LUCKY'S CRYPTO GUIDE FOR BEGINNERS
PART SEVEN
Thank you for joining in on the seventh installment of the easiest way to learn crypto on the Steemit platform. In this tutorial series produced by myself, Lucky, I have developed an easy to understand method that makes understanding crypto a breeze for the absolute beginner. In this article I am going to explain what cryptocurrency investing is and briefly explain how it works. I am also going to explain the difference between crypto investing and crypto trading, which will help you develop your game plan for stepping into the cryptocurrency world. Let's go ahead and get the ball rolling!
WHAT EXACTLY IS CRYPTO INVESTING?
Like it's counterpart mentioned in Part Six of my series, cryptocurrency investing is an incredible opportunity for financial gain, or loss, if you make poor choices. This series is designed to help you make the right decisions, guiding you in the direction of finding your niche and learning how to make a dollar. Crypto investing is one of the ways an everyday person can take their traditional currency (like the US Dollar) and basically buy into companies in the crypto world. Though similar to crypto trading, crypto investing is much different in some major ways.
LET'S GET MORE IN DEPTH
Crypto investing is the act of buying or acquiring equity in a cryptocurrency (or blockchain based company) for prospect of making a the long term investment. In the crypto world, this means an individual purchases or acquires coins or tokens and then holds them until a much later date to sell for a profit. This is typically the initial phase of trading in cryptocurrency, however, one can invest in base cryptocurrencies(Bitcoin, Ethereum, Litecoin) and/or alternate cryptocurrenciesv(Monero, Neo, Iota). First, one would need to trade their FIAT (traditional) currency in order to obtain a base crypto (Bitcoin, etc.), then they could hold the BTC or trade for other cryptocurrencies. That's how someone get's started investing, but that's not it.
WHAT IS HOLDING?
Holding, or often coined (no pun intended) "hodling" in the crypto world, is the term that refers to the act of investing. When someone holds a coin or token, they are keeping it in their possession and not selling and trading for a long period of time, waiting for longer term gains which are often significantly larger than short term trades. As known in any trading market, from fiat to stocks, the objective and only way to make a profit is to BUY LOW AND SELL HIGH. One would watch the market prior to buying in, to observe the best opportunity to buy at a low price, almost ensuring no loss and only profits.
Here's a couple fun facts for you guys and gals. The term "hodling" was created as crypto slang unintentionally by an inebriated user on a Bitcoin Forum message board in 2013. It was quickly adopted as a key phrase in the crypto world, based entirely off the humor of the misspelled phrase " I am hodling ". It also has been the subject of the backronym "Hold On for Deal Life".
So ladies and gents, would you like to know the difference between crypto investing and crypto trading? The difference is easy and hard to forget. Crypto trading is more or less short term buying and selling crypto and crypto investing is geared more for the long term purchase and sales of crypto. When you hear investing, the first thing that should come to mind is long term. If you invest in crypto, you are buying into the long term growth of the coin or blockchain based company. This is how many of people made millions of dollars when Bitcoin first gained extreme popularity. People bought Bitcoins at under $100 USD and then sold them for over $10000 USD, per coin that is. Do the math on that, you'll see how investing in crypto is profitable if you make good choices.
So that sums up this portion of Lucky's Crypto Guide For Beginners. Crypto investing is one of the key terms used in the crypto world and is something I myself endorse. It is not only a great opportunity for financial gain, but a great way to contribute to establishing a brighter future of this world. With blockchain technology taking off and new technology being formed on this ground, we can expect crypto to see heights we had never imagined. Thank you for reading this installment, I hope it was of help to you! If you happen to be reading my series for the first time, please follow the links at the end of the post to my other entries that will teach you crypto from the ground up! Until next time my friends, good luck and good day!
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You all over the place... way to get it there my dude. First post Ive seen of yours on my timeline in a minute. Hope everything is cooler than the other side of the pillow.
What's up my brotha @paulmoon410? Yea man, I am definitely all over. It's tiring but rewarding, you feel me? How has everything been back on the Eastern Shore?
You know how it goes man, another day, just dealing. Things aren't always peachy but are really what you make of them and allow them to be. So I've just been trying to focus on personal progress?
It's life. Making everyday what i can. I'm laid up right now with a hurt ass back.
That right there is some shit, because I'm gimped up my damn self. Nerve is pinched in some form or fashion in my left leg and it's running into my damn back, not to mention a compressed IT Band in my left leg from what the ER has said over here. IT Band though....something professional runners tear up. I'm just here like WOW. Didn't see that shit coming. What did you do to yours? How's the grind?
Hurt from way back. Got slammed on my back playing ball and it's never been right sense. I'll live though. You have any logos for the EDU COIN so we can distribute knowledge of its incoming presence.
That's absolutely great! As this cryptocurrency thing is new after joining steemit was searching the easy explanationa. And so finding this absolutely great!
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I'm quite new to the block chain let alone steemit! Although I do have basic knowledge of the crypto world it's always great to gain a refresher! Keep this series up I won't be going anywhere soon.
Nice post, although I'm not a crypto newcomer!
I would say investing is something you do because you also believe the potential application of the investment is worthwhile or ground breaking? Whilst the day trading, you are more looking at the money side of things and caring much less about the survival of vision of the project?
@bengy I agree with you 100%. That is a topic I will touch base on a little more down the road. Most people invest because they believe in the success and application of said investment. Do you trade currently? Always up for collaboration on some articles.
At the moment, I don't day trade. In a bull market, it is easy to make money, so I was doing that with trades that I could just set up and forget about (with less than 20% of my total crypto, I'm not suicidal!). I saw at that time, there were heaps of people blasting out about how they could make x% returns and marketing their skill. But in truth, there is no skill in the bull market.
Now, in the bear market, I had a go. It is much trickier. The goal seems to be getting more tokens (as opposed to more BTC/fiat) at by juggling the prices. However, this is much more time consuming as you really need to be on the ball, else you are going to be caught off guard with an upswing, left holding less tokens (but the same fiat value).
This is a bad thing for me, seeing as I value the tokens more than the fiat worth.