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

[Jatiluhung]

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 definitely more focused on taking advantage of short-term volatility to maximize profits in the short term. There are also traders who hold onto the coins they buy and will sell them whenever the price reaches a predetermined target price. They are called swing traders. However, if someone buys in the spot market and the price falls, causing a few percent loss, then there are two options. First, hold onto the coins and wait for the price to rise again. The second option is to cut losses and look for another more profitable position. Personally, I sometimes choose based on the situation. If the trading pair I enter is likely to rise again in the short term after my analysis, then it's okay to hold onto it. However, if the trading pair I enter is just a meme coin or one with high hype and the potential for the price to not rise again after falling, then it's better to cut losses.

Investing is actually quite similar to trading. The difference lies in the timeframe and the longer-term goals compared to trading. The analysis methods are also slightly different. Investors tend to focus on fundamentals and potential over a longer time horizon. However, if conditions become immediately favorable, they may also quickly sell the assets they've purchased. So, it's almost the same, even though the approach is different.

[Mandoy]

If you buy and sell an asset depending on the time in the market, profit and loss can be either, in this case you are playing the role of a trader. If you stay in the market for an indefinite period of time depending on the price by chance or by design, then you are a short-term investor or a type of trader. If you have a long-term plan and a goal and you hold assets to meet that goal, then you are an investor. In the case of an investor, there is a long-term time frame and the amount of wealth accumulation during that time is set. The goal of traders is to make a small profit, for investors, to make many times the profit and increase the savings.

In fact, most people do not know for sure whether they are traders or investors. Sometimes they buy when they see price fluctuations and then sell when they are scared when they fall. This does not make trading proper nor does it make investment. In my opinion it is important to have a clear understanding of the difference between a trader and an investor. A trader makes quick decisions, accepts profits or losses quickly. An investor makes time his friend and knows in advance why he is holding on. The problem arises when we dream of being an investor but behave like a trader, I think for ordinary people, it is necessary to first decide what I really want. If you have patience and a long term goal, investing is more suitable. Otherwise if you want to trade, you should accept it as trading.

I also subscribe to this observation, particularly the one concerning clarity of intent. The largest distinction between a spot trader and an investor is not only the holding period, but also the attitude of each choice. A trader is a price taker, who is happy to make and lose money fast, whereas an investor is providing a long term goal and a clear belief. Most of the problems tend to begin when individuals confuse the two. Investor buying and trader selling is a poor investment and selling technique. It is actually good to make the decision before going into the market whether you would like to vent into short term prospects or long term prosperity and then maintain those roles consistently.

[justdimin]

I also subscribe to this observation, particularly the one concerning clarity of intent. The largest distinction between a spot trader and an investor is not only the holding period, but also the attitude of each choice. A trader is a price taker, who is happy to make and lose money fast, whereas an investor is providing a long term goal and a clear belief. Most of the problems tend to begin when individuals confuse the two. Investor buying and trader selling is a poor investment and selling technique. It is actually good to make the decision before going into the market whether you would like to vent into short term prospects or long term prosperity and then maintain those roles consistently.

Yeah, investor is there to hold and wait and he is not really intending to really trade it, just hold it and that's it, could be years so time does matter a bit but the intention is that they do trust and like the project they buy into and think that will be good. Like for example if you buy SOL today, with a big size of your portfolio, then you have to trust and like SOL for the future and think it will be good, and not be short term.

Whereas trader do no have that kind of obligation, it is not the project they care, not the coin not the token, it's the price they care, they look at charts and other data and think it is lower than it should be and buy, and when the time comes they sell at a price they think it's good.

[BlackBaron]

buying at high rate means you have to wait long time to get your expected profits, entry time is important.

I agree that entry is important but you have to be decisive when you're figuring that out. Because many of those who are trying to spot a good entry, they have never got in for how meticulous they are. I think it's all needed to be set that they have to look at an acceptable price instead. And those who have bought at the peak prices, you're right that they have to wait longer before they make a profit out of it when it's currently low or they decide to cut losses.

Determining the best entry point is the most difficult thing to do, because if we are behind then we will hesitate to enter even though it is actually the best point for us to enter the market. So focusing on that can also make us miss the moment, so instead of looking for the best point, it is better to determine the area where we will enter in other words it is a price range.

This is what I usually do, I will determine the area where I can buy, after that I will make a gradual purchase starting from the highest price of the area I determined and apply a limit order at the lowest price I predicted.

[impulse709]

buying at high rate means you have to wait long time to get your expected profits, entry time is important.

I agree that entry is important but you have to be decisive when you're figuring that out. Because many of those who are trying to spot a good entry, they have never got in for how meticulous they are. I think it's all needed to be set that they have to look at an acceptable price instead. And those who have bought at the peak prices, you're right that they have to wait longer before they make a profit out of it when it's currently low or they decide to cut losses.

Determining the best entry point is the most difficult thing to do, because if we are behind then we will hesitate to enter even though it is actually the best point for us to enter the market. So focusing on that can also make us miss the moment, so instead of looking for the best point, it is better to determine the area where we will enter in other words it is a price range.

This is what I usually do, I will determine the area where I can buy, after that I will make a gradual purchase starting from the highest price of the area I determined and apply a limit order at the lowest price I predicted.

The distinction between a spot trader and an investor actually comes out in the way they consider entry and time. A spot trader would normally be more concerned with price movement, short-term to medium term movements and risk management within certain areas. That is why it is reasonable to set a price range and scale in, in the way you explained. It will lessen the pressure of pursuing the ideal entry. A shareholder on the other hand is more concerned with value and fundamentals in the long term. They still might be entry conscious, however, they are more patient and tolerant to drawdowns. Both methods can prove right, however the issues begin when a person combines both types of mind without any proper strategy.

[Frankolala]

The distinction between a spot trader and an investor actually comes out in the way they consider entry and time. A spot trader would normally be more concerned with price movement, short-term to medium term movements and risk management within certain areas. That is why it is reasonable to set a price range and scale in, in the way you explained. It will lessen the pressure of pursuing the ideal entry. A shareholder on the other hand is more concerned with value and fundamentals in the long term. They still might be entry conscious, however, they are more patient and tolerant to drawdowns. Both methods can prove right, however the issues begin when a person combines both types of mind without any proper strategy.

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.

[Minor Miner]

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.

That's an obvious fact. The proof is that, to date, many people have earned millions of dollars and become wealthy thanks to the crypto market. The majority of them are long-term holder, while those who become wealthy through trading are rare. I've never heard any stories about them or witnessed any traders do that. Most successful people are long-term holder

Combining long term investing with trading is a good idea, but in my opinion, we should avoid trading futures and focus only on spot trading. Trading futures is no different from gambling, so it should be minimized as much as possible.

[Pandu Geddon]

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.

It will also depend on the assets you hold. If it's Bitcoin, of course, holders will be more profitable. But you know, some beginners, whether in trading or investing, sometimes get offers from who knows where to buy altcoins, even meme coins that might be popular in their communities. Trading and investing are still aimed at making a profit. If you feel you have enough skills to trade, that’s actually good. But if, after learning you still end up losing, maybe trading isn't a suitable place for you.

[bettercrypto]

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?

As far as I know, spot traders can also be considered investors, right? Maybe the only difference is that you're in the trading category where, in the crypto space, you choose specific assets to invest in.

Once you’ve picked an asset, you can immediately set up your analysis—deciding at what price to set your Take Profit (TP) and Stop Loss (SL). This way, you can get results instantly and easily minimize your losses. On the other hand, traditional investors usually decide whether they want to hold for the short or long term.

[Z_MBFM]

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?

The only difference is that those who buy a coin for trading purposes sell it quickly and want to make a quick profit, but investors think long-term. Because they have patience. But traders do not have such patience. Traders think short-term and even if they have to sell at a loss, they sell their coins at a loss for a while. But investors hold on to their investment until they get a profit. This is the big difference between traders and investors.

[BlackBaron]

Determining the best entry point is the most difficult thing to do, because if we are behind then we will hesitate to enter even though it is actually the best point for us to enter the market. So focusing on that can also make us miss the moment, so instead of looking for the best point, it is better to determine the area where we will enter in other words it is a price range.

This is what I usually do, I will determine the area where I can buy, after that I will make a gradual purchase starting from the highest price of the area I determined and apply a limit order at the lowest price I predicted.

The distinction between a spot trader and an investor actually comes out in the way they consider entry and time. A spot trader would normally be more concerned with price movement, short-term to medium term movements and risk management within certain areas. That is why it is reasonable to set a price range and scale in, in the way you explained. It will lessen the pressure of pursuing the ideal entry. A shareholder on the other hand is more concerned with value and fundamentals in the long term. They still might be entry conscious, however, they are more patient and tolerant to drawdowns. Both methods can prove right, however the issues begin when a person combines both types of mind without any proper strategy.

This strategy will be very influential when we know how to implement it, because without knowing how to implement a big strategy, any strategy will feel complicated. Here is also where our patience is tested, the market cannot move according to what we want, sometimes we have to wait a long time until the lowest price or the area we set is touched, and here it is indeed a test of patience for us too.

I initially had a problem with this, in other words I was not very patient in waiting for the price drop to my prediction point, but that was when I was new to the crypto space. Now I am more relaxed until I wait for my limit order to be touched and bought.

[passwordnow]

The only difference is that those who buy a coin for trading purposes sell it quickly and want to make a quick profit, but investors think long-term. Because they have patience. But traders do not have such patience. Traders think short-term and even if they have to sell at a loss, they sell their coins at a loss for a while.

The problem with those traders that have been stuck have to wait longer and the original plan of disposing shorter and to make quick profit. But you're right that most traders think short term and that's the plan. And if it's not followed, they have a plan B.

But investors hold on to their investment until they get a profit. This is the big difference between traders and investors.

That's how the investors go and we're all waiting until we get a profit. We're not going to give up if we're in losses because that won't be enough until we recover or make some money.

[hafiztalha]

Determining the best entry point is the most difficult thing to do, because if we are behind then we will hesitate to enter even though it is actually the best point for us to enter the market. So focusing on that can also make us miss the moment, so instead of looking for the best point, it is better to determine the area where we will enter in other words it is a price range.

This is what I usually do, I will determine the area where I can buy, after that I will make a gradual purchase starting from the highest price of the area I determined and apply a limit order at the lowest price I predicted.

The distinction between a spot trader and an investor actually comes out in the way they consider entry and time. A spot trader would normally be more concerned with price movement, short-term to medium term movements and risk management within certain areas. That is why it is reasonable to set a price range and scale in, in the way you explained. It will lessen the pressure of pursuing the ideal entry. A shareholder on the other hand is more concerned with value and fundamentals in the long term. They still might be entry conscious, however, they are more patient and tolerant to drawdowns. Both methods can prove right, however the issues begin when a person combines both types of mind without any proper strategy.

This strategy will be very influential when we know how to implement it, because without knowing how to implement a big strategy, any strategy will feel complicated. Here is also where our patience is tested, the market cannot move according to what we want, sometimes we have to wait a long time until the lowest price or the area we set is touched, and here it is indeed a test of patience for us too.

I initially had a problem with this, in other words I was not very patient in waiting for the price drop to my prediction point, but that was when I was new to the crypto space. Now I am more relaxed until I wait for my limit order to be touched and bought.

Many traders want to invest for long term but they could not Invest due to family reasons because they have family and many people are dependent on them .Many people are also growing and they are struggling in the market because traders can earn good in one day and in the next day , they can lose because that is reality where there is profit, at that time you could be in loss. Investment is quite good for the people who have money and have zero knowledge but they want to become investor of Bitcoin And cryptocurrency. Trading is not gambling because you will get when market is going good but you have to enter in the market at right time and any news like Donald trump news can effect on sale price.

[BlackBaron]

This strategy will be very influential when we know how to implement it, because without knowing how to implement a big strategy, any strategy will feel complicated. Here is also where our patience is tested, the market cannot move according to what we want, sometimes we have to wait a long time until the lowest price or the area we set is touched, and here it is indeed a test of patience for us too.

I initially had a problem with this, in other words I was not very patient in waiting for the price drop to my prediction point, but that was when I was new to the crypto space. Now I am more relaxed until I wait for my limit order to be touched and bought.

Many traders want to invest for long term but they could not Invest due to family reasons because they have family and many people are dependent on them .Many people are also growing and they are struggling in the market because traders can earn good in one day and in the next day , they can lose because that is reality where there is profit, at that time you could be in loss. Investment is quite good for the people who have money and have zero knowledge but they want to become investor of Bitcoin And cryptocurrency. Trading is not gambling because you will get when market is going good but you have to enter in the market at right time and any news like Donald trump news can effect on sale price.

It's truly unfortunate when people can't invest long-term simply because of family. Family shouldn't be a burden that forces someone to do so. However, I can completely understand the situation, as there are many people out there who have to cover all their expenses for various reasons.

However, I still appreciate those who are still willing to invest, even if it's a shorter timeframe, despite their problems. This is also very risky, as when urgent circumstances arise, they will inevitably be forced to sell their assets, even at a loss.