There are various terms used when it comes to using bitcoin. Bitcoin trade, Bitcoin investment and Bitcoin exchange platforms are one of those terms. While they may sound similar but they are definitely not same. Bitcoin trade, investment and exchange platforms perform different function.
In this article we’ll try to explain what bitcoin trade means with examples. We’ll also try to explain what bitcoin exchange platforms means with examples. This is just similar to the differences between Cryptocurrency Exchange and Cryptocurrency Investment platforms.
What Is Bitcoin Trade
Bitcoin trade is the act of buying and selling bitcoin with the aim of making profit(sometimes loss is also experience). This means that any attempt made by any bitcoin user that involves the use of his/her bitcoin to buy or sell with the purpose of making profit is known as Bitcoin Trade.
What Is Bitcoin Investment
Bitcoin investment is the act of putting your bitcoin in any website or platform with the aim of making profit after a specified period of time. It means that when a bitcoin user decides to put his/her bitcoin in any platform that promises a return after a certain period has invested his/her bitcoin.
A person who trades bitcoin is refer to as bitcoin trader. While a person who invest in bitcoin is refer to as bitcoin investor. They are very different people as bitcoin trader focuses on buying and selling bitcoin to make profit. But a bitcoin investor buys, put in some website and wait for his/her profit.
What Is Bitcoin Exchange
Bitcoin exchange is the act of changing your bitcoin to local currency. It is also the act of swapping your bitcoin with other currency. Exchanging your local currency to bitcoin can also be referred to as bitcoin exchange. This means that any attempt to swap your bitcoin for local currency or any other cryptocurrencies is refer to as bitcoin exchange.
What Are Bitcoin Trading Platforms
Bitcoin trading platforms is any platform(online or offline but mostly online) that allows you to buy and sell bitcoin with the aim of making profit. A very good example of such website is the Binance website, Olymp Trade etc.
The above platforms allows you to buy bitcoin and sell. They work more like Forex trade that allows you to buy and sell currency to make profit.
What Are Bitcoin Investment Platforms
Bitcoin investment platforms is any platform online that allows you to invest your bitcoin with the aim of making profit. It might be a bitcoin mining pool or some HYIP program that promises your profit after a certain period of time.
The likes of MMM Cooperation allows you to get 50% of your invested bitcoin monthly. This means that if you invest 0.02 BTC you’ll get 0.03 as return of investment in 28 days. But you should be careful with platforms like these as they can easily shut down anytime.
What Are Bitcoin Exchange Platforms
Bitcoin exchange platforms are those online website that allows you to swap your bitcoin for local cash, swap your local cash for bitcoin and swap your bitcoin for other cryptocurrency.
The likes of Paxful even allows you to swap your gift cards like iTunes, Amazon, Google Play cards etc for bitcoin. Other example of bitcoin exchange platforms are Coinbase, Luno, Remitano. Remitano website allows you to easily swap your bitcoin to local currency paid directly to your local bank account.
Difference Between Bitcoin Trade, Investment And Exchange
Bitcoin trade are those users who wants to buy and sell bitcoin and make profit. Bitcoin investment are persons who don’t trade but they just buy, put in some website and wait for their profit. While bitcoin exchange involves swapping of bitcoin from one form to another. Could be local currency or some other cryptocurrency like Ethereum, Bitcoin Cash, Litecoin etc.
Bitcoin trade, investment and exchange is quite different. And we hope you have a better understanding on what they mean now. Also bitcoin trading platforms, investment platforms and exchange platforms also perform different jobs.
Knowing the differences should help you understand which platform you are using currently and how to make the best of it. Please use the share button below to share our posts on Facebook and Twitter.