Differences between trading and investing!
The trade, as the name implies, either reaches the targets we have predicted or does not reach those targets.
And reaches Stop-Loss and approaches the exit point where we have to sell that currency for a small amount To prevent further damage. But unlike trading in investing, there is no need to worry when prices fall. What we need to do is if we can import another part of our assets at that time. In order to provide a part of that asset for investment. This is one of the most important points that people do not pay attention to.
Now I will explain these points in the form of a few examples to make these points clearer.
Please note that the currencies we cite as examples are just to help you better understand these and there is no reason for these currencies to be good or bad or for buying and selling them. For example, VFI currency in the past few months because it operated in the field of Defi or decentralized economy, as well as its price exceeded the price of Bitcoin in several moments, it was able to become famous. But now its price is a quarter of its price peak. In fact, people who did not know how to buy this currency from a trading perspective or from an investment perspective, have already lost their capital completely. If you bought this currency with a trading perspective, you must set a stop loss for it.
The next currency that operated in the field of DeFi is the Sushi currency, the price of which emotionally went up to $16 in a period of time; But at the moment it costs about 60 cents.
Both of these examples are listed in Binance Exchange, but that does not mean they are great. We must have a look at the cryptocurrency that we have bought and determine the loss limit for it.