Topic: Do traders make more money than holders? - page 3. (Read 1811 times)
Holding and trading both is different things. Traders are getting benefits instantly but holders are getting benefits slowly. Traders might lose huge but holder might not lose if they hold till recover fund. So traders are at on risk more than holders. If holders have enough patience they no need to lose fund. Also this is applicable for traders. Hold and trade both run on different way. Eventually I want to say, traders earn more than holders it's true, and traders are losing more than holders this is also true. Because someone always losing other side on the trading.
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
Holders might make money more than traders when they got lucky holding a good quality coin or altcoin,
But you know holders do not make money everyday like traders, and traders can make more money when compounding the profit they made in their trades, so it just depends.
There is no big difference except the timeframe and money management. Long term traders check the monthly charts in 2 weeks but day traders check the H1 timeframe in every 3-4 hour. Making money is an arguable depending on the experience and trading strategy specifications. Day traders take advantage of the hourly market movement, throughout the time, swing traders come back to check the new price illustrations on H4 timeframe. But you know holders do not make money everyday like traders, and traders can make more money when compounding the profit they made in their trades, so it just depends.
Both are different ways how we can gain a profit it's depending to us or to a person how they manage their trading or hodls. So i think we don't need arguing about that. Because what ever we choose between trading or hodling still we are the one decide to make a profit.
Always be like that, the users who will decide whatever trading practice that will suit to their position, making money around this market can be done both ways, some do short trade and earned decent while others are trying to maximize the profits so they will just continue holding and wait for the blowout and harvest the full benefits. 
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?
For active trading, daily trade, use one or two coins would be easy to manage. While the other good coins, the top 20, are good for long term trading. Bitcoin is so fluctuate and it can reach a wide range in daily basis. That is why I prefer to trade bitcoin against fiat.
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?
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?
I think it is wrong that we must only trade bitcoin, There are lot of altcoins out there were we can make profit.
Even the coins is not belong at the top 20 we can still able to get earnings. Then, the rest of your statement was quite true and
correct. So for me Traders or Holders are just the same in terms of getting profit so it doesn't matter in which of these two are
make more money.
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.
I agree with those who think or have experienced that trading gives more profit than holding. But, yes, trading is sometimes stressful. I take a off and work on my strategy or completely work on something else. That usually happens either when my betss go in loss or multiple profitable bets followed by a loss.
Only if the traders are good. Otherwise if you arent a smart trader you're better off holding.
The best of traders as compared to pure holders, the traders will win in terms of profit. They are traders, after all! They work and work regardless of whether the market is bullish or bearish. While others are resorting to holding due to very high uncertainty and solid red in the charts, the expert traders can still see gains. They can smell green amidst blood. But of course, only those who have acquired and honed their skills to the extreme. Those half-blooded traders like me would rather stay safe and HODL.
Trading involves far more work, more risk and more cost from the bid offer spread and possibly the use of a trading account. Leverage also costs money, holding is quite simple and is only 1 transaction in sum total.
The preference will always be for the holding of currency over a certain period of time. However its very hard to call exactly a period of time you know Bitcoin will rise, I try to spot larger trends and bullish eras to Bitcoin pricing. We could very well be in that era now, one of the factors I look towards is the dollar index and its trend towards making new highs or lows. People wont like this exactly but I go as far as referring to Federal reserve policy, as to lowering or raising interest rates for an indication in loosening in dollar hard or soft policy. This isnt trading but it gives a backdrop to the likely action favoured.
After you spot the larger picture, you can try to indentify the trends occurring that should confirm this bias to expansion or contraction of standards like Bitcoin or similar. I think we are expanding Bitcoin as a monetary base and alternative to Dollar currently. Of course the news has a possible crack down on Bitcoin easy of use, its never all one way.
I honestly think holders make more money so long as they are in the right area, trading is better paid work and should return better if you are skilled but trading should involve lower amounts then possibility to hold and call a larger picture.
Due to compound effects, trading should show higher returns for shorter periods of time but in sum total holding a long trend is how riches are made. Bitcoin has grown exponentially, holding was the smart trade.
The preference will always be for the holding of currency over a certain period of time. However its very hard to call exactly a period of time you know Bitcoin will rise, I try to spot larger trends and bullish eras to Bitcoin pricing. We could very well be in that era now, one of the factors I look towards is the dollar index and its trend towards making new highs or lows. People wont like this exactly but I go as far as referring to Federal reserve policy, as to lowering or raising interest rates for an indication in loosening in dollar hard or soft policy. This isnt trading but it gives a backdrop to the likely action favoured.
After you spot the larger picture, you can try to indentify the trends occurring that should confirm this bias to expansion or contraction of standards like Bitcoin or similar. I think we are expanding Bitcoin as a monetary base and alternative to Dollar currently. Of course the news has a possible crack down on Bitcoin easy of use, its never all one way.
I honestly think holders make more money so long as they are in the right area, trading is better paid work and should return better if you are skilled but trading should involve lower amounts then possibility to hold and call a larger picture.
Due to compound effects, trading should show higher returns for shorter periods of time but in sum total holding a long trend is how riches are made. Bitcoin has grown exponentially, holding was the smart trade.
Basically these traders or daily traders made more money instead of holders, because of using many profitable and fast increasing coins. But it's not eeasy for them to manage it actually, some fall on losses rather than gaining. Significant issue includes, market downturns and possible slow volume of trading exchanges that badly occurred for such a long time during bearish period.
For case to case basis, holders won't encounter that scenario but struggles is there while waiting for so long.
For case to case basis, holders won't encounter that scenario but struggles is there while waiting for so long.
You maybe wrong OP.
According to you a trader makes more money?
But i would say that, it's always not safe.
Sometimes or the other, the trader chooses the wrong coin for which he makes losses.
It's better to be safe and earn little profit, by holding stable coins.
Their prices don't fluctuate a lot.
Hope you understand now.
Holding is actually safer than trading but to be sincere with us trading is far profitable than hold. You will need smartness and patient to make it in trading. If you are new in this market it is better to buy bitcoin or ethereum and keep holding until it gets to your desired profits. Trading is for the experts and professionals and I will advise you to avoid it if you don't know how to interpret price patterns. According to you a trader makes more money?
But i would say that, it's always not safe.
Sometimes or the other, the trader chooses the wrong coin for which he makes losses.
It's better to be safe and earn little profit, by holding stable coins.
Their prices don't fluctuate a lot.
Hope you understand now.
In both trading and holding, there are risk involved. But personally I prefer holding than trading since trading has to do with interpretation of graph and a lot of technical analysis unlike holdling
Thats a wise choice you made, if you can't interprete those graphs nor do you understand technical or fundamental analysis, then trading isn't for you, you'll be better off buying and holding for a while to see what becomes of the price.The thing is neither of them is more profitable than the other, what determines that is how well either the trader or the hodler goes about it, learning(for the trader),and knowing when to sell(for the hodler)
In both trading and holding, there are risk involved. But personally I prefer holding than trading since trading has to do with interpretation of graph and a lot of technical analysis unlike holdling
Not sure, because being a day trader will be frustrating because day trading will continue to monitor market movements because if not like that day traders will not have the right time to buy and sell. Therefore, being a trader and holder also does not guarantee that it will produce good profits because to achieve a certain target at least there will be pressure from many factors.
You maybe wrong OP.
According to you a trader makes more money?
But i would say that, it's always not the safe.
Sometimes or the other, the trader chooses the wrong coin for which he makes losses.
It's better to be safe and earn little profit, by holding stable coins.
Their prices don't fluctuate a lot.
Hope you understands now.
According to you a trader makes more money?
But i would say that, it's always not the safe.
Sometimes or the other, the trader chooses the wrong coin for which he makes losses.
It's better to be safe and earn little profit, by holding stable coins.
Their prices don't fluctuate a lot.
Hope you understands now.
Usually, trading is more profitable than holding, but it is the riskiest way too. If you haven't a good experience and knowledge you can easily risk losing big amounts by trading, the profit isn't guaranteed. Holding is also risky, but generally it is safer when you hold the most powerful cryptocurrencies.
Looking at a simple way, trading is really more risky when we are forced to move continuously, predict and find opportunities to make money, hold without so many actions, we just need to maintain patience and at the right time, the results will be perfect. However, in recent years, the general evaluation of many people who have experienced participating in crypto, they almost feel holding has become risky, when the value of altcoin has changed very abnormally, if unfortunately, losing almost assets is easy to see, trading is probably easier to control when we manage every day
I think holders will earn more money than holders.
You will certainly wonder that many traders earn a lot of money during the time I hold but why do I say I earn more money?
first of all, I don't just hold 1 coins and especially I don't spend all my time trading. I take the time to analyze and explore new projects, potential projects that can make my portfolio increase by 300% - 500%.
Besides, I am not as stressful as traders, it is also another benefit of the holders.
You will certainly wonder that many traders earn a lot of money during the time I hold but why do I say I earn more money?
first of all, I don't just hold 1 coins and especially I don't spend all my time trading. I take the time to analyze and explore new projects, potential projects that can make my portfolio increase by 300% - 500%.
Besides, I am not as stressful as traders, it is also another benefit of the holders.
There are both pros and cons of being a trader and a holder.
Being a trader is more risky than just holding your coin but the profit will be higher if you are a good trader. High risk = high reward as they say so being a trader make more money but the risk is higher too. This is the reverse of being a holder. The risk are lower but the reward will be lower too. In conclusion, traders make more money compare to holders.
Being a trader is more risky than just holding your coin but the profit will be higher if you are a good trader. High risk = high reward as they say so being a trader make more money but the risk is higher too. This is the reverse of being a holder. The risk are lower but the reward will be lower too. In conclusion, traders make more money compare to holders.
Yes, I agree with you. There are always pros and cons of being a trader and a holder. In trading, it always depends on what crypto are you trading and holding. So if its the same crypto and same amount, I think it will come to your skills, analysis and also situation. Trader focuses every minute to make sure they can profit more, but holders are not, at the same time they might busy in other things and less focus on the price of their cryptos.
You could try Options trading instead of just HODLing in a highly volatile market. You have a chance to make higher reward too.
I'll give you a simple 1 week scenario.
It's Monday. BTC @ 10k
You buy a put for 1 BTC @ 9k expiring on Friday for $100
[if BTC falls below 9k, you can force someone to buy your BTC at 9k]
Wednesday, BTC flies up to 13k. You won't get stopped or liquidated. You are fine. Keep sipping your cocktails.
Thursday, BTC flies down to 7k. Still not your problem.
Friday, BTC settles at 8k at 4pm Singapore time. (For Sparrow Exchange)
Your profit is: 9k (strike price) - 8k (settlement price) - $100 (cost of premium) = $900
$900 profit from using $100. 9X return.
I'll give you a simple 1 week scenario.
It's Monday. BTC @ 10k
You buy a put for 1 BTC @ 9k expiring on Friday for $100
[if BTC falls below 9k, you can force someone to buy your BTC at 9k]
Wednesday, BTC flies up to 13k. You won't get stopped or liquidated. You are fine. Keep sipping your cocktails.
Thursday, BTC flies down to 7k. Still not your problem.
Friday, BTC settles at 8k at 4pm Singapore time. (For Sparrow Exchange)
Your profit is: 9k (strike price) - 8k (settlement price) - $100 (cost of premium) = $900
$900 profit from using $100. 9X return.
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