Trading and investing may sound the same, but in reality, they are as
different as day and night. Trading refers to a short-term method of trying to
profit from buying and selling of bitcoins while investing refers to a long-
term strategy where a buyer will hold on to their bitcoins for a long time and
ride out any dips in the market price.

The Bitcoin Trader

The Bitcoin trader thrives on the exciting volatility of bitcoins. They’ll try to
time the market and buy bitcoins when the price dips and then they’ll wait
for the price to go up before they sell their bitcoins. Trading is a high-risk
game because you’re betting for the price to go up or down. Not everyone
can trade, however. The most successful traders are those who have
nerves of steel and can detach their emotions from their trades.

Traders don’t get scared of dips in the price because they are optimistic it’s
going to go up again, sooner or later. They are looking to maximize their
profits, too, so they’ll mostly invest a lump sum and buy at the lowest price
they can possibly go for, and then they’ll wait until the price is high enough
for them to make significant profit.

Trading takes a lot of guts. It takes a lot of thought and analysis. If you’re
an emotional type of person who gets physically sick with every dip in
bitcoin price, then you’re better off investing, and not trading, in bitcoins.

The Bitcoin Investor

Bitcoin investors are different from traders. They’re in it for the long haul.
They’re not looking to take advantage of short-term fluctuations in the
exchange rate. If the price goes down by hundreds or thousands of dollars,
they’re probably going to get worried, but they’re not going to pull out their
investment because they’ve already decided they’re going to hold it for the
next 10, 20 or 30 years.

A wise investor will practice the dollar cost averaging method to manage
risk. This means whether the price goes up or down, they’re going to buy
bitcoins and hold them. This strategy is perfect for long-term investments
as you’re essentially spreading the risk. Though profits may not be as
significant as short-term trading, the bitcoin investor probably sleeps easier
at night as they’re not worried how the charts are going to look like
tomorrow or the day after.

https://topworldshop.com/wp/

Going into an unpredictable business like cryptocurrency can be daunting.
Because there is no centralized authority and rumors get spread quickly
about digital currencies, it’s a volatile market to get into. However, if you
are willing to take the risk, there is money to be made. Below we discuss
five important tips that you must know if you are considering investing in
Bitcoin.

1. Do your research, due diligence, and homework

As far as Bitcoin is concerned, some people have experienced a certain
level of success while others have suffered loss. If you are entering into
this business, it is important that you know just what you are getting into
and invest only the amount that you can afford to lose. Being a Bitcoin
investor is quite exciting as well as confusing, so you should not enter
based on only what you have heard. Do your own homework and stay on
top of the ever-changing market.

2. Have an effective diversification strategy

Other than Bitcoin, there are lots of other cryptocurrencies that are
doing well and growing fast too. Try to diversify into any of these
alternative cryptocurrencies because, in times when Bitcoin drops, these
other cryptocurrencies tend to perform better. When you are waiting for
Bitcoin to increase in value, you can continue to trade in these
alternative cryptocurrencies.

3. Do not keep your Bitcoins in the exchanges

Hackers and scammers these days have devised means to get into the
crypto space and rip people off. You can save yourself from this menace
by using exchanges strictly for exchanging. Once you have bought a
currency, move the money into a Bitcoin wallet that only you can control.
It is even better if it is a hardware wallet.

4. Be ready for a bumpy ride

Bitcoin investing isn’t a get rich quick scheme. It’s something you should
plan on participating in over a longer-term. You may have to steel your
nerves sometimes because of its volatility, but it can be worth it. But it’s
going to take effort. Effective diversification can help, but that too
requires a bit of effort and work. The most well-known and effective
strategy thus far is to “HODL” which means to hold on to your investment
no matter how volatile the market gets. Getting into the crypto-space is
quite tricky which is why you must be able to understand how the market
works in order to tilt it in your favor and ultimately end in profit!

https://topworldshop.com/wp/

Other than marmite, very few things divide opinion across the globe as
Bitcoin does. That’s mainly because only a small percentage of the
population truly understands what it is. Some view it as an item that
can only be utilized by the tech-savvy, while others believe it’s used for
the wrong purposes. But, in fact, Bitcoin is just a virtual currency that
creates anonymity.

It removes the need to use a bank to store money, it removes the need
to attach your name to transactions, and it removes some of the risks
of becoming a victim of fraudulent activity. More and more people are
beginning to realize the advantages of this digital currency, and the
increased popularity is correlated with the soaring prices amongst all
of the digital exchanges.

Bitcoin is an entirely decentralized payment network, meaning it’s only
maintained through a peer-to-peer network. Moreover, its currency –
bitcoin – is just a set of numbers and letters which are stored on the
Blockchain technology. This means it doesn’t actually represent as a
conventional currency. Although, the fact that millions of people still
purchase things with it, shows that it could become an everyday form
of money in the future.

If we use a more common example, it’s like PayPal enabling you to
send and receive money, and then allowing you to withdraw your
balance in a widespread currency such as the US dollar. However,
Bitcoin is unique and doesn’t operate in that way whatsoever. As it’s a
decentralized network, there’s no official method to determine what
value the bitcoin currency possesses.

Therefore, it tends to mirror that of the conventional currencies and is
influenced by the number of people who want it and the amount that
is available—otherwise known as supply and demand. But, another
difference is that it doesn’t give you the chance to withdraw it for use
in the real world. Why? Because in reality, it’s not actually a genuine
form of money, it’s software.

Bitcoin is just a line that has been recorded in the Blockchain ledger,
and a set of digital keys stored in an offline or online wallet. So, while
it’s advantageous to make payments online due to its strong security
measures and anonymity, the disadvantage is not being able to transfer
that into physical cash.

To put all of that into layman’s terms – the bitcoin currency is a digital
replica of money, which keeps your identity hidden and allows you to
make transactions on the web.

https://topworldshop.com/wp/