Two Paths to Financial Growth: Trading vs Investing

[Legion]

To me, there is very little difference between crypto trading and investing but there is a strong similarity in that you have to deal with a lot of risk in both. One of the great advantages of investing in crypto is that you can have a great opportunity to grow your capital over time. Being a long term investor can potentially benefit one but in many cases, short term investments are also profitable. Also, to me investing in crypto is less risky than trading. Therefore, investors should ensure that they understand the fundamentals of crypto and the risks involved. However, those who understand trading well can make good profits because you will get profits from trading every day.

In my view, the comparison of investing and trading in the sphere of cryptocurrencies should not be associated solely with the level of risk and profitability. However, there are others factors involved, which includes time, energy, and mind amity which go hand in hand with above formulas as follows. Apparently, it is easier to make money in trading as it can be evident in the short term, but the daily pressure is immense. On the other hand, holding assets for long has also its own set of problems as well. Therefore you still need to be aware of issues facing technology, laws, and public perception. So rather than to pick one and feeling safer it would only be wise for you to understand how better you can adapt on your own terms and on your own objectives.

[Fivestar4everMVP]

Every good investor says something like this:



You can try trading, but the real money is in waiting

You are absolutely right, or he is absolutely right rather, because I just thought about this and realized that, both a trader and an investor waits, and without that waiting, money can not be made...

For example, a trader buys bitcoin with the intention of selling it for profit in any minute, he or she will have to wait for the price to go up from where he or she bought, the keyword there is "wait", he or she will either have to wait or sell at a loss.

Same goes for the investors as well, the investing buying with the intention of selling for profit after some years, will also have to wait, when the time he wants to sell comes, and the price of Bitcoin hasnt increased, he or she will still need to wait or end up selling at a loss too..

So, Waiting is the most important part of both trading and investing.