Difference between Cryptocurrency Investing and Trading

Aaron Villa
3 min readApr 6, 2021


by Aaron Villa

Investing and trading in cryptocurrencies are two different things. Both these kinds of investments require a different mindset and tactics. Investing in cryptocurrencies is a long-term affair that is concerned with fundamentals and long-term trends. On the other hand, trading is a short-term thing that speaks about the technical part of cryptocurrencies and is primarily concerned about short-term pricing trends.

Investing in cryptocurrencies

Investing aims at creating a long-term position in terms of digital assets depending on long-term trends and fundamentals. You attempt to develop a position by buying at a lower price and eventually selling the crypto at some suitable time down the road. That is if you are planning to sell at all. There is a lot of scope for mistimed purchases, and there is just a little bit of selling involved. You may consider hedging for better management of your position by trading some, selling at high prices, and holding or rebuying. You will HODL through the upturns and downturns as the target is a long haul.

You may consider adding to a position if you feel the cryptocurrency was oversold or do it anyway, regardless of the price. You will find that the CEO of a Fortune 500 company will not sell the crypto if there is just a correction or if there was a bad quarter for the organization. They are after investment in the organization, and assets are their primary concern. Short-term price trends come a distant second for them. The target is to get more coins.

Trading Cryptocurrencies

Trading aims at a short-term profit, and it depends on short-term trends and technicals. You are trying to buy at a lower price and sell at higher for the short-term benefits. You need to be willing to take losses here and should set stops. You will often end up purchasing higher and selling a bit lower as trends go against your investment. You might want to buy during a high while following a trend and get out if required. The current price doesn’t mean much here.

What you should be interested in is the potential for larger gains.

Take into account the setup and how the price might increase or decrease in the short term. Keep the money on the table at all times as the target is capital preservation, profit, and capital growth. You may have developed a liking for crypto, but what matters more are the short-term price trends. You will be forced to drop the coins many times. Other significant aspects to consider are fundamentals and asset future. The idea is to get as many dollars as you can.

If you are not sure about what you need to do, invest or trade, consult us at A1PHA Trading & Investing. Everyone from beginners to advanced traders and investors can talk to us about investing in cryptocurrencies. We’ve Helped Hundreds of People grow their Portfolio to it’s Maximum Potential. Come join us and Be an A1PHA!



Aaron Villa

Cryptocurrency Investor and Trader ➟ Founder/CEO at A1PHA Trading & Investing ⤑ www.instagram.com/a1phatradinga1phanews.com