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Crypto Trading vs Crypto Network, the key differences include primary objectives, risks, and more

Crypto Trading is buying and selling cryptocurrencies on various exchanges to make a profit. Whereas, a crypto network is the underlying technology and infrastructure that supports cryptocurrencies. Both have some key differences as they are different aspects of the Cryptocurrency ecosystem.

The aim of crypto trading is short-term strategies including profit generation. On the other hand, the crypto network aims to provide a decentralized platform for secure transactions. For trading cryptocurrency, the steps to be followed are creating an account, linking the bank account to the crypto wallet, choosing the right Cryptocurrency to invest in, and starting trading. Since Cryptocurrency is decentralized, it can be digitally stored in blockchain networks. Block technology used by crypto networks supports cryptocurrency transactions and Bitcoin became the first crypto network that dominated the market followed by Ethereum and Litecoin. The key difference between Crypto trading and Crypto Networks are discussed below:

Crypto Trading and Crypto networks have different primary objectives. Trading crypto focuses on profit generation where traders make gains by predicting and exploiting market movements. It employs short-term strategies to maximize returns. In the case of a crypto network, to conduct a transaction, it provides a secure and decentralized platform that operates without intermediaries.

Crypto trading is a fast process on a short-term basis. Within a few minutes or hours or days or weeks, trading takes place with maximum return. Traders have a clear idea of when to enter and exit trades by analyzing charts, indicators, and market trends. Whereas, a crypto network is long-term to build sustainable infrastructure taking a long period. The longevity and viability of the network is important. To ensure this, these networks work in developing protocols, governance models, etc.

The crypto market is subject to changes and so the risk is a factor to be considered. Crypto trading involves risks due to price fluctuations, market manipulations, and operational risks. Therefore, risk management strategies are to be implemented to manage risk exposure. On the other hand, crypto network faces risks related to scalability challenges, security vulnerabilities, and more.

Also, the proficiency to understand crypto trading and crypto network differ significantly.