Topic: Is it better to invest or trade Bitcoin? - page 3. (Read 1525 times)

Many people say holding is simple but I believe it will only be simple when we compare it with trading, it is not simple at all. Holding an asset for 3 to 4 years is not simple if we do not have enough faith and perseverance. Buying is something anyone can do, but holding for the long term is something not many people can do, which is why so many people sell during bear markets. And those people mostly don't have enough faith and patience.

The both strategies has high profit potential provided they’re done at the right time. For you to invest or trade you must have the understanding of the volatile market for to trade or invest if not you will run into loss, though there are functions that gives you opportunity to now trade even without much understanding of the volatile market, the only thing you’re required to do is just to copy trade from professionals and you will set your stop loss and take profit, there are few exchanges with this feature, exchange like Bitget has it and it has helped newbies in making profit a lot.

When we consider to investing in Bitcoin, both a financially sound  and a poor person can invest. But in this case, long-term investment must be considered. An affluent person may benefit from long term or short term investment or profit through trading. But even an indigent person can benefit if he invests for long term following DCA. The risk in trading is high while the risk in long term investment is low. Any decision can be taken considering the financial condition of the investor. All things considered we can conclude that long term investing is definitely better than trading.

You are right, that Bitcoin trading is not easy thing and especially for beginners. But in my reply I mentioned that everyone can try himself in trading by using small amounts of money (let's say not more than 1-5% of capital). The purpose of that action is to gain some experience through practice. By the way, trading also might be divided into a few categories (like intraday, swing etc; or trading on the spot market or on the derivatives). For newcomers is important not to be afraid of practice. Yes, on the beginning of trading they might lose some money, but if they follow my advice (using small % of capital) they will buy very important experience that will pay off in the future.

P.S. One more advice for not experienced traders: always use small % of your capital for things that are new for you (new strategies or when you switch from spot trading to derivatives etc.). And remember that trading is more risky than investments, therefore you definitely need to have some % of capital in long term investments (that will help to cover short term loses in long term).

And yes, adultcrypto, you are right when saying "Before talking about Bitcoin trading, have you thought about the huge knowledge requirements?". I really didn't write much about this moment, my bad, next time will take into account. But my answer still makes sense and can be useful, I think so.   

I will not recommend Butcoin trading to anyone considering how risking and technical it is. Before talking about Bitcoin trading, have you thought about the huge knowledge requirements? Have you done the needed psychological work on yourself to help you manage risk,  emotions, losses and money management in general? Trading is not something a newcomer should jump into because the risk is simply just too high. Unlike trading, investment in BItcoin does not really require much to start. Just the right mindset and ability to hold and overcome FOMO and you will make money so easily grom Bitcoin.

If I'm the type of investor who doesn't want stress and hassle, I'll choose investing. I have nothing to do but wait for the right time to sell bitcoin or cryptocurrency. But of course, that still depends on your decision.

None of us here can dictate to you what you should do with your question. Because in the first place, you should know yourself: what kind of trader are you? Are you a long-term trader or a short-term trader?

These two options are indeed ways to get benefits from what we choose, but if we can do both of these things we will certainly be able to get benefits from what we do and if we are not able to do both of these things, it would be better for us to use just one method to get a profit from the investment we make. Before trading, we must have mastered it well in order to avoid losses that might occur in the trades we carry out and if we choose to hold and hold it for a long period of time, of course the capital we use must come from a source that we will not disturb we can achieve the targets we have set.

I think it's important to do both. When you actively trade Bitcoin (even by using not a lot of money) you stay in the market, feel what's going on and don't lose your skills. However, I prefer to use the biggest part of capital for investments (middle term and long term), but it doesn't mean that I can't or I shouldn't trade it. Trading gives you possibility to "stay in the market", what is important if you make Bitcoin an important part of your life.

So conclusion is next. Do both, create your own ration of capital (which % of money goes to "for trading" and which "for investments") and keep going. I a few times fell out from the market (but continued holding) and as a result it was difficult for me to return to feeling of the market and its waves (but if you again ready to spend a few weeks for active involving yourself to market, you will get back on track).

P.S. When market was extremely flat I used just $100 to make trades. I didn't have purpose to make profit, I wanted simply not lose feeling of the market, what was easy to do, when you hold biggest part of crypto capital for future

It's indeed that holding doesn't require more effort as you only need knowledge whenever you will exit the market to get profit. For trading you would need to have analyzation, skills and always checking the market. You would also apply emotional and metal ability in order for you to have proper calls and get profits as well. But holding doesn't mean you would only hold it, it's like you're keeping a treasure not knowing the steps and what to do with it, so you really need knowledge as well in long term investment. Thing is in long term, by the word itself "long", you would require a lot of patience and consistency for you achieve your financial goal cause quick profits will go to trading. Trading is really complicated which is not recommendable to newbie unless he already have the knowledge and experience.

Both are equally profitable and depending on your skills, if you are comfortable or like taking risks and have reliable skills and the ability to monitor the market regularly or continuously, trading may be the right strategy for you.
And if you want to do it casually, involved with Bitcoin and with little risk, then investing is the right choice for you. Because you only need to buy low, sell high or do DCA. And both are done for the long term with patience, until you really get maximum profit and sell it.

Holding doesn't require much complicated knowledge but that doesn't mean you don't need knowledge. How can you buy and have enough confidence to hold bitcoin long term until it makes a profit if you have no knowledge? Trust and patience are two important and necessary things to be able to hold bitcoin long termm and to have those two things you need knowledge about bitcoin. And for a newbie like OP, I also think investing will be more suitable for him than trading even though trading will bring better profits.

Since you are a newbie, you may not have much knowledge about investing in bitcoin and trading. My advice is that you start with bitcoin investment to minimize your risk because if you don't get better knowledge on trading, you will be losing money because trading is not like investing where you can leave it for a long time and profit if the market goes well, but trading is good too if you get knowledge on it, You should obtain a mentor to help you gain experience in trading gives rapid money and you can lose at any time because even professionals lose in trading sometimes, but it is up to you to choose which one you want to go with because both are good and each has their own risks, If you want to enjoy them both go learn about them, understand the risks involved, and hire an assistant when you want to start trading or investing so that you will know when you can invest because investors succeed from the professional and there efforts.

It can be done the same way. For instance, if I were a long-term investment in Bitcoin, the goal would be to sell it in two to three years. Can't I practice trading in Bitcoin while I'm waiting?

Naturally, as I learn more about Bitcoin, I can gradually use it through real-world trading to learn how to succeed in the trading sector. I believe that when a person wants to undertake anything out of curiosity, their mind changes.

Everything depends on the person involved. Whether he's a person who have got the ability to take risk or want to be on the safer side. Different parameters need to be considered before coming to a conclusion. Based on my understanding trading is much concerned about the short term profit making and have high risk whereas investing is long term focused and the risks were low.

At times trading also looks like gambling when you don't have the knowledge and get into it. Investing is not as that you analyse the right asset and hold it longer. Trading with good knowledge brings better profit than waiting longer for the profit out of investment. This means the trader might make 25% profit every month whereas the investor makes 25% profit in a year. Based on the profiting will be the risk associated.

Which one is better depends on how far your level of knowledge about investing or trading bitcoin. We have our own preference on what's the better thing to do based on our comfort zone, the mentioned knowledge, skills, interests, and if we are really serious about pushing either investing or trading.

Either investing or trading:

- What are the things you consider doing or planning? Create a structure.
- How well is your knowledge about it? Study all the necessary things from basic to advanced.
- Are you serious about doing these or have you just seen someone make a profit big here? Be inspired.

Yes investing is always the best because just like you said Bitcoin price could be very volatile in times of price movement which makes it very risky to trade Bitcoin because the chances of making profit is not certain.

However weather to invest or to trade is totally depends on the individual desire, so if they feel trading is much better for them they should go ahead, although irrespective of the risk that may be involve on trading I believe there are people who benefit from trading.

So for me I prefer investing and holding for long because the only way I can really see the potential of Bitcoin is by holding and not just that but holding enables me to have a relaxed mind and comfort without the panic of thinking if the Bitcoin price is going against me.

For anyone, trading is not easy, even a professional can lose because of trading with predictions that are not appropriate.
This is about how to carry out good management and the right strategy. Without these two, trading will not run well.
Long-term investment is always an option for some people. But of course it requires a lot of patience and capital resilience when the market is bearish and prices fall from the first purchase price. Don't lose long term investments due to panic, just leave it as long as you hold Bitcoin or top altcoin, it will rise eventually and provide profits.

During earn profit trough trading and investing I don't think required comparison both kinds to earn profit in cryptocurrency, each way between trading and investing have advantage and disadvantage depend on financial condition. For huge amount and they have much passive income from another way will prefer investing than trading but its not profitable position for trader with small fund and short term trading is the best way how to earn profit consistency in daily day.
I think OP have got several answer and depend his financial condition, huge capital he will priority with long term investment but if his position with small fund and as possibility earn profit every day he will prefer with trading and forget about investing until he has much money and ability to be long term investment.

I understand what you are saying and I agree. Indeed, both trading and investing are ways to make money in this market and each person will have a choice that suits their ability and economy. Investing and trading will both have pros and cons and we need to compare to choose the best one for ourselves, don't listen to anyone because they are not us, they don't know what we think, don't know what we need...Everyone's thinking is different, why do we follow what others say when we don't like it?

There is really no comparison between trading and investing. He will do what he likes and what is safe for him. Investors don't just invest in spare time they trade in different coins and those who are professional traders not only read about trading but also make big investments by understanding opportunities. The investment is fine for those who like to take risks and have the patience to invest their money in a coin for a long period of time. People who want to trade with small capital and those who do not have capital to keep money for a long time usually take up trading. Ask yourself this question about OP investing and trading and hopefully you will get the right answer.