Bitcoin cash is a well-known name in the current online trading market. It is very popular with people all over the world, especially in Asia. The most talked about issue in the current market is, should you invest in Bitcoin cash and make a long-term deal with it so that you can make more profit or trade it to make money by trading faster? To answer this question we must have an idea about investing and trading.
Trading vs. Investment: Both investment and trading methods are used by traders and investors in the hope of financial gain. There is always a kind of dilemma about which way you can make good money . Let's not know the details.
There is no right answer to investing or trading, because you will get good returns from both. It all depends on you, which way you feel more comfortable. Those who want or can keep money in the market on a long-term basis are confident in investing. And those who expect to make quick money are trading.
Investments are usually focused on retaining assets for a longer period of time, until a better return is obtained. Investing is a long process. If you can research the market well and be patient then you can expect to get good returns on investment. In the case of long-term investments, speculative decisions can be risky for an investor.
Trading, on the other hand, is a short-term buying and selling process. Where a product or currency or something else is bought for a short period of time and sold as soon as a reasonable return arrives. This process is repeated again and again in the case of trading. Stop Loss is an important factor to keep in mind if you are willing to trade. Trading is both a risky and profitable method, where you can lose money very quickly if you do not follow everything correctly.
Investing in Bitcoin cash: Investing in Bitcoin cash is a lot like investing in securities . Over the last 7-8 years, investors have received much better returns by investing in Bitcoin cash, as no other investment has recently received. The idea is that if you had invested only Rs 5,000 in Bitcoin 6-7 years ago, now that investment would be worth Rs 500 crore. This reality of Bitcoin is constantly attracting more and more investors. Another major reason for the price increase is that Bitcoin is programmed as a limited amount so there is no way to increase its supply as demand increases. So the higher the demand, the higher the price.
Trading in Bitcoin cash: Price volatility is considered to be the biggest asset of Bitcoin cash. Bitcoin cash is well known in the market for its rapid change in price . The rate of change is much higher than in ordinary stocks, commodities or mutual funds. Bitcoin cash trading is much more fruitful for this. If you want to buy Bitcoin cash when the price goes down, you can make a profit by selling it later at a higher price. Many times traders get worried about such a rapid change in price and leave the trade. But if you trade with proper analysis, then waiting patiently will be the best thing to do.
So logically and in the current situation bitcoin cash trading is more fruitful than bitcoin cash investing. However, it should be kept in mind that investors have also made huge profits in the last few years.
Advantages and disadvantages: Bitcoin cash has many advantages, which are helping to make it much more popular in digital currencies. Again it is also true that nothing is perfect, so Bitcoin also has some flaws. The advantages and disadvantages of Bitcoin cash are discussed below.
Benefits of Bitcoin cash:
Money can be transferred very quickly through Bitcoin cash. For this you don't have to worry about the bank's deadline, the hassle of sending money abroad or any other kind of restriction. Only you will have control over your bitcoin. No central authority can interfere in this.
Bitcoin cash is a secure network as users have full control over the transfer. No one will be able to charge extra without surveillance. Contacting consumers is mandatory if any charges are to be added . Bitcoin payments do not contain any personal information, so there is no possibility of identity forgery or theft. Bitcoin cash can also be backed up and encrypted to protect the security of your money.
All bitcoin cash transfer information is stored through blockchain. So you can easily view your bitcoin information. While your personal information is attached to it, it remains hidden. Which no one can see except you. Anyone can verify bitcoin cash transactions on the blockchain at any time. No individual, organization or government can interfere with the Bitcoin system.
Bitcoin cash payments are currently charged a much lower fee. Again in some cases payment can be made without fee. Users can include fees to expedite transactions. The higher the fee, the faster the payment process takes precedence. With the exchange of digital currency, users can easily convert Bitcoin cash into ordinary currency. You can get the facility of currency conversion in Bitcoin cash at a lower cost than credit card or PayPal.
Bitcoin cash transactions cannot be returned and do not carry personal information. So it is much safer for traders and they are protected from potential fraud .
So far we have learned about the advantages of Bitcoin, now we do not know its disadvantages.
Disadvantages of Bitcoin cash:
In fact Bitcoin cash is very popular in some cases but many people are ignorant about digital currency and Bitcoin. To apply it in the lives of ordinary people, people need to be educated about Bitcoin first.
Although Bitcoin cash has been adopted in many businesses, it is not possible to use it in large quantities due to its limitations.
The price of Bitcoin cash is much more volatile. Because its demand is growing very fast and the quantity is limited. However, it is hoped that this situation will ease over time.
The bitcoin cash process is still immature . There is a lot left for its development. Its features, tools and services are being improved to make digital currency more secure and acceptable.
Bitcoin cash is currently in the same predicament as any new currency went through before it was introduced into the market. It needs more publicity and expansion.
In the above discussion we came to know about the two sides of Bitcoin cash currency. To make a good decision, you need to review the pros and cons.
My heartiest thanks to you @MarcDeMesel and @ErdoganTalk sir for encourage me.
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