Difference between crypto trading and crypto investment

A lot of people don't have true knowledge about the difference between crypto trading and crypto investment. Today I have decided t write a little based on some research on what I know about the difference between these two keywords.

Crypto Investment

Crypto investment is the oldest way of trading the cryptocurrency. This is a method used in the early days of crypto till this very moment. When cryptocurrency came into existence, the idea was to buy it and then keep it or hold it until the value appreciate before one can go ahead to sell it.

This has been the case and that was very easy because you need not much knowledge to do that. You only need to check through your wallet once in a while and see if the value of the asset has appreciated or depreciated since the crypto is very volatile.

In today's world, I also still recommend crypto investment to those who are new to the field because that is the easiest and safest way to invest in the crypto world. That being said, you ought to know the tokens which have a high potential to raise in the nearest future then you hold them.

This has been the practice before the coming of crypto trading. I'm going to be explaining what crypto trading is all about in the next section below.

Crypto Trading

Crypto trading on the other hand is a type of crypto investment that has to do with the buying and selling of the crypto asset. One good thing here is that you don't need to hold the token and wait for it to have value before you can make money.

Here whether you are buying or selling, once the market is moving in your direction then you will make a good profit. In crypto trading, what traders do is predict the price movement of an asset? This means that a trader is supposed to tell if the asset will be going up or coming down.

When your prediction is accurate and correct, you will make money when you enter the market with good capital and od leverage. So crypto trading is another way of growing your crypto portfolio instead of waiting for a long run for the price of the asset to appreciate.

Conclusion

In final words, I do recommend that newbies coming into the crypto market should jump into crypto trading as it may take weeks, months, or even years to understand the market else you will be losing a lot of money in the market. As people are making fast money, so also people are losing fast money. Be wise and trade with caution.