the real wealth in crypto is made only by founders or holders , not by traders. even if you trade for rest of your life , you will never outperform the guy who bought bitcoin and Ethereum 5 years ago. analyze the data and don't be greedy. long term matters.
I do agree with your other point, that you need a certain amount of starting capital to make trading work, but ultimately to benefit from holding in the medium to long term, you'll also need a decent starting capital. Obviously, this entirely depends on your goals, and what return you're expecting on your investment in the first place.
In both cases it requires some good capital to survive and enter the market with a good position, let's say even if you are a long-term Bitcoin holder and do not enter the market with good capital even if you wait for a decade your return on investment will not exceed the amount of your capital no matter what Bitcoin price may be, same goes with trading the only thing is that trading have higher risk but can also give higher returns but holding have limited risk compared to trading but your profits will only come as a result of market uptrend condition when you hold.