When it comes to trading or investing in Bitcoin, the call for quick money and the hope to become an instant pro trader can be very misleading. In reality, trading is a full-time job and usually not something that can be improvised.
Trading needs training, trial and error, and dedication. People do not get rich overnight(unlessthey win the lottery!). Trading is hard because the markets can be thoroughly unpredictable. It is easy to recognize a pattern but much more difficult to deal with random results and behaviors. Trading is stressful and you should be prepared for the emotional roller-coaster.
Should you trade or invest in Bitcoin?
It depends on the time you have and your objectives. Investing is a long-term choice, usually meaning that you will be holding a position for months or years. The fluctuation of prices is not very important in this case because you are not here to make a quick buck but you are actually looking much further ahead.
Trading, however, happens on a much shorter term. You will propably not hold positions for more than a few hours, you have to keep a close eye on charts and be prepared to change your positions according to market fluctuations. If played well, the trading game can generate some extra income. As explained in a previous article about the common mistakes beginners make when they start trading, it is important to stay in control of your emotions and not give way to fear or greed.
Trading vs. Investing
For starters, Bitcoin is quite volatile which means that if you play your cards right you will be able to make some profit. This means studying charts and making enlightened trades, not randomly betting on a bullish trend. If you put your energy and focus into, trading can be very enjoyable and you will be proud to make your first profit. It is a short term solution and allows for more flexibility as well as demands more dedication.
On the other hand, if you are a little more faint-heart and not ready for the wild ride on crypto charts you could choose to invest in Bitcoin. Investing requires more planning and research, you need to put your money in something you believe in or think has potential on the long term. However, once your decision is made and you are confident in it, you can almost forget about your investment, only checking charts and news once in a while to see how the market is going.
In the end it all comes down to how you want to manage your money, how much you can set aside for investment or trading and how much time you are ready to dedicate to making your money yield a profit.
This article is not intended as investment advice but is simply meant to be informative. You should make your own decisions when investing and this article cannot be held accountable for any loss of money that may occur on your part.