Good day everyone, today l’m here with another article. I prepared this article mainly on my experience ever since I started dealing with crypto. Most of us still don’t know the secret behind crypto trading and investment so I thought it is wise l write this article to help us know both operate and why you should choose one or both.

At first, l used not to understand the difference between crypto currency trading and investment and trading because I thought both of them were just about profit. But as time goes on and l decided to continue learning and practicing crypto related activities, l discovered that they were vast differences between the two even though both of them are very profitable. Let’s now look at the difference and after that you will know why you should either go into crypto currency trading or investment.

Some Factors That Differentiate Crypto Currency Trading From Investment

As l said, if you look shallow into the two, you might see no or little differences between the two approaches. The first factor that someone can use to differentiate crypto currency trading from the crypto investment is the time period involved.

The time period is a very great factor that differentiate the two approaches. In most cases, crypto traders do possess a short term horizon with more emphasis on price movements. That means traders are always more concentrated on daily or hourly price movement of the various crypto currencies and there fore buy coins on the view of selling them within the shortest period of time to make some calculated profit or loss. Traders do place much value on time so when he or she sets a time limit of two days for at least 5% profit or loss, he is always ready to cash out his coins anytime between the first to the five day even if there is a loss.

On the other hand, an investors look at things the opposite of how the trader look at them. For the crypto investors, they buy coins with the intention of holding those coins for long period of time like one year and above. This shows clearly that the crypto investors don’t take decisions on their coins due to the daily price movement, but rather they believe that blockchain technology is still new and it could take some more time for it to grow and as it grows, coins prices too increases.

The Level Of Risk Involved.

This is also another factor that differentiates crypto traders from the investors. If you can remember from my first point, you can remember l said they choose to buy coins with the hope that prices will rise in short term so they sell and make some profit. And considering that, trading is always of high risks than that of investment. Even how to choose the coins that have the potential of rising in the short term is always a very big problem and that is where the greater risk lies.

But for the investors, they mostly don’t involve themselves with very high risks. Even though the crypto market is very volatile, but in the long term, most legit coins do appreciate in value and due to this, l would say mostly investors make profit. But one main thing that an investor should always consider is the having patience and only sell his or her investment when his targeted profit margin is achieved.

Now, Discover The Secret And Make Your Choice.

The two factors l explained above are just the factors you should always consider when thinking of trading or investment of crypto currencies.

From the points above you can see clearly that crypto investment is more convenient than the trading in most cases, but that doesn’t mean that the trading is bad option. The trading in some circumstances is very helpful and with that you have to always act very fast and never be greedy. Most people trade to invest and this is mostly to those of us who have low capital.

For me l do both and just like l said, most of us trade to invest. This is because l do reinvest any profit l get from doing short term trading into long term investment. When you have low capital and you feel that it might be too small for long term investment, the better option you can take is to grow those funds in the day to day trading and invest both the profit and capital for the long term.

But if you also you can’t afford to take the risks in the day to day trading, please, invest the little you have for the medium term and be adding more whenever you get some more money. Many people that can’t manage risk mostly don’t do short term trading because it’s quite technical and needs a lot of attention too.

I will now use this opportunity again to conclude my article and again thank all my readers and all the members of Publish0x for supporting me to this far. I would also appreciate any advice from any member concerning my piece l just wrote so that l improve upon my writing on the next articles.

Thank you all for reading my piece and remember to stay safe in this era of the pandemic…

Have a nice day!!!