All of us who are involved in cryptocurrency have heard and know to some extent about investing and trading.But I know that there are risks in investing and trading.To do these you need to know some basic things and gain experience.The main difference between investing and trading is the investment period, methodology, risk-taking propensity. Whether you are an investor or a trader depends on your financial needs and investment goals. Investing is long-term and involves low risk, while trading is short-term and involves high risk. Both methods can be profitable if the right strategy is adopted.
Which one is better if I want to invest and trade bitcoins.
The both strategies has high profit potential provided they’re done at the right time.
There is nothing like a right time or perfect timing when it comes to trading Bitcoin. Nobody knows what the price will do tomorrow, next week, next month or next month. Traders make use of speculated/predicted prices to trade Bitcoin and that is why most of them make huge loses while trading. Bitcoin is very volatile and trading Bitcoin is gambling. It is not advisable to trade Bitcoin instead of Investing in it.
When you have good knowledge and understand how Bitcoin works you will very relaxed holding it for a few long or a few years, and you have no point looking at the price of everyday because by then you have high trust in the revolutionary features of Bitcoin and the potential of its price in the future. The reason why people go into trading or sell their Bitcoin for worthless fiat when ever it increase x amount or fear and sell it when it goes down is because they lack the knowledge and understanding of Bitcoin.