🚨🚨Lesson 1: Fundamentals of Trading (Part 1)🚨🚨
What is Trading and how is it different from Investing?
Trading is the act of buying and selling financial assets—such as cryptocurrencies—to profit from price changes over short periods. In contrast, investing means buying an asset and holding it for a long time, believing that it will increase in value over time.
A trader focuses on short-term price movement, while an investor focuses on long-term value. For example:
A trader might buy Bitcoin at $58,000 and sell it at $60,000 in one day.
An investor might buy Bitcoin and hold it for years, regardless of daily price changes.
🧠 Key difference:
Traders care about timing the market. Investors care about time in the market.
There are different types of traders:
Day traders: open and close trades within the same day.
Swing traders: hold trades for days or weeks.
Scalpers: make many quick trades for small profits.
Both trading and investing can be profitable, but trading requires more time, focus, and discipline.
✅ Before trading, make sure you:
Understand how the market works.
Have a clear strategy.
Can manage your emotions.
📌 In Part 2, we will explore the basic concepts you should know before making your first trade: Spot vs. Futures, and types of market orders.
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