While trading demo the person may not put much effort instead will have that mindset that it's only demo therefore has nothing to lose from the trade but with live account the trader will be extremely cautious.
Testing the waters on a live account with small capital will give you an experience that'll have more exciting but traders shouldn't underestimate demo accounts as they're there for a reason. We should use demo to practice all our trading strategies and make our skills to be perfect before going lives. Losing a trade can motivate you but not everybody has the toughest skin to take losses and turn them into profits. Some traders lose their self confidence after they lost some trade therefore before putting yourself out in the real market, we should have had enough practice in the demo account to make our prediction to be more accurate and less of assumptions.
Yes; firstly trading in demo account can boost confidence level for a beginner trader, it will be so very helpful to start in real trading, who newbie trader firstly jump to trading in real account, it's higher chances to lose initial fund in their first trade, because they did not any practices about trading, my trading journey started with demo trading and after several months i entered in real trading.