Earlier, when we used to hear the word trading, the first thought that came to our mind was the stock market, but the speed with which cryptocurrency has gained hold in the market. This article teaches how to earn money from cryptocurrency and trading. After hearing the name of trading, the name of cryptocurrency also started getting clicked; that is, trading happens in both the stock market and cryptocurrency.

But you may not know we all do daily trading because trading means buying and selling goods and services. That is, exchanging one item for another, taking goods or services in exchange for money. So, we all do trading, and now let’s talk about financial market trading; stock market trading means buying and selling shares of a limited company in the stock exchange to make a profit and cryptocurrency trading means buying and selling shares of a limited company in the stock exchange to make a profit.

How to earn money from Cryptocurrency and Trading

पूरी वीडियो के लिए यहां क्लिक करो । 

Difference between investing and trading

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In investing, the investor invests the currency for a period ranging from a few years to several years. At the same time, the trader holds the currency for the short term. So, you should also know the different types of traders here. Therefore, let us also know the four types of traders.

Trading

• The first are scalpers who buy and sell coins several times daily to make a small profit on each trade. These trades can be as short as seconds or minutes, and scalpers can create dozens or even hundreds of trades by the end of the day and profit from them.
• The second is intraday traders who trade daily; they complete buying and selling coins within the day.

• The third are momentum traders. Such traders trade according to the market’s current price. That is, we buy coins at a low price in an uptrend and then sell them at a high price in a downtrend as soon as possible to earn a profit. In this way, these traders are skilled in buying coins as soon as the coin price is low and selling them immediately as soon as the price goes high. The holding period of this momentum can range from hours to weeks.
• Swing traders are at number four Such traders take advantage of the coin’s shortened price swings to take advantage of the explosive increase in the coin’s price. This swing can range from one day to several weeks.

After these four types of traders, let us understand the five major differences between trading and investing one by one.

• Investment is not affected by short-term price moments but by long-term. That is, while investing in a coin, an investor will focus on its long-term potential and intend to sell it after a few years so that he can get a good profit. Meanwhile, in trading, the focus is on price moments in the short term. Traders emphasise the price moments occurring in the cryptocurrency market hourly and daily. That is why they buy and sell coins to make short-term profits.
• Trade frequency is at number 2 : Trade frequency is directly connected. The investment period means the longer the investment period, the lower the frequency of traders. Investors generally have low trade frequency, and this is because they only lock coins for a short time. They invest in coins and keep them in a cryptocurrency wallet for the long term. At the same time, traders have higher trade frequency because they want to take advantage of market opportunities quickly and hence keep trading coins frequently

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• Risk factors come at number three : Due to the high price fluctuations in cryptocurrency, it also comes under high-risk investment. But the profit made in this can also be equally high. Therefore, it is also called risk-reward trade. Cryptocurrency investors prefer to take less risk than traders. They are not interested in daily price fluctuations.

Consequently, we invest for the long term. Because the volatility of any asset is low in the long term. Therefore, there is low risk in investment. Whereas traders are risk takers, they like to profit from currency price fluctuations and volatility. The more profit can be made in this process, the more risk remains.

• Analysis Pattern comes at number four : Both investors and traders also have different methods of analysis. Investors make long-term bets on the coin’s value, while traders are more concerned with market positioning and predicting price action. That’s why we do technical analysis. The future price is estimated based on past coin price data, and investment is made accordingly.

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• The profit concept comes at number five : In this concept comes the concept of how traders and investors earn money. Investors earn profits through these four common methods.

Cryptocurrency

The first is price appreciation, in which profit is made from increased cryptocurrencies’ prices. The second is the dividend, in which profit is shared with the coin investor to hold the coin for a long time, i.e., the investor’s incentive increases.

Third is Hard Folk. When a coin becomes white in two, the investors who have the original coin automatically get the free coin. Bitcoin Cash, i.e. BCH, has been diverted from BitCoin, i.e. BTC. After the hard pork split, the Bitcoin Cash will be automatically credited to the Bitcoin wallet of the investors with the original coin, i.e. Bit Coin BTC. And it will be called free coins.

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Airdrops come at number four. When coins are distributed for free in a project for publicity and marketing purposes, it is called airdrops. In this way, the four major ways of earning profit have become methodical for investors.

But what about traders? The traders’ concern remains on the price moments at the entry and exit points of the coins. Therefore, price appreciation is the best way for them to earn profit.

Because traders remain active in the market, they can grab any opportunity. Especially the hard forks and airdrops, you can get free coins, sell them immediately, and earn a profit.

Conclusion

So, friends, these are the five major differences between cryptocurrency trading and investing and whether you want to trade or invest in cryptocurrency. How do you earn money from cryptocurrency trading and trading? Then, learn the course we gave and learn trading or investing from it. We have shared this course for you free.

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