Topic: Trading VS investing: pros & cons you should know - page 2. (Read 523 times)
I think is not as straight forward as it is generally presented. The fact that you buy low does not mean you will sell high at any given opportunity. Trading could be stages and different layers. I could buy and hold in order to sell in years to come while I keep buying low and adding to my stock! I could trade in a circle having established such circle and that does not mean I am investing, I am only taking advantage of opportunity presented to me by market forces!
You can trade if you have a good understanding of trading. Because if you want to trade, you must have good knowledge about trading.Otherwise you will not be able to profit by trading. You can also invest. If you pump a lot at once, you can get a lot of profit from there. So I would say if you understand trading well Then you can trade. If not, you can invest.
Trading is not for the fainted heart. There are times when the market is confusing whether the price will go up or will go down and you will feel the pressure when you are holding a stablecoin while you're the price suddenly goes up a bit while you expect the price to go down.
This is where you panic. You see how ADA is right now which people are watching what will happen this Alonzo launch but seem the price is very calm. Could it be that traders experience too much analysis that they're not buying?
Investing is easy as holding and waiting for the price so you can profit. There are no other coins to choose for this if you wanted to make sure of profit just chose BTC.
In terms of risk, I think I will measure it the same.
Long term and short term trading both have a risk, and as a trader or investor, you should have a different way to treat it.
Short term trading normally is good for people who consistently monitor the market as it requires instant decision making since the market is very volatile and it could change significantly in just minutes, hours or days. Everyone surely have their own strategy, but we only differs in our approach or implementation in trading.
Long term and short term trading both have a risk, and as a trader or investor, you should have a different way to treat it.
Short term trading normally is good for people who consistently monitor the market as it requires instant decision making since the market is very volatile and it could change significantly in just minutes, hours or days. Everyone surely have their own strategy, but we only differs in our approach or implementation in trading.
yes, if I myself ultimately have to choose a coin that i believe in the long term it will have a higher value. even for trading, because if something bad thing happend like the value goes down i can still be a holder. if person don't know what the reason he chooses coin which often makes that person fomo in the market.
For large trading capital, diversifying the portfolio and using long-term investment strategies are worth but small balance holders should focus on short-term market performance. Both versions of trading have some advantages&disadvantages, traders should decide which side covers their style or needs.
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Trading is at high risk, IMO.A singles mistake that you've made in trading costs a lot and might lose all your funds. Unlike in investing, if you only choose those potential coins, you are absolutely safe and you can surely make a profit. But in trading, that instant loss is possible especially when you are a newbie. And besides, this is not advisable to everyone not unless if we are really sure about ourselves but in investing, having the basic knowledge about crypto is already good enough.
~snip~
Trading is at high risk, IMO.A singles mistake that you've made in trading costs a lot and might lose all your funds. Unlike in investing, if you only choose those potential coins, you are absolutely safe and you can surely make a profit. But in trading, that instant loss is possible especially when you are a newbie. And besides, this is not advisable to everyone not unless if we are really sure about ourselves but in investing, having the basic knowledge about crypto is already good enough.
Checking of price is still happening with those long-term investors. I still do it despite being a long-term investor because it's just really a normal thing to do by an investor. But it doesn't matter to the price that's being shown because you're projecting a better price in the long run and it depends on how much you're going to look at it. Both are profitable but not as easy as we say because it's more fearful to do trades if you're just doing it randomly without any depth research and effort of learning to do analysis.
Even though it gets lesser and lesser each year, I still do it, especially when there is a big change like the other day. I mean I am of course not checking as much as a regular trader, those guys have to check it probably once an hour at the very slowest, some just keep on checking every second so they could make quick buying and selling chances. I have a friend that is classic trader, multiple monitors, many charts open, main screen on exchange, buy and sell within 5 minutes all that.So yeah, compared to them I rarely ever check, I have days when I do not even check the price at all, a whole day, traders can't do that. This is why I still prefer to be long term investor, but obviously I still do check the price time to time, CMC is on my frequently visited websites, I check it whenever I wonder what happened, just not as frequently as I used to.
Checking of price is still happening with those long-term investors. I still do it despite being a long-term investor because it's just really a normal thing to do by an investor. But it doesn't matter to the price that's being shown because you're projecting a better price in the long run and it depends on how much you're going to look at it. Both are profitable but not as easy as we say because it's more fearful to do trades if you're just doing it randomly without any depth research and effort of learning to do analysis.
Even though it gets lesser and lesser each year, I still do it, especially when there is a big change like the other day. I mean I am of course not checking as much as a regular trader, those guys have to check it probably once an hour at the very slowest, some just keep on checking every second so they could make quick buying and selling chances. I have a friend that is classic trader, multiple monitors, many charts open, main screen on exchange, buy and sell within 5 minutes all that.So yeah, compared to them I rarely ever check, I have days when I do not even check the price at all, a whole day, traders can't do that. This is why I still prefer to be long term investor, but obviously I still do check the price time to time, CMC is on my frequently visited websites, I check it whenever I wonder what happened, just not as frequently as I used to.
Pros
* This can be done passively
Investing in cryptocurrency can be done during your spare time without having to be fully active on the market. All you have to do is buy a performing crypto asset and see how its prices move within the next few months or years.
Great analysis as always Karl, besides that it is always fabulous to read great teachings, particularly since the safest thing on the market is this option, besides that you just have to wait and do nothing else, just follow up on what has been invested.
We must also take into account that this type of strategy is much more focused on investment than just market speculation, and above all it must be taken into account that the investment cannot withdraw until at least it has a good profit, otherwise it will transform in losses, for me this is the safest way to be successful, only that the sure results are shown in the long term.
Trade and investment should be harmoniously combined. I allocate part of the money from the profit received from trading in order to invest in new projects that are at the stage of a private or seed round of sale. Such investments, as a rule, pay off within a few months by the time of TGE and bring profit in the future.
For the trading view, one point has to be mentioned all the time, it is very risky and you need extensive knowledge. Actually you have portrayed the trading more easy as compared to the investing. However, I think holding for longer period for some profit is the game changer here. Yes, long term holding could be risky in terms of market crashes, loss in the down trend of the market however, the situation is never permanent in that scenario. You need to understand that market is volatile here and could take bigger pumps at any given time and you have to be smart one to sell at right time and then invest again once in a while. 
In case of trading you could be making as high as 500 bucks a day but someday you may end up loosing thousands of bucks in few minutes of time! This is just an example but yeah this is the reality in crypto trading considering the highly diluted market.
In case of trading you could be making as high as 500 bucks a day but someday you may end up loosing thousands of bucks in few minutes of time! This is just an example but yeah this is the reality in crypto trading considering the highly diluted market.
we will have different way to treat for each strategy, long term will give us more relax and doesnt need to check price in every days or even hours . meanwhile in daily trades we have to analize market movement regularly to find best opportunity that may occur then. both of them will give us alot money as long as we know to trade.
Checking of price is still happening with those long-term investors. I still do it despite being a long-term investor because it's just really a normal thing to do by an investor. But it doesn't matter to the price that's being shown because you're projecting a better price in the long run and it depends on how much you're going to look at it. Both are profitable but not as easy as we say because it's more fearful to do trades if you're just doing it randomly without any depth research and effort of learning to do analysis. 
Wasn't expecting Karl to make such a guide (or post it from the bitcasino blog) because bitcasino is a casino and I can't imagine such content at a casino blog.
While I agree with most of the guide, I would say that not just trading but even investing requires a lot of knowledge. In fact, more knowledge than trading because while trading you can just do a quick technical analysis and start trading because you don't intend to hold them for a long period. But while investing, you have to perform a fundamental analysis since you are backing the asset to retain and grow its value over time.
Since the topic of P2P purchase is mentioned, I must say that now days many frauds are happening at such P2P sites and one should be very careful, especially when selling their cryptos.
While I agree with most of the guide, I would say that not just trading but even investing requires a lot of knowledge. In fact, more knowledge than trading because while trading you can just do a quick technical analysis and start trading because you don't intend to hold them for a long period. But while investing, you have to perform a fundamental analysis since you are backing the asset to retain and grow its value over time.
Since the topic of P2P purchase is mentioned, I must say that now days many frauds are happening at such P2P sites and one should be very careful, especially when selling their cryptos.
Trading and investing are different. Smart and experienced people can succeed in both trading and investing but most of them fail if they mix investing and trading at the same time.
Those infographics source summarize how smart and dumb decisions they will make. More dumb decisions will be made in trading and in case they mix trading & investing.
Smart guys (usually real investors) have solid plans to enter (buy & accumulate) and exit (take profit). They are not or less be affected by market volatility and FUD/ FOMO effects. So they will buy in the bottom range (note that it is not make sense to buy at exactly bottom price). They feel happy when they enter in bottom range. Additionally, they take profit in all time high range and feel happy, satisfied when they take profit. They don't feel bad if they don't take profit at exactly all time high or peak.
This way, they won't fall into extremely fear or greed. They are successful investors.
Compares two inforgraphics and you will see the differences.
Those infographics source summarize how smart and dumb decisions they will make. More dumb decisions will be made in trading and in case they mix trading & investing.
Smart guys (usually real investors) have solid plans to enter (buy & accumulate) and exit (take profit). They are not or less be affected by market volatility and FUD/ FOMO effects. So they will buy in the bottom range (note that it is not make sense to buy at exactly bottom price). They feel happy when they enter in bottom range. Additionally, they take profit in all time high range and feel happy, satisfied when they take profit. They don't feel bad if they don't take profit at exactly all time high or peak.
This way, they won't fall into extremely fear or greed. They are successful investors.
Compares two inforgraphics and you will see the differences.
In terms of risk, I think I will measure it the same.
Long term and short term trading both have a risk, and as a trader or investor, you should have a different way to treat it.
Short term trading normally is good for people who consistently monitor the market as it requires instant decision making since the market is very volatile and it could change significantly in just minutes, hours or days. Everyone surely have their own strategy, but we only differs in our approach or implementation in trading.
we will have different way to treat for each strategy, long term will give us more relax and doesnt need to check price in every days or even hours . meanwhile in daily trades we have to analize market movement regularly to find best opportunity that may occur then. both of them will give us alot money as long as we know to trade. Long term and short term trading both have a risk, and as a trader or investor, you should have a different way to treat it.
Short term trading normally is good for people who consistently monitor the market as it requires instant decision making since the market is very volatile and it could change significantly in just minutes, hours or days. Everyone surely have their own strategy, but we only differs in our approach or implementation in trading.
In terms of risk, I think I will measure it the same.
Long term and short term trading both have a risk, and as a trader or investor, you should have a different way to treat it.
Short term trading normally is good for people who consistently monitor the market as it requires instant decision making since the market is very volatile and it could change significantly in just minutes, hours or days. Everyone surely have their own strategy, but we only differs in our approach or implementation in trading.
Trading is at high risk, IMO.Long term and short term trading both have a risk, and as a trader or investor, you should have a different way to treat it.
Short term trading normally is good for people who consistently monitor the market as it requires instant decision making since the market is very volatile and it could change significantly in just minutes, hours or days. Everyone surely have their own strategy, but we only differs in our approach or implementation in trading.
A singles mistake that you've made in trading costs a lot and might lose all your funds. Unlike in investing, if you only choose those potential coins, you are absolutely safe and you can surely make a profit. But in trading, that instant loss is possible especially when you are a newbie. And besides, this is not advisable to everyone not unless if we are really sure about ourselves but in investing, having the basic knowledge about crypto is already good enough.
Only varies with your capability or capacity on engaging on things because not all would really be that having these qualities.Fit on things on what suits you the most.
It does have pro's and cons but honestly you can deal off with both things if you are really that dedicated on earning.
In terms of risk, I think I will measure it the same.
Long term and short term trading both have a risk, and as a trader or investor, you should have a different way to treat it.
Short term trading normally is good for people who consistently monitor the market as it requires instant decision making since the market is very volatile and it could change significantly in just minutes, hours or days. Everyone surely have their own strategy, but we only differs in our approach or implementation in trading.
Trading is at high risk, IMO.Long term and short term trading both have a risk, and as a trader or investor, you should have a different way to treat it.
Short term trading normally is good for people who consistently monitor the market as it requires instant decision making since the market is very volatile and it could change significantly in just minutes, hours or days. Everyone surely have their own strategy, but we only differs in our approach or implementation in trading.
A singles mistake that you've made in trading costs a lot and might lose all your funds. Unlike in investing, if you only choose those potential coins, you are absolutely safe and you can surely make a profit. But in trading, that instant loss is possible especially when you are a newbie. And besides, this is not advisable to everyone not unless if we are really sure about ourselves but in investing, having the basic knowledge about crypto is already good enough.
Still at the crossroads of picking between trading vs investing in cryptocurrency?
Whatever both trading and investing, if we are consistent, we can get profits as we target. And both also include risks. Investors will say that trading has higher risks, moreover, it is like gambling.
The trader will also say, trading is risky but very profitable, and investing is also risky and too much waiting.
Wel, that is why both are actually risky and profitabel. So it depends on each person in choosing the one, if they are consistent and know what is doing, they can minimize the risks and take higher rprofits.
In terms of risk, I think I will measure it the same.
Long term and short term trading both have a risk, and as a trader or investor, you should have a different way to treat it.
Short term trading normally is good for people who consistently monitor the market as it requires instant decision making since the market is very volatile and it could change significantly in just minutes, hours or days. Everyone surely have their own strategy, but we only differs in our approach or implementation in trading.
Long term and short term trading both have a risk, and as a trader or investor, you should have a different way to treat it.
Short term trading normally is good for people who consistently monitor the market as it requires instant decision making since the market is very volatile and it could change significantly in just minutes, hours or days. Everyone surely have their own strategy, but we only differs in our approach or implementation in trading.
Yes i agree that both were almost the same wherein we buy and hold until we get the value that what we want from it, and the risk also.. But for me its a good idea to have such options where people can choose the way for them is fine, i mean some can do it full time in trading and part-time for investment.. Indeed it doesn't matter at least you have enough knowledge how to handle such way it's totally fine and worth it especially when it comes crypto..
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