Trading And Investing
Hello everyone,
Is another beautiful day and we give praises and thanks to Allah for all the good things He has done for us.
I’m back again with another beautiful topic I will like to talk about and which is about trading and investing. They are a lot of things an investor should consider before he or she can trade or invest in a coin.
There are some basic things one should know or need to be on track when dealing with cryptocurremcies and I will be talking about some of these things today.
Now I will Like to talk about Trading
Trading
Trading simply means or is a primary economic theory which deals with buying and selling of goods and services. This means that, buyers release funds to sellers to get what he or she wants and in other cases the deals involved maybe exchanging of goods and services between the parties involved.
These appliance maybe, currency pairs on forex market, futures, margin products, cryptocurremcies and many more.
The word trading is a short cut of the term trading, where we find traders entering and exiting the market over a relatively short periods. Meanwhile, this should not be the issue because trading is been put into four main types;
Day Trading: this is self explanatory, this is in a sense that, day trading positions are done only throughout that day.
Position Trading: this means that , position are held from months to years.
Scalp Trading: This simply means , position are held for seconds and minutes.
Swing Trading: In this situation, positions are held from days to weeks.
Investing
Now, I will like to talk about investing. This simply means that, taking your resources or capital or any goods with the mind of making profit in future.
Investing comes in many forms. using funds or capital in starting up a business or purchasing an infrastructure with the mind of reselling it later to get profit out it is terms as investing.
In world of crypto, this involves buying cryptocurremcies or crypto assets with the aim of selling them in next day, week or year at a price which is more than the initial amount money or capital you used in buying that crypto asset.
The main idea investment is that, one need to get something in return when dealing with investment. Unlike trading, investing really takes much time for one to get what he Or she wants that for you to be able to get profit out what you invest. Every investor main goal is to acquire wealth over a long period of time.
Investors does not really care about short term price changes in crypto assets due to the reason that, he or she need it in future for he or she to be able to get profit.
Difference Between Trading And Investing
Trading Investing
Traders make profit over a short period of time
Traders take advantage of the market volatility
Traders need more technical analysis
Investing
investors make profits over a long period of time
they take risks
Need more fundamental analysis
For the above, I think these are what a person need to know about trading and investing. And I think with the above, it will help you to know what to do if one want to trade or invest.
Thank you!!!
