Home Altcoins News Investors Who Trade MATIC SOL ETH BNB Make Profits Others Keep Waiting

Investors Who Trade MATIC SOL ETH BNB Make Profits Others Keep Waiting

Investing in cryptocurrency is an effective way to put your money to work and to potentially build wealth. Building wealth by investing your money in cryptocurrencies is a complex process. It is a high-risk endeavour that requires careful consideration and research. There are risks involved when investing in cryptocurrencies. Doing due diligence, understanding the technology, and understanding the market trends and planning the investment strategy accordingly matters – when making profits investing cryptocurrencies is the goal.

Not all cryptocurrencies yield good ROI.  Some digital assets will yield only in the long-term.  potential of investing is primarily due to the power of compounding and the risk-return tradeoff. The risk-return tradeoff establishes that the “the potential return rises with an increase in risk.” By applying this principle, individuals will be able to relate:

  1. Low levels of uncertainty with low potential returns
  2. High levels of uncertainty or risk with high potential returns.

The returns are only potential and is not a sure guarantee that there will be profits.

Investing in just one kind of crypto will not yield a profitable ROI.  Also, a substantial amount of emphasis should be placed on protecting the capital.

Investing in Cryptocurrency Vs. Trading

Investing requires a long-term approach to the markets.  Trading involves short-term strategies to maximize returns daily, monthly, or quarterly – and in highly aggressive cases – hourly or when the market volatility is at the peak.

Investing also refers to distributing money to either a project, policy, plan, or a scheme that can generate future returns. Investing is long term and involves less risk when compared to trading the volatility trends in the market.  Thus, investing means hanging on to an asset type for years together before achieving a return.

Trading in Cryptocurrency and Short-Term High Performance

Trading in Cryptocurrency is about waiting for the short-term high performance and therefore making entries and exits accordingly to make profits. It is quick in and quick out where the buying and selling of the cryptocurrencies is done for short-term profits.  The trading process is done repetitively and regularly to profit out of market fluctuations of price.

Whether with investment or trading the fees, taxes, and human emotion can work against you. It is also important to keep away from frauds and scams.

The most suitable cryptocurrencies for long-term investment are: Bitcoin and Ethereum.

The most suitable cryptocurrencies for day trading are: Ethereum (ETH), Polygon (MATIC), Solana (SOL), Ripple (XRP), and Binance Coin (BNB). These are just sample altcoin ideas. investors should do due diligence before investing their money and deciding the list of crypto they would choose to have in their portfolio.

Investing in Bitcoin and waiting is not going to bring in regular profits.  To make regular profits, the investor should trade the market volatility and should develop the sensitivity to understand the fundamentals and technical indicators of the market.

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Maheen Hernandez

A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5

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