Arif Efendi, a seasoned investor and businessman, realized that cryptocurrencies had become a legitimate investment option. Here are his insights and lessons.
Arif Elfendi explains the differences between stocks and crypto
It is essential to know the difference between stock and cryptocurrencies If you're like me who is an investor. Although they have several similarities, stocks and cryptocurrencies differ.
Arif Efendi The term "cryptocurrency" refers to a type of digital currency , or an asset which can be verified and recorded by an independent system through cryptography . This replaces the central authority. Stocks, also known as equity, are securities that are a representation of ownership in a particular part or company.
Stocks and crypto with capital appreciation in mind in particular when the currency held rises in prices.
Why Do People Buy Stocks and Cryptocurrencies?
Stocks are purchased by individuals to vote in the company's decisions. Additionally, they invest in order to earn dividends that the company distributes to its shareholders.
It's easy to invest digitally in stocks by using the next-generation platform as well as other mobile investment applications.
Although the process might look similar, there are many variations. For instance, while the Securities and Exchange Commission regulates stocks, you can trade crypto anytime throughout the day via your smart phone or smartphone.
It is also possible to trade with crypto trading pairs or fiats.
Arif Efendi Trading Crypto is different from. Swing Trading
You might be asking yourself why trading crypto is so profitable despite its volatility.
It is possible to see the 5% to 10% swing on crypto with the largest market cap while smaller cryptocurrencies can achieve 10x in a particular day.
This is a unusual situation in the stock market.
Here's an example of this: If you had put $1000 on Solana It would be worth $182,000 today at the price of $182.
Arif Efendihttps://twitter.com/ArifOUO/status/1733449376251380102 It's not necessary to be a bad investor in crypto investing. Arif Efendi The money may come from a stranger. There is no central authority that oversees cryptocurrency.
Production costs, supply, and demand are the primary factors that determine their value.
Understanding Supply and Demand in Cryptocurrency
The economics textbook tells us that the cost of an asset will rise when demand for it grows faster than its supply.
If there is an earthquake for instance the price of water will increase when demand is low. The same economic principle applies for cryptocurrencies.
We are getting to the phase of mass adoption, and we're seeing institutions investors like MicroStrategy and a country like Ecuador betting hugely on cryptocurrency. It's an exciting moment to be alive.
It's crucial to be aware of the risks of volatility
Cryptocurrency's value fluctuates just like the market for stocks. A lot of people want to invest in crypto and make 100x profits.
It is not guaranteed that an asset's profit margin will remain constant, but it is crucial to know when to sell an asset or earn an income.
Arif Efendi Warren Buffet once said, "Be be wary of other people being greedy and be greedy when others are scared."
Most people in crypto are scared. Arif Efendi The ideal time to purchase cryptocurrency is in the bear market. When the asset is going down. Panic-selling happens when there's no Harry, Dick or Tom.
If individuals become stressed and afraid, they may be unable to hold their assets. Be aware of which cryptocurrency are most appealing to you and watch for the candle in red to light up.
Another good time to invest is on weekends when the majority of institutional buyers have closed their trades.
Right now, we are seeing a massive shift from the traditional ways of investing, in which you need a broker, to a new method where you can purchase crypto from the comfort of your own home.
Which Cryptocurrency Should I Buy?
Visit coinmarketcap.com to see a list of cryptocurrencies that you can select from.
My top pick always has been Solana (SOL), followed by AVAX, POLIS and ATLAS.
It's also easier to keep track of your favorite coins and keep an eye on them. Tabtrader allows you to monitor each swing so that you can decide when to profits or purchase more.
Arif Efendi If you have your cryptocurrency for a prolonged period of time, you have the option to either collect airdrops or transfer them to wallets like Trustwallet. Imtoken or Myetherwallet. Secure passwords are essential to secure your cryptocurrency.
It is also important to save your 12-word password to be able to restore your valuable asset should your host device goes missing or is stolen.
Conclusion
With all this information, you are your own bank and can transact at any time and anywhere you find yourself in the world.