Objectives

The objectives of this course are to:

• Explain the differences between Trading and Investing
• Understand the types of risks that you are taking as a trader or investor
• Develop a working understanding of risk management in an investment portfolio
• Describe different investment strategies and how they relate to your risk strategy

Learning Outcomes

By the end of the course you’ll be able to:

• Clearly distinguish between trading and investing strategies
• Outline your own approach to risk management and portfolio structure
• Understand how and why you are making particular investment decisions within your broader investment strategy

Summary

Investing and trading often involve the same things (buying and selling cryptocurrencies or stocks), but they represent fundamentally different approaches to growing your wealth.

Investors are looking for long-term growth and are less interested in profiting from short-term fluctuations.

Traders are concerned primarily with short-term fluctuations in price and are more agnostic about long-term fundamentals.

You can be both a trader and an investor, but it is worth thinking deeply about:

1. What your investment or trading strategy is
2. How much of your portfolio you want to allocate to cryptocurrencies
3. How you want to manage your risk as you structure your crypto portfolio, i.e. large-cap cryptocurrencies vs. small-cap tokens