The difference between trader and holder depends on one main factor: time. Thus, two of the first words you learn when you start investing in cryptocurrencies are; trader and holder. It’s simple, in investing we have two factors to take into account. The money you can invest and lose without affecting your daily life and the cost of your time.
And it is that time that makes the difference between being a trader and being a holder.
Difference between trader and holder
The investor who trades keeps cryptocurrencies in his portfolio for a short time, buys and sells normally on the same day, and through graphic analysis understands the exact moment to obtain profits. On the other hand, attends to FOMO events, and as soon as he reaches his ATH sells quickly. Being short-term investments (time), you must be constantly aware of the changes that occur in the market (daily). They need to spend a lot of time on investments and constantly set limits for buying and selling.
On the other hand, the holder is the one who analyzes a project, its trajectory, the community, social networks, etc., and when he invests, he keeps them in his portfolio for months or years. He accumulates (buys more) when the price drops and maintains (under no circumstances sell) when the price rises.
They are long-term investors , they really believe in the project and its projection for the future. As for the investment of his time, it is not as demanding as that of the trader, once he analyzes the fundamentals of the project, he invests and proposes a time to keep it in the portfolio for x years. He is not daily reviewing the graphics of the project (neither should he), but they are the most active in the community .
When the price goes down, there they are, encouraging those who bought at ATH, and when the price goes up to remind them that they trusted the project. They take care of their money by investing in long-term projects, thus obtaining high returns and protecting themselves from inflation
Remember that time is a finite good, it cannot be bought or replaced, that is why it is our greatest investment, more than money or any other factor.
And you, do you value your time?
