Trading vs. Investing
Since my twitter has now been completely turned into cryptotwitter, I often come across these terms such as "invest" and "trade". It is very loosely thrown out. But not as loosely as the tweets that could be taken as financial advice, especially without a "NFA" disclaimer of any sort.
For example, I saw a tweet that went along the lines of "(x coin) is going to hit $4500 by the end of 2025. I believe in (x) and you should believe it in too! Holding (x) till I die". I am not quoting, this is just an example. Bend me over and call me Sally, but does sound like a tweet I can take to court if (x) never really goes to the said amount and even better if I lose money on it.
But the "trading" and "investing" terms have come so many times across my timeline that I began to question them. Not the terms, but the tweeters. Most of them are, in some ways, finfluencers. Their tweets do have an impact and can cause real-life actions.
The two terms stand on opposite poles of the same planet, for me. Investing isn't trading, neither is trading investing. They may seem like the same thing from afar but they can be very different things upclose.
Now, twitter is very saturated when new coins that no one knows about. Coins that are still pre-ico, or pre-sale, or just have hit the market. Most of these do not come with much data. No clue about their function, their current cap, their whitepapres, anything. More often than not, I simply scroll away without paying much attention to them.
It becomes worse when the tweet mentions "investing" in the so-called (and allegedly) shitcoin. In my head, these coins come with a predetermined pattern. It is either a rugpull kinda thing, or a pump and dump kinda thing. Very rarely are they promising.
So when someone "invest" instead of "trade" in context of such coins, it becomes incredibly hard to imagine what might happen to someone impressionable who actually invests in it for the long-term gain. But the actual ones who actually make something out of it are those who traded the coin.
There are a lot of explanations online detailing the differences between the both. Personally, I look at them, in the most primary sense, as short and long term. Trading is a quick and fast deal. You buy and sell an asset to make the most profit within a small time. Whereas, investing is long term. You understand the asset, find the potential, believe in it. You "vest" yourself into it and look for the long-term benefit of it.
What is your definition?
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