Trading vs. investing – what’s the difference?

Mendykar

New member
Both traders and investors seek to generate profits in the financial markets. Their methods to achieve this goal, however, are quite different.
Generally, investors seek to generate a return over a longer period of time – think years or even decades. Since investors have a larger time horizon, their targeted returns for each investment tend to be larger as well.
Traders, on the other hand, try to take advantage of the market volatility. They enter and exit positions more frequently, and may seek smaller returns with each trade (since they’re often entering multiple trades).
 
Traders and investors do have the same objective of making money on crypto coin. But while some one is making money through the market volatility, other is making money using the bearish and the bullish moments to make money.

Before one decides whether to be a trader or an investor, there must be first of all consideration on time. Someone that doesn't have much time at his disposal should not consider going for trading because traders need to be monitoring the volatility on every basis.

Not only time is the factor to be considered, there is need to make sure that there is also much study on the coins. Not all coins are good for trading likewise investment too. There is need to check whether the coins are okay to be used for investment or for trading before venturing into crypto.
 
Top