Are You Trading Or Investing In Crypto?

You buy crypto to make money. You take entry into the crypto market and hit the buy button whether you invest in cryptocurrency or trade cryptocurrency. Looks like investing and trading in crypto is the same, but it is not.

Have you ever asked yourself whether you are trading or investing in crypto? Maybe you want to do trading, so you buy crypto. Somehow you cannot take profit and exit or take the loss and exit your position. You end up becoming an investor by default.

You just make a huge loss in trading and decide to hold the bag. Then you call it an investment. Before taking any entry and pressing the buy button, it should be clear to you what you are doing. Then you make the plan and execute that.

It is not gambling when you trade and invest in crypto. You can gamble with anything, but you are not here to gamble, I guess. Your mindset is very important because that acts as an operating system. What we learn from mistakes can show light in the future.

Experts say it is a crime not to put a stop loss while trading. Does it seem too harsh? You think you do not need to follow it so strictly. You set a stop loss, the price goes down and hits the stop loss. You exit your position with a small loss. Then the price goes up and hits the target you set.

But you are out of the position after hitting the stop loss. You think if you did not set the stop loss, you could make a profit from that trade. You go easy on setting stop loss later. You make some profit in trading and you are happy to see that.

Are you ready to see the worst results? One trade can cause to lose a significant amount of money that you have made so far. You are very upset and disappointed to see it happening. You neglected to use stop loss and manage the risk. You realized later that was a big mistake.

Now you feel that is not a harsh statement when you hear that it is a crime not to put a stop loss in trading. If you set stop loss and follow the system strictly, you will not make a huge loss. You can take a small loss and that is absolutely okay.

You have to manage your risk while you are trading or investing. You think long-term at the time of investing in crypto. In trading, you capture a specific move or swing in the market. You can get rekt in trading if you do not follow the system strictly. You define the risk before taking entry.

While making investments in crypto, you do not do things randomly. You are supposed to have a plan to make your move. And you follow that consistently. The chance of getting a return from investments and making a profit from trading is higher as long as you keep following the system.

Image Sources: 1, and 2.

About Me