Investing and trading on Cripto currency?
- answers Peeranha
What is the difference in investing and trading on cripto currency?
Investing is when you buy a coin/token and hold. (The Crypto slang is hodl) ^_^ Trading is when you buy and sell coins/tokens to (hopefully) make a profit.
Most investors do both, even if you trade a small % of tokens using Crypto's volatility (market up and down movements in price)
Only trade what you are willing to loose! Until you get a bit of experience behind you. When you start off with small trades, don't forget to take the exchange fees into account.
Investing is generally buying an asset for the long term with the view of sharing in the future cash flow of the asset.
Trading is buying an asset with the view to sell it at a higher targeted price in the short term.
Investment is long term whereas trading "maybe". The indices trading is price and liquidity while the indices for Investment is viability of project and future stake or wealth.
Both are risky and demand sufficient research.