Is it important and does it make any difference? Let's hop in

Investing is when you put your money into things with the hope of making more money in the future. There are all sorts of different ways to invest, like stocks, bonds, real estate, and of course crypto!

This definition doesn't really make a difference between investors in the primary and secondary markets. So, whether you're the one giving the business money or the one buying a stock, you're still an investor!

If you're the one holding the stock, then you're a shareholder. Now, there are two main differences between private and institutional investors. Private investors, sometimes called independent, small or retail investors, are individuals who might not have a lot of financial knowledge and usually invest small amounts. Institutional investors, on the other hand, are usually companies like investment companies, banks, insurance companies, or public corporations. These include the federal government, federal states, and municipalities. These institutional investors have a lot of financial knowledge, especially when it comes to the opportunities and risks of the different investment products and forms.

There are a few other terms that describe the investor's activities more precisely:

First, there are business angels. These are usually private individuals who have been entrepreneurs themselves and now want to put their own money into exciting business ideas. This investment is made at an early stage of the company and on a small financial scale. Amounts between 10,000 and 100,000 euros are common. But here's the best part: business angels are not just about money. They're also super supportive, helping these companies grow and thrive.

Now, venture capitalists are a different beast. These people are like the strategists of the investment world. They take the money they've invested in their own company and work magic to make it grow. And get this — they can invest sums that range from a half million to several million euros!

Accelerators are like the early adopters of this strategy. They jump in super early, sometimes even before business angels. These are temporary mentoring programs that support young companies with their network, operational and strategic guidance, as well as smaller sums of 50,000 to 250,000 euros.

Incubators are like a "factory" for young companies, offering not only financial support (ranging from 25,000 to 500,000 euros) in exchange for a share of the company (usually more than 25.1%), but also valuable resources like ideas, processes, teams, and networks.

Crowdfunding is when many small investors with a shared goal (often the financing of a start-up) join together to support a project. Investors often receive something in return for their investment, like a finished product.Crowdfunding also gives companies the chance to get some initial attention from the media.

Let's come back to the intriguing question, "Am I an investor or a trader?"

We aren't giving the business money or buying a stock... Based on the previous descriptions and referring to the types of investments, I would actually make the following statement: Crypto trading involves only a few types of investing, such as spot, futures or staking, lending and earning. Accordingly, I classify crypto mainly as trading, because the business angel or accelerator forms (just two examples) are hardly used here. We don't influence the investment object through promotion (although there are some embryonic influencing efforts and outcomesby single persons we can observe here, paired with Bnce actions...). We mostly trade the final product which represents something - the coin.

So, if we're primarily traders, how do we make it happen? What types of traders are out there? What can I do to improve and make some serious money? - Be sure to check out my next post regarding trader types if you enjoyed this content and want to know more about how others are earning. I'd love to hear your thoughts!

Your T4P

#Cryptoisfamily #trade_4_profit

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No financial advice. DYOR