Crypto trading is one popular thing presently and we have seen many get burnt while trying out this new territory. Most importantly, we have also seen several persons who have made fortunes in the same space. What's the difference? Knowledge and skill.
The need for the right knowledge is very high because, without it, you won't thrive in the space. Instead, you'll keep falling prey to the market when you are not duly fortified.
As odd as this may sound, I'll still say it. Crypto trading is a business and it's not for everyone. While crypto investing is a must for everyone seeking to have a secured financial future. One may ask what the difference between trading and investing is; I'll only attempt the question because I'm no financial expert.
The Trader and the Investor
Firstly, I'll say that crypto trading is active while crypto investment is passive. Trading involves frequent and regular monitoring of the market in order to buy or sell coins for profits.
While investing in crypto has a lot to do with the long-term view. When you are a crypto investor, you don't need to keep checking market charts daily, weekly, or even monthly. Investors speak in years which is why FUD and FOMO don't get to them much.
Investors simply put their money into solid projects expecting it to grow over time. They are usually not after the immediate profits and they don't worry about daily or weekly candle closings. They believe that long-term pays better than short-term.
Wondering why I said crypto trading isn't for everyone but crypto investment is? Here's the answer; crypto trading is a very active business that involves one's presence and skills. You need to have a high trading skill level to make it in crypto trading else you will only be gambling.
Crypto trading needs both fundamental and technical analysis skills. Sadly, a good number aren't ready to acquire these skills but they want to make profits. Disclaimer: there's no magic in this business. You have to work your way to profits.
Trading equally involves loads of emotional and psychological intelligence. If you are not emotionally and psychologically intelligent then crypto trading isn't for you. Fact is, you'll need expertise in controlling your emotions to be successful in trading coins.
Sometimes, your emotions may try to cloud your right thinking and if you're unable to drop emotions aside, you'll definitely get rekt.
So, we see that making crypto investments is way easier than trading. However, it is only difficult and tedious to be a crypto trader but not impossible. Every expert trader was once a novice. What made the difference was the learning, practice, and consistency.
On the whole, while we trade for short-term profits, it's necessary to make investments for the future. Crypto is here to stay and it is a profitable investment to make. In the coming years, the blockchain and crypto space will record huge advancements, adoption and development. Then, you'll be excited you made those investments.
If you think differently, let me know below.