Between crypto investment and trading, which do you recommend for a crypto enthusiast with low capital?
Personally; i think when you have low capital and you are an ethusiast; it is best to choose trading; by choosing trading you have an opportunity to learn and practice; you get an opportunity to develop and perfect a working strategy without feeling the impacts of losses or mistakes. Believe me, if with your little capital you are able to understand the philosophy and psychology and motives involved in trading; investment will come easiest for you.
Which of the coins should such person trade or invest in?..
I do not like to choose coins for enthusiasts; but if you are trading for profits or investment, bitcoin, litecoin and etherum comes handy if you can do your own research about them. Altcoins investment are superb too if you can find the right one
This really depends on the reason's you're getting into crypto in the first place. It also depends on if your life depends on the capital you're expending and your experiences with investments and trading prior to crypto.
It's critical to understand that whatever capital you put into crypto, presume that you will never get a return or may lose a substantial portion of that investment or trade. If you make a profit, great.
For newcommers, I do not recommend trading, I recommend investing in the top 5-15 cryptos with substantial liquidity and a overall a solid presence. The further you go down the crypto market ranks, the more risk you incur.. for better or worse.
To Wenbing's point, trading is not as easy as some make it appear to be. Yes, if you become highly skilled in understanding the underlining psychology in crypto, are excellent with micro-managing and have a solid understanding of all the core principals of what makes a successful trader, then by all means. But trading is not for everyone and the vast majority who day trade, lose or on average, make as much return as someone who "goes long."
I do not personally trade, I do not have the aptitude or patience for trading crypto's anymore.
I do agree with you; and this is one reason why we have to keep re emphasizing to newbies and ethusiasts who are just taking up a seat in the crypto space to never borrow to trade or invest in cryto currency. Start up capital for every newbie traders or investors, must be funds that we can survive without.
But also on the contrary; i think and believe that trading is easy; but the processes to have a good trade history is where the complications comes in. How many learning traders are willing to sacrifice time and patience to follow up a process to the profitable end?