I just felt a little keen to share this comparison between traders and investors seeing some other posts of advice to newbies who would like to venture into the trading tour.
In a nutshell, traders and investors are two different calibre of persons in the Crypto world having different patterns and motives towards market trend/price.
COMPARISON BETWEEN A TRADER AND AN INVESTOR.
A TRADER:
1) Requires adequate knowledge about market trend and high skill in analyzing the market. A trader without high skill in analyzing the market trend is prone to make huge losses and even empty his portfolio.
2) Trading is associated with high risk. This is the reason why every trader must have a risk management technique inorder to maximize profit while reducing loss rate.
3) Traders focus on making gain/profit from price fluctuations on short-term market movement by comprehending candlesticks charts.
4) Trading is based on a short period of time duration as traders tend to scalp out profits in a day or less.
5) Traders need constant vigilance on the market as regards to their FOMO in order to take quick decision and flow with the market trend.
INVESTORS
1) Investors don't need much knowledge on the market trend rather they need to know mainly about the asset they are placing investment on, if the asset is truly worth investing.. If yes, investment is placed and they are at rest.
2) Investment isn't associated with much risk. When investments are placed on assets that has the ability of rising in price on a long run example is BTC, Investors are rest assured that nothing is causing loss or else on a bearish season.
3) Investors focus on price growth of an asset and grab their gains on the long term.
4) Investment is based on a Long term duration of time which can last for months and years. Where the price of the assets invested on has attained over x2, x3 or more increase in price.
5) Investors don't need to focus much on the market, reducing their emotional stress as they tend to feel relaxed understanding that the assets invested on must surely grow in price. They can even check the market once in a week.
The above is a little comparison between a Trader and an Investor, they both make gains in the crypto market but with different strategies.
Traders are those who buy crypto currency being bitcoin or altcoin when their prices are low and sell when there prices are high, depending on the type of traders they are, example
scalpler open and close their trade within one to five minutes,
while day traders open and close their trade within a day, while wing traders open and close their trade within days or weeks, while long time traders open and close their trade for as long has they C fit.
Investors are those who buys bitcoin or altcoin with a large some of money when the prices are low, then live it to accumulate profit as the prices of the crypto rises so dose thier profit and they can decide to live it as long as they desire, some may decide to withdraw some profit when needed, while some might decide to increase the investment and withdraw it all at one's when they make enough profit. Who do you think are smarter and more profitable; Traders or Investors?