Trading v/s Investment: Which one can Steal the Show?

The concept of Trading

Many People Dream of becoming an overnight billionaire, but how many live it, do we have any idea?

No Right?

As It’s a Catch-22

So, in order to be a master for this, You need to leave no stone unturned.

Then, how we can achieve this?

There is a saying Without jumping into sea, we can’t measure its depth, same goes with market.

As we all are aware, In recent 2019-2020 we faced COVID-19 which lead to market dis-sentient and also increase in mortality rate.

This shows us how Status Quo can be left us anytime but we need to be prepared for worst and good at same time. Where we saw after few days of COVID we saw big surge in market. where few people got benefited from market.

So now let’s try to understand

The  Basic Difference between Trading and Investing (It’s like comparing Pineapple to pomegranate)

Despite their differences, it is possible to be both a Trader and an Investor. Trading and investment have different aims and consequently, they follow unique strategies that set them apart.

The primary difference between trading and investing relates to the time frame over which assets are held.

Investment implies a long-term commitment to assets, whereas trading generally implies short to medium-term involvement. Investors seek to gradually build profit through buying and holding assets for a long period of time, which is called hodling in the Crypto world.

The world of trading can seem fast-paced and hectic. However, contrary to how trading is sometimes portrayed in popular culture, it usually does not invoke instant wealth. Rather than the sporadic pushing of buttons, trading requires informed decision-making strategies.

The Process of Trading:

The process of Trading and those involved have also changed and developed over time

The concept of trading has deep Historical Roots, dating back to Ancient Mesopotamia with the exchange of grain futures. Trading of financial instruments emerged through the exchange of debt amongst moneylenders in the 1300s, and their purchase of government debt. Following on, they began to sell debt to the first investors.

Traditionally, those involved in the financial markets had considerable funds. However, the tides are changing in financial markets as cryptocurrencies present their opportunities. The Internet and blockchain eras have respectively made trading more accessible to people all around the world. At the same time, they have opened up lower market entry levels in terms of capital requirements.

Nonetheless, the spirit of trading remains the same. Trading is loaded with probabilities and it remains a risk whether the desired outcome will be achieved.

In our next post we will be discussing about Different Types of Cryptocurrency.