Sean Bennett

Trading and investing are two different ways to try to make money in the financial market. When it comes to investing, the goal is to slowly build wealth over time through purchasing and holding bonds, mutual funds, baskets of stocks, stock portfolios, and in this case Bitcoin. Investors will typically enhance profits by compounding or reinvesting their dividends. Investments are typically held for years so that they can take advantage of rises in the price of Bitcoin and forks. Even though the markets will fluctuate, investors will ride out of these downtrends with the belief that the price will come back and the will recover all of their losses. Investors will look more at the market fundamentals and eventual growth of Bitcoin.

Trading, on the other hand, involves frequent buying and selling of currency pairs, commodities, stocks and in this case, Bitcoin. The goal is to generate a return that will outdo the buy-and-hold investors. Investors may be fine with a ten to fifteen percent annual return or see a ten percent return every month. Traders make money through buying at a low price and then selling it at a higher price within a short time frame. It is also true that they can make profits by selling at a high price and then buying to cover a low price. This is referred to as selling short so that they can profit in a falling market.

Buy-and-hold investors can wait out the less profitable positions, but traders have to make a profit or take their losses within a certain time period. They make use of a protective stop-loss order that will close out their positions at a predetermined price. Traders normally make use of technical analysis tools, like stochastic oscillators and moving averages to figure out the best trading setup.

The style of a trader refers to the holding period or timeframe when Bitcoin is bought and sold. A trader normally falls into one of the following four categories:

Scalp Trader – the trader holds their position for minutes or seconds and never overnight
Day Trader – the trader holds their position during the day only and never overnight
Swing Trader – the trader holds their position for days or weeks
Position Trader – the trader holds their position for months to years
A trader typically chooses their style based on several different factors like risk tolerance, personality, amount of trading experience, amount of time they can dedicate to trading and account size. Both traders and investors are looking to profit from their participation in the market. In general, an investor is looking for better returns over a longer period through buying and holding. Traders take advant

Once you are ready to invest, you will find a myriad of investing strategies and tips explained in full detail. You will also learn how to turn your assets liquid by selling your coins for cash, what common mistakes to

avoid, and how to minimize risk while investing in cryptocurrency.

is very easy to get swept up by excitement by making a significant gain in the short term. Cryptocurrency markets can be volatile, so in certain trades and investments, you can expect to see extreme ups and downs. When making a major gain, it is crucial to maintain composure and not let excitement cloud your judgment. Being overexcited can lead to impulsive and irrational decisions that lead to loss, so try to stay detached emotionally from the swings of the market and stay focused on the technical aspect of things. At the end of the day, you will be glad that you kept calm and made the best decisions with your money.

One of the most difficult things to do psychologically in trading is accepting the loss. In trading in any market, including crypto, it is important to not let individual wins and losses get to your head and make you overexcited or depressed. In the end, it is the course of all your trades and investments together that shape your trading profitability. Another age-old adage, you win some you lose some, rings true in cryptocurrency trading. Whether you are in the black or in the red, do not let your trading decisions reflect your ego and who you are. It is easy to become deluded and think yourself some sort of master of the market or to become disheartened at the ups and downs of the cryp

crypto market. Do not give up, stay smart, stay cool, and learn from your mistakes.

very popular exchange that has been mentioned by The Wall Street Journal and the New York Times. It charges a flat fee for transactions under $200 (USD) and percentage fee depending on your region. In the USA there is a fee up to 3.99% on credit and debit cards, and also a 1.49% or $0.15 minimum fee on bank account purchases (subject to change). This is one of the most frequently

Cryptocurrency Trading & Investing: Understanding Investing, Trading, Fundamental Analysis & 6 Trading Tips

Book #5 of the book series by Cryptomasher

Sean Bennett

goes directly to them without any middlemen or banks.