and carries less risk.

Compare that to non-spot trading, those trading methods are essentially gambling. Your luck runs out, you will lose money. At least in spot trading you still hold the asset in your custody, with possibility of better prices in future.

Short term investing does not really work out. Its more of day trading.

Yeah, I agree. Even traders are investors somewhere. Trading can be considered as investing just the duration flickers here. Long term investors usually are able to mitigate the risk of taking loss for shorter duration. They mostly end up in profits as their investments are meant for longer duration and they will not worry about the short comings. On the other hand, trader will be the one who will constantly keep on buying and selling and often is prone to have loss or profits sometimes. They are the ones who mostly take the risk but also are able to make profit.

Trader and investor might seen different but some functionalities might be the same. Every trader can become an investor just by holding their positions but not every investor can become a trader.

[jcojci]

That will not be a problem if you hodl the coin for a while after you buy it. I often do this especially if the price is unstable because it will likely increase later. Spot traders can transform into short term investors by hodling the coin until the price increases so they can sell at a profit. I don't know the term for that or the differences because those traders can be flexible with the current situation and will not have a problem continuing to trade other coins. They wait for a while and if they see the price start to go up, they will pay attention and prepare to sell.

[zaim7413]

Basically, Spot traders and Investors have differences such as goals, strategies, and timeframes. It is also not uncommon for Spot traders to change strategies and become investors due to uncertain market conditions in the hope that Bitcoin value will increase over time. The loss factor is the main reason why spot traders decide to change their strategy to become investors to reduce risk, another reason may be market optimism that makes them decide to change their strategy to become investors such as changes in trends towards the better or market volatility. Even though they both have different goals and strategies, they have the same goal "both expect profit".

[Inwestour]

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?

There is a difference because a trader does not buy for such a long period and can set a stop loss that will take them out of the trade. An investor initially buys for a long term hold, and is ready for any market fluctuations, including the price going lower, where they will buy more. In the case of a trader, this would mean averaging the price and getting forced to stay stuck in the asset, and traders do not like that. In my opinion, it is better to exit a trade at the stop and make a few more trades rather than get stuck in an asset and wait for months or years for a convenient moment to exit.

[Wildwest]

That will not be a problem if you hodl the coin for a while after you buy it. I often do this especially if the price is unstable because it will likely increase later. Spot traders can transform into short term investors by hodling the coin until the price increases so they can sell at a profit. I don't know the term for that or the differences because those traders can be flexible with the current situation and will not have a problem continuing to trade other coins. They wait for a while and if they see the price start to go up, they will pay attention and prepare to sell.

Storing coins in large amounts must consider the goals and strategies we need to think about the direction of sports trading or investors and see the time after buying them. In more detail, the spot trader strategy is the same as most traders who flexibly wait for the price to fall, collect more coins and when it rises, sell them.
Talking about investors, they do not trade coins but store large amounts and release them at the right time with a long-term duration.

[Leahized]

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?

There are many differences between spot traders and investors. Usually spot traders trade for a very short period of time and analyze any coin in such a way that it will pump in a very short period of time. In a word, they never think long-term and they think that pumping a very small amount will sell them. However, those who do spot trade often face losses because the market is not always like their analyses. On the other hand, those who invest, always think long-term and their money amount is very high. Yes, it is true that many times the coin has to be held for a few days due to market decline. In such a situation, traders often sell coins at a loss.

[Woodie]

I think this is self explanatory...

A spot trader is one that's getting asset's at market price for short term use ( and usually buying or selling), while an investor by default they are usually known buying assets for long term use as they are pumping in liquidity into a market or commodity.

In traders terms this is like saying a spot trader is a day trader while an investor is a swing trader.

[sana54210]

There are many differences between spot traders and investors. Usually spot traders trade for a very short period of time and analyze any coin in such a way that it will pump in a very short period of time. In a word, they never think long-term and they think that pumping a very small amount will sell them. However, those who do spot trade often face losses because the market is not always like their analyses. On the other hand, those who invest, always think long-term and their money amount is very high. Yes, it is true that many times the coin has to be held for a few days due to market decline. In such a situation, traders often sell coins at a loss.

Even investors can make a decisions to sell their coin in case there is a decline. Does this make the investors fall under the category of a trader? I think it might because the investors too might have to make an impulsive decision to keep his investments safe.

In most of the cases, investors will simply invest in any asset and look at it as a long term growth by not checking the investments that often but for certain assets they might have to check the market regularities and might have to take decisions of selling or sometimes adding more to their positions. I think traders and investors possess similar qualities when it comes to investments. Even a trader can be an investors because not all of his holdings will be for short term. He will definitely have some or other holding which he is holding for a longer term.

[Abu-Naim]

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 can also be referred to as investors simply because when they buy coin, it is automatically an investment, they did that because of profit, same as investors who invested in something to make profit from the investment.
Sport traders can be referred to as short term investors who settle for small profit, they are always at alert checking market, monitoring coins in order to get where they can invest in for short term profits, and whenever the market go otherwise, they keep holding the coin until the price bounce back completely before they sell the coin.

The main topic that should be asked is between spot traders and future traders which we know that future traders get liquidated at some point.

[doomloop]

Storing coins in large amounts must consider the goals and strategies we need to think about the direction of sports trading or investors and see the time after buying them. In more detail, the spot trader strategy is the same as most traders who flexibly wait for the price to fall, collect more coins and when it rises, sell them.
Talking about investors, they do not trade coins but store large amounts and release them at the right time with a long-term duration.

What investors do can still be considered as trading. Trading is nothing but buying and selling simultaneously. The term here does not determine if the person is a trader or an investor. There are long term traders who will buy coins and wait for a couple of months or maybe a year before they can sell their coins. This will consider them as an investor because they are holding onto their orders for a longer duration.

Even investors might sell their positions sooner if they see good profit coming their way and if they predict the future can be rough. They would prefer selling their holdings and wait for a good time to enter the markets again.

Traders usually take the risk to constantly monitor the market and make changes with their orders. Investors will mitigate this risk by keeping their orders open for a longer term.

[Dickiy]

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.

I agree with you, and when talking about the actual goal, both have the same goal, which is to gain profit, but perhaps with different methods and approaches. Simply put, traders seek short-term profits while investors seek long-term profits. The difference is that a trader must close his position when his prediction is wrong and then reopen the position to seek new profits, while investors do not experience too much market fluctuation because their accumulation is done in the long term.

[NewRanger]

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?

Have you ever seen behavior in that situation? Now, try putting yourself in that position when the BTC price has dropped $86,000 like it has now, and then, let's say, it just pumps up to 90,000. What decision would you make: sell or hold?

Of course, it looks similar, but there are fundamental differences between the two that become very clear when market conditions reverse.

1. Those without a long-term plan automatically take profits and exit, then re-enter if a further correction occurs.
2. For those with a long-term plan, as usual, relax and stick with the plan.

There's also a positive aspect to your statement: there's still a desire to hold on, at least until your capital is recovered. This is the danger of buying at the highest price, potentially causing significant losses, and then, frustrated by ongoing market pressure, taking a shortcut by selling at the current low. However, if you've read the signal for a further correction early, and at the same time, seeing your assets only drop 2%, decide to exit first and re-enter later, you're smart enough to minimize losses rather than being stuck and waiting another week for the market to recover.

[Bitcoin_people]

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 trading and investor are two different jobs but when a trader gets stuck due to market volatility then if he waits for a long time then we can definitely call him a junior investor. The mindset of investors is very different and they always plan for the long term and try to hold the investment, moreover they hold it with enough skill and knowledge and experience. But it is not possible for a trader to do this rather he does not plan for the long term rather he enters the market minutes hours and days but an investor enters the market months or years. However we know that a trader may have the behavior of an investor but his mentality and strategy will never be the same as the main investor so of course the difference between the two is different.

[abaeze]

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?

Most spot traders become investors at some point, this is the way or system to become an investor from a spot trader. However, without a long-term plan, you cannot get the real benefits of direct investment or become a real investor. Futures or margin trading uses leverage, so the risk is higher than spot trading, so short-term investment is not really effective.

[Joy- maker]

Although I have read some persons comment here and those comments doesn't really seat well with me, why because they said that there are no different between an investor and a spot trader. Well  I won't argue much, because the difference is clear, yet some person's here have refused to acknowledge it. now I will tell you guys the difference between a trader and an investor, because you can't call a trader an investor,  the distinction is clear even if a trader decide to hold the asset he or she is trading due to decline in price for some days. and what is difference between  traders and an investor's? the distinction is mainly about the approach and goals. so their mindset is what makes them different, traders focus on short term gain and not long term gain, traders often buy and sell crypto asset frequently and this is just within a minute an hour and a day. while investors  are people with longer view they buy assets and hold, let's say for a month, six months, a year, and even a decades.

[tvplus006]

Spot traders become investors for the long term, it is how the system is...

The main thing is that such a transformation should not occur due to the trader's mistakes, when, when the price drops, he decides not to close the position, fixing the loss, after which he has to hold the order for months, and sometimes even years, and thereby turn into an investor.

[fighter2627]

Logically speaking, based on the research I’ve done, you can’t really be a spot trader if you’re not an investor. But when comparing futures trade to spot trade, there’s a big difference between them. And from what I’ve observed, the level of risk is higher in futures compared to spot trading, which is not as risky.

So, if a person is a newbie like me who is still learning about crypto trading, it’s better to start with spot trading first. It’s hard to gamble in futures when your knowledge in trading isn’t
that broad yet. I’m really just in the studying phase right now, and I’m not actually in a hurry.

[HONDACD125]

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?

A wise spot trader will never let their whole capital get stuck at a single trade; they will either have a stop-loss with their trade if they have used a big chunk of their capital, or they will simply use only a percentage of their total capital in a single trade, so that if the market goes against them, they should have money to make more trades and don't have to just wait for the market to recover for them to have their money unstuck so that they can start trading again.

Only those who are inexperienced and have less knowledge and no proper planning will get their capital stuck in spot trading, and then have to wait until the market gets back up. I used to make the same mistake initially, because I was inexperienced, and I used to use the whole capital on a single trade only so that I could get higher profits, but I wasn't thinking about the negative aspect of it, and never thought that the market could drop as well, and that could get me in trouble.

So yeah, a trader is a trader, but a trader should be able to manage these things efficiently to be called a good trader.

[Oneandpure]

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 think bit difference between spot trader and investor, for spot trader they try to earn profit as faster but when market downtrend make them have to be investor waiting price recovery for selling or sell based on price bough before. Difference with investor have dedicate for holding assets long term not matter price up or down but several investor set up target to sell investment assets during several years later. Spot trader not try to be long term holder if market predict well after buying and price raise up will sell it, but if market down after buy back make the spot trader must be holder for awhile only waiting market recovery.
I am at spot trader position right now but have to be investor because my altcoin investing price huge decreasing and make me to be holder for unknow moment when price recovering back.