Many people, especially beginners, confuse "trading" and "investing", and this can be a direct cause of loss.
In this episode, we will explain the fundamental difference between the two, show you when to be an "investor" and when to be a "trader", and what the different tools and concepts are in each case.
1. Trading
What is it?
Buying and selling digital currencies over short periods (minutes, hours, days), aiming to profit from price movements.
Traits:
Real-time market tracking.
Using technical analysis.
Higher risk.
Faster profit (or faster loss).
Tools:
Market / Limit Orders
Candlestick charts
Stop Loss
Technical indicators like RSI and MACD
Capital Management
2. Investing
What is it?
Buying a digital currency with the conviction that it will rise in the long term (months or years).
Traits:
Long patience.
A look at the project and the founders.
Relatively lower risk.
Not affected by daily market movements.
Tools:
Fundamental analysis (the project - the team - market condition).
Safe storage (cold wallets - Trust Wallet - Ledger).
DCA strategy (buying in installments).
3. The most dangerous mistake: Buying like an investor and retreating like a trader
For example:
I bought a currency "whose price will rise in the future", but as soon as it dropped 10%, I got scared and sold it.
You are neither an investor nor a trader — you are lost in between!
4. Can I be both?
Yes, but you need to know each account separately:
Portfolio for day trading.
And a separate portfolio for long-term investment.
Don't mix oil with water.
In summary:
The investor sees the market through a long-term lens, while the trader sees it through an hourly lens.
Each one has their own tools and strategies.
The most important thing: Define your personality in the market, so your decisions are clear.
