Arif Efendi is a veteran investor and businessman who realised that cryptocurrency was an acceptable investment asset. In this article the author shares his experience and thoughts.
Arif Emendi clarifies the differences are between shares and Crypto
Understanding the distinction between stock and cryptocurrency is essential if you're an investor like me. Cryptocurrencies and stocks share some similarities though they are not identical.
Cryptocurrency, a digital asset that is used to keep track of transactions and to verify them, uses cryptography as an alternative to the central authority. Arif Efendi Equity, also referred to as stock, are securities that represent ownership of a certain percentage of a company.
With the thought of capital appreciation in mind, when buying crypto or stocks, and especially when the asset's price rises individuals tend to purchase both.
Why Do People Purchase Stocks and Cryptocurrencies?
Stocks can be purchased for voting or to influence company decision-making. They may also invest in stocks to collect dividends from companies.
It is quite easy to invest your money digitally in stocks and crypto right now with the next-generation marketplace and numerous mobile investment apps.
Although the process is similar but there are some important distinctions. You can trade cryptocurrency any time you want, even though the Securities and Exchange Commission regulates stocks.
Trade crypto with fiats , or other crypto trading pairs.
Trading Crypto Vs. Swing Trading
You might be wondering why trading in crypto is so profitable, despite its volatile nature.
You can see an 5%-10 percent swing in cryptos with an enormous market cap even smaller cryptos can reach 10x per day.
It's true that this is a rare item in the market.
Arif Efendi For example, if you were to have invested $1000 in Solana 1st January 2021, at $1.837 the investment would be valued at $182,000 today at the current trading price of $182.
If you're not afraid investing in cryptos can be very profitable. An uninitiated person may be curious about where the money comes from. There is no central authority that oversees cryptocurrency.
Their value is therefore determined by the costs of production as well as demand and supply acceptance, and availability on utility exchanges as well as utilities.
Understanding the Supply & Demand in Cryptocurrency
We know from the textbooks on economics that if there is more demand than supply for an asset, its value will rise.
For example when there is an earthquake in a location where water is needed, the cost will rise even if the demand for water is not changing. Arif Efendi This same economic principle applies to cryptocurrency.
Arif Efendi We are in the mass adoption phase, and we're seeing institutions investors like MicroStrategy as well as a country such as Ecuador investing heavily in cryptocurrency. It's a great time to live in the present.
Recognize the Risks of Volatility
The market for cryptocurrency is just like the stock markets. Its value can fluctuate . Many people are eager to invest in crypto and make 100x profits.
Although it is not certain that an investment will be profit-making for the rest of its life it is essential to know when an asset is best to be removed from profit or sold.
Warren Buffet once said, "Be afraid of being greedy and be greedy when others are scared."
Cryptocurrency enthusiasts tend to be scared. The bear markets are the best times to make investments in crypto. When the price of cryptocurrency falls. If Harry, Dick and Tom panic-sell.
If investors become worried and fearful, they could be unable to hold their assets. Keep track of which cryptocurrencies are most appealing to you and watch for the red candle to light up.
A weekend is an excellent time to buy, as the majority of institutional investors will be closing their trades for the week.
https://www.youtube.com/channel/UCP-9vZiZCl4U3_Cl17TAw-Q There is a massive shift taking place in the present from traditional investment strategies where you need to work with a broker, to modern ones where you can easily purchase crypto from the privacy of your own home.
What Cryptocurrency Should I Purchase?
There are a variety of cryptocurrencies to select from if you go to coinmarketcap.com.
My top choice was Solana. Arif Efendi POLIS, AVAX and ATLAS were in close proximity.
It's also easy to track your favourite coins and keep an an eye on them. Tabtrader makes it easy to keep track of each move, and when you should purchase more.
If you have your crypto for a lengthy period of time then you can choose to either collect airdrops or transfer them to wallets like Trustwallet. Imtoken or Myetherwallet. Use secure passwords to secure your cryptocurrency.
It is important to record your 12-word phrase to be able to restore your asset in case the host device is lost or stolen.
Conclusion
Your bank has all of this data. Make transactions wherever you are around the globe at any time.