Trading and long-term investing

[AntonySS]

Both approaches have their logic 🙂 

Long-term investing gives you peace of mind, trading adds dynamics and adrenaline. 
In fact, you can mix both - build a solid portfolio for the long run and use short-term trading to catch market waves. 

A lot depends on psychology too -  not everyone is comfortable staring at charts all day. Some people simply prefer to hold and sleep well

So it’s more about finding what fits your mindset than choosing one “right” way.

[Judith87403]

not everyone is comfortable staring at charts all day. Some people simply prefer to hold and sleep well

So it’s more about finding what fits your mindset than choosing one “right” way.

Of course staring at chart all day is even more stressful than most of our jobs, because you can decide to go for break once is time or when you don't have much to do. But in trading you will always want to keep your eye in the market to avoid missing out opportunity, imagine investment that you will just make your routine buying and relax or better still you go into side hustle is what some people are still seeing as something very stressful? Maybe that's in terms of holding it for long, but that's not even supposed to be an issue because we are investing with our discretionary funds that's the Left over after all expenses is being carried out so is just in form of making savings so I see no reason why we are scared of  investing for Long term investment.

[knowngunman]

In the new situation, we almost equate trading and investing. Trading and long-term investing are two completely different things, let us discuss these issues in detail below.

Buying a coin is not considered an investment, if a person buys a particular coin and sells it for some profit then it is considered trading. Investing is when you buy a reliable coin and try to hold it for a long time.

How do you classified reliable coins? Reliable or not reliable coins, as far as you're holding for a long term it becomes investment. I would agree with you if you say there are bad investments and good investment. If you buy into shitcoins and you intend to hold for a long term, of course you can call it investment but it's actually a bad investment. Trading is literally investment too but it's short term investment. As far as your aim is to maximise profits with your capital, you're an investor. The longevity of your holding determines whether you're short term or long term investor.

[KiaKia]

I will choose long term investment over trading, not all trading though, I do spot trading any time I see an opportunity but leverage trading is something else entirely, it's not made for  the like of me.

I do leverage trading at times but the massive loss is always there as I have lost money this way few times before, spot trading just works best for me and I believe it will be the same with others.

People are always in hurry to make money thats why they feel like long term investment is a waste of time, the secret to long term investment with peace of mind is your source of income, there will be no need for any panic and when the future comes you will be in profit.

[348Judah]

Buying a coin is not considered an investment, if a person buys a particular coin and sells it for some profit then it is considered trading. Investing is when you buy a reliable coin and try to hold it for a long time.

To make it more easier for people to understand, trading could be that you exchange a currency pair with another one and sell or buy in other to make profits as they rises or fall, while in an investment, you only choose to buy for instance bitcoin, hold and as the market pumps, it's value increases and you make profits, then sell high at your desiring rate to take profits you ha e earned from buying it low.

[Bobrox]

Depend on my financial condition still not freedom yet I priority for trading then long term investment, actually much benefit get and earn much profit when assets investing at long term investment exactly investing with bitcoin. But still have not financial freedom and we must earn profit as short as possible make me have priority trading than long term investing for awhile, maybe after getting financial freedom will focus for long term investing than trading.
Long term investing make us not have to understand well about market condition just invest during bitcoin have lower price and hold it several years later or sell based on how much profit target to earn. Most important for every one interested with long term investing must invest with the right coins of the top coin market standings how to avoid from any coin have possibility would be scam in the future.

[HONDACD125]

How do you classified reliable coins? Reliable or not reliable coins, as far as you're holding for a long term it becomes investment. I would agree with you if you say there are bad investments and good investment. If you buy into shitcoins and you intend to hold for a long term, of course you can call it investment but it's actually a bad investment. Trading is literally investment too but it's short term investment. As far as your aim is to maximise profits with your capital, you're an investor. The longevity of your holding determines whether you're short term or long term investor.

You're right that both can be called either short-term and long-term trading or short-term and long-term investments, because anything that you buy and sell for profit is called a trade, and anything you do with your money with the intention of increasing it is called an investment. However, generally, people say it's an investment if you are buying and holding something for the long term, and they say you are trading if you are buying and selling assets within short periods, for smaller profits but doing it regularly to maximize the profits.

I personally think one should do both, especially if they can afford to do so, because this way, you will have investments for your future, and you will also be making money on a regular basis through short-term trades. However, it can only be good if the person can manage both things effortlessly together, and won't waste their money by getting greedy. If you think you can't manage trading, you should stick to investments only, that's better than losing money by experimenting.

[aylabadia05]

In the new situation, we almost equate trading and investing. Trading and long-term investing are two completely different things, let us discuss these issues in detail below.

Buying a coin is not considered an investment, if a person buys a particular coin and sells it for some profit then it is considered trading. Investing is when you buy a reliable coin and try to hold it for a long time.

People who misunderstand trading and investing will blame circumstances. I mean, recently, many people have lost money due to falling market prices.
Trading requires a strong mentality because failure is very likely to occur even if various strategies are implemented.

Only investing truly offers the potential to achieve what is expected in the future.
Distinguishing between trading and investing isn't difficult if someone experiences the world every day without having to travel by plane.
By the way, you're right in explaining the difference between the two.

[Miles2006]

Let’s use bitcoin as an example, bitcoin price fluctuates all the time obviously a trader will always watch the market movement waiting for a better price range before selling. I’m curious what if the price doesn’t get to the expected level will traders sell in loss or hold like investors? Trading is considered risky and a newbie should be able to differentiate between a long term investment and trade, firstly trading is not advisable if a person is not well knowledgeable about the market mostly newbies who are yet to understand how bitcoin work for example a little market movement might discourage the process, op mentioned how beneficial long term investment is compared to trade no doubt staying watchful over the market doesn’t guarantee profit 100%.

[Scarlett_23]

Bitcoin is a very volatile currency. Investing here involves taking risks. However, those who invest in the long term have a risk of losing their money, but according to the history of Bitcoin, they also have the possibility of success in the long term. On the other hand, trading requires a lot of judgment and analysis.

To become a skilled trader, one has to observe the market deeply. If one fails to analyze the market in any way, his funds are at great risk.

Therefore, for those who want to invest their valuable money and stay worry-free, I think Bitcoin investing is more comfortable than trading.

[Platinumys]

The big members of the forum or investors always advise others to invest in the long term because it is relatively safe. Trading is difficult on one hand and also risky. A new person will not be able to succeed in trading very easily because he has to understand a lot here and know a lot, but this is different in the case of investment. Investors are told that they can start investing from any level of Bitcoin price and continue it gradually. Because since investors have a long-term plan, the market will change a lot in this long period and a consistent investor will be able to buy Bitcoin in each change. I myself have seen trading practically, where we have to use a lot of capital for a profit of 5 to 10 dollars and many times it is seen that we lose a lot of money for this small amount of profit. I have now completely moved away from trading and I have now given my full attention to investing in Bitcoin.

[Oshio-man]

I agree with you that there is difference between trading and long term investing, you can buy and trade anytime you want to earn income while long term investing take some investors a long term to research a particular coin to invest and hold for long term, but there is a big risk to take among them because the price is not a constant price, sometimes it can increase to continue showing green candle to remind investors about bullish season or decrease to continue showing red candle to alert investors the sign of bearish season, the most important thing about trading and long term investing, make sure you have the knowledge of cryptocurrency before involving your funds.

[Emeraldo]

How do people think they can make money from trading when they can buy and hold. Trading has been seen as a thing of the past and I don't have to trust it after MBA forex took all our money and scammed. There are so of the victims that are trying to stand after they put all their money in the platform and the team ran away with customers funds.
If my location, if you talk about teaching people how to trade, they could crucify you immediately with words and expression.

[lizarder]

In the new situation, we almost equate trading and investing. Trading and long-term investing are two completely different things, let us discuss these issues in detail below.

If you understand this correctly, where is the significant difference between the two? I'm sure most people use the term "investment" except when discussing trading. The simple difference lies in the timeframe and the objective. Trading is about quickly generating profits, while investing involves the long-term growth of the assets we hold.

Buying a coin is not considered an investment, if a person buys a particular coin and sells it for some profit then it is considered trading. Investing is when you buy a reliable coin and try to hold it for a long time.

People talk about short-term and long-term investments, and honestly, the terms don't matter as long as people understand what they're saying. Buying coins and then selling them is clearly considered trading because the timeframe involved is short, and sometimes we often use these terms randomly. Long-term investing requires a longer period of time, where we buy and hold until it reaches the desired price. Most people talk about long-term investing in Bitcoin but didn't mention that when trading.

[UchihaSarada]

People talk about short-term and long-term investments, and honestly, the terms don't matter as long as people understand what they're saying. Buying coins and then selling them is clearly considered trading because the timeframe involved is short, and sometimes we often use these terms randomly. Long-term investing requires a longer period of time, where we buy and hold until it reaches the desired price. Most people talk about long-term investing in Bitcoin but didn't mention that when trading.

Please stop using short term investment term, as in my opinion, there is no short term investment.

Investment is only long term and if you want to get profit with short term money spending into something, it's called as speculation. You are speculating that the asset you bought will increase in price in short term and helps you having profit, that's speculation and is not an investment.

Investment is practiced with a long-term vision on future of that asset, and it means you need to maintain your investment portfolio in a long term, ignore short term market manipulation, growth, falls, fud and other news.

[Tungbulu]

A day Trader: Makes profits with 24hrs and at most in days when go long.
A short term investor Makes profits from weeks to months
Long-term investor Takes profit from months to years.

Someone who bought a coin today and in two weeks time, the coin pumps and he decides to take profits, the person is not a trader as you described above. There are not trick rules, anyone can buy low and sell high without being a day trader.

A long term investors usually don’t have any business with taking profits in months, In fact they usually don’t have any business with taking profits (excepts they’ve reached their long term goals) and I like to consider anyone who into the market for the purpose of taking profits outside this circumstance (reaching their long term goals) as either a trader or a long term trader because that’s not the characteristic of an investor.

[lizarder]

Investment is only long term and if you want to get profit with short term money spending into something, it's called as speculation. You are speculating that the asset you bought will increase in price in short term and helps you having profit, that's speculation and is not an investment.

Investment is practiced with a long-term vision on future of that asset, and it means you need to maintain your investment portfolio in a long term, ignore short term market manipulation, growth, falls, fud and other news.

Why should it be stopped? We see these features as opportunities, and it's up to individuals to maximize them. I'm not saying long-term investments focus on short timeframes, and that shouldn't be a problem. Instead, we often refer to short-term investments as using timeframes of one or two years. If someone takes a chance on a long-term investment. For example, buying a coin that has no potential and loses value in the market in the long term, or even doesn't generate maximum returns, isn't that considered investment? As you explained, investments should be based on growth, but what if the opposite happens?

No one is saying investments have a short duration like trading, but there's also nothing wrong with referring to short-term investments as lasting a year or two. In this case, it's up to someone to understand the meaning, and sometimes differing terms don't necessarily diminish the essence of what's being discussed, as we can see from the discussions on the forums with the same discussion partner.

[Z-tight]

However, those who invest in the long term have a risk of losing their money, but according to the history of Bitcoin, they also have the possibility of success in the long term.

I am having a hard time understanding you here, why you you believe that long term BTC holders have a high risk of losing their coins. The risk you are exposed to when holding bitcoin has nothing to do with how long you hold your BTC's, but the way and manner in which you store your coins and your backup.

If you set up a cold storage in a safe environment and back up your seed phrase safely, you can hold that coins for as long as possible without losing it. And it will be safer than a short term investor who holds their coins in a hot wallet or in a custodial service.

[Powerjumboo]

In the new situation, we almost equate trading and investing. Trading and long-term investing are two completely different things, let us discuss these issues in detail below.

Buying a coin is not considered an investment, if a person buys a particular coin and sells it for some profit then it is considered trading. Investing is when you buy a reliable coin and try to hold it for a long time.

The difference between trading and long-term investing,
Since investment is planned for a long term, small changes in the market do not affect an investor, as a result of which the investor does not care much about this small fluctuation in the market. In this case, trading is different, the main purpose of trading is to earn a small amount of profit, to earn this small amount of profit, a trader always has to keep an eye on the changes in the market and when the trader thinks that the market has come down relatively now and he should buy a coin, he buys a coin and when the profit is as expected, he sells it. It is wrong to think that a trader will profit by trading, many times it is seen that a trader is facing a lot of money loss for a small amount of profit. Even if the market goes down a lot after investing in a long term plan, it is normal for an investor, but for a trader, a small dumping of the market can cause a lot of loss.

Trading and investing are completely different things. I think those who think trading and investing are the same thing have not yet gained enough experience about trading and investing. If we compare trading and investing and find the difference then I would say a new person cannot directly join the trading platform and if a new person joins directly trading then he must trade with speculation and there will be 100% chance of losing everything but a new person can directly invest and plan to hold it for the long term as per the plan. I can only say this much

[Ricardo11]

In the new situation, we almost equate trading and investing. Trading and long-term investing are two completely different things, let us discuss these issues in detail below.

Buying a coin is not considered an investment, if a person buys a particular coin and sells it for some profit then it is considered trading. Investing is when you buy a reliable coin and try to hold it for a long time.

The difference between trading and long-term investing,
Since investment is planned for a long term, small changes in the market do not affect an investor, as a result of which the investor does not care much about this small fluctuation in the market. In this case, trading is different, the main purpose of trading is to earn a small amount of profit, to earn this small amount of profit, a trader always has to keep an eye on the changes in the market and when the trader thinks that the market has come down relatively now and he should buy a coin, he buys a coin and when the profit is as expected, he sells it. It is wrong to think that a trader will profit by trading, many times it is seen that a trader is facing a lot of money loss for a small amount of profit. Even if the market goes down a lot after investing in a long term plan, it is normal for an investor, but for a trader, a small dumping of the market can cause a lot of loss.

Trading and investing are completely different things. I think those who think trading and investing are the same thing have not yet gained enough experience about trading and investing. If we compare trading and investing and find the difference then I would say a new person cannot directly join the trading platform and if a new person joins directly trading then he must trade with speculation and there will be 100% chance of losing everything but a new person can directly invest and plan to hold it for the long term as per the plan. I can only say this much

Trading and investing are not the same thing, it is always proven, and the point is that those who see them as the same, only face losses from them.
Trading and investing, their types, risks, possibilities and nature are completely different, and to be successful in them, you must make decisions according to the type of risk they have, through risk management.
And these must require skill, and you must have the right mindset, here your decisions determine whether you will make a profit or face a loss, when you make the right decision, then you will definitely have the possibility of success, but if you make the wrong decision, you will definitely face losses, so you must be careful when making decisions.