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CryptoCurrency Forum: Confusion Between Investing and Trading

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by COINS NEWS 266 Views

In cryptocurrency, you have traders and investors. Traders have a relatively short window where they buy and sell and this window can range from minutes to hours to weeks. On the other hand, investors have a much longer horizon in mind and when they buy something, they are thinking to hold for at least a year or so (or at least that is the initial mindset).

The problem with CryptoCurrency Reddit forum is that it does not have a separate forum for traders and investors. As such, it is always confusing on what people are talking about. For example, when someone says they want to buy coin X, it is not clear if they are talking about for trading or for investing. Now, it seems like the default assumption on these forums is for investing. As such, when people say that they plan to buy some shitcoin, it gets voted down. However, from a trader's perspective, sometimes there are good reasons to buy shitcoins. There are sweet spots where buying shitcoins can yield 50-100% gains in matter of a week.

The distinction is really needed and important for altcoins given that these are some of the most volatile investments out there. I really do think that one month priceaction in altcoin can be akin to 5 years worth of price action in stocks. So it is my opinion that buy/sell timings for alts is critical.

And I do think given that this forum is so conjested, it would be best if trading and investing discussions are separated. People who want to talk about long-term investing opportunities and horizons for a given project can do so in one forum. People who want to talk about trading strategies/discussions can participate in a different forum.

It only makes sense to clear up the confusion that have persisted for the longest time.

submitted by /u/simmol
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