Topic: Do You Believe, "Passive Investors Make More Than Active Investors?" - page 4. (Read 778 times)

There are.

Most of the experience you'll hear will always be tandemed with negative experience like the stories of failures and losses.

You can navigate to this section and you will see a lot of trading discussions and from there, you'll see almost everyone sharing their trading expeirence. So, all you have to do is to look to the other threads.

Don't be taken in completely by what those YouTube traders say. Most of them are just good hype men, nothing more. If you've to follow any of them to monitor what they do, follow those who teach their strategies and not those who display supposed piles of cash they say they make. A good number of those YouTubers trade on demo and that's the result they display to unsuspecting public. They open two trading positions and pick the one that's favourable to deceive noob traders.

As for passive investments being more profitable than active investments? I don't think so. It's like leaving your money in a fixed deposit in a bank vs withdrawing that cash and using it for your day to day business transactions. Of course, the one in a bank won't yield much. And if you think it's safe leaving it in the bank, you kid yourself. Anything can happen there too. Bank can go bankrupt.

Probably. Some works with other people who just keep buying and holding and visiting their portfolio afterwards and cant believe on what they earned is totally huge and big profits. Day trader is hard as you need to monitor your potential profit or worse loss. Its not comparable since some orefer trading than investing. Maybe medium term users can make their comparison I mean also uses day trading plus also have bags.

Are there any active traders among the people reading this topic? It is very interesting whether it is possible to really make money on this, or if there is a negative experience. They write a lot of things here, but no one shares their trading experience.

In my opinion passive investors make more profit but it doesn't come so easy especially when dealing with crypto, the choice of the investor matters a lot and with the right choice knowing when to buy and knowning the coin will definitely bring profit, the reason why I said it depends if the investor will make profit or not cause they're a lot of passive investors who still don't know the right strategy find it hard to make profit.
I believe active investors are always smart in nature cause it's difficult to get involved in buying and selling of crypto that's highly volatility in nature, just know the kind of coin you're dealing with.

By just watching YouTube videos, trading is an easy activity and can make a lot of money.  But in reality, trading is a very dangerous activity for beginners.  Trading requires people who are truly mentally prepared to act.  Trading is not so easy like in video, it really requires a high commitment to learning and trying.  but it not have possibility to trying it.  you may be now are a beginner, and all traders are beginners at some times.  time and jurney are make the people what they are today and someday in the future. May be you can create a demo account for learning and practicing what you see on youtube.

That's possible but they're always like in a battle and they need to be active and make within their timeframes. Whilst the passive investors, there's effortless and yet profit is coming in to them.

Definitely we'd choose to be passive investors and let our money work for us, that's how it goes but going on that point will also take a lot of effort, money and sacrifices.

So I think, it's like becoming an active investor first and then going to being passive.

Traders can in theory make more money than investors, because if their strategy is effective then they can outperform the market and obtain more profits this way, something that is not possible for investors which can only take what the market gives them, however as you may imagine very few traders can achieve this, and even if there are many profitable traders they cannot beat the markets, so with all things considered your average investor should do better than your average trader.

When we do speak about those those typical billionaires who do become that rich because of those traditional investment and other traditional markets too then it wouldnt really be shocking that they would really be always loving on targeting and discriminating or making those negative insights towards Bitcoin but we do know that some of those bearish or critics are really that secretly buying Bitcoin behind those curtains and behind with those negative words on which do know that this is something that we must really be that wise and really that wary on how these big players do really tend to manipulate or decieving people or the community
just for them to have those kind of advantages.

Speaking about passive or active or short term invest, it doesnt really matter much because if you are someone whose really that making money
on whatever method or things you are involving with, then better stick to it rather than on forcing yourself on doing things which you arent even sure on how to do it.
So better stick on your own method and ways.

I can't really say if this is true or not since I do not have a data that backs this up, and whatever anyone can provide, I am not sure if they have ALL the data. But, to be fair I wouldn't be surprised if this was true, passive investors just waits, and eventually crypto goes up, so we make money, whereas traders could make more than us, but could also make less than us.

In a situation, where I buy at 20k and sell at 60k, I made 40k dollars, but that's about it, even if I hold and it gets back to 60k, I still have only 40k profit. Whereas, trader is not the same, they can buy at 20k and sell at 60k and then buy 3 at 20k this time and sell at 60k again and have 180k instead, so they did 9x profit while I made 3x, and yet they may also buy at 60k and sell at 20k and lose two thirds of their money too. It is all possible.

Passive investors make more because they leave it for long term and in last decade Bitcoin has been in favour of long term while the active investors/traders they look for quick profit and end up with lesser profit as they cash out when the market seems to be crashing but long term/passive investors don't bother and image a day trader's profit since 2018 till now we will see long term investors will be in better situation with more profit. But this doesn't mean active traders don't ear they do earn and sometimes even more than long term or passive investors but they put all their investments into trading and don't know to preserve the profits.

I don't know Warren Buffet very well, nor know him personally, and even not a big fan of what he says, so why would I care about his statements, In crypto you have to trust yourself and your guts, and never take other's statements as for sure, he really says BTC is a gambling token that's would be due to many of the reasons, and one is Buffet's have his own question paper to solve with some helps. Meaning, that he has his own life with the opportunities and sources that many don't have.

So, people who don't have the facilities, and pleasures of what Warren Buffet has, they should not care about him, they should only make there own minds, and if your mind or heart is telling you that BTC has some potential then you should go for it. If I have to say something on this then I will say we can't become rich in short-term investing, even if I don't consider it an investment in the first place.

Because investment and trading are two aspects of using money to make a profit, one in which you are looking for day-to-day profits is known as trading, and one that makes you profit or loss year to year known as Investment. So, before investing or making your mind that you can make hell lot of money in one day or in one week, then I have to say, Buffet is right in this context as you will be gambling, but if you are taking precautions, and moving with analysis and knowledge then it is not gambling.

Yes if he's not a trader, no if he's a trader, how can someone claimed if he's a trader when he not making money by trading?

If you want to discuss about Bitcoin, you need to take off Warren Buffet's opinions because he will always criticize Bitcoin regardless any improvement and acceptance towards Bitcoin.

What the difference between a passive investor and an active investor - OP should get this straight in their head.

As per investopedia's explanation, I do not see the use of Fund managers in bitcoin investments, so keeping that aside, a passive investor aka a long term holder invests for the long term and that is the safer approach in this sector, the other being active investor where short term trading is the main thing.

So lets just boil down to long term and short term - simpler less ambiguous terms. Let people say what they want, when it comes to crypto, from my experience long term is the king. Short term losses are way more and the market is indeed unpredictable during volatile times, like the current ETF situation.

I advise you to be careful of what you see online, they might look near-perfect but they are not in reality. Even those who are pretending to trade at best are not actually trading at best but are just merely trying their luck in the market, while most of them are losing in real life. But what they do is to capture the best moments in trading, it could take them a month or months to achieve it, but when it is achieved, they will be displaying it online as if that is how they regularly trade and win but are just cajoling you guys. So, be very careful.

And yes, Warren Buffet might not be entirely right as some short-term earners through their short-term trading activities are in the market, but the shorter the trading time, the riskier it is. This is what I believe that Warren Buffet is referring to. He forgot that he has big money which will encourage long-term trading, patience and effective management. But many others don't, which is why they resolve into the riskier option for more and almost immediate earnings.

Again, he is right in a way but not entirely. As an investor of the old ways, he believes that an asset or shares must be attached to something, but Bitcoin failed that if we are sincere, there is no extrinsic value for it. Nonetheless, people's money is enough to make Bitcoin valuable which he fails to acknowledge.

You are comparing 2 different people.

The first one is those influencers that you are watching on YouTube. Of course they will only tell you the most impressive ones that they have, but they will not tell you the struggles that they faced because that would cause them many subscribers. They are only showing the positive so people like you will get attracted, subscribe on their channel and follow them. You see their videos impressive and compelling? I see them as a trap. Trap to lure those newbies like you to follow them.

The other one is an established investor who is investing decades ago already. Warren Buffet is a known long-term investor, and I still can't forget the time when he bought Coca-cola decades ago, and fast forward to now, the amount of capital that he used to buy the shares of that company is now the amount of dividends that he's getting annually. I mean just imagine how convenient that is. Since he's a known long-term investor, of course he will say negative things about short-term investing, but it's true.

BTC has no intrinsic value? Cryptocurrency is just gambling? Well he can just say what they want to say about crypto. He's a well-known investor, so huge respect to him. After all, I always watch his videos, and follow his advices except for anything that's related to crypto.

This is all true, but the main problem for the investor arises with the choice of such a project, which later in years will bring profit, not losses. And as practice shows, not only Bitcoin brought investors a big profit, but also other altcoins. But still, this is only a small part of the large number of coins that are present on the market.

I believe that passive investors have more income than active investors, passive investors generally already have enough money so that the money they invest will work automatically for themselves, let's say a passive investor joins a project, say aptos, we see how much profit he gets just by joining the private sale of Aptos, while active investors will choose projects that run quickly, such as participating in public sale projects, in terms of price and capital, they are very different

Buffet comment is correct because day trading exposed you to more risk even though you have a chance to earn more. The profit on day trading is just a chance and not guaranteed while we human that is prone to human error so the chances are we will frequently lose than win.

That’s why long term holding is beneficial because you are not exposed on realized loss since you never sold your holdings. Your investment will be as is in quantity of stocks or token no matter what is the price which will give more income once the price pump unlike day trading which you will ended up in less in case you trade wrong.

My understanding is that both investors act and have different goals, clearly when it comes to income generating different values ​​in trading/buying and selling crypto assets, Both tend to have different understandings, of course income regarding the opinions of passive investors and active investors cannot be the same.

Talking about excess assets in trading is certain, passive investors are smaller than active investors, for the reasons: [1] They are often passive in the long term, This depends on price movements in a certain time, for example what we often see in Bitcoin, they only produce once when the ATH occurs in a certain amount, and even then if the Bitcoin price can reach as desired, otherwise the risk of big profits disappears.
[2] The reason for active investors is that this can be said to make multiple profits, rather than being passive, for example: currently you have 3 Bitcoins to trade, of course Bitcoin movement can occur in one week 2-3 times the base price.
For example: you buy Bitcoin at a price of $40k in the next few days, it rises to $45k, of course you will have pocketed a profit of $15k/week, keep doing it like that and monitor the price of Bitcoin every day, if the price movement happens in one month 4 times the price changes of course 4X15=$60 k, it's already in the bagyou, times one year and so on.

In such cases, it is clear that active investors have more profits than passive investors.