If holding bitcoin for a year and sell it is called Investment according to you then what will you call some one who holds for 4 years and above, you should know today that holding bitcoin for a year and sell is not an investment but gambling / trading, as an investor you are supposed to buy bitcoin and hodl for long before even thinking of thinking of sell bitcoin those that sells in short time sometimes regret why not hodl bitcoin for long as a new investor your thoughts should be how you can buy more bitcoin from your discretionary Income and hodl for long regularly buying with the dca strategy you can buy bitcoin every weeks or every months consistently for 4-10 and hodl.
Buying and selling Bitcoin within one year could be called a short-term investment. But the truth is that there is no guarantee that you will make a profit within one year of Bitcoin investment. If you have a one year plan there is a high chance that you might sell at a loss. It is better to have a long-term approach because it might lead to more profit, help you to overcome FUD and save you the stress of always monitoring the market
If actually Bitcoin is the subject matter then buying and selling within the period of one year apparently has nothing to be called anything related to investment but trading because one year is too short for your investment to experience the power of compounded value of your investment, a cycle which is four years would have been better to be described as a short term investment in my perception while four to 10 years or more can be called a long term investment.
I would say less than 4 years is trading rather than investing, and 4-10 years is short-term investing, and more than 10 years is regular and potentially long-term investing... yet I doubt that these kinds of labels matter very much, except to just get a bit of a framework regarding how any of us might potentially think about matters related to our bitcoin holdings in general ways.
There can be various justified changes in behaviors in regards to these kinds of timeline considerations in respect to other aspects of a person's personal financial and/or psychological factors... I think that many guys would like to try to get to a point to be able to passively live off of their bitcoin investment and to draw some kind of a livable income from it.. or perhaps for the bitcoin to supplement other aspects of their income in livable and sustainable ways.
Surely some guys are still trying to build their bitcoin holdings by trading it, yet there are so many times that a guy might sell large portions of his bitcoin while expecting to buy back cheaper, yet the trade does not go as expected and then the guy ends up in a kind of loop of wrong thinking and wrong practices that causes him to have way less bitcoin than what he would have otherwise been able to have if he had stayed focus on accumulating bitcoin through more straight-forwards ongoing and persistent buying ways.
I think it is mostly greed that make some people make the decision of trading Bitcoin rather than investing and holding. They believe that investing is too slow and will not give the kind of fast profits they want hence they need fast way of making the profits and trading is one thing that looks like it holds the answer even though in the end it is not always as easy as it seems. Trading is very risky and something not meant for those who are not ready to lose their money. Investing on the hand, is more reliable in the sense that it gives the assurance of profits when held for a long period of time.
It is this kind of greed that is slowly destroying them.
I have a friend who does different things to what I'm doing right now because when I was in investments in the last few years and he did it with trading.
It is undeniable that the profits he has made in one day are quite large to get which makes him sometimes more arrogant because he gets big profits from the trading he does and sometimes compares with the investments I have made in recent years in bitcoin.
But on the other hand in the end sooner or later losses began to hit and the peak was this month where he almost lost 80 percent of the balance he had due to the trading he did which made him now more temperamental and tried to close or increase the load so as not to be exposed to liquidity by selling some valuables including the property he had.
This is an example of when traders and investors become different things. I am now still quite comfortable with what I am doing where I am still not bothered by the current price but in contrast to my colleague who did last month have problems and almost burned because the trading he did was not in line with expectations which made me think that traders are not something that everyone can do because sooner or later they can be destroyed by the actions they do. So, although I will not prohibit those who become traders but it would be better if it is reconsidered if indeed we choose that path.
Traders will frequently tell you about their gains, but they won't tell you about their losses, and another thing if there are two guys putting money into bitcoin for a couple of cycles, the trader would hardly have any abilities to perform as well as the one who just put the money into bitcoin and did not try to trade it.
The trader will also likely end up shifting back and forth about whether he is buying, selling and/or waiting, while the one who is ongoingly buying will not lose his focus, and he will keep buying. .and yeah, even if the buying one screws up by buying too much at certain prices and/or not buying enough at other prices, at least he is able to stay focused on ongoing and persistent buying.. There can be some comfort in the ongoing buying in terms of building up the bitcoin holdings in reliable kinds of ways that ultimately becomes difficult to beat for anyone trying to trade and/or to keep up or to catch up to the one who is ongoingly buying.