Growing your crypto: Investing vs Trading
What makes sense for beginners?
Once you’ve figured out how to store your crypto, the next step is learning how to make it grow.
There are two main paths: investing and trading.
Let’s break them down in plain English.
1. Investing
Investing is about playing the long game. You buy something you believe in and hold it through the ups and downs.
In crypto, this is known as HODL- Hold On for Dear Life. It started as a meme, but it’s become the philosophy of true believers.
You’re not chasing quick profits. You’re building conviction.
a. Lump Sum
You invest everything at once.
Example: You put $100 into Bitcoin today, then simply hold. You’re all in from day one.
b. Dollar Cost Averaging (DCA)
You invest small, consistent amounts over time, no matter the market price.
Example: You invest $1 every week for 100 weeks instead of $100 all at once. You’ll sometimes buy high, sometimes low, but it averages out over time.
Investing is calm and steady. It’s about patience and belief.
2. Trading
Trading is about taking advantage of short-term price movements.
It’s faster, riskier, and can be emotional if you’re not disciplined.
a. Day Trading
You buy and sell within the same day.
Example: You buy $100 of Ethereum in the morning and sell it that evening when it jumps 2%. You repeat this often, looking for small wins.
b. Swing Trading
You hold for a few days or weeks, waiting for a bigger move.
Example: You buy $100 of Solana, hold for a week hoping it rises 10%, then sell. It’s more relaxed than day trading, but still active.
c. Perpetuals Trading
This is advanced territory. You trade contracts that mirror crypto prices and often use leverage. Borrowed money that magnifies both gains and losses.
Example: You put $100 on Bitcoin with 5× leverage, making your position worth $500.
If Bitcoin goes up 20%, your position doubles.
If it goes down 20%, you lose everything.
We’ll dive deeper into leverage in the next article — and why beginners should stay far away from it (for now).
So What’s Best for Beginners?
If you’re new, stick with HODL.
Focus on DCA’ing into strong, high-conviction projects, especially during bear market lows when nobody’s paying attention.
That’s how most long-term winners build wealth: slowly, quietly, and consistently.
Trading can come later, once you’ve built confidence and experience.
Not financial advice