If you are just starting in the crypto world, it is important to understand the differences between investing and trading your cryptocurrencies like $BTC or $ETH. Both methods can generate profits, but they work differently. 👇
1️⃣ Investment in cryptos
What it is: Buying cryptocurrencies and holding them long-term, expecting their value to increase over time.
✅ Advantages:
Less daily stress
Lower risk than active trading
Perfect for beginners
❌ Disadvantages:
Profits take time to arrive
You depend on the long-term trend of the market
Practical example:
Buy 0.001 $BTC at 110.000 $USDT → invest 110 $USDT
Hold for 3 months
Price of $BTC rises to 120.000 $USDT → your fraction is now worth 120 $USDT 💰
✅ Profit: 10 $USDT
2️⃣ Crypto trading
What it is: Buying and selling cryptos in the short term, taking advantage of market ups and downs.
✅ Advantages:
Possibility of quick profits
More dynamic and exciting
❌ Disadvantages:
High risk
Requires time and knowledge of the market
Practical example:
Buy 0.001 $BTC at 110.000 $USDT → invest 110 $USDT
Price rises to 111.000 $USDT
Sell → get immediate profit of 1 $USDT
⚠️ Note: Trading requires constant monitoring of the market, as prices can drop quickly.
Quick summary
Strategy 1: Investment
Objective: Long-term growth
Term: Months/years
Risk: Medium
Ideal for: Beginners
Strategy 2: Trading
Objective: Quick profits
Term: Minutes/days/weeks
Risk: High
Ideal for: Advanced users
Advice for beginners
Start by investing small fractions of BTC with $USDT
Learn to monitor the market before attempting trading
Combine with Binance Earn to generate passive income while you learn
Remember: there is no single correct way, it all depends on your objectives. Have you decided what yours is? Let me know in the comments 👇
