But it still has to be strictly engaged, otherwise, an investment could be silently more dangerous than trading at times.
As far as bitcoin is concerned, I disagree that investing in bitcoin is more dangerous than trading. If any bitcoin investor follows the principle of bitcoin, he or she can't lose money in bitcoin investment. Someone who has zero knowledge about bitcoin can invest in it and get it right. But in trading, you need to be an expert when it comes to technical analysis to help you analyze the price of bitcoin and predict if there will be a decrease or increase in bitcoin prices in a certain time or period, which you are not even certain will happen, and the possibility of you losing money in trading is high. For the sake of newbies in this thread, let's be careful about the knowledge we share here so that they will not be misled.
Still on trading discussion here?, actually we can’t compare trading and investing even in terms of risk management. Both has different features with purpose and basically bitcoin investing comes with a long term plan meaning trading deals with short term gain which likely may not be comfortable for anyone, bitcoin investment risk comes only when an investor is trying to outsmart the system for example seeking short term profit and it still has to do with trade.
These two things in bitcoin are different because their strategy and risk associated with it are not the same. Bitcoin trading when you understand It well is easy, and if you are a person that always believes in taking higher risks and has also been a researcher, you will definitely love it and also have your profit more than the person that will invest for a long period of time. But don’t forget that this bitcoin trading is not for everyone but those that are ready to take risk and also research more on a daily basis.
While investment in bitcoin is mostly recommended to those that need a passive income, why I said this is because when you are willing to invest in bitcoin for a long time, you have to keep in mind that this investment will never be broken unless you have achieved your goals, which also deal with patience, so if you are not for the passive income. You will end up seeing that the long-term investment will endup not favour you, so you will apparently break your hope and crash down your investment as a result of a lack of patience and also too much concentration on your long-term investment.
Both poor and rich investors can adopt the DCA strategy to accumulate bitcoin, and it is not designed for any class. There is no difficulty in accumulating bitcoin as far as I am concerned; you can accumulate bitcoin easily even if you are on a business trip. One of the reasons why some people accumulate bitcoin with the DCA strategy is to be able to control their emotions. For instance, if they accumulate bitcoin at a high price and if bitcoin dumps, they will not be worried because they know they will still accumulate bitcoin in a bearish state.
DCA can actually be for everyone because you will end up accumulating a lot without you knowing it, but still, I see it is a strategy best for those that find it hard to invest a huge amount of money because they think they will end up bankrupt. I am identifying with the poor because the rich invest a huge amount without any worries. But for the poor, it is a different thing, and DCA is like a strategy that will stimulate your interest in investment in the sense that poor people tend to enjoy doing things, but by not doing it at a single time, that is why I see that it is more recommended for the poor.
I disagree with you in the first place that whoever understands trading, it becomes easy for that person to make profit from trading, the reason is that you are predicting the market and that is not something easy to do.
Secondly, I also disagree with you that a trader will make profit more than an investor who invested and grow his bitcoin portfolio overtime while he still hodling.