To move forward effectively, it’s crucial to recognize that by the time you finish reading this page, you’ll have a clear understanding of both investing and trading. This knowledge will help you to cultivate the right mindset as you begin to explore the realms of forex and crypt
Investing
Investing in this journey requires us to be able to get PART of our hard-earned money and put it in business hoping to get some more money (profits). Notice the word part is used as we do not invest all our money. The Goal is to invest an amount that you are comfortable with losing in the case that the investment does not go accordingly. Investing takes longer for you to see your returns mature.
Trading
Trading requires us to also use PART of our hard-earned money and put it in a business or to buy an asset that we think will gain value so that we can sell it later on and get profit. Trading unlike investing has a slightly short time period as compared to investing.
An example of investing would be putting part of your funds in a fixed account with an institution that promises you 5% interest after one year on whatever amount you invest. (e.g 20000 invested at 5% which is expressed as 0.05 will mean an interest of 1000 at the end of the year.) It will take you one year to make an extra 1000 on your 20000 investment after a year.
In May 2012 BTC price was at $5 per coin if you had risked $100 of your money invested in getting you 20 coins and waiting for one year until May 2013 when the price rose to $110 per BTC. Your 20 coins would be worth $2200 (220% return on your initial $100 investment).
NOTE: Whatever amount you have. Spend 75%, invest 15% and save 10%.
In order for us to proceed, it is imperative to note that by the end of reading this page you will know what Investing and trading are so as to prepare your mindset when you start looking at forex and crypto.
