Basically, a seller sells their currency to gain cash and a buyer buys expecting to hold the currency until its value increases relative to their native fiat currency.
As of the 1st of January 2022, the total market value of all cryptocurrency exceeded £2.5 trillion, with Bitcoin alone making up 40% of that.
People with a lot of faith in the future of cryptocurrencies subscribe to a ‘HODL’ mind set, meaning ‘hold on for dear life’ to the roller-coaster they expect to ride. They buy and do not intend to sell anytime soon, even claiming that the value of one Bitcoin could rise from £35,000 (as of 01/01/22) to over £250,000 in the next 3 years.
Others choose the day trading route; buy a currency, target a profit percentage as low as 2% and sell as soon as that target is reached, sometimes within hours. The crypto market is a great market to trade in this way due to its volatile nature. But please remember, you can make a fortune in days… but you can also lose a fortune in days too!