Trading vs Investing (The major differences) - page 3.

fullhdpixel

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Quote from: Rruchi man on April 08, 2021, 12:36:43 PM

Here is an infographic examining the differences between trading and investing under the key points of One's goal, philosophy, investment period, profit and tools.

When someone talks about trading I see it as an activity that you do daily (day trading), then when we talk about investment that’s the one I refer to as HODL. HODL is the investment here, because that’s pretty much what you are doing, you are investing when you HODL; when you hold, you put the money in a wallet and then keep it there till there is an increase which is the profit, and it can be for a year or more, and it can as well be less than that, it all depends on how the market moves when you invest that money.This image you have here explains everything properly and that’s just it, the difference between the two things; trading and investment.

imstillthebest

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Quote from: Yatsan on April 18, 2021, 06:42:35 PM

The infographics says it all differentiating investment and trading for those who have difficulty dealing or understanding what investing and trading really is. It is important for a certain individual to better know this to avoid confusion and make better understanding of where they wanted to get engage into the various crypto related works you can get into dealing with cryptocurrencies.

till now there are still people that didnt get the difference between the two .
i have read discussions where they define trading and investing as one but the topic was all about trading . this infographic is perfect for them if they are having a difficulty with definition in words .

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Both investment and trading can be profitable depending on the individual handling it because it still relies on how the person chooses the cryptocurrency he will entrust his money with whether his aim is to trade or invest with it.

learning cryptos is important as learning the difference of investing and trading because there are cryptos that dont work for investing but can work in trading .

livingfree

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Quote from: Emitdama on April 20, 2021, 05:12:13 AM

Quote from: livingfree on April 20, 2021, 03:44:02 AM

You can be an investor and a trader while you're sleeping well at night.

As an investor, you just let your investments sleep as if you're not going to touch them soon. And while waiting for them to become big, you can have a sideline of trading.

In trading, you're not really that putting much pressure and you can still trade calmly if you can control your mood.

I agree that I can be a profitable investor even while I will be sleeping but how's that possible with trading as well? I am sorry I could not get your point.

Only investor may stay calm in my experience because traders need to solve lots of hassles so that they could predict the exact movements of markets. So, not taking pressure will not be possible if you are trading but staying calm without any tension will be possible if you remain as a "bitcoin" investor (I mean no other asset may not guarantee you like bitcoin do for its investors).

In trading while you're sleeping, it's like setting your buying and selling orders.

It's an automated feature that you can use with those exchanges for you to have a peace of mind while you're at sleep. You can hit those orders and even stop your loss while you're away.

You can remain calm as you trade, you don't have to trade and be like the others that you're going to monitor it every single minute.

leea-1334

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Quote from: Dannaey on April 19, 2021, 07:50:23 PM

Trading and Investing are similar. The only difference is the length of days it will stay in the market. Trading is for a short-term stay in the market, will take only for a day some takes days. For investing, it's like staying for months to years.

The one key difference I would say is investing means buying and hodling. You also look to short or sell in trading. And trading often is not long term unlike investing. Traders stay and make charts, investors do background fundamental research,,, one is in to make profits and the other as well, but to make long term dividends in something they support and believe in.

Emitdama

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Quote from: livingfree on April 20, 2021, 03:44:02 AM

You can be an investor and a trader while you're sleeping well at night.

As an investor, you just let your investments sleep as if you're not going to touch them soon. And while waiting for them to become big, you can have a sideline of trading.

In trading, you're not really that putting much pressure and you can still trade calmly if you can control your mood.

I agree that I can be a profitable investor even while I will be sleeping but how's that possible with trading as well? I am sorry I could not get your point.

Only investor may stay calm in my experience because traders need to solve lots of hassles so that they could predict the exact movements of markets. So, not taking pressure will not be possible if you are trading but staying calm without any tension will be possible if you remain as a "bitcoin" investor (I mean no other asset may not guarantee you like bitcoin do for its investors).

livingfree

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Quote from: Dilerium90 on April 20, 2021, 03:01:39 AM

I am convinced, that investing in the long term brings much more earnings than trading and you sleep more calmly at night. Why? Because you are investing at very favorable prices, and you are already trading at high prices.

You can be an investor and a trader while you're sleeping well at night.

As an investor, you just let your investments sleep as if you're not going to touch them soon. And while waiting for them to become big, you can have a sideline of trading.

In trading, you're not really that putting much pressure and you can still trade calmly if you can control your mood.

Dilerium90

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I am convinced, that investing in the long term brings much more earnings than trading and you sleep more calmly at night. Why? Because you are investing at very favorable prices, and you are already trading at high prices.

Dannaey

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Trading and Investing are similar. The only difference is the length of days it will stay in the market. Trading is for a short-term stay in the market, will take only for a day some takes days. For investing, it's like staying for months to years.

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Quote from: beerlover on April 13, 2021, 04:40:02 AM

Quote from: wxa7115 on April 12, 2021, 02:00:05 PM

It is my belief that every single person that has decided to come to this market should begin as an investor so they can reduce their risk and take the time to learn more about the markets in general, and then after a few years in which they have become successful investors they could try trading if they want

This sounds like a good suggestion. Rather than struggling with the day-trading kind of high risk one, beginners should opt for long-term holding so that they could understand how the bitcoin market is fluctuating over the years. Simply watching will be definitely a boring one for anyone but when you are having some position into some market and then watching the price movements will be much interesting and helping to learn something about the market movements.

When you are good at predicting possible market turning points, then that would be a right time to enter as a trader in the same market.

Most people are experiencing stock trading and then directly entering into crypto trading which must be a blunder mistake in my opinion. Even the basics of trading are same but market influencing factors are completely different like we do not have halving event in stock trading. So, understanding the fluctuations of crypto markets must be very important before entering as a trader.

What kills most newbies is that they want not only to make profits but they want to obtain profits in the most difficult way possible, if at the beginning they just bought bitcoin and held their coins even if it was boring if they could do this for a few years then the chances of them being profitable is very high, and if they used that time to learn about the markets then the chances they will become profitable traders are very high as well.

But they want to begin trading immediately and that is when they are more susceptible to make a mistake as they invest in all kind of coins that scam them or that turn out to be a failure and they lose all their money and at the end think every single coin is a scam when they were the ones that selected scams due to their inexperience.

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Quote from: Mamun74 on April 15, 2021, 11:01:20 AM

I think,Trading and Investing are very close.But there are Both in risk.If you have enough experience in cryptocurrency then You can get good profit by trading or investing.So you can earn shortly by trading.But investing in long term.

All decisions you take have risks, and risks cannot be a comparison between trading and investing,
The comparison of the two is seen in the strategies and methods used when you want to trade or invest,
for example, trading always considers risk by making a stop loss plan, while investing does not use stop losses, because investing is focused on the long term, and stop loss is only used when playing short-term,

Yatsan

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The infographics says it all differentiating investment and trading for those who have difficulty dealing or understanding what investing and trading really is. It is important for a certain individual to better know this to avoid confusion and make better understanding of where they wanted to get engage into the various crypto related works you can get into dealing with cryptocurrencies. Both investment and trading can be profitable depending on the individual handling it because it still relies on how the person chooses the cryptocurrency he will entrust his money with whether his aim is to trade or invest with it.

jostorres

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Quote from: gerryhartell on April 17, 2021, 02:16:00 PM

Investing in new conditions is good. Experience is required to trade.

Yes, investing will be profitable even for newbies in this crypto space if you invest into bitcoin. I do not agree about investing in good coins. Because, no altcoin will be safer; LTC was dominating in altcoin space but now ethereum is leading there and in near future another coin will do the same whereas bitcoin will continue its marvelous run. So, avoid trading and invest only in bitcoins if you stay with crypto space.

Quote from: travwill on April 15, 2021, 07:43:59 PM

If you invest, then you risk much less due to the fact that you do not have to perform any manipulations with your coin. That is, after investing, you just wait and everything else does not depend on you.

Yeah, investment got lots of advantages and its returns are always auto-pilot way if you do with bitcoins. By this time lots of altcoins are giving good returns and consider dogecoin as an example: you must need to wait for more than 7 years and you need to actively watch to book profits because dogecoin hits 700+ satoshi for the first time in its existence but you need to be already to catch that levels because it is right now trading around 450 satoshi so if you was busy yesterday then you might have missed that opportunity but bitcoin is stable above $60k and it got assured 4 year cycle with 10x growth on every cycle.

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I liked the explanation of the picture..Trading seems to me a risk. There is more tension in the head. But investment risk is less. Good profit is possible by investing in good coins. Investing in new conditions is good. Experience is required to trade.

airdata

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This is really a very good Explanation about Crypto Trading and Crypto Investing. Anyone can increase their knowledge about Trade and Investment for this image. Need short time for trading and need more time for investment. We can earn good amount from investment but need patients.

travwill

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Risks are the most important thing. If you invest, then you risk much less due to the fact that you do not have to perform any manipulations with your coin. That is, after investing, you just wait and everything else does not depend on you. At the same time, trading is associated with the constant need for various manipulations, due to which you can easily lose a certain part of the deposit, and sometimes it is not so easy to return it. The formula is quite simple, the lower your risks, the higher your profit.

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Quote from: perfect999 on April 15, 2021, 02:06:36 PM

The thing with investments is that their returns are not as huge and as for trading, the returns can be more than what you’re going to be getting from investments by the time you finish your trading for the year, but there are risks.

The level of return must be depending on multiple factors and it is really unfair to call all the investment returns are small. For example, returns from bitcoin holding will be huge compared to any altcoins but there will be differences when the time period of holding changes; it means altcoins may bring big returns when you're holding for long periods and bitcoin returns will be small if you are trading or from short-term holding.

If you want risk free returns then you should go for the only investments because trading cannot be coming up with no risks but investments are.

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Well, I know that the purpose of these infographics is to differentiate trading and investing well in fact they are actually the same.
They are both investments in a way that you are buying securities and solid assets in form of currencies and stocks. They can also be sold anytime you want them too often. But some stocks especially when you bought them privately might need a vesting period before you can sell them. Prices of both fluctuate depending on the performance of the business and the demand. The only difference between the two is the market. Trading is public and investing is somehow private ^{[either it’s yet at the stage of selling to the public or decided to operate financially private]}
I hope this helps the people to learn more about the two terms.

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Quote from: Innerpumper on April 08, 2021, 06:04:16 PM

Your cryptocurrency world is in between. It can also be referred to as a short-term investment but it is called trading. Cryptocurrency trading is risky because 80% of it all has a very fast movement to make profit or loss.

Trading and investing are pretty close concepts, both have many similarities.
I think if people buy cryptocurrency and keep it long it's an investment, if they are into daily or short term trading then it is treated as trading.

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Quote from: kolbalish on April 08, 2021, 02:14:35 PM

Trading is as short a time as possible

Short-term trading is not necessarily the best, long-term trading also has many advantages.
Besides, short term trading requires a lot of skills and experience, so not everyone can trade in the short term.

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Quote from: mersal on April 15, 2021, 07:52:54 AM

Trading is like a job for that we need to work continuously to make money but as an investors we are not going to do any work, our money will work for you and it will keep compounding to generate more and more funds. In crypto market the investment period is much lesser compared to the traditional stock market profit making time period so this is the new ear of being an investor.

Yeah still anyone can do the both of them. Investment doesn’t require much of a focus , but when it comes to trading you need to be focused. In investments you just choose an asset that you believe is the best for you and then you invest in them and choose how long you’re going to wait, most of them I have done are usually being calculated per annual and you can decide to hold for longer than that to increase what you’re going to get, let’s say for two years.

The thing with investments is that their returns are not as huge and as for trading, the returns can be more than what you’re going to be getting from investments by the time you finish your trading for the year, but there are risks.

Topic: Trading vs Investing (The major differences) - page 3. (Read 605 times)