Every moment the crypto world creates hype for Bitcoin, it gets in the top headlines. It now seems that most of the people and agencies are interested in Bitcoin rather than other investment options. Cryptocurrencies are the decentralized trendsetters in the market. Bitcoin, in many cases, is the most-talked asset among people. Bitcoin could make you rich, and that brings some genuine difference between trading and investing in Bitcoin. What should you choose at what time? Obviously, there is not much similarity. How do they differ, and at what scale? Let’s find out in this article.
Difference Between Trading And Investing In Bitcoin?
The first unique thing about Bitcoin is that it is the most traded cryptocurrency, no matter how high the price goes. You will also find a lot of Bitcoin investors in today’s time from all around the world. Bitcoin is like a digital gold that you can HODL to make money. The cryptocurrency has already gone global. While investing or trading with Bitcoin, one somewhat common thing is you buy Bitcoin. I have indicated here ‘somewhat’ because not all trades allow you to do so. In leveraged trades with Bitcoin, you take it as a loan and make your move in the market.
Earlier, when Bitcoin was just at $10, people were buying and HODLing. Those who believed Bitcoin would be the next big thing are now obviously millionaires. Hasn’t Bitcoin given all that they deserved? Of course! So, it is true if you invest in Bitcoin, you can become rich in a certain way. But that statement is valid when you keep Bitcoin in your wallet for a decade. That is a reason why many people love to trade with Bitcoin rather than investing. Dealing with Bitcoin can give you profits only when you do it correctly. There are lots of risks involved.
Trading with Bitcoin is not easy while investing is. Suppose you buy Bitcoin and HODL for a long time, you HODL and sell when prices go according to your expectations. On the other hand, when you trade, you do not look at the prices all the time. Your first goal is to bear the dynamic spirit of Bitcoin. Many opportunities come, but you cannot grasp them all. If you trade, you cannot wait for the time before the market goes to a crash. Investors do not have to worry because they are looking for a long term goal.
Anytime the investors see an opportunity, they go for it. Now while buying Bitcoin, investors can actually choose among many cryptocurrency exchange platforms. Traders have to approach the ones they find profitable because the main aim is to earn profits only. Traders cannot be as wealthy as investors. Bitcoin helps you make hundreds or thousands of dollars if you are a trader. Within a month or a week, this could happen. You can quickly exit after making your profits. However, as an investor, you cannot quit the crypto market. You have to stay updated with the cryptocurrency news feed every day.
How To Invest Or Trade?
To invest, just buy Bitcoin from an exchange and HODL. Approach a crypto exchange platform and make your payments. After you get your Bitcoin, look for the latest news and updates. Investors often examine the crypto price predictions for a year or two. You can also add altcoins if they are expected to perform admirably in the next coming years. Altcoins help you bring slight stability with your investment. Have you heard about stablecoins like USDT and others? Well, when you include these in your portfolio, you save yourself when the market fluctuates.
Traders can also combine more than one cryptocurrency in pairs. The trading that allows them to do so is arbitrage trading. In this type of trading, you add cryptocurrencies like Ethereum, Litecoin or any other popular one and sell. Every exchange comes with its own trading rules. You should know that. Traders often focus on trading fees, but investors do not. Investors frequently sell whenever they see an opportunity with what they expect. A reputable crypto platform sharing updates is pretty beneficial for an investor. It offers the latest news, price predictions, cryptocurrency memes and other updates.
Now, as you have understood the difference between trading and investing in Bitcoin, you can go with your choice. Do not invest if you want to trade, and do not trade if you fancy investing. On condition that you want to both invest and trade, first, buy and HODL for some time. Bitcoin is already there in many countries like India. People ask how to buy Bitcoin in India because they are watching out for something new. One can easily buy Bitcoin here by visiting the local exchanges like WazirX, Zebpay and CoinDCX. They are performing adequately nowadays.