Topic: Difference between bitcoin investment and trading on exchange (Read 728 times)

Yea, thanks allot for your contribution on this matter,
That's true both of them involves risk but the risk factor depends on the time duration.

It's not like you asked a question, but, if I was to answer the question from the topic, they're both investments if you ask me. Investments have to do with periods but not necessarily long periods of time. Meanwhile, in this context, one has to do with a short period while another long period. And that's trading and hodling, respectively.

Trading has more risks and on top of the risk, most times lesser returns but most people still prefer and go into it because of quick cash. While investments/hodling would be for futuristic people who want to sacrifice now for later. It has the risk of losing value if the price falls ... But one would still earn something out of it especially now that inflation is taking advantage of all currencies and most especially ours.

If you say skill is required to invest in bitcoins, so potential investors may never invest because to them learning a new skill may be difficult.

Do you really require a skill to invest in bitcoins? I don't think so. You only need to knowledge on how to invest, that is where to buy bitcoins and then knowledge on how to keep the bitcoins you will buy safe from theft and loss.

Investment in bitcoins should also be for the long-term.

Bitcoin investment and trading go fit be long term and also short term, you can choose to be a short term investors and also a long term trader. E get traders wey they open short or long position for very long time and dem be traders and not investors while we also get people wey dey invest for only short term and they sell. Everything depends on our mentality, for example as Bitcoin spot ETF was rumoured to be getting approved before it got approval, e get people wey being buy Bitcoin in anticipation say the price go rise and dem go sell to make profits so dem been invest inside Bitcoin with a short term investment mentality.


That one dey and also the stress wey you need to follow as a trader. Sha when you start e fit dey stressful but the more you get familiar with within you dey do, you go begin dey enjoy am and E fit no dey stress you again but still you no fit use trading compare with investing. Investing fit give you generational wealth wey be say you no go hustle again for your life but trading go make you get short term mentality and you go miss the opportunity way you for dun use get financial freedom from your investments. Investments sure pass trading so make that side dey be our focus. No just depend on Bitcoin to dey get cashflow money but invest and give it time for am to mature so when you dey sell, na better cashout go dey enter your pocket.

Bitcoin investment and trading on an exchange are two very different activities, although they both involve buying and selling Bitcoin. Bitcoin investment is when you buy Bitcoin and hold it for the long term, with the expectation that its value will increase over time. Trading on an exchange, on the other hand, is when you buy and sell Bitcoin in the short term, with the goal of making a profit from price fluctuations. While both activities can be profitable, they come with different risks and rewards. Investing in Bitcoin is generally considered less risky than trading, but it also has lower potential returns. Trading on an exchange is more risky, but can also be more profitable if you are able to predict the market movements..


It's important to understand the differences between these two activities before you decide which one is right for you. Keep in mind that investing in Bitcoin is a long-term strategy, while trading on an exchange is more suited for short-term gains. Before you start either activity, make sure you have a clear understanding of the risks involved and how to protect yourself from scams and other potential dangers.
Finally, it's worth noting that you can also do both investing and trading at the same time - some people like to hold some Bitcoin for the long term, while also trading..

Yes there is clear difference between investing (which is holding ) and trading. There is two trading again also which is either spot trading or futures; which are sometimes called derivatives. This two trading are most executed on exchanges most especially the future trading, that’s why OP actually signifies trading on exchanges. This future trading on exchanges is those where traders uses leverages (borrowed funds) to trade. This is very risky trading and some investor’s labels it gambling.

As for OP I will advice one to stick to bitcoin holding as in the future it’s profitable and way less riskier than trading of any kind. Trading requires you to have sufficient knowledge like the fundamental knowledge use by investors and also technical knowledge to analyze a particular coin chart. Most at times people get carried away with the money some traders make and they rush to join and this mostly get them liquidated.

Both the person that bought bitcoin to hold for a long time and the person that is doing daily trading are both bitcoin investors. The only difference between them is that one chooses to hold for a long term to expect a higher profit level, while the other person is scalping the bitcoin price at every level of price movement and it's always checking the market. The long term investors has no business monitoring bitcoin price movement.

Even if you didn’t say this, the difference between bitcoin and trading is obviously different; however, you don’t have to say trading or exchanges, whether trading on exchanges or whatever trading is trading. I think you don’t understand it well, which is why you said it this way. Bitcoin investment is not the same as trading crypto currency because Bitcoin investment is a long-term investment, and trading is just buying and selling crypto in a moment without wasting much of your time, and you’ll get the result of your investment.
 

You can’t say someone should start with a bitcoin investment; it’s a choice. Some people are not ready to invest and hold their money for a long time, and that’s why some are still into trading and some are doing trading to have a means of meeting their needs. So this kind of person doesn’t go for investment; they rather trade so they will get even if it's a small profit. I can see that you are missing something here. Let me tell you that bitcoin investment and trading are all using the digital market to operate. The market is unpredictable and controlled by nobody; it works on its own, so bitcoin is just for you to buy and wait till the market rises.

My own way I want add be say when person come inside the adoption of cryptocurrency like Bitcoin the importance thing the person need to first do to help himself nah to put head for ground to know both about the investment part and the trading on exchange side of bitcoin.

After you don know this two and their difference nah from there you go come weigh yourself to know which side your strength lies in, wether nah for trading or nah  investment anyone where you find your strength in you make sure to do more research about it to learn, to know and equip yourself with the right knowledge to take succeed for that area you choose.

The truth be say profit dey for both sides nah just for you as an individual to know how to take use the opportunities embedded in the different area but however don't forget say risk follow for the two so anyhow whey you they do make you take risk management seriously.

Bitcoin can be a risky investment, so it's important to think carefully about your goals and your strategy before you decide. That said, there are some basic guidelines.Bitcoin is a risky investment with high volatility, and should only be considered if you have a high risk tolerance, are in a strong financial position already and can afford to lose any money you invest in it. Since inventing bitcoin is highly risky I’ll say it also requires patience too because some people when they must have started investing and they peradventure they see or noticed the drop they’ll quickly back off and once it comes up they’ll regret

trading on exchange if I may say deals with rates if the rate is good and suitable you’ll make profit out of it

If I answer the question from the topic, I go say if you get good rate for exchange wey you take dey trade daily, you go make good profits oo, especially when you dey conduct trade on a stead. But Bitcoin investment as we all know say na long term naim e dey good pass. And when you leave your  Bitcoin for long term naim you go fit carry the money so something big ones, unlike trading wey you fit they spend the profit wey you dey get for small small, and na when you check your monthly or yearly profit na for there you go take know say you don get enough but you no fit explain how e take X.

The difference between Bitcoin investment and Trading is very clear and this facts that you stated are the most common of them all, hence most of us have heard of they of even practicalized them one wey or the other.

For a start the two categories of involvement in crypto market are very good but one only is higher risk than the other and believe what ever has the highest risk usually have the highest of profits.

Bitcoin investment is not only about the long term investment it also contains but short and long term investment. The long term investment in Bitcoin only requires the basic prerequisite of holding for as long as you wish which is must advise to be at least a 4-6years to 10 years of holding as the long term investment. the basic prerequisite of Bitcoin holding are;
[1] considering your cash flow; this part is very crucial tht it has to do with how much you earn and the percentage that you will have to put into Bitcoin investment because you have to only investment what you can do without for a long term. (what you can afford to lose).
[2] having an emergency funds that can cover your expenses for at least 4-6months long, this emergency funds is one of the major requirements that will let an investor hold his/her stash for a long term, it covers but the unforseen circumstances of life e.g medical bills, car maintenance etc.
There are other requirements but this I will only discuss for now although others are not too obvious as this two.

For trading it requires a whole lots of job that starts with acquiring a some level of knowledge about the market from the historical movements of price to the current status, and this special skills for trading is what makes it more expensive to trade than just hold. in only you don't have any job to do than secure your wallet by using some strong wallets like Electrum but for trading you most not opt out of the market for a minute if not it might result to running some loses.
Trading is considered gambling because its profits are not guaranteed you could be a professional and yet keep losing do it's some times about luck that is why most people do not go into it.

Good evening my people, today make we talk about this very important differences between bitcoin investment and trading on exchange, this information way I one share like this go they useful for both those way one go into investment and trading so that you go know watin to expect. Make we start with bitcoin investment, normally bitcoin investment na long term process way be say person go buy bitcoin come hold am based on the fact say the value go fit increase with time, And then to trade for exchange na the process way be say person dey buy and sell bitcoin for digital market way be say you fit use different local currencies or alternative coins to exchange for Bitcoin. This one like this na Short term  deals  way be say you fit profit fast fast from small market movements. Other difference way I go like us to consider na the risk and the skills way they required for both of them, for bitcoin investment the risk dey smaller than the risk way dey when you they trade for exchange because investment na to buy and hold over a long period, while trading on exchange get bigger risk based on the fact say na Short term deals so any fast change in price fit affect. And then the last one na say the skill way you need to get for bitcoin investment na say you need to understand how to identify long-term trends for the markets, but for trading on exchange you need to understand how to focus and analyze short term movement of the price so that you go fit execute your trades when you suppose execute them.