#TradingTypes101 Today ON a speedy fundamental tutorial on the differences between Trading and Investing!!
what are the primary objectives of these two forms of methods of amassing wealth??
-Trading 💳 is all about exploiting highs and lows of the market, usually for short term gain.
-Investing is all about playing the long game and keeping money for long term gain.
So, what are the various ways to do that? Trading Strategies!
1. Spot Trading: Purchase/sell coins at current market price.
2. Margin Trading: Leverage borrowed money for greater gain—or loss.
3. Futures Contracts: Wager on future price action with leverage.
4. Options: Pay premium for right, not requirement, to buy/sell in the future.
5. Day Trading: Open and close positions in a single day.
6. Swing Trading: Hold positions for days or weeks to catch trends.
7. Scalping: Reap small profits in seconds-to-minutes.
8. Arbitrage: Take advantage of price discrepancies between exchanges.
👍🏻Investing Strategies!
1. HODLing: Purchase and hold for months or years.
2. Staking: Lock proof-of-stake tokens to receive rewards.
3. Yield Farming/Liquidity Mining: Provide tokens to DeFi protocols in exchange for fees.
4. Crypto Savings: Deposit with a platform for interest.
5. Masternodes: Operate a node with collateral for regular payouts.
6. Index Funds/ETFs: Diversify through a basket of cryptocurrencies.
7. Token Sales (ICOs/IDOs): Invest early in new projects.
always remember to do your own research and align the preferred strategy with your risk management and tolerance!!