Trading Versus Buying Crypto

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Admin

Sep 15, 2021

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Everyone has a different reason for purchasing cryptocurrency. Some people just want to see what it is all about, while others just want to try a new technology. Still others believe it could provide a hedge against rising living costs and thus is a form of savings for them, while there are many who trade crypto on a more regular basis in order to grow their wealth.

No matter your approach to crypto, MEX Digital has the perfect solution for your needs.

Utility Buyers

Let’s start with “utility buyers”. A utility buyer of crypto is someone who needs to purchase crypto for specific financial payment reasons. This could be for sending money to family in another country, buying assets internationally, or perhaps operating in an innovative economy like for instance Estonia.

Investors

A crypto investor is someone who sees the long term opportunity in cryptocurrencies, and will buy regularly or once off and sit on their crypto holdings for a number of years. Many people see cryptocurrency as a hedge against all kinds of hyperinflation in various economies, and so believe that by buying significant amounts of these digital assets now will give them great returns in the long term and protect their own fiat savings depreciating in value. 

These are your crypto savers. People like Michael Saylor of the NASDAQ listed company “Microstrategy” are among such people who see cryptocurrency as a long term hedge against inflation.

Traders 

Traders are people who see the opportunity of price fluctuations in the crypto markets as chances to buy low and sell high. 

What does that mean?

That means, if Bitcoin was $45,000 yesterday, but today is $47,000 - buying low would be buying it at $45,000 and then selling it at $47,000, making a $2000 profit. Of course, this kind of activity comes with all kinds of risks, because one needs to ensure they have done a careful analysis of where the trend of the crypto’s price is headed, as well as to ensure they implement careful risk management (as mentioned in this previous article here).

A trader is someone who is a little more active than an investor, as they are looking to increase their wealth over a shorter period of time by being more active in the market than merely holding onto their investment. This could be trading on a daily basis, weekly basis, or even monthly basis. Some traders even trade every 5 minutes! Those are the kind of people with laser focus and nerves of steel.

So as you can see, there are a myriad of reasons people buy crypto, and it’s important you know where you fit into this. Are you just in the industry to experiment, or do you see the long term opportunity? Make sure you can stomach the swings of trading, and you leave your emotions at the door - and if you find that you’re actually too emotional, perhaps you’re more of a “saving investor” than you are a trader?

Whichever category you fall into, MEX Digital is the perfect solution for you. Keep track of our new developments on our Twitter, Facebook, LinkedIn and Instagram pages.

Trading cryptocurrency carries significant risk and losses can exceed deposits. Refer to our Terms and Conditions and disclosure material.

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