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Topic: How to Differentiate Between Trader and Investor - page 2. (Read 883 times)

legendary
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You have answered your question.

But what I personally see to be the major difference between the crypto investor and trader is the length of coin holding of the two. While investor is in for the long term, the trader is in for the short term.

I don't have any explanation but you have simply defined the major difference of a trader and an investor.

I wouldn't say the main difference is in the length of the holding, the trader is the guy who deals with the markets, while the investor is the guy who brings the capital.

The trader can buy and sell assets to make a profit while risk other money, but the investor can decide to put that money in other businesses.
legendary
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Anyways, let me allow you to comment. What's the major difference between these two actors in the crypto industry?

Thanks for permission Smiley.
For me major difference is simple, its just trader buy short term (sell soon after) and investor buy for long period of time (known as hodlers).
What is better? You must try yourself and decide, trading is adrenaline for sure.
legendary
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The difference between investor and trader are in below:-

Investor:
1. Long term holder.
2. Generally, investors hold big portfolio than a trader
3. They can invest any project at any time, for example, in Private sell, during icos, Take a partnership with some projects, etc.
4. Investors thinks deeply more than trader imo

Trader:
1. Genarally traders hold for short periods.
2. Always keep busy in buy sell  Smiley
3. Trader portfolio is smaller than an investor.

These are some possible difference between investor and trader in my opinion, Maybe there are more differents.
TGD
hero member
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Investors are those who willing to let their money grow by itself in the long run, investing in some stocks or real estates that will let have value more after a long time even without trading it or simply by monitoring it, while trader  are those who earn in shifting into different stocks or cryptos in just a small time frame not necessarily need to wait longer or stick into that any coin.
member
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There is gold in volatility..
In most cases, yes. Lenght of holding in the major difference between investors and traders.
But then I guess an investor could be considered a trader as well, based solely on their actions: they buy and they sell, right? They could buy for their retirement portfolio or .. they could buy now and tomorrow, if BTC dips to $5k, they might sell out of fear. Why do you think there's not much of a difference them?

I'd take it another way to differentiate the two: traders follow charts, investors follow potential.

Investors sure do care whether the price grows or not, but they mostly rely on how much potential of growth some asset/stock has, studying it. Traders mostly do chart analysis and care about the exact time a pump happens so they could cash in. There's long term trading as well, so if we rely only on length of investment/trading.. we'd mistake one for another.

Wow, this is a uniques insight.
Trader observe and leverage on time dynamics while investors observe and leverage on growth dynamics of the crypto. That's fine approach.

And also a trader can easily switch to become an investor by simply doing what an investor does.
full member
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For me, Investor is a broad field, there are investors of a site (like gambling site) and receive a share, Also investors in IEO, Investors in cryptocurrency which are aiming for a long term period. That is my definition of Investor. Traders are market players, They can earn even in Bear and obviously in the Bull market. They focus on technical analysis also the project's development and news. A regular trader I guess is always watching the market especially day trader which is keeping them very occupied, while if you are just an investor you can sit and relax.
jr. member
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A trader think beyond the ability to hold portfolios for a long-term while an investor is such that will hold for a long-term to take profit. Traders watch the happenings around the technology either the cryptocurrency or in the stock market for decision taking while an investor won't at anytime. A trader make huge profits compare to an investor. But in all, "they're all in for a profit" nothing more.
full member
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As an investor, you are aiming to buy stocks for a low market price and aim to make a profit when the price of their investment goes up which is good as a basic earning but in investment, it takes time before you will get your profit but still, it is worth it because it is surely making a huge market income. But still, the market is volatile always take care.

As a trader it is more focusing on the technical analysis and critical thinking of how you will earn your money because trading is riskier it is all about all or nothing to withdraw your funds. If you win your trade it is good to make a profit if you lose it is okay but if you lose with a huge market trading level it will lose all of your money in a single mistake.

Just a simple explanation

An investor is just focusing when the market price of the coin falls down are we called as dip they will buy and sell the market price of the coin rise.
A trader is more on technical analysis that you need to have good knowledge in market volume, market graph, trading indicators and margin trading (I will not indicate a lot of examples). There is a different kind of traders the normal trader who make one to two trades per day, in short, they are long term traders, and the scalpers who make a quick trade every movement of the graph they make a buy/long and sell/short to make a profit.

Peanutswar already listed some of the things you need in trading and you need to do now is to widen your knowledge to about too much lose trading is all about good decisions and making money some of the traders make a hundred dollars every day because of this kind of skills.
legendary
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In most cases, yes. Lenght of holding in the major difference between investors and traders.
But then I guess an investor could be considered a trader as well, based solely on their actions: they buy and they sell, right? They could buy for their retirement portfolio or .. they could buy now and tomorrow, if BTC dips to $5k, they might sell out of fear. Why do you think there's not much of a difference them?
I agree, that's the reason I included in my initial reply, that this checks out in most cases. In the end everyone wants profits, if I invest in Bitcoin and set a target of 20% ROI, if that hits in 24 hours, I can take profit from my investment, without having to wait for a long time.

I'd take it another way to differentiate the two: traders follow charts, investors follow potential.
This also checks out in most cases, traders can sometimes get involved with potential or the fundamental analysis of a currency they're interested in trading, this could be a news or update on the project which could have a direct impact on the market price.

Investors also can consider charts, or technical analysis when putting their capital into a currency. This could be used to determine the best time to buy, which ideally is the bottom price. For example, if I plan on investing in BTC, and use technical analysis to predict a drop in the coming days, I could hold on my investment and try to catch the dip, to maximize my potential profit.
I can say that there is sometimes an overlap in both concepts.
sr. member
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This topic is very broad. Investors rely mostly on their asset for a longer period which means we cant really on them for doing a pump and dump but they are the more prone to panic selling cause they are holding huge chunk of assets. See how the market falls when a fud is being circulated on social media they are the one who sell off first.

While trader uses this opportunity to pick up some cheap prices. Technically the advantage here are on traders that knows when and how the market will increase and decrease.

But there are both investor and trader. I myself doing both having some budget on btc for long term and some usdt for trading and even using margin trading.
legendary
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In most cases, yes. Lenght of holding in the major difference between investors and traders.
But then I guess an investor could be considered a trader as well, based solely on their actions: they buy and they sell, right? They could buy for their retirement portfolio or .. they could buy now and tomorrow, if BTC dips to $5k, they might sell out of fear. Why do you think there's not much of a difference them?

I'd take it another way to differentiate the two: traders follow charts, investors follow potential.

Investors sure do care whether the price grows or not, but they mostly rely on how much potential of growth some asset/stock has, studying it. Traders mostly do chart analysis and care about the exact time a pump happens so they could cash in. There's long term trading as well, so if we rely only on length of investment/trading.. we'd mistake one for another.
hero member
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You have answered your question.

But what I personally see to be the major difference between the crypto investor and trader is the length of coin holding of the two. While investor is in for the long term, the trader is in for the short term.

I don't have any explanation but you have simply defined the major difference of a trader and an investor.
member
Activity: 490
Merit: 31
There is gold in volatility..
Quote
What's the major difference between these two actors in the crypto industry?
What the difference for me is first the analysis using of these two types of people in cryptocurrency; trader and investor, which the trader for sure is more on technical analysis, like more on analyzing a chart, while the investor part is more on fundamental part since they are more for long term part.
Most of the investors will look forward to the long term, effects on it in the future, events, news are important for them.
While traders will make only money, even how worst some cryptocurrencies are, they will more base on what they see on their chart.

While that is a fact, its more of a fact that a trader look beyond historical movement of prices to trade he also analyse what's happening in the real world in order to make a good decision.
legendary
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Just a simple explanation

An investor is just focusing when the market price of the coin falls down are we called as dip they will buy and sell the market price of the coin rise.
A trader is more on technical analysis that you need to have good knowledge in market volume, market graph, trading indicators and margin trading (I will not indicate a lot of examples). There is a different kind of traders the normal trader who make one to two trades per day, in short, they are long term traders, and the scalpers who make a quick trade every movement of the graph they make a buy/long and sell/short to make a profit.
legendary
Activity: 2030
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Professional Community manager
But what I personally see to be the major difference between the crypto investor and trader is the length of coin holding of the two. While investor is in for the long term, the trader is in for the short term.
In most cases, yes. Lenght of holding in the major difference between investors and traders. They also view their assets differently, if there is an arbitrage opportunity in a currency a trader can quickly take it up without trusting the fundamentals of it but simply understanding the technical aspects, an investor however only puts their capital into a currency they trust has the potential for ROI, deep technical knowledge is not a prerequisite.
Also an investor is dependent on the growth of the currency, a trader however can profit from the growth, fall or difference in price across exchanges.
full member
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Investors and traders are both important in the world of crypto, it maintains the circulation of the bitcoin and other cryptocurrencies, if we are talking about investors, they are the people who are holding their assets for long term or short term and then they will cash out it if the price of the market gets high, they tend to make money by doing that, just keep on waiting for the right time or for the market to gets higher than the price when they invested their money, having a long term investment is more profitable than short term, so better choose to invest for long term.

I am not that too familiar about traders because I am not doing that method, but I tried it before way back 2019. Traders are those who seem and buy bitcoin, it is too complicated for me compared to investing so I prefer doing investment than trading.
legendary
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Quote
What's the major difference between these two actors in the crypto industry?
What the difference for me is first the analysis using of these two types of people in cryptocurrency; trader and investor, which the trader for sure is more on technical analysis, like more on analyzing a chart, while the investor part is more on fundamental part since they are more for long term part.
Most of the investors will look forward to the long term, effects on it in the future, events, news are important for them.
While traders will make only money, even how worst some cryptocurrencies are, they will more base on what they see on their chart.
member
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There is gold in volatility..
Well, everyone in a race is out for something specific. They are obviously in for the prize, whatever it may be.

In crypto, both investor and trader is in for the meat, I mean for profitability. This profitability is measured in terms of ROI.

But, the business system of the trader is different from that of the investor.

But what I personally see to be the major difference between the crypto investor and trader is the length of coin holding of the two. While investor is in for the long term, the trader is in for the short term.

Anyways, let me allow you to comment. What's the major difference between these two actors in the crypto industry?

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