It's pretty easy here in Germany. Investing in Bitcoin is a tax free enterprise. You can buy your Crypto, hold it for 1 year or longer, then sell and it is tax free.
If you are trading then you will not hold for 1 year, so you will have to pay tax on any profits you make.
It's all basically time frame and mentality. The cuts offs are arbitrary, you can trade once every few weeks and you are trader, I think if you buy with the plan to sell in the near future, it is a trade.
If you buy and hope to hold long term, you are an investor.
I would propose the cut off as being - if you hold your coins on an exchange, you are trading.
Topic: Difference of Trading and Investing? - page 64. (Read 29464 times)
The difference between in these two is that trading is on your own, you'll be the one who will make strategy and you are the one who's responsible on it, while investing is you invest money to a business and you will just wait for your money to grow.But somehow, its also risky you have to find and study the business first before you invest you money.
I have been a Forex trader for several years and in this case I fulfill both functions, as I perform trading operations directly in the market, making my own decisions and managing my capital under my own rules. But on the other hand I also use to manage some funds of investors who have no interference in my trading decisions since they are just limited to entrust their capital to generate returns.
Investing is an effort to make money during the time period long
Trading is an attempt to make money during the term short
Investment depends on the fundamentals to decide to buy or not investors can only make money when the price is going up, and while traders can make money in the market UP or DOWN
Trading is an attempt to make money during the term short
Investment depends on the fundamentals to decide to buy or not investors can only make money when the price is going up, and while traders can make money in the market UP or DOWN
The best way to explain it is to make a good statement rather than making a long and very technical definition that is hard for the reader to understand. So here is my explanation " All trading is an investment but not all investment is trading". It simply means that even trading itself is considered as investment. But investment has many forms aside from just trading, it could be investment in networking, loans, business and many more.
That is even harder for a newbie to understand!OP when you are trading, you are actually investing your money(or coins) as well.
In the real world people see investment as when you buy something and wait for the price to rise before selling - the same thing applies to those who hold bitcoins for a long time, they are waiting for the price to rise.
Now we have the day-traders who buy a coin and sell within a few days, they make "small" profits daily or weekly because the price of all coins changes everyday - if you check any exchange you will see the 24hour-high and 24hour-low prices.
This is how day-traders operate.
Guys sorry for this question above but I would like to ask here that
What is the difference of Trading to Investing?
though I know that I can search it in google but I want an answer from those people who have already experienced this two.
Thank you.
I hope you can help me in my confusion..
In my opinion trading and investment is have differences.Trading is a part of investment method that you can earn money or Bitcoin.Investing is a method that how you make more money or Bitcoin in different investment method. What is the difference of Trading to Investing?
though I know that I can search it in google but I want an answer from those people who have already experienced this two.
Thank you.
I hope you can help me in my confusion..
as far as I know, investing is you save your money on a company or on a business and then you will get the profit in a particular period of time. so you need to wait to get profit. while trading is you sell kinds of coins on market and you can get profit in a shorter time than investing. but it depends on your strategy, how long you will save your money on the market and sell it.
Guys sorry for this question above but I would like to ask here that
What is the difference of Trading to Investing?
though I know that I can search it in google but I want an answer from those people who have already experienced this two.
Thank you.
I hope you can help me in my confusion..
What is the difference of Trading to Investing?
though I know that I can search it in google but I want an answer from those people who have already experienced this two.
Thank you.
I hope you can help me in my confusion..
In my opinion the really quick answer to this is: investing is longterm, at least 5 years and trading is short term, anywhere from minutes to months...... hope this helps
For me investment is something we spend and have a profit in return. It is either letting people to manage your money or you do it yourself. One example of investment is trading where you put money, skills, effort and time to yeild a profit. while trading is where you exchange your stocks with other stocks, or stuff with other stuff. Trading is just one section of investment. So I can say investment is has a wider area while trading is one of the area of investment.
same , in user want growt money
but is diference is work
trading must work buy low price something and selling to high price can take profit, return and grow money
investment nothing do it, only youre money in bank can get return, only investment in cloud mining can get return
but is diference is work
trading must work buy low price something and selling to high price can take profit, return and grow money
investment nothing do it, only youre money in bank can get return, only investment in cloud mining can get return
Guys sorry for this question above but I would like to ask here that
What is the difference of Trading to Investing?
Thank you
What is the difference of Trading to Investing?
Thank you
As to me, the most difference comes from the fact that while trading you earn mainly through your active effort and thus don't depend so much on external factors. If we take Bitcoin as an example, you could just buy a few and then wait till the price rises, but it may not rise, or rise too little for your target value. Trading, on the other hand, allows you to remove at least some of the external factors that affect your profits, though this doesn't in the least mean that internal factors (i.e. your trading experience) will guarantee you any profits...
Or won't in fact contribute to greater losses through the lack of experience
investing is the purchase of an "item" or "commodity" for the long term rise in value. trading is short term and involved a more structured quest for quicker changes in value, or at least it should
In other words when a trading lasts for long haul it turns as an investment.Trading and investing are similar things when are not considering the time constrain, but based on risk levels we can differentiate them but for that we again will be in need of time. With long time requirement, investments are less riskier compared to trading.
Investing could be anything into which we are putting our money. A broad classification. Usually investing may not require your active participation for profit generations. If requires, then we term it as 'active business' else 'passive investments'.
Risking money in gambling is a type of investment with active participation whereas investing into gambling site's bankroll is a passive investment. Your no action is required.
Trading is a pure business type. It needs investments and active participation.
Trading is one of the types of investing as investing could be associated with gambling/trading/stocks and bonds/real life businesses.
Risking money in gambling is a type of investment with active participation whereas investing into gambling site's bankroll is a passive investment. Your no action is required.
Trading is a pure business type. It needs investments and active participation.
Trading is one of the types of investing as investing could be associated with gambling/trading/stocks and bonds/real life businesses.
investing is the purchase of an "item" or "commodity" for the long term rise in value. trading is short term and involved a more structured quest for quicker changes in value, or at least it should
Guys sorry for this question above but I would like to ask here that
What is the difference of Trading to Investing?
though I know that I can search it in google but I want an answer from those people who have already experienced this two.
Thank you.
I hope you can help me in my confusion..
What is the difference of Trading to Investing?
though I know that I can search it in google but I want an answer from those people who have already experienced this two.
Thank you.
I hope you can help me in my confusion..
Trading is often done frequently, to make many small gains.
Investing is done once, to make one big profit in the distant future.
Trading means buys something at the low price and sell at higher price than the price you buy it and you keep the profit on the difference while investing means you are trusting someone with you money to run his business and he will pay you dividends if he made profit
the investopedia links above are explanatory enough but in my opinion you can say trading is an investment that you need to work on it too. but the opposite is not true.
generally when you invest, you don't do anything apart from hoping that what you invested in becomes successful and gives you money (profit) but when you trade, you invest your money and have to work on making that profit happen.
generally when you invest, you don't do anything apart from hoping that what you invested in becomes successful and gives you money (profit) but when you trade, you invest your money and have to work on making that profit happen.
Trading is something you make on buy and sell directly awhile investing something you put your money on some investing site and they generate your money while it is growing, so you can get the money you invest with the percent given as the condition permitted.
Guys sorry for this question above but I would like to ask here that
What is the difference of Trading to Investing?
though I know that I can search it in google but I want an answer from those people who have already experienced this two.
Thank you.
I hope you can help me in my confusion..
What is the difference of Trading to Investing?
though I know that I can search it in google but I want an answer from those people who have already experienced this two.
Thank you.
I hope you can help me in my confusion..
Actually trading is a type of investment. Where you are going to buy and sell alt coins that you think that has potential to pump in future.
And you will buy it at lower price and you'll get profit from selling it at higher price. Investing is simply putting a capital into something that you think is gonna be profitable for you.
There are many types of investment.
When you buy something in hope that it will have greater value in the future, that is investing. Some examples are gold, assets, land or bitcoin.
While trading is a little bit different. You can purchase or sell something for some profit. You can be profitable in trading whether the price is going up or down.
While trading is a little bit different. You can purchase or sell something for some profit. You can be profitable in trading whether the price is going up or down.
Jump to: