According to @QCompounding, a post titled 12. Investing vs trading was published on Dec 10, 2025, introducing the topic of distinguishing long-term investing from shorter-term trading for market participants. Source: @QCompounding on X. In established market guidance, investing generally means multi-year holding periods focused on fundamentals, while trading emphasizes shorter holding periods and higher turnover driven by price action. Source: SEC Investor.gov and FINRA. Shorter holding periods typically increase transaction costs and expose profits to higher short-term capital gains tax rates relative to long-term strategies, which can materially reduce net returns. Source: SEC Investor.gov and IRS. In crypto markets, 24/7 trading and elevated volatility make active trading more sensitive to risk controls than traditional buy-and-hold, a point underscored by regulator warnings about virtual currency risks. Source: CFTC Customer Advisory.

According to Lex Sokolin, investing requires patience, discipline, and delayed gratification, while trading centers on avoiding bullets, underscoring a risk-avoidance and capital-preservation mindset for active traders; source: Lex Sokolin on X, Dec 3, 2025. The takeaway for traders is to prioritize loss avoidance and drawdown control over return chasing when making short-term decisions; source: Lex Sokolin on X, Dec 3, 2025. No specific assets, entry levels, or timeframes were provided; source: Lex Sokolin on X, Dec 3, 2025.