What are the differences between trading and investing in the cryptocurrency market?And what points should we follow in this regard so as not to face heavy losses?
Many people do not really know if they are investing in a cryptocurrency or trading and they do not really understand the trade and investment tips.
Note the important point that if you are going to trade in the cryptocurrency market contrary to many people’s beliefs, you should not enter all your assets in the trading department. You should use a maximum of 30 to 40% of your assets in the trading department.
If you have been able to gain sufficient skills and knowledge in this area and increase your ability for a certain period of time by trial and error and practicing in the trading department.
The rest of your asset, which includes 60 or 70%, must be invested in your medium and long-term investment.
The reason for this is very simple. Because in investing, we do not experience any fluctuations, stresses and momentary tasks and we put that part of our assets safely in the currencies we trust.
This does not mean that the investment sector will always benefit us; As a rule, sometimes we are in profit and sometimes we are in loss.
But unfortunately, most people who put all their assets into the trading department over a period of time, instead of making a profit on that part of their assets, they have lost their main asset.
Of course, you have to keep in mind that investing is recommended for everyone and we must invest some of our assets in various financial markets including the cryptocurrency market. Over a period of 5 to 10 years, not only will the value of our assets not be lost, but we will grow it.