In the new situation, we almost equate trading and investing. Trading and long-term investing are two completely different things, let us discuss these issues in detail below.
Buying a coin is not considered an investment, if a person buys a particular coin and sells it for some profit then it is considered trading. Investing is when you buy a reliable coin and try to hold it for a long time.
The difference between trading and long-term investing,
Since investment is planned for a long term, small changes in the market do not affect an investor, as a result of which the investor does not care much about this small fluctuation in the market. In this case, trading is different, the main purpose of trading is to earn a small amount of profit, to earn this small amount of profit, a trader always has to keep an eye on the changes in the market and when the trader thinks that the market has come down relatively now and he should buy a coin, he buys a coin and when the profit is as expected, he sells it. It is wrong to think that a trader will profit by trading, many times it is seen that a trader is facing a lot of money loss for a small amount of profit. Even if the market goes down a lot after investing in a long term plan, it is normal for an investor, but for a trader, a small dumping of the market can cause a lot of loss.
I’m not yet in a position to do the trading and investing being discussed here because I am still currently in the learning phase. Even after checking out how trading works in cryptocurrency
or Bitcoin, I don't fully understand it yet.
While buying and selling is easy enough, I don't have much of an understanding yet when it comes to reading or 'analyzing' trades on exchanges. Perhaps the only thing I can do for now
is long-term investing while I’m still studying what others call DCA. Based on what I often read here in the forum, investing in Bitcoin for the long term seems like the best move for me.