Topic: Do traders make more money than holders? - page 2. (Read 1787 times)

I am a trader starting with 10BTC, and now I have 5BTC left.

If i can figure it out, maybe yes. But it is depends on what money that holders use to make investment. Because holders only rely on their investment and traders can do any improvement with his result every time it can make profit.

What we gonna do is to make some more points and holding isn't a solution to be but just only a safe keep we'll do.
Trading is quite difficult and a risky stand but it looks profitable when it really be going good. But then, we need to understand that trading will always not be at winning and sometimes we suffer losses

To me, trading seems like its good because you can make consistent income.  Holding bitcoin, you aren't making money even if price goes up. 


Let say a person has $10,000 to trade.  Right now this person can buy 1.1 bitcoin or so. 


To make it simple, let's make 1 btc = $5000.


This person buys 2 btc for $10000.  Im going to exclude the trading fee for this part.


Now the price of btc goes up to say $5500 in say a few days.  The trader now sells 2 btc for $11000.  Fee is 0.25 percent so $27.50 fee.  Now balance is $10972.50.  So at the moment the trader has made $972.50.  Now he watches the price and it goes up to $6000.  Of course he say man if i waited, could made about $972.50 more.  Well he isn't doing anything as the trader now wants the price to drop.  Now let say btc drops to say $5000, then to say $4500.  He now buys about 2.4x bitcoin with his current balance.  Say price stays around that mark for a while.  Then prices goes to $5200.  He then sells all the btc for usd or usdt.  Here, he would make around $1200 or so.  I just estimated the profit here and estimated the fee.  But this person now has a balance of $12172.50 or so.  And btc price is back to the original price it was earlier.

[-snip-]

Actually they are different from one another and if to be compare it must be similar, but will like to cross examin the two. Trade is either daily or weeks or months trade but holding can either be a short or a long term hold. That of the trade if done with professional skills will earn more than the hold because of the market volatility.

Holding also must have the skill to choose coins that can move up in the future if choosing the wrong coin that is not active the demand is less then the price will not go up it can actually go down

That will depend on how good that trader skills on selecting the coins at the market. Without having good skills to detect the profitable coin, a trader cannot make a profit, and they will not make more money than holders. Sometimes, holders make more money because they can hold a big amount of one or more coins and once the price increase, they sell their coins at a higher price. The traders could trade on those coins, and if they don't have skills, their profit will be less than the holders.

It is possible for traders to get money faster by trading because trading can do many transactions depending on the opportunity, but if you hold it, it takes a long time depending on the time specified

To me, trading seems like its good because you can make consistent income.  Holding bitcoin, you aren't making money even if price goes up. 


Let say a person has $10,000 to trade.  Right now this person can buy 1.1 bitcoin or so. 


To make it simple, let's make 1 btc = $5000.


This person buys 2 btc for $10000.  Im going to exclude the trading fee for this part.


Now the price of btc goes up to say $5500 in say a few days.  The trader now sells 2 btc for $11000.  Fee is 0.25 percent so $27.50 fee.  Now balance is $10972.50.  So at the moment the trader has made $972.50.  Now he watches the price and it goes up to $6000.  Of course he say man if i waited, could made about $972.50 more.  Well he isn't doing anything as the trader now wants the price to drop.  Now let say btc drops to say $5000, then to say $4500.  He now buys about 2.4x bitcoin with his current balance.  Say price stays around that mark for a while.  Then prices goes to $5200.  He then sells all the btc for usd or usdt.  Here, he would make around $1200 or so.  I just estimated the profit here and estimated the fee.  But this person now has a balance of $12172.50 or so.  And btc price is back to the original price it was earlier.


So here... this person has made around $2000 trading btc... while the btc price started at $5000 to start... went to $5500... went to as high as say $6000... but he sold it at $5500.  Then bought it again when price dipped to $4500.  Then let say at the lowest point it went to say $4200.  But as price went back to $5000, he sold it all. 


So a holder... does not profit at all.  Someone who bought btc at $5000.... and have these fluctuations of as high as $6000 and as low as $4200 during this time span made no money.  Let say this person bought btc at 5k and look at the price movements but would not sell at all during this time.  Yet the trader... made around $2000 in profit trading btc here.  Now if price dipped or went down and the trader couldn't sell, yes he is down money.  But unless he sells the btc... he isn't down money.


So wouldn't this mean being a trader is more lucrative than being a holder?  You can make consistent money monthly it seems if btc keeps on fluctuating in prices.  Of course if price keeps dropping, well its hard to make any money since it would be hard to sell it above buy price.


However, people say trading seems to be stressful.  Is it?  I mean, all you are doing is looking at the btc price... it either goes up , down or stays around the same.  Its not like you have to analyze it daily or something... do you agree?  Now let say its altcoins... that would seem like ton of work because you have to research all the coins.  And those coins have high fluctuations no where compared to bitcoin.


So if you trade, should you only trade bitcoin?  Or bitcoin and other big name coins like litecoin, etc?  Should you avoid any coin that is not in the top 20 for example?