08 March, 2023
/ 3 min read

Trade or Invest?

Trade or Invest?

Investing takes a long-term approach to the markets and often applies to such purposes as retirement accounts. Trading involves short-term strategies to maximize returns daily, monthly, or quarterly.


If you choose to trade, you are in for short-term gains. To be a trader, you:

  • Need to be versatile in crypto and technical analysis
  • Need to learn different techniques
  • Need a cold and emotionless mind

Sounds like an opportunity, right?

However, just as the market can go up, it can also plummet. What happens then? If you are emotional and see prices falling, you will most likely panic-sell just to observe prices going up again. You can also try to follow the trend. But chances are you can end up buying at the top. 

  • Consequently, 99% of traders quit and move on within one year. 
  • Those who stay are quite knowledgeable, put in a lot of hard work, and endured a tremendous amount of pressure.

So, if you are made of steel, then maybe trading is your thing. Perhaps you get a thrill from ascending graphs. All in all, trading is a bit like poker – a bit of psychology, a bit of calculation, and a bit of luck. However, the stakes are way higher compared to an average casino night out. 


While investing might look similar to trading, it’s not. When you trade, you look for a short-term perspective. A good trader will know their entry and exit points and be well aware of when it’s time to quit. Yet, it is a full-time job. 

  • Investing is different – investors are looking to make money long-term. Minor swings are ignored.
  • Fundamentals are the cornerstones that interest investors. They include team qualifications, the tech behind the product, and its potential. 
  • Investing sounds like a great passive income, and it is to some extent. However, it’s not as easy as it seems.

Have you heard of the dotcom bubble? It is a great example of why you have to monitor your investments at all times. Between 1995 and its peak in March 2000, the Nasdaq Composite stock market index rose 400% because of new internet companies popping up now and then. However, in 2002, the market crashed so hard that only a few survived.


You should always look after your investments. That’s especially true for crypto – the space is rather novel, and new projects pop up like crazy. You have to be extra careful and look for undiscovered gems.


In 2021, the NFT craze took over the minds of crypto enthusiasts. Prices were soaring like crazy, but what do we see now? They are down 97% from their peak in January! Remember how Jack Dorsey’s tweet was sold for a whopping $2.9m? The current owner is auctioning the piece, but the highest bid is 65 ETH (approx. $83,000).

This example tells you to be careful with your money and employ either due diligence or risk management pros. 

Investing or trading?

It’s up to you to decide what works best. However, always remember that you and only you have to take responsibility for your actions:

  •  If you lose, you lose, it’s your fault
  • You have to be a knowledge powerhouse
  • You must be stress-resistant. 

If all of this doesn’t sound like you, then it’s time to think about the tools to rely on. Tools that can tremendously cut the risk without the need for any action on your side. And we have something to offer. 

Risk Management with Libertify

It doesn’t matter if you invest or trade. Your end goal is to make profits for whatever reason you might have: early retirement, capital preservation, etc. However, by doing it on your own and relying on your knowledge, you expose yourself to a big risk that can eventually crash something that started so well.

For this reason, Libertify has created an ultimate tailored risk management strategy that protects your funds from volatility. Libertify provides a safety net durable enough to withstand the test of the market. After all, with a seatbelt fastened, you have enough confidence to drive faster. Start here