Join Us On Discord

Crypto Investing Vs. Crypto Trading: Everything You Need To Know

Crypto Investing vs Crypto trading

The cryptocurrency world is a diverse place for traders and investors to trade and invest in their crypto assets to gain a higher profit. But, as much as the crypto market offers a unique decentralization system and strong blockchain technology support, there also lies the potential risk of losing everything simultaneously.

Even regular and pro-crypto users often need clarification and make the wrong decision regarding their crypto stocks, thus losing their profit because of the volatile nature of the crypto market. So, before investing your assets into anything, you must understand the difference between crypto trading vs. investing. Let’s begin. 

What Is Crypto Investing?

Through Crypto investing, crypto investors purchase cryptocurrencies and keep those in their possession because the price or value of the concerned Crypto will increase in the future, just like the stocks. This strategy or procedure of investing in cryptocurrency and earning profit is called Crypto investing.

Several well-known cryptocurrencies and crypto exchanges sell a wide range of cryptocurrencies in the crypto market, and one can buy any of them for Crypto investing. Now Crypto investing can be of various forms; for instance, one can buy crypto coins directly and hold onto them as long as he wants until coins meet their expected price. Or, the owner can attain the price through investing in other crypto funds or companies.

If you consider a crypto investing strategy for a high return, consider purchasing crypto currency from a trustable exchange, like the Kraken crypto exchange. In such stock vs crypto trading exchanges, you can often get discounts upon a hefty amount of cryptocurrency purchase.

Importance of Crypto Investing

Crypto investing or stocks is considered a less risky strategy towards winning big return profit in the crypto market, and the FTX stocks prove the same. Some notable importance of Crypto investing is–

  1. Investors can hold onto their crypto coins or assets, for a long time, without worrying about the “time horizon.”
  2. As there is no time limitation, the crypto assets do not expire and don’t lose importance or value.
  3. Considering the volatile nature of the crypto world, crypto investing is less risky when planned and done right and, thus, is safe for users who want to play safe.

What Is Crypto Trading?

Contrary to crypto investment, Crypto trading refers to the determination of cryptocurrency prices and buying or selling them in a short period. In this strategy, one needs to use the “time horizon” very speculatively, as that can impact how one gains or loses profit or capital.

Depending on the circumstances and the amount of crypto trading, one can choose among these trading strategies –

  1. Momentum trading (this includes purchasing cryptos at a low price and selling them at a high value depending on the recent price trends)
  2. Swing trading (the price market gets predictions through technical analysis)
  3. Day trading (regular monitoring of the price fluctuations of the market)
  4. Scalping trading (through this form of trading, investors involve themselves in multiple small tradings instead of a single big one and earn profits)

To engage in Crypto trading, one needs to enter the trading market by depositing a small amount of Crypto (known as “margin”), and thus, he can start trading in the market. There are several ways of crypto trading, including purchasing or selling the crypto coins directly through a crypto exchange, such as FXT trading, or one can trade via CFDs (Contracts for Differences).

Importance Of Crypto Trading

According to the fidelity crypto platform, crypto trading is the ultimate way to make billions quickly. Thus, it holds crucial importance in the crypto market, for instance –

  1. If you choose between day trading stocks vs Crypto, then stocks can be the one for you if you like it in a low-risk way.
  2. In the case of trading Crypto vs stocks, crypto trading markets are open all the time as it is under the decentralization system.
  3. With crypto trading, one can either sell the cryptos or hold them, considering the market trends.

Is Investing In Crypto The Same As Buying Crypto?

Just as crypto trading vs stock trading is two different things having different strategies, similarly, buying or owning cryptos is not the same as investing in Crypto.

To buy Crypto, one must have access to a crypto wallet, either a hot one or a cold one. These wallets are secured with wallet keys or passwords. One does not need an internet connection to access a cold wallet.

As for investing in Crypto, one need not have access to any wallets. Instead, all you need to do is predict the price of the Crypto. And for that, you do not have to own or store any crypto.

Investing in crypt gets done via an online “over-the-counter” feature. However, one cannot do that directly with any cryptocurrency while paying. Instead, the person must convert it back into his preferred fiat currency through any largest crypto exchanges.

What Is The Difference Between Crypto Investing And Crypto Trading?

The differences between stock trading vs crypto trading are already mentioned in the above-detailed section. Nonetheless, considering day trading crypto vs stocks, it is always less risky to trade in stocks.

Here are some of the critical differences between crypto investing and crypto trading –

  1. Crypto investing requires “full ownership” of the cryptocurrency, while total ownership is not required in Crypto investing.
  2. In crypto trading, the charges of selling or any transaction remain included, unlike crypto investing, where one must pay separately for transactions.
  3. There’s always a requirement for a crypto wallet to store cryptos for Crypto investing. But in crypto trading, one does not have to have access to such wallets.
  4. For Crypto investing, one has to take the help of cryptocurrency exchange platforms and wait until his account is activated. In crypto trading, one can start trading instantly.


Now that you know the critical difference between trading vs investing cryptocurrency and Crypto vs stock trading, you will be able to make better decisions and opt for more effective strategies for gaining the most high-profit returns from your engagement in the crypto marketplace. Choosing between trading stocks vs Crypto often becomes challenging as both come with different features and advantages.

However, in both cases, cryptocurrency exchange platforms play a crucial role. To choose the best strategies, one must analyze the trends before completely involving themselves in this volatile crypto market.

Enroll in the waitlist today and unlock access to multiple benefits awaiting you.