Understanding this difference is key to avoiding unnecessary risks and making more informed decisions so you don't lose sleep or simply ALL your money.
You don't need any previous experience, but you do need an open mind and patience, as some strategies are safer and others much riskier.
Ways of operating in #Binance:
1. HODL (Investment)
Description: You buy a cryptocurrency, like Bitcoin, and simply keep it in your wallet for months or years.
Objective: To benefit from the long-term price increase.
Risk: Low compared to other strategies, but not free from market crashes.
2. Trading (Betting)
Description: Buy and sell cryptocurrencies quickly to take advantage of price increases and decreases.
Types on Binance:
Spot Trading: You trade cryptocurrencies directly without leverage.
Margin Trading: You use borrowed money to increase your profits (or losses).
3. Futures and Perpetuals (Betting)
Futures: Bets on the future price of a cryptocurrency with contracts that have an expiration date.
Perpetuals: Similar to futures, but with no deadline to close the contract.
4. Staking (Investment)
What it is: You lock your cryptocurrency on Binance to help validate transactions on a blockchain network, and in return, you receive rewards.
Example: Ethereum 2.0 Staking.
Objective: Generate passive income.
Risk: Medium. Your funds are locked for a period of time and price fluctuations may occur.
5. Binance Earn (Investment or Bet)
Fixed Savings (Investment): You deposit your cryptocurrencies and get guaranteed interest.
Flexible Savings (Investment): Similar, but you can withdraw your funds at any time.
High Risk Products (Betting): Options such as Dual Investments, which can be more lucrative but depend on market conditions.
6. Launchpad and Launchpool (Investment or Bet)
What it is: You participate in new cryptocurrency projects by contributing funds and, in return, you get tokens.
Risk: It depends on the project; some may be successful, while others may fail.
* If you have doubts about how to start with any of these strategies or simply want to try, limit yourself to exposing the minimum amount of capital possible to understand how it works and not burn all your money *
SUMMARY
1. HODL (Investment)
Buy cryptocurrencies and hold them for the long term, hoping they will increase in value.
Risk: Low.
2. Spot Trading (Betting)
Buy and sell cryptocurrencies directly on the market to take advantage of price movements.
Risk: Medium.
3. Margin Trading (Betting)
Using borrowed money to trade and amplify profits or losses.
Risk: High.
4. Futures and Perpetuals (Betting)
Speculating on the future price of a cryptocurrency, with or without an expiration date, using leverage.
Risk: Very high.
5. Staking (Investment)
Lock up cryptocurrencies to earn rewards, generating passive income.
Risk: Medium.
6. Binance Earn (Investment or Bet):
Fixed Savings: Deposit crypto to earn guaranteed interest.
Risk: Low.
High Risk Products: Products such as Dual Investments, with greater profit potential but greater risk.
Risk: High.
7. Launchpad and Launchpool (Mixed)
Participate in new projects in exchange for tokens. Success depends on the project.
Risk: Variable.
