Topic: Who profits more during bull Market, trader vs holder? - page 3. (Read 1076 times)

We all know the answer to your question but is this comparison even necessary? Oshosondy seems to explain it already in the first reply. In this space, the concern is not just about the profit but also the process. While traders will quickly make much more profit than holders, they are also taking much more risk.

A business man who's making 2x profits on a daily basis while sitting in one one place and the one carrying his goods up and down but making 5x or more profits, who do you think make more profits? Of course, everyone will say the later makes more profits but in reality it's the former that makes more profits because he's free from every form of risk involved in carrying the goods around. That's just the case between holders and traders.

I would say that the traders have more potential of the knowledge is there, and hodlers - the stability of their investments are the highest if the coin is reliable and big.

Depends on the targets put in and how much time funds and resilience a person has.
Both ways can be profitable and disastrous at the same time.

During bull runs,  people earn profits differently. Some traders take more profits while other traders take very low profits, making long term hodlers more profitable than them. This means that the profitability of a trader during the bull run depends on how skilled and experienced he is to perfectly time the market. Where the trader has a perfect strategy, he will make more profits by skillfully taking advantage of the multiple profit taking opportunities available within that period of bullrun.

But if we are comparing between an unskilled trader and a long term hodler, the holdler (depending on the amount he has invested) Has the higher chance to take home more profits. The profitability of these two investors depends on their strategies and perfect timing of the market.

Answering the question in the title of the thread and this is based on experience, in terms of frequency trading will be more frequent profits during this bull run, but it is not about the amount of profit, only about frequency and holder is the winner.
However, not many traders can turn into holders because they get bored waiting for price to rise, but it is the holders who always win, especially Bitcoin holders.

Some traders can make more money and although the risk is also large when they are involved in it.
It can be said to depend on the ability of everyone to trade or hold with different beliefs.
The advantage for holding does not need to be afraid of liquidation and although there is a severe correction that occurs in the holding market can withstand bitcoin in the wallet they keep with not panic consideration.
Traders will be more at risk of loss when the level of liquidation exceeds the price they buy and determined by a system that cannot be determined by the traders themselves.

Traders do not need to wait for market conditions because what they need to do is an analysis to enter the market to run trade in accordance with what they know and even though the risk is also large about losses.

Apart from the risk involve in trading, traders do make more money in crypto market than holders even during bull run.

When you buy Bitcoin on the spot or any coin, you can be rest assured that you are holding the coin in your wallet and you can sell it anytime you want, you have no tension of benign liquidated due to little market correction.`
So even during the bear market, professional traders know their way out to make money from the market. Therefore, in my opinion; traders get more profit than holders in all market situation, but they are also prone to lose money due to the risk involved.

If you talking about trading we can be specific on the kind of trade to do, which includes spot trading, feature, forex or binary options. All these trade has their functions because when you trade on these listed trading you would get different results and separate amount as profits from them. What I mean is trading can be more profitable depending on the trading you want to involved yourself with, then looking at the other way round you would see that holding is also pretty much fine for you to hold but this required long term journey to have a better cash out from it. The only reason why holdings is more preferably is that you wouldn't involved yourself with trade or losing more money except if bitcoin price keeps declining.

I think it was actually when the market is bullish is the ones where the traders can earn and not when it is dumping continuously because even if they buy at highs, they can still sell it at even higher price when the bull/pump continues.

I actually think they have the same goal and that is, none other than to make a profit out of this market of cryptos. It is just that one is earning little by little but more quicker than the other who is more on a passive side but the earning potential is still bigger. It is because their profits are only stacking. So profit wise, I think they are still equal or their difference are not that far away from each other. I won't say holders take a least risk because what if they invest on a risky coin like a shitcoin and meme coin?

For traders, the act of trading is already risky but they can make it even more risky by using leverages, trading with no knowledge, and trading using the type of coins I mentioned earlier. I wouldn't include selling earlier because this is already counted to what I said earlier, because if not, they won't worry when they see their cryptos are only rising and they can even hold it a little longer. Anyone can take advantage of the volatility. They can either buy or sell, depending on where the price is heading at.

Talking about less risks or somewhat in using up that safe word then Bitcoin would be really be the best choice in terms of that at least having that assurance that your money will increase out overtime but of course
not all people will really be having that kind of preference on seeing a small amount of profit that they could get on which they are aware on how altcoins could give out that so much more potential profits if they would really be trying out to diversify. Actually its not really that a bad thing to consider yet diversification does really have that kind of advantage but of course its not something that you will really be able to make yourself have some assurance that you could make sure profits into those investments that you had made out. In regarding about on the question on whose making more profits on a bull market? Both are really that raking it up
but it would really be just that different with numbers but what matter the most is that they are making money out of it.

There are really just that those individuals who arent that getting contented on what they are earning but actually everything will really be basing up on how you would be making out decisions
whether you will really be making some short or long trades or simply just holding.

Bitcoin is volatile like other cryptocurrencies but it is less volatile compares to thousands of altcoins in this market.

Bitcoin is safest because history shows it always recovers after -70%, -80% corrections from ATHs. After any terrible market, it recovers and gets its ATH back, even makes new ATH. Altcoins are different and I only can see Ethereum can recover from bear market and has its new ATH in a new 4-year market cycle. If I miss other altcoins can perform like Ethereum, I believe it is not more than such 5 altcoins. Perhaps Monero but with more regulations against Privacy in cryptocurrency market, Monero won't have too bright future.

In any kind of market? Bitcoin is NOT the most stable, but it's absolutely the safest investment you can make in crypto. Why? Because it's simply the only cryptocurrency that's NOT a scam. I'm probably wrong, but I believe EVERYTHING except Bitcoin, and maybe two or three other blockchains, actually make sense.

Plus for those "traders" who want to outperform Bitcoin, perhaps you'll have a better opportunity to profit in more units in Bitcoin by holding MSTR stock during the bull cycle.

This the different strategy you mentioned. Every investor and trader has own strategy. Most of the investor invest for long term who haven’t any financial crisis can hold for long term for healthy profit. On the other hand who are disable to hold the nerve exit with low profit or loss.On the other hand trader has a different strategy. Trader has need many things to observe and study before doing this. I think trading is much and more tough than investing. Investor just invest money until get a good profit. Trader always need to observe the market and also analysis it before entering on the market and need to make a plan always to exit with profit. If his prediction goes wrong he/she will be on loss.However trading is always a good way gf earning when market is on good uptrend . On other hand investor need to invest on market when market on downtrend on low price and need to be patient untill reach his target point.

That will not easy to say who profits more between a long term holder and traders. They have their own way to make a profit from Bitcoin so we can not say that trader or holder will be more profits in the bull run. That will depends on how much money they invest in Bitcoin and how much money they use to trade and how big their profit. But if a trade open a trading long position when the price is $71,000 and the price is going down, he will lose for temporary and if he can not add more trade, he will really lose the money. But the holder will be in profits in this matter because they can determine on which price they want to sell. They can sell at $71,000 or still waiting for the price reach more than $100,000 so his profits will be bigger.

I can say with confidence that such a scenario is quite possible. And to confirm my words, I post here a screenshot on which the trader (it's not me) holds his order for a year, opening it when the price of BTC was $26365. I don't know if he will be able to close the take profit order, because it is at the level of 100 thousand dollars. The holder will not be able to get such a profit)

This is a very technical question that a straight answer might not address. On a simple look, it might appear like holders will profit more from bull market but there are instances where holders will hold beyond the point they ought to have sold thereby making them to lose considerable amount of money. Meanwhile traders have their way of entering the market near the bottom and selling near the peak because they have tools such as the RSI and others that help them perform the technical analysis. I'm not saying that trading is the best as I still prefer holding because of the peace of mind and safety it offers unlike trading that is very risky.

You know, one thing about those big professional traders is that they make profit consistently even during Bitcoin bearish market or even when the market is not too volatile. So, even before a bull market starts, a trader must have accumulated a lot profit big enough to even surpass the entire profit the holder would have made. Although not all traders are professional and successful in trading.

I think it is worth noting that traders are different. If we talk about an experienced trader, he will probably be able to make a bigger profit than the holder. But we also need to remember that the holder can be any person who bought Bitcoin and patiently waited for profit for a long time. Not everyone can be a successful trader, so there is no need even to guess who will be the winner. Patience can be a good partner in investments, and haste and incorrect strategies will lead to loss of capital.

Yes I also think an investor can get more facilities and security than a trader. As a trader always researches the market and tries to make a profit by trading on time, In that case, if there is a little mistake in market research and if there is a little mistake in adopting the right strategy, he loses all his money. most of the time the possibility of loss is more than profit in trading.

But when it comes to investment we have to invest for the long term, long term holdings in currencies like Bitcoin have a higher chance of profit. Bitcoin pumps up huge value after one of its four-year cycles. So we should aim to hold for at least two to three cycles, and keep investing a certain amount regularly using DCA. With the DCA method, we can invest without worrying about the fluctuations in the price of Bitcoin and take an average price over a long period of time, which also gives us a high chance of profit. In the near future the price of Bitcoin will cross $150K - $250K or even $1M, at which time you will get multiple returns from the current price.

Because of this I think if an investor invests in Bitcoin he will be more profitable in the long term and risk free than a trader.

But is this scenario feasible? Because I don't think someone can open a long position when bitcoin is at $35k and hold that position until bitcoin hits $100k. Because there is no guarantee that the price of bitcoin won't drop below $30k or even $20k before falling to $100k. That is why when trading we must always adhere to the take profit/stop loss principle.
Meanwhile, holders will only buy more if the bitcoin price drops to $20k instead of being nervous and scared like traders. So I also agree that the holder will always get better returns than the trader.
The only advantage that traders have over holders is that they can make quick profits every day or in the short term, IMO.