Looking at the advancements in the cryptocurrency space, the most common question now is how to crypto investing or crypto trading efficiently in this space.
Everyone wants to dip their hands into this lucrative and ever-growing space.
Traditionally there are two diverse ways for you to branch out, one is crypto trading and the other one is crypto investing, it has been proven as per past records that both have generated returns multi-fold.
We have seen many stories in recent times where people have managed to earn miraculous gains in just a few weeks or months, cryptocurrency has given birth to a lot of millionaires and billionaires too and the rags to riches stories are plentiful.
Therefore it is quite normal for people to get intrigued and want to earn a lot of money through these methods in the cryptocurrency space. If you also want to get into cryptocurrency but do not know what the perfect way for you to enter the space without being completely clueless is then you are at the perfect place.
Like it was mentioned earlier that there are two ways currently one is crypto investing and one is crypto trading, although the outcome is the same which is multifold returns the basic concept and methodologies are quite different, read through this entire article to understand what is more suitable for you.
Crypto Investing vs Crypto Trading
The basic concept for both of these methods is the same, you buy and hold cryptocurrencies for a certain amount of time and then sell them for a profit. Although these two have the same concept the way you execute both is much different.
While crypto trading you hold assets for a quick profit, usually days or weeks depending on what your targets are, you use certain indicators that help you determine what the future short-term price of these cryptocurrencies would be, crypto trading has many more aspects involved to it as well as a higher risk factor as it is an art to trade perfectly and execute all the crypto trading strategies. It takes years of practice and skill to become a successful trader.
Investing is fairly simple in comparison, it means that you hold on to these assets for as long as you want, one of the main purposes of investing is that you are looking to create long-term wealth and not short-term quick bucks. Investing is a habit that enables people to gain multifold returns through multiple bull and bear cycles and create future generational wealth. It usually has a lesser risk as you are not bound to a time period and therefore that means even a small gain for multiple months and years adds up to a lot over time.
Both of these methods require extensive research and analysis, with investing you are researching the future goals of that asset and company whereas in trading you are assessing the current trade volumes, sellers, buyers, etc.
Trading is heavily dependent on short-term factors such as current volume and current traders, investing is dependent on the advancement that the coin makes in terms of technology which will help it grow as a currency and also be used by the masses.
As an investor you do not need to be up to date with the daily happenings of the market and the time you dedicate is also lesser, crypto investing is for someone who already has some kind of stability in life and cannot contribute much time to check out the daily happenings in the industry and market, crypto trading whereas needs you to up to date with each and everything that is going on in the market.
Depending on your risk appetite and the time you can dedicate you can choose the path that favours your needs, crypto trading is extremely profitable as well and can become a full-time income source for a lot of people that want to get into this space.
If you also want to start investing or trading then you can check out fanspel.com
Fanspel is the leading cryptocurrency fantasy sports platform that has its native token which allows people to trade, invest, stake, and earn cryptocurrency through various methods. It is a perfect place for any starter to dip their hands into.