Investors come out on top while traders lose!

19 replies 337 views
0xAlph4Full Member
Posts: 32 · Reputation: 303
#1Jun 29, 2022, 08:01 AM
If you're investing without using leverage, you're gonna come out ahead eventually, since you're holding actual coins or crypto. On the flip side, those who trade with leverage on platforms like Binance or Bybit are at risk of getting liquidated. It's just like in forex!
4 Reply Quote Share
danoracleMember
Posts: 33 · Reputation: 212
#2Jun 30, 2022, 05:41 PM
If they don’t have stop loss then you’re right but most trader that using leverage has a stop loss to avoid liquidation during price swing. The fee for the leverage position is what makes leverage trader in complete disadvantage when trading long term but if you are just trading with very low leverage then you can be successful if play it smart. Holding is for user that doesn’t want hassle in trading .There’s a pros and cons between trading and holding.
3 Reply Quote Share
w0lf404Hero Member
Posts: 801 · Reputation: 2381
#3Jun 30, 2022, 06:18 PM
I wouldn't strongly disagree with this! Because the situation is kind of same in the stock market as well. However the crypto market is more volatile so the trading opportunities are higher in crypto market. But every traders needs to follow some basic rules like stop loss. I think a lot of traders make mistakes where they take high leverage but don't add a stop loss. On the other hand, investors wait for a longer period of time before liquidating their holdings. So the potential to profit increases. Trading is risky. But with correct strategy, money can be made. A lot of people are doing that already. But risk is always higher for trading.
4 Reply Quote Share
tony69Senior Member
Posts: 287 · Reputation: 1054
#4Jun 30, 2022, 09:56 PM
You just ought to know the category of trader you belong to and the one that best suit your strategy and works for you. I do not personally love daily trading because it keeps me in an anxious mood swings leaving me depressed all the time, so I prefer purchasing an asset while keeping it for many years as much as I can. If you are thrilled by the beauty of day trading and it should be your perfect method for leveraging on the market either on spot or future, then that shouldn't be problem, yeah The both methods are pretty much preferable and works excellently if you carefully know what you are doing.
1 Reply Quote Share
alex.shardLegendary
Posts: 1019 · Reputation: 5623
#5Jun 30, 2022, 11:43 PM
I will agree with you because most traders are losing but not all traders that are losing. 10% of traders make profit but that number is very small which makes you correct but not totally correct because you did not specify the coin that investors should hold. There are some altcoins that are very risky and investors will continue to lose if they invest on the coins. But coins like bitcoin has not disappointed investors since many years ago when it was created.
1 Reply Quote Share
john.gweiFull Member
Posts: 242 · Reputation: 759
#6Jul 1, 2022, 03:51 AM
If you're a seasoned trader you can still make some profits trading with leverage, you just have to set your risk management strategy right to reduce loss impact to winning. But surely investing will give much more profits than trading (due to the risks involved in trading) provided you're invested in the right coin like bitcoin and not some shitcoins. For a trader, self evaluation is necessary to know if you're losing more than you're winning trades in order to decide if you will switch to investment because trading is not really for everyone.
0 Reply Quote Share
LoneRocketSenior Member
Posts: 363 · Reputation: 1840
#7Jul 2, 2022, 12:00 PM
I agree with you because I've never liked forex trading or leveraged trading. While it's true that some traders make very large profits, it's very risky and requires extensive experience. Even experts can lose everything they've made in a single trade. As for spot trading, at least if the price drops, you won't be liquidated because you can hold the coin for the long term until its price rises. And even if you lose, the loss won't be as large as it is with leverage.
4 Reply Quote Share
jake2011Full Member
Posts: 47 · Reputation: 306
#8Jul 2, 2022, 04:40 PM
Or maybe he can just say instead that trading is hard and investing is a little easier. That is also general but if we try to be specific, then it only depends on one's capacity. Some investors can also say that investing is not easy and the interesting thing would be is that they will actually say that they like trading more than it. You are not sure with that. Did Bitcoin only rise and rise? No right? But it also experienced a dump and some uncertainties and this have caused some to worry about it especially on the early times. Also, the fees of Bitcoin and the speed of it are not all times appropriate to us. Disappointment is only normal though and we can only get used to it.
0 Reply Quote Share
shard_minerSenior Member
Posts: 359 · Reputation: 1322
#9Jul 2, 2022, 08:58 PM
Very bold of you to make this strong statement without considering some factors. Experience is a very strong factor that traders have too as an advantage. Mind you it is not all traders that lose money and it is not all investors that make profit. A very small investor will not make significant profit. A small investor who puts their assets in a centralized exchange will get liquidated faster..
1 Reply Quote Share
chain404Full Member
Posts: 132 · Reputation: 427
#10Jul 2, 2022, 11:05 PM
Futures is risky and so as investing. But the better choice is investing because the risk is lesser. Don't get into trading when you're not used to it. People might see it as something easy to be done but that's not the whole point. Trading is far more requiring a lot of things aside from money. You just can't win there too easy without having an idea and background of what you're doing and strategies.
4 Reply Quote Share
lasery35Member
Posts: 8 · Reputation: 93
#11Jul 3, 2022, 02:59 AM
Investors without leverage hold real assets and can survive drawdowns.  Leverage traders are at risk of liquidation, just like in Forex.  Long-term without leverage is more reliable.  As they say in the crypto space:  "Not your keys, not your coins. Not your patience, not your profits."
2 Reply Quote Share
bear2021Full Member
Posts: 214 · Reputation: 612
#12Jul 5, 2022, 09:21 AM
Those who buy and hold can already guarantee a sure win in the end. However, for those who chose to trade with leverage, of course they will be more profitable if they are well knowledgeable on how to maximize the use of leverage. But if they simply use it for the sake of seeking bigger profits without sufficient knowledge and experience, trading will only bring them massive losses.
2 Reply Quote Share
ericchadFull Member
Posts: 48 · Reputation: 413
#13Jul 5, 2022, 12:41 PM
In general, most traders end up losing simply because they cannot guarantee their trades to turn into profits due to a very unpredictable market. That’s why trading itself is highly risky. And those who aren’t good in managing their risks are not supposed to trade. Those who decide to DCA bitcoin and hold for long term are clearly the winners in the end. Although there’s no real competition between trading and investing.
1 Reply Quote Share
w1z4rd100Senior Member
Posts: 302 · Reputation: 1279
#14Jul 5, 2022, 04:10 PM
That's why spot trading is advisable if you want less risk exposure and especially if you are just starting in the cryptocurrency market - explore different kinds of markets like spot trading compared to futures markets. And for me, if you really into trading, you really explore futures market, but for mostof the time you buy and hold for long time, then spot market is for you.
4 Reply Quote Share
chris2011Member
Posts: 27 · Reputation: 167
#15Jul 6, 2022, 10:58 PM
Most day traders gets liquidated OP is speaking from experience. I accept the offer of investing without leverage as there is no need for bothering about the market price. Surely there will be profit in the long run. However, it will depend on the type of coin that is invested on. There is no point investing if we choose to invest in shitcoins. Instead of investing in shitcoins the person should do the day trading. Eventually they will lose their funds if they are not lucky.
1 Reply Quote Share
paulyieldSenior Member
Posts: 518 · Reputation: 1547
#16Jul 7, 2022, 10:14 AM
it's always like that. some people said future trading is a tool of wealth redistribution to spot buyers. which is kinda true to some extent because sometime the liquidation point doesn't make a single sense even with low leverage like 2x. just imagine 2x leverage and price tanked 45% you're most likely getting liquidated. while the spot buyers can just relax and wait until price recovers back. and believe me, there's always chance that price can go down deeper than 50%. especially in bearish market. and that without considering funding rate maintenance and so on.
0 Reply Quote Share
Posts: 38 · Reputation: 206
#17Jul 8, 2022, 08:56 PM
Both investing and trading without experience are very risky. However, investing is a little less risky than trading because if a less experienced person invests and his investment has the best coins like Bitcoin, then he will definitely win one day or the other. The probability of loss here is very low and even if the loss is temporary, there will definitely be a chance of recovery. We have seen that trading is different from investing because trading requires a lot of experience. If you trade with little experience, then the trader will definitely lose. Especially leverage trading causes the most harm to a trader because futures trading is much riskier than spot trading because if you lose money, it cannot be recovered. I don't have much experience with forex trading, which is why I'm not talking about forex trading.
4 Reply Quote Share
cobr4404Full Member
Posts: 236 · Reputation: 772
#18Jul 9, 2022, 01:08 AM
The term "someday" is a very broad term, and for some, "someday" might mean 4-5 years, and for some, it might mean 2-3 months only. In general, yes those who are just buying and holding cryptocurrencies tend to make more profit in the long run compared to those who are trading, but still, it depends on which cryptocurrencies are you willing to hold. If you're holding Bitcoin for the long run then, yes you will win, but if you're holding altcoins especially those that has a lower market cap, chances of you losing money in the long run is higher because we've seen altcoins that went down significantly, and didn't recover after that which is unfortunate. As for those who are trading, not all of them will be liquidated, but most of the traders especially if they don't know about risk management like putting a stop-loss, knowing the position per trade, etc. As per study, about 90% of the traders are losing money for various reasons, so yes, the chances of you losing is quite high, but as long as you're learning from your mistakes, that chances will decrease overtime.
0 Reply Quote Share
quantumsageFull Member
Posts: 118 · Reputation: 424
#19Jul 10, 2022, 04:44 PM
If you want to be safe, of course, choose an investment without the risk of losing coins, which needs to be done HODL with patience for a long time. I think many people are starting to focus on investment. Yeah in trading it will be close to liquidation, but that's all there are skills to do before preventing a lot of losses, always set a reasonable leverage means not high and put a stop-lose so as not to experience all the loss.
3 Reply Quote Share
CalmLedgerSenior Member
Posts: 236 · Reputation: 1270
#20Jul 11, 2022, 05:43 PM
Not all traders will lose their money because I am sure some traders can avoid that losses happen because they know how to stop their trade in the right time. Those who are not greedy chasing the profit will know when the time to stop trading. While those who invest can make a profit if they know how to hold their coins. Most people who invest will not make a profit because they lose control over their coins especially when the market is down deeper. So you need to know how to trade and invest to avoid the losses. While the market still move up and down, you need to adjust yourself by learning and searching when to trade and invest. With knowledge, you will analyze before you decide so you can avoid the losses.
2 Reply Quote Share

Related topics