Investing in cryptocurrencies generally refers to buying and holding digital assets over a longer period, with the expectation that their value will increase over time. Investors may focus on fundamental factors such as the technology, adoption, and long-term potential of a particular cryptocurrency. This approach is similar to traditional investing in stocks or commodities, where the goal is to benefit from long-term price appreciation.
Trading cryptocurrencies, on the other hand, involves buying and selling assets more frequently to profit from short-term price fluctuations. Traders use technical analysis, market trends, and various trading strategies to capitalize on volatility. Trading can be riskier and requires more active management and understanding of market dynamics, while investing is generally more passive and focused on long-term growth.
