Topic: Trading VS investing: pros & cons you should know (Read 514 times)

If I have to compare investing and trading on the basis of difficulty, I will  say trading is difficult because it needs analytical and fundamental skills, whereas in investing you just have to hold bitcoin through all the volatile ups and downs.

Great article and contribution Karl! As always, thank you very much for bringing it, I tend to be a bit more conservative, I really like long-term trading and accordingly I like the part that cites the following:


Although for profit taking it usually takes a long time, I see this investment as safer, especially if it is made based on BTC, of course this is well focused on almost investment.

What sometimes I find very difficult is to trade in the short term, because naturally I am very slow and I do not usually react so quickly to the market, so my chances of losing increase.

It depends on the token/coin you are going to use on this example since this topic is subjective. It's true that trading is more risky than investment often times but there are some scenario especially on crypto that you will suffer more if you hold longer when the startup company slow down there development and slowly abandoning the project due to lack of operational funds. Only few token/coin in crypto are really good for long term investment and the rest is worthy a trade to gain profit and avoid huge loss.

For sure this was useful and thanks for making this post. There is no area of making wealth that can be easy, you will have to work really hard for it. In investing in cryptocurrency, the return on investment is going to take a long time for sure and if you can’t have patience for a long time, then it’s best not to go for it.

You have to know technical analysis and also have patience, create the plans of what you want to achieve and have patience while you stick to that plan. Then as for trading, the daily earnings or return might be small, but you should avoid greed. When you sum up those little winnings, you will come to realize that within a month you have achieved a lot.

It is true that trading and investing both are always risky way to earn .Newbie are always struggle on this field mostly .That's why they need to learn first then gradually start with small amount .After having much knowledge they can put some good fund for this .It is a good suggestion to invest on top and coin but there is nothing sure that can give you a good return .Any coin can get dump and make you a huge losses .So that need to start trading and investing that's how you can earn gradually but remember DOYR always before invest or trading .

Both trading and investment are risky. However, the risk of trading is greater than that of investment. Trading is short-term. It makes profits through currency price fluctuations. Therefore it is necessary to always pay attention to market changes to determine the best time to trade, if improper operations can easily lead to losses. When investing buy a currency that you think has development potential and hold it for a long time, waiting for the value to increase over time and finally make a profit.

Nobody mentions character but there is a good case it could be your personality that decides it. I tried trading, I really wanted to be a trader, I love how some guys have like 9 monitors and trade all day and then make money and that's whole their job. I know a friend who is literally like that, he has a room to himself at his home, his wife obviously let him create his room because that is how he made money and he always made enough money, and then some, so he was allowed his own room which is awesome when you are a married man I know.

So he just goes in there every morning, trades fully all day and then gets out during dinner and eats dinner and just spends time with his wife rest of the day until he sleeps and does this every day. That sounds like a great deal, if he made good enough then he doesn't even work for a while and just enjoys life. However I suck at it, I couldn't be like that even if I tried.

You do actually have a point because trading is indeed an investment because we do have put up money on this one which means it is really included on the category which i can say that it is just the same when we do talk

about pros and cons but do differ out on some aspects but at least it is still needing generally for you to done make out some good research and make out good analysis for you to take advantage.

You cant just dive in without sufficient knowledge and skills but somehow you can acquire these things along the way.

I would like to understand if trading does not require investment into it? Then why we should have a topic as Trading vs investing? Either you go for a long tern trade or day trade, you invest your money on a coin right? Am I right or we should call this as something else? Trading requires money right?

So better we can say as Pros & Cons of Investing on Day trade vs Investing on a Long term Trade?

Strategy can't be done instantly, beginners won't be able to do it. But I continue to learn before entering the market, so I already understand what I have to do. The way other people learn will certainly be different. Trading and investing is all I have learned so far and I already understand the flow.

Trading can make profits in a short period of time, but it has greater risk than investment. Trading requires more time and money. It is necessary to observe price fluctuations and short-term price changes in the cryptocurrency market at any time, buy when the price of cryptocurrency is low and sell when the price is highest. Obtain high profits through the volatility characteristics of cryptocurrencies.
Investing requires observing market trends to speculate on future price changes, buying currency and holding it for a long time to earn income when the price rises. Long-term investors do not have to pay attention to market prices all the time, put assets in their wallets and wait for currency prices to rise.

I'm not really sure which one is "better" so I'll just give an instance of a past event. I know plenty big time traders that spent several years to build their portfolio to over $1M but someone would just lucky to invest in a shitcoin and make insane gains. I know of someone who made around $19M from shiba Inu. At the end of the day, it depends the situation. Some situations require trading, others investing would be more feasible.

You wont really able to create strategy when you are just starting or just simply being a noob but somehow you can attain those things when you do have actual experience on doing this.
You cant really get it on first time but as long you do make out some engagement then this is where the game begins. Everything does need sufficient information and knowledge at the same time.
Trading and Investing is somewhat the same on general sense but basing up on how much time and effort you could only gave out because not all does have ample time
on dealing  with things aside from their own jobs and work.

There’s a lot of things to be consider before you actually understand what’s your goal in this market because many of us are doing the same things, trading and investing simply because we already knew how the market works and we’re ready for the risk. Both of this strategies have their own risk level, everyone should know it and analyze if its work for you, though trading is not that easy but it can be more profitable than to investing, depends on the skills that you’ve got.

a strategy is a must have before making a decision to invest or trade in crypto. As a holder and want to make long-term investments, you must really enter at the right price, don't buy when the price is already above. wait until the price deep and enter.
stuck in high prices will take a long time to return to recovery, this will also affect psychology.

There is no straight guide for trading and investment. Everyone has its own strategy and it works for the owner only. Like what profits you may not be profitable for me. 
To me trading is something like gambling, you win sometimes and lose most of the times. There are not many who remain profitable in short term trading. While its not the case in investment, if you have courage to hold your coins for long term, there are bright chances that you will get profit.

If you have a job that you’re doing then investment will be a better option to go with. Unless you have plans to leave your job and maybe face cryptocurrency as a full time job, then day-trading will be a good option to go with. When it comes to investment it takes a long time, and not everyone can have that kind of patience that is required, that's why you will see a lot of people going into day trading.

The good thing with investment is that there isn’t much risk involved in it like you would face when you’re into day-trading. Day trading requires working everyday and investing and making use of your money every time and that puts you in a position of losing it at anytime.

I think that a person should think about doing both, there are a hundred times when the price drops a lot and the person can buy and sell when the price increases and make a profit, the person does not need to be stuck in the hodl that also has its risks when price drops a lot and stays stagnant for years and doesn't increase. there are scenarios of great disadvantage of making hodl, for example if a person buys bitcoin for the price of $60,000 and then the price drops to $32000 and only 3 years later the price goes back to $60,000 it means that the person only spent 3 years with loss, so it is advantageous to do both

Capital may limit your activities but you can really play any term that you want because it will always depend on your strategies. Trading and investing are both risky so for newbies they can’t do this both since they are still lack of experience and they might lose everything if they take such risk. For a more safety, go for investing on good coins that’s more worth it.

Trading is indeed dependent on the capability of the user. For small traders, don't expect that you will get high profits as you have small funds to begin with. And the work doesn't stop from there, you need to be updated with the coins that you are interested with. Otherwise, you will lose without knowing their progress. Investing long-term on the other hand, is also quite risky especially if the coin is not yet really established in the market. Better opt for btc if you can't follow thru your coins long-term.

I think is not as straight forward as it is generally presented.  The fact that you buy low does not mean you will sell high at any given opportunity.  Trading could be stages and different layers.  I could  buy and hold in order to sell in years to come while I  keep buying low and adding to my stock! I could trade in a circle having established such circle and that does not mean I am investing, I am only taking advantage of opportunity presented to me by market forces!

Trading is not for the fainted heart.  There are times when the market is confusing whether the price will go up or will go down and you will feel the pressure when you are holding a stablecoin while you're the price suddenly goes up a bit while you expect the price to go down.

This is where you panic. You see how ADA is right now which people are watching what will happen this Alonzo launch but seem the price is very calm. Could it be that traders experience too much analysis that they're not buying?

Investing is easy as holding and waiting for the price so you can profit. There are no other coins to choose for this if you wanted to make sure of profit just chose BTC.

yes, if I myself ultimately have to choose a coin that i believe in the long term it will have a higher value. even for trading, because if something bad thing happend like the value goes down i can still be a holder. if person don't know what the reason he chooses coin which often makes that person fomo in the market.

For large trading capital, diversifying the portfolio and using long-term investment strategies are worth but small balance holders should focus on short-term market performance. Both versions of trading have some advantages&disadvantages, traders should decide which side covers their style or needs.

There’s a difference yes but the risk, for me its just the same especially in cryptomarket where everything moves faster than what we expected. If you are into trading, you should move faster while investing you still need to monitor the market and of course set up your target price. Investing is not just good for BTC though, there’s a lot of good altcoins as well.

^ Trading and investing is far different from each other and that is right, trading is a very risky part that needs a technical analysis and another strategy that you can use in trading while in investing, it is only needed for you to hold the coin that you wanted to invest and wait for ait until your profit was there. So typically investing here is good if only you invest in BTC not even on altcoins. However, thanks to the OP for giving insight regarding the pros and cons between both sides, we now understand very well the two different parts of this riskier of making money.

Sometimes, I used not to check every hour what's the price of the coins I own. But I guess we're just growing old from the market and we're not worrying anymore as if we have to check it from time to time. Things are different today and it's no longer the same as before that we're always in a hurry. This time, we're chilled and relax as we know the market has grown a lot and there's no worry anymore because we're already in the profit as the prices are always catching up.

Even though it gets lesser and lesser each year, I still do it, especially when there is a big change like the other day. I mean I am of course not checking as much as a regular trader, those guys have to check it probably once an hour at the very slowest, some just keep on checking every second so they could make quick buying and selling chances. I have a friend that is classic trader, multiple monitors, many charts open, main screen on exchange, buy and sell within 5 minutes all that.

So yeah, compared to them I rarely ever check, I have days when I do not even check the price at all, a whole day, traders can't do that. This is why I still prefer to be long term investor, but obviously I still do check the price time to time, CMC is on my frequently visited websites, I check it whenever I wonder what happened, just not as frequently as I used to.

Great analysis as always Karl, besides that it is always fabulous to read great teachings, particularly since the safest thing on the market is this option, besides that you just have to wait and do nothing else, just follow up on what has been invested.

We must also take into account that this type of strategy is much more focused on investment than just market speculation, and above all it must be taken into account that the investment cannot withdraw until at least it has a good profit, otherwise it will transform in losses, for me this is the safest way to be successful, only that the sure results are shown in the long term.

Trade and investment should be harmoniously combined. I allocate part of the money from the profit received from trading in order to invest in new projects that are at the stage of a private or seed round of sale. Such investments, as a rule, pay off within a few months by the time of TGE and bring profit in the future.

For the trading view, one point has to be mentioned all the time, it is very risky and you need extensive knowledge. Actually you have portrayed the trading more easy as compared to the investing. However, I think holding for longer period for some profit is the game changer here. Yes, long term holding could be risky in terms of market crashes, loss in the down trend of the market however, the situation is never permanent in that scenario. You need to understand that market is volatile here and could take bigger pumps at any given time and you have to be smart one to sell at right time and then invest again once in a while. 

In case of trading you could be making as high as 500 bucks a day but someday you may end up loosing thousands of bucks in few minutes of time! This is just an example but yeah this is the reality in crypto trading considering the highly diluted market.

Checking of price is still happening with those long-term investors. I still do it despite being a long-term investor because it's just really a normal thing to do by an investor. But it doesn't matter to the price that's being shown because you're projecting a better price in the long run and it depends on how much you're going to look at it. Both are profitable but not as easy as we say because it's more fearful to do trades if you're just doing it randomly without any depth research and effort of learning to do analysis.

Wasn't expecting Karl to make such a guide (or post it from the bitcasino blog) because bitcasino is a casino and I can't imagine such content at a casino blog.

While I agree with most of the guide, I would say that not just trading but even investing requires a lot of knowledge. In fact, more knowledge than trading because while trading you can just do a quick technical analysis and start trading because you don't intend to hold them for a long period. But while investing, you have to perform a fundamental analysis since you are backing the asset to retain and grow its value over time.

Since the topic of P2P purchase is mentioned, I must say that now days many frauds are happening at such P2P sites and one should be very careful, especially when selling their cryptos.

Trading and investing are different. Smart and experienced people can succeed in both trading and investing but most of them fail if they mix investing and trading at the same time.

Those infographics ^source summarize how smart and dumb decisions they will make. More dumb decisions will be made in trading and in case they mix trading & investing.

Smart guys (usually real investors) have solid plans to enter (buy & accumulate) and exit (take profit). They are not or less be affected by market volatility and FUD/ FOMO effects. So they will buy in the bottom range (note that it is not make sense to buy at exactly bottom price). They feel happy when they enter in bottom range. Additionally, they take profit in all time high range and feel happy, satisfied when they take profit. They don't feel bad if they don't take profit at exactly all time high or peak.

This way, they won't fall into extremely fear or greed. They are successful investors.

Compares two inforgraphics and you will see the differences.

we will have different way to treat for each strategy, long term will give us more relax and doesnt need to check price in every days or even  hours . meanwhile in daily trades we have to analize market movement regularly to find best opportunity that may occur then. both of them will give us alot money as long as we know to trade.

There's no such thing about being safe but only talks about on the level or intensity of such risk that could wipe off your money neither you are engaging on trading or investing.

Only varies with your capability or capacity on engaging on things because not all would really be that having these qualities.Fit on things on what suits you the most.

It does have pro's and cons but honestly you can deal off with both things if you are really that dedicated on earning.

Trading is at high risk, IMO.
A singles mistake that you've made in trading costs a lot and might lose all your funds. Unlike in investing, if you only choose those potential coins, you are absolutely safe and you can surely make a profit. But in trading, that instant loss is possible especially when you are a newbie. And besides, this is not advisable to everyone not unless if we are really sure about ourselves but in investing, having the basic knowledge about crypto is already good enough.

Whatever both trading and investing, if we are consistent, we can get profits as we target. And both also include risks.
Investors will say that trading has higher risks, moreover, it is like gambling.
The trader will also say, trading is risky but very profitable, and investing is also risky and too much waiting.
Wel, that is why both are actually risky and profitabel. So it depends on each person in choosing the one, if they are consistent and know what is doing, they can minimize the risks and take higher rprofits.

In terms of risk, I think I will measure it the same.

Long term and short term trading both have a risk, and as a trader or investor, you should have a different way to treat it.
Short term trading normally is good for people who consistently monitor the market as it requires instant decision making since the market is very volatile and it could change significantly in just minutes, hours or days. Everyone surely have their own strategy, but we only differs in our approach or implementation in trading.

Yes i agree that both were almost the same wherein we buy and hold until we get the value that what we want from it, and the risk also.. But for me its a good idea to have such options where people can choose the way  for them is fine, i mean some can do it full time in trading and part-time for investment.. Indeed it doesn't matter at least you have enough knowledge how to handle such way it's totally fine and worth it especially when it comes crypto..

Actually, when prefer to invest over trading, you still need knowledge because investing is not just buying and then save it for a long time while waiting for prices to rise, because in the crypto world no one will know what will happen tomorrow, a week, a month or a year ahead, so as a investors must keep updating their knowledge about the crypto that we choose as an investment, the only advantage is that we don't do it like a trader when there is bad or good news can cause panic both buying and selling, an investor is calmer than a trader because traders do it in a relatively shorter and faster time, trader will always take profit in every opportunity.

it takes enough time for someone to really want to trade, because it's not just a will, it takes enough analysis and experience when you want to do it and it's not that easy to do everything. because without the experience that has been done so far, you will be able to experience losses, but not with investment because it is enough to buy the best coins such as bitcoin and ethereum, it can be ascertained that time it will produce an increase.

I agree that everyone has different characteristics and indeed that is a gift given to everyone. learn the basics and analysis of course as a beginner you have to do that, the main thing is obviously never to do anything that quickly panics and must still be patient so that you can control what will be done later. because in true trading it is very complex and all ultimately depends on the patience of the trader.

So in your conclusion, it's a matter of who are we talking about because no same people have a verisimilitude characteristics and behavior, there's always and will be a minute difference albeit some will be invisible to the eye. For me, they first need to learn all the basics of trading before jumping right into it, it's like going to war without knowing how to use a gun.

Honestly, I'd choose to invest over trading anytime, especially if you aren't prepared to spend hundreds of hours learning how the market works, possibly together with losing hundreds to thousands depending on your budget just to understand how to break even for each day. If I were to be asked is it worth the investment, it definitely is if you continue doing so but if you were to ever stop midway, it's really not worth it since you basically lost a lot for nothing.
I'd generally avoid p2p marketplaces when you're still starting out. Centralized exchanges may be much more strict on KYC, but it's a lot safer and has a lot more room for errors compared to p2p imo. It's beginner-friendly so to speak.

Trading and investing require both time and effort.
When you do invest, you also study and research there, you just do not buy random coins and hold them for the long term, same goes with trading right, you need first to study the basics of trading.

The "enough time" for me here is not the time only you are watching closely to the chart, some traders are also using high timeframe when they are trading, some of them don't always monitoring the chart, once they have already a plan, open a position, set stop loss, set target price then they are good to go.

Everything that has the potential to gain profits has a risk. Both investing and trading have it.

But I'll choose what's best for me, whether there are lesser cons or pros, I'll be focusing more on investing. I'm free to move any time I want being an investor.

Investing will be good enough and less risky if we know the fundamentals of coins that are strong enough, the team, and also their use. And about Bitcoin itself, we have known the worth of Bitcoin investment, moreover for a long-term hold. That is very worthy. Put our money there, let it be, and then several years will be multiple times for Bitcoin price. This has been proven.

However, for altcoins. we must be very careful in investing, if we don't know the right coins to invest in for a long-term period, it will give high risks. We know how the coins in 2017 seemed to be very promising, but the value decreased and decreased even after 5 years, and they are likely trash coins. That is why be selective altcoins for long-term investment.

And trading, yeah this also takes high risks, moreover for newbies, trading maybe like gambling.
but at least, if we are trading in the spot market, it will be less risky than in the future or margin.

Just do what we really understand, just do what is suitable for us (including the time, funds, risk management, knowledge, and also readiness for every risk.)

We can also do both if we are able to do.

I personally think that trading has a higher risk than investment. Investment are generally done for a long term.
Long term investments mostly give profits and so it has lesser risk of losing money.
Trading on the other hand is for short term and if not done correctly then it can lead to a loss and hence higher risk of losing money.
Many of my trades have lead me to a loss but all of my investments have given me good profits.

The last time I lost in traing, I gained over $500 for like 3 to 4 weeks, but lost $300 in just a day, that makes me to think differently about trading. If I hold the bitcoin, I would have gained more than $500.

Greed is a very difficult thing to handle while trading, some people would have lost all their money before they will realise their greediness and be blaming themselves, risk and money management are very important for traders to be able to trade with the amount of money that will not affect them.


The investing I am talking about is bitcoin holding and no others, if you invest in bitcoin, the risk is not much at all, it is not risky like trading.

yes when i answering this i just loss 50$ that i have earned for 3 days and gone for no matter of minutes 

Greedy, is my main problem right now and money management 

investing is also risky if you just buy without see the price like you buy stock at highest peak it could be dangerous

at the end of the day, it takes a different kind of person to trade than to invest. Investing can be, in a way, done by anyone, and trading, as we can witness, is not something any person can do. I am saying this because there needs to be more education for newbies regarding trading and they should not go all in before they gain some experience.

The risks are more in trading than investing, trading is also time consuming, the most frustrating and depressing thing about trading is that you will devote your time, energy and money just because you want to gain, but most traders will later lose, this has been the reason yj do not like trading when it took all of my yearly earning away after all the time and money I used. If I had invested, I would be having enoghoney now, investing is not risky like people are saying, someone can just wait and be patient and invest at the appropriate time without any panic of checking the market price always.

I don't think there's a risk in investing if the investors know the concept about the Bitcoin price.  Once an investor becomes a panic seller when there's a FUD comes, the risk was there but if the investor knows how Bitcoin works and knows that investing in the long term will really give profit, I don't think there's a risk on it.

In crypto space, RISK and VOLATILITY are the main factors that we consider most especially in trading.  There's a lot of things that we must be monitored before we can say that it's easy to gain money on crypto but knowing the fact that Bitcoin itself didn't give promises on USD regarding profit, it's financial freedom.

good article but for me everything having risk

i think the simple answer if you have enough time i will take the trading if you dont i will take the investing 

On Paxful, something newbie traders need to know.

• Avoid offers that are "Too good to be true". Such offers are mostly come from scammers.
• Avoid traders who only have one-sided trading history such as using fiat to buy Bitcoin. Fiat resource might come from illegal activities, money laundering.
• Narrow down your filter to trusted trade partners: Ambassador, Associate, Corporate account, Expert trader, Power trader, Peer. Customize it in the User type of the filter
• If you don't want to spend time with filter like above, simply Turn on Trusted offer only at the top of offer list. From the list of Trusted offer, narrow it down by choosing trade partners who have big number of past trades.

Being aware of what the market has done in the past (in depth) also makes holding less risky as you're less likely to just cut your losses/give up.

I'd also advise against trading bots as I'm not sure they're any good and seem quite expensive - unless you can text your strategy works before leaving it to run.

If someone do not have strong wings, it would be best for the person to just work and go easy. Some people do not know how to trade, some people trade and lose easily, but bitcoin investment is still more guaranteed for profit, I do not know about shitcoins which should be seen as gambling, although some altcoins are good too but many are shitcoins, that is why I prefer bitcoin when it comes to crypto investment.

If there are risks, then the person is trading or not patient enough, if someone can hold bitcoin for 5 or more years, it has never failed in the past, it all resulted to profit for such long term holders, but some people will sell their bitcoin holding when the price is falling, but people that just do not worry but expecting the price to rise all make profit from it.

Hi, crypto fans

Still at the crossroads of picking between trading vs investing in cryptocurrency?

Consider the pros and cons of investing in cryptocurrency and trading, as well as your profit goals to find the right option for you.
Here's an overview for you.

Trading vs investing crypto side by side

Although investing and trading in crypto appear the same, they work in distinct ways. Investing is buying an asset and holding onto it until its value appreciates over time while trading involves buying and selling coins to profit over movements in the market. Learn more about these two when we compare them side by side below:

Pros and cons of investing in cryptocurrency

Investing in cryptocurrency is fit for long-term investors who can wait years to profit from their assets. This involves buying a crypto asset like Bitcoin (BTC) and Ether (ETH) and waiting for its value to increase over time.

Most crypto investors tend to do the ‘HODL’ strategy which is a slang term that means ‘hold on for dear life’ onto their assets no matter if the price drops. Rather than being swayed by volatile price changes in the crypto market, these types of investors choose to hold onto their coins and wait for the right time to sell them. Know more about the pros and cons of investing in cryptocurrency below so you can choose if this is the best option for you. Here’s all you need to know:

Pros

* This can be done passively
Investing in cryptocurrency can be done during your spare time without having to be fully active on the market. All you have to do is buy a performing crypto asset and see how its prices move within the next few months or years.

* Suited for long term goals
Investing focuses on long-term profit or gains that are often bigger compared to trading. Price drops don’t concern investors for long term investments in cryptocurrency since they look at the trends in the long run and know that prices can rise again in the future.

Cons

* Results take longer to earn
Like most investments, cryptocurrencies also don't pay out overnight and it can be difficult to predict when with the market’s volatility. Along the way, you might be faced with doubt or impatience of profiting immediately. However, if you keep track of your assets’ performance through market predictions by experts and look at things from a long-term perspective, you can potentially gain substantial amounts from your investment.

* It has a higher risk
The crypto market is known for being highly volatile and therefore, risky. And while the famous saying goes ‘high risk equals high returns’, this also means the possibility of losing big money. Additionally, your investment can still result in zero return no matter how long you wait for it to appreciate if it’s not doing well in the market. So, make sure to choose your investments wisely. All you can do is try to protect your crypto from market volatility as best you can by being open-minded, cautious and knowledgeable of the pros and cons of investing in cryptocurrency.

Pros and cons of cryptocurrency trading

Crypto trading involves buying and selling coins to profit by predicting the price trends using a CFD (contract for differences) trading account. Opposite to investing, trading is more fit for short term profit goals since it allows you to earn through buying and selling coins within a few hours, days or weeks. Here are the pros and cons of cryptocurrency trading you should know:

Pros

* It works well with the market volatility
Crypto trading is rooted in the market’s volatility rather than investing in crypto that doesn’t heed to short-term price changes. This means that once prices go down, you can buy more crypto and profit by selling them later for a higher price when it appreciates. Rather than seeing price fluctuations as a bad thing, traders see this as an opportunity to gain in the near future.

* It is faster and more accessible
If you want instant profits in the crypto market, trading is the best option for you. This can easily be done by simply buying and selling tokens through various platforms like exchange sites. To make the most out of your assets, make sure you know all the different strategies, trends and analyses used in crypto trading.

Cons

* Should be active in the market
Since trading is aligned to the market’s volatility, you are expected to monitor the latest changes. Unlike investing where you can be passive, you have to always be active when trading so you can enter and exit the market whenever necessary. If you don’t stay alert on certain market trends, you might miss the opportunity to profit or suffer great losses when prices drop. Bitcoin trading bots, however, can help you by aggregating all of this information and help you make the most informed trading decisions.

* Smaller returns for each trade
Although you can get faster returns in crypto trading, they usually come at smaller prices. Since price drops happen minimally especially for lesser-known coins, the profit you can get from buying and selling multiple currencies will also be small.

* It requires more knowledge on crypto
Compared to investing where you can buy and leave your assets alone, trading requires you to brush up on your knowledge about crypto to profit from it. You need to be updated about the recent happenings in the market especially those that can affect the asset’s prices and understand how the entire system works for you to make substantial profits from crypto trading.

Is there a risk in cryptocurrency?

Like all kinds of investments, there is a certain level of risk as well as pros and cons in cryptocurrency you should keep in mind. This includes the high market volatility, which means prices tend to rise and fall.

Another thing to be wary of is the safety of your assets. Crypto’s core tech such as blockchain and cryptography secures your assets, however, other financial platforms that make investing and trading possible may not be as safe. This includes popular cryptocurrency sites used in trading that are often centralised and operate online, which means they can be a target for internet threats like hacking and malware.

Investing apps such as wallets where you choose to store your coins also pose their own risks such as hacks and getting lost. Ensure that you secure your Bitcoin wallet by keeping your password safe and using 2-step verification.

So despite its built-in security features, there are risks in cryptocurrency that users like you should be wary of. Do your own research on the steps you can take to improve the safety of your coins. Consider all the pros and cons of cryptocurrency when deciding because, at the end of the day, your assets are only as secure as you make them.

Into the realm of crypto: Where to get your crypto

Now that you know the pros and cons of investing in cryptocurrency, ready to step into the world of volatile markets? To help you get started in either trading or investing, find out where you can buy these coins first. Here are the three best platforms for beginners:

* Exchange sites
Big exchange sites like Coinbase and Binance allow traders and investors to buy and sell coins in one place. It acts as the intermediary that facilitates transactions between two parties (buyer and seller).

To make an exchange, all you have to do is create an account on your chosen platform and begin trading or investing. You can instantly get any of the well-known coins like BTC and ETH using your fiat money or other cryptocurrencies.

* Peer-to-peer marketplaces
If you want to directly buy and sell your crypto assets with another person, you can use Peer-to-Peer (P2P) marketplaces. These sites allow you to contact any interested party for the transaction. Additionally, the prices of the coins are usually determined by the seller. Some examples of P2P marketplaces you can consider are Paxful, Bisq and Localbitcoins.

* Payment apps
You can also buy crypto from payment apps like PayPal and Robinhood. These apps make crypto available to their userbase so they can easily buy crypto on-demand without finding a seller.

 
Thanks for reading and hopefully it was useful.

Cheers,
Karl from Bitcasino

 
Source: Bitcasino blog