Are There More Crypto Investors Or Crypto Traders?

The creation of cryptocurrencies has turned the whole financial world upside down. The idea of having a digital asset that used a decentralized system, unlike central banks, is appealing for people. 

Bitcoin was the first decentralized Bitcoin created in 2009. A lot of altcoins have been created since then, but none of them ever got close to Bitcoin. 

The appearance of cryptocurrencies led some people to be involved in crypto investing and trading. 

Getting income from cryptocurrency is an idea that attracts many people. But one can get such income in different ways. The same person can act both as a crypto trader and as a crypto investor. It is very important to understand what suits them best.

However, although these two distinct strategies of generating income on the markets were divided for crypto enthusiasts, there was an innovation that managed to combine it. According to this Bitcoin Revolution review, crypto traders quickly turned into crypto investors once AI trading became a thing.

It was a revolutionary addition to the market as people would simply deposit some funds on the AI platform and see the algorithm trade for them. It was a combination of both in a sense, but the real distinctions between actual people of each strategy are still quite unique.

Crypto Trader Features

For a crypto trader, as well as a trader in general, trading is the primary profession. He receives money in the form of profit from his transactions, as well as in payment for investment deposit management services. The trader spends a lot of time in front of the monitor screen, tracking price movements.

Also, features of the trader are:

  • Lack of faith in an asset. Enough knowledge of its specifics.
  • The ability to earn both on falls and on the growth of quotes.
  • A large number of transactions with a relatively small amount of funds.
  • Quick open and close. Typically, a trader’s transaction is in the market for no more than a few days.

The advantage of trading can be considered a substantial income because almost every price movement can be turned into profit. However, this requires a lot of knowledge, and the risk of losing is very high.

Crypto Investor Features

One of the main differences is that the crypto investor is not ready to make working with cryptocurrencies the main business of his life, he or she usually uses them as an auxiliary tool to generate additional income.

And this means that the crypto investor:

  • Makes a small number of transactions.
  • Invests a relatively large amount of funds in each of them.
  • Ready to wait a long time: weeks, months.
  • He/she believes in those assets that he acquires.
  • Basically, he/she receives profit only from growth, does not get anything from falling quotes.

To become a crypto investor does not require so much knowledge, but basic concepts are still necessary. Investing is associated with less risk because in most cases, you do not have to leave your assets in the market, you can buy them and send them to your wallet. However, the investor needs to choose reliable wallets and cryptocurrency sellers, as well as exchange 

Who is more?

There is not a precise statistics to show who are more - traders or investors. Generally speaking, a lot of crypto exchanges emerge on the markets, and over 50 million people are involved in trading cryptocurrencies. Logically, trading could be considered easier than investing, and we should assume there are more traders.

In the meantime, crypto investors vary approximately from 30 million to 40 million. Once again, it is not a verified list, and we should rely on general knowledge. But numerous experts think crypto traders are way more than traders.

Conclusion

In general, both the trader and the investor can make good profits, but it’s essential to decide what type you belong to immediately and to further build your activities depending on this. And never assume that if general statistics show traders exceed investors, you should become an investor as well because, in the end, you should do what you are best at.

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