Do people who trade crypto a lot end up with less money than holders?

Research question: Across regulator reviews and academic studies, how do ordinary crypto traders who trade often compare with people who buy a major coin and hold it over three to five years, once fees and spreads are counted?

The provided records do not contain specific data on crypto traders or major coins held over three to five years, so they cannot directly answer the question. However, general academic studies cited in the facts indicate that active traders often earn lower net returns without achieving higher gross returns compared to less active investors ¹. One model suggests that differences in returns between frequent traders and non-traders are reflected in both gross and net returns, rather than just net returns ². Another scenario shows that when fixed trading costs are high, the gross return to adjusters can exceed that of non-adjusters, even if net returns are similar ³.

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