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✔️Long-term investment
It is when you buy a cryptocurrency like $BTC or any financial asset and hold it for a long time, often for several months or years. The idea is that you trust the value will increase over time due to market fundamentals or the projects behind the currency. Your goal is to achieve significant profits when prices rise in the long term. This type of investment requires patience, as you may face price fluctuations, but you do not feel pressured in the short term.
✔️ Day trading
In day trading, you buy and sell cryptocurrencies within the same day, often multiple times. The goal is to take advantage of small price changes throughout the day. This type of trading relies on quick market analysis and news, and it involves more stressful times where quick decisions must be made. Traders of this kind need to continuously monitor the markets.
✔️ Speculation
Speculation is a strategy similar to day trading, but it may include shorter or longer time frames, such as hours or minutes. Speculative traders focus on predicting small price movements, whether up or down. This type of trading is characterized by high risk, relying on quick market predictions and needing advanced analysis skills.
Simply:
👈 Long-term investing: buying and waiting for a long period.
👈 Day trading: buying and selling within the day to profit from small changes.
👈 Speculation: predicting price movements in short periods, whether hours or minutes.
