Cryptocurrency Trading Vs Investing

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Anyone that looks forward to stepping into the world of cryptocurrency is torn between trading or investing in this vast market. Anyone can choose between either or do both at the same time. The only thing that sets them apart is the strategy that you choose to go with, the end result will be increased investment value. It is all about deciding which strategy you are more comfortable with and make the best of. 

We will analyze the differences between both and help our readers decide what the best course of action for them is. Once you understand how they both work in detail you’ll notice that the key difference is merely that they’re either long term or short term avenues to eventually make profits off of cryptocurrency. 


Trading in investment helps you make short term investments, you make decisions based on technicalities and trends of the market. Once you understand both these factors and move in the market keeping this in mind you’ll be able to buy for a lower value and sell for higher for a profit. 

The volatility of the market means that you might not always be able to buy less and end up fitting however the highs and lows keep coming and going. The losses you take will help you understand the market more thoroughly and you would hopefully learn not to repeat the same mistakes. It is all about buying in at the right time and then making a call at the right time to eventually make a little profit. 

The current price should play little role in your decision making, the potential for percentage gains is what matters the most once you decide to trade an asset. The prices may increase or decrease in a very short time span and trading requires quick analytical decision making. Your main goal is profiting, preserving your existing profits and growing your overall revenue. 

At the end of the day what matters the most is deciding the right type of cryptocurrency to begin with and the type of exchange or trading system you chose to go with. For example if you're trading in Bitcoin, trading systems like Bitcoin Prime will help you immensely to reach your end goal. 


Much like trading, even in investing you must be very vigilant of the technicalities of the market and the trend with which your fellow investors move in the market. You start by buying an asset at a lower value and then you can keep it for as long as you want till an offer for a considerable profit comes your way. 

Investing involves more long term buying than constantly selling your assets. Usually for anyone asset sold you're investing into two more for the long run. The way it’s maintained is by trading a proportion from time to time, by selling at a high price and then rebuying when value decreases again. You can also hedge your assets for long term profits. 

There may also be temporary short term fluctuations in value and it is all about holding tight and not chickening out at the wrong time. You must invest in it for the long haul and keep your eye on the prize instead of giving into the first big value you see for profit. 

The volatility of the market means that sometimes an asset that doesn't even have much potential value can be oversold if you're in luck. You must invest and sell little by little over the time and focus on your long term goal and not give in easily. 


All in all, the key difference between the two is that the former is a short term goal and the latter is a long term way of profiting. The trends and technicalities for both these avenues work side by side to help whoever chooses to go either way. Once you learn the secrets of the trades and learn to go with the flow both these options can be equally rewarding. 

For any new member of the crypto market you can start by trading and even a simple trade can turn into an investment if you don't believe it can be sold right away.  Even though most people believe that trading is more complicated and expertise based than investing, if you're a natural you should have no problem. However if you cannot give the time needed for trading you can always go for investing. 

The type of cryptocurrency you choose for yourself and the exchange you trust for your asset will help you in successfully trading or investing. Some types of cryptocurrencies might be more suitable for either trading or investing and you must analyze the trends before making your decision. Trust your instincts and start by buying into cryptocurrency with some saved amount and see where it goes from there. 


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