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There has always been a class of people who prefer to invest in Bitcoin rather than trade it.
But what's the difference between both classes of people? Let me explain.
INVESTOR: An investor is someone who let's their money work for them. They choose an asset based on a set of factors, and then decide whether or not said asset is a good investment. They then proceed to inject large amounts of money into the project in hopes of it multiplying their investment.
They don't check on their investment every hour or even every day. Maybe once a month, and if they're really sure of their investment, once every quarter. They know that it won't take a week to double their money.
Investors usually don't choose volatile assets like bitcoin or low float stocks, because of their tendency to mean revert many times in a single day.
What they rather do is take an asset that isn't too volatile, but can increase should situations be perfect. They mostly make use of fundamental analysis which is taking stock of an asset's goods and bass, weighing these odds and seeing if you have any tendency to skyrocket.
A trader on the other hand relies on volatility to eat. They don't choose slow investments because they won't be able to make their daily bread from those. They're perfectly content with an asset mean reverting multiple times a day if it helps them make money.
They mostly rely on technical analysis to help them guage where the market might be headed.
Now that you know the difference, should you be an Investor or trader of Bitcoin, and crypto in general?
It depends on you. If you're willing to wait for about 5 years to see the result of your investment, by all means, go for it. However, be warned that the price of Bitcoin could mean revert to zero, although that's not very probable.
However, if you can't wait for more than a day to know if you're a winner or loser, and you're in it for the money, you can trade Bitcoin for USD profits. There are many ways to trade bitcoin and still end up with USD profits. Some of these ways are:
- Trading BTC/USDT swap contracts on Bybit.
- Trading BTC/USD on Binance and then converting your BTC to USD with Changelly.
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