The difference between trading and investment

[Cryptomultiplier]

Why the comparison between trading and investing because, I felt that there is no no need  to be comparing trading and investing because, these two becomes to two worlds. Investing is what most people do especially when it comes to crypto because what you need is timing, patience and perseverance because investing doesn't guarantees quick return but is a long term project.


Anyone who is going into trading should be ready to absorb shock because, basically trading involves taking risk because there is a high level of uncertainty when it comes to investments. This is the reason why most people considers trading as more of gambling because even if one is trained, about trading such a person is not in full control about his trading because the probability of losing is high.

From a mental and technical perspective, trading is distinct from investing, although both have their security technicality to lookout for to prevent losses or hacks or scams.

Investing would demand the ability to remain disciplined even as the market conditions and trends looks unfavorable. An investor has to believe in what they are investing before dropping their hard earned money to support the belief so as to make profit and can hold their stand for a long time duration just to see their returns materialize.

While trading on the other hand may just require the discipline of risk management skills, emotional control, bankroll management and a quick decision making ability to control loss and make profit.

[SPIDERMAN008]

If you want to embark on a Crypto investment journey, avoid trading cryptos in terms of leverage trading, future or perpetual trading as a newbie, you will get best of your rewards or profit only from holding those cryptos and not trading them, and if at all you want to trade, ensure you have learned trading properly, and should go for trading currency and gold spot , whereas you should avoid Binary options, Because, it's another form of gambling. Cryptocurrency are meant to be hodl to appreciate in value, Bitcoin is an asset one can hold.

There is no guarantee that you will get a profit by holding all cryptocurrencies. There are many tokens that have a high price for a while but lose their value completely over time. Investing in shitcoin is foolish.Even if anyone gamble, there is some chance of making a profit, but investing in such tokens can be like falling victim to scam . Because Bitcoin and other shitcoins  these two are not the same thing. You can directly advise holding Bitcoin. Maybe that is what you meant, but mentioning Bitcoin directly without using the word cryptocurrency will make the matter much easier and clearer for beginners.

[VivaMan]

Well OP u have spoken well.
Talking about trading and investments this both involves depositing money weather big or small into asset with the aim of getting gains at the end, without looking at the risks on it.

Looking at the aspect of trading or investing,  it depends on one self either long or short term investment, time, week's and months even year's as secdule.

One thing you must understand about this is the price regulation which is not stable, focusing on
market timing and price action, checking and knowing how it grows.
While doing this Patience is very important when it comes to investing expecially long term.

Trading
Trading is not really as easy as we see it, because it requires taking risks as well.
Sometimes traders gets profits from Short term market movement which are commonly:
1. Daily trading
2. Forex trading etc





Investing
Investing requires time and positive mindset to achieve something big which also involves being patience, buying assets and believing it will grow over time, like some common investment which is mutual funds which is extremely good real estate, bounds etc .

In conclusion
Trading and  investing is good but it all requires time and being patience. This can produce faster gain and faster losses that's why it's volatile.

[Mate2237]

Why the comparison between trading and investing because, I felt that there is no no need  to be comparing trading and investing because, these two becomes to two worlds. Investing is what most people do especially when it comes to crypto because what you need is timing, patience and perseverance because investing doesn't guarantees quick return but is a long term project.


Anyone who is going into trading should be ready to absorb shock because, basically trading involves taking risk because there is a high level of uncertainty when it comes to investments. This is the reason why most people considers trading as more of gambling because even if one is trained, about trading such a person is not in full control about his trading because the probability of losing is high.

From a mental and technical perspective, trading is distinct from investing, although both have their security technicality to lookout for to prevent losses or hacks or scams.

Investing would demand the ability to remain disciplined even as the market conditions and trends looks unfavorable. An investor has to believe in what they are investing before dropping their hard earned money to support the belief so as to make profit and can hold their stand for a long time duration just to see their returns materialize.

While trading on the other hand may just require the discipline of risk management skills, emotional control, bankroll management and a quick decision making ability to control loss and make profit.

That is definitely true trading is actually distinct from investing. Trading require that one should learn about risk management and even loses because it's part of it, trading means that one has been able to learn and can fully stand on his own despite the risks that it has so trading differ from investment as they are a coin of two opposit side while one is looking at long term investment One is only concerned about short term gains so is ready to take the risk.


Most of the people awho actually go into trading are actually being who wants immediate money and is not patience enough to wait for the time that investment requires, so the next time someone is taking about trading close to you just ask the person if he or she is ready to take the risk involved which is about lose.

[Dr.Bitcoin_Strange]

You actually made a mistake in the types of trading that you mentioned but I agree that the first comment did a good job to make the correction, the types of trading is the ones he mentioned while the division of the market is into the; stocks and commodities, forex, and crypto. Investment into Bitcoin can be very flexible and less risky than trading and that is the main different between investing and trading.