Investing vs Trading

With cryptocurrencies, just like any other financial asset, you can trade. Making an analogy, trading cryptocurrencies can be just like forex trading, but even though there are similarities, there are huge differences.

First, the volume. Forex has the biggest volume of any market, this helps having low volatility and price changes except for few ocasions when important news hit the market, are not sudden and big. As you may have seen already, price chances in cryptoworld usually are very important and fast. That is because there are not many "players" and the market is still in its infancy, when a big player (with a nice trading power) decides to buy or sell a nice amount of his assets (bitcoin, ether, monero,,,,) that particular market show a big movement. 

Second, adding to that movement appear the already thousands of small "traders" which just want to get fast and quick money, they follow the move and then the move becomes even bigger. This is just what happens everyday in all trading markets when daytrading. Small traders experience the fear and greed which the big traders know and the big ones end up winning. Trading is a sum zero game, what you lose is what everyone else wins.  If you are not a trading expert wich I am sure you are not if your are reading this. DO NOT DAYTRADE. You may get a few dollars sometimes but you will lose for sure on the long run. You need a special mind training to be able to play daytrading game.

My advice is to just start small, invest in some coins (diversify) and do not panic or think you will become rich in 10 days after you see what the market does every five minutes. You are here for the long run, this are very very new assets, they are not regulated, there are a lot of scammers looking for people thinking they can get rich in just 10 days. Easy money just does not exist, neader in the cryptoworld. There are nice and big opportunities, but just for those having the long term as their goal