Which is more profitable in the bull run; Investing or Trading?
Introduction
Oftentimes people can find themselves stuck in between two options when the biggest opportunity comes, in its repeating 4 year cycle. Yes, I’m talking about the bull run. It is the most anticipated public offering in the entire crypto space, and I call it this because it is more prepared for by everyone even more than the launching of a new project. One of the fact checkers to this is how the bull run cycle is profitable to all sectors of the ever growing crypto ecosystems. All niches in the crypto space find their services more needed than ever in the bull run season, so this makes it the most anticipated public offering we can ever see in crypto.
But more importantly today I will focus on the two most controversial sectors of the crypto space in relation to the bull run which are INVESTORS and TRADERS.
The undying controversy.
It has really been a tradition with proof where we see significant profits from traders and investors but there is some kind of divide which has led to a controversy of which is more profitable. I am here to expose this controversy and not to pick a side but to help you understand which side you should be on and maybe, just maybe you could actually combine both for a bigger profit.
Investing: is simply buying an asset for a certain cheap price with the aim of flipping it for multiple times its value in a bid to make the most profit out of it over an extended period of time.
Trading(leveraged): Leverage trading is a high-risk/high-reward trading strategy that experienced investors use with the aim of increasing their returns frequently within a short period of time.
If you truly look above you will notice that both trading and investing have one similarity which is that they are both “investments” aimed at making profits. However their method of achieving this goal has a potential time difference. Investors wait to buy or buy very early and are willing to hodl till when it is the right time to sell, which can take a very long time but they are prepared whereas traders tend to look for fluctuations in the market to exploit on a daily, weekly or monthly basis.
The controversy here is who makes the most profit and especially in the crypto bull run.
What is a bull run in crypto?
A bull market, or bull run, is defined as a period of time where the majority of investors are buying, demand outweighs supply, market confidence is at a high, and prices are rising parabolically. But as a tradition the crypto bull run occurs every 4 years as said earlier FYI.
How Investors could make profits in the bull run.
If you had no experience about investing in the financial market then it is important you know that you need to do your own due diligence on which asset to buy and hodl then you need to buy it when it is cheap. Usually in the crypto market you buy or accumulate coins and tokens(Bitcoin/Altcoins) while you are in the bear market and can dollar cost average(DCA) even deeper into the bear market for as long as it lasts. For this you will need liquidity so it is important you have an actual job that can sustain you and from which you can use some percentage of it which you won’t be using for a long time to invest in assets of your choice.
How traders make money in the bull run.
There is no season where traders can’t trade whether it is the bull run or bear market. All they have to do is understand the trend and they can leverage their position size. Trading can be very risky due to frequent movement of the market and also manipulation by whales and institutions. However for professionals they can rely on fundamental/technical/sentimental analysis to know what to do.
Now in the bull run traders do the same thing but it would be more profitable if they actually have positions open ahead or just as the bull run season starts. This way they can also have gotten in way cheaper and can make even more profits in the short term should trend reversals occur in-between the bullish season or they can still make profit in the long run. For example many traders opened positions for bitcoin when it was at $15k. This was a golden opportunity for them. Even if they haven’t taken profit till now, they are already sitting on more than double their funds in bitcoin. But there is still high risk involved, especially when trading altcoins.
Where do I stand for me to be profitable in this coming bull run market.
With a more clearer understanding of both sides, you can depict which is more likely to favor you based on your pre-existing experience or if you are new, that would be based on whether you can invest and hodl for a long time especially at the peak of the bull run before you take profit or you might have interest in trading the fluctuations in the short term market price actions.
However I would like to make you understand that with the right exposure and experience, you can invest and also trade profitable simultaneously.
I can’t begin to teach you about trading and investing fundamentals in this article. Neither can I show you an advanced method for the professionals reading this, not because I can’t but simply because it will make this article too long and somewhat boring especially for the newbies. But I can show you where to get the best basic and advanced knowledge of either investing or trading, even both combined should you want to give it a try.
Crypto university has taught thousands of students across the world with a proven track record and you might just be the next. Click here to join now
Final thoughts
Investing and trading are just opportunities for you but the bull run is a special opportunity and you can make as much as possible in either of these areas, enough to retire you for a lifetime.
Don’t wait for bitcoin at $100k before you make a move. Use the Crypto university link to get the best course and coaches if you don’t know how to get started or don’t know what to do next as an investor or trader. See you all on the next one.