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?
both the traders and holders make the profit for good investment but we can I differentiate the prophet while seeing a single person or a group of people profit it will definitely difference for the different people so we cannot predict it very easily.