Arif Efendi was an investor and businessman who saw that cryptocurrencies were an investment option that was viable. Here are his insights and lessons.
Arif Emendi explains the differences are between shares and Crypto
Understanding the difference between stock and cryptocurrency is essential if you're an investor just like me. While they have some similarities, they aren't exactly the same as stocks.
Cryptocurrency is a digital asset that is used to record and verify transactions utilizes cryptography as an alternative to an authority central to. Equity, also referred to as equity, are securities that symbolize ownership of a portion or company.
Capital appreciation is a key reason for people to invest in crypto and stocks. This is especially true when the asset holds rises in price.
Why people Buy Cryptocurrencies and Stocks
Stocks can be purchased for voting or to influence company decisions. Also, they invest to receive dividends which the company distributes to their shareholders.
It is easy to invest online in crypto and stocks through the new generation marketplace and various mobile investment apps.
However, the process might look similar, but there are still certain variations. It is possible to trade cryptocurrency at any time you want, even though the Securities and Exchange Commission regulates stocks.
You can also trade crypto with other trading pairs of crypto or fiats.
Trading Crypto and. Swing Trading
You might be asking yourself why trading cryptocurrency is so profitable despite its high volatility.
Arif Efendi With a huge market capitalization, you can expect an increase of 5% to 10% in the crypto. However, smaller cryptocurrencies might be able to achieve 10x or higher every day.
This is a scarce stock.
For example, if you had invested $1000 in Solana on January 1, 2021 at $1.837, your investment would have been worth $182,000 right now at the trading price of $182.
Crypto investment can be that rewarding if you are not a weak hand. The money may come from a stranger. No central institution regulates cryptocurrency.
Their value is therefore determined by the costs of production as well as demand and supply acceptance, and the availability of utility exchanges as well as utilities.
Understanding Cryptocurrency Supply and Demand
The economics textbook tells us that the price of an asset will increase in the event that its demand increases more rapidly than its supply.
For example, if 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 The same economic concept is applicable to cryptocurrencies as well.
https://www.facebook.com/public/Arif-Efendi We are getting closer to the phase of mass adoption. We see institutional investors such MicroStrategy and countries like Ecuador placing big bets on cryptocurrency. This is an exciting time to live in.
It's important to recognize the Risks of Volatility
Similar to the stock exchange, cryptocurrency's value changes. Many people want to make 100x profit by investing in crypto.
Although there isn't a 100% assurance that an investment will always be profitable It is vital to know when you should buy an asset and when to sell it or take profit.
Warren Buffet says, "Be afraid if other people become greedy. Be greedy when other people are afraid."
Most people who work in the crypto market are afraid. A bear market is the ideal time to invest in cryptocurrency. When the asset goes down. If Harry, Dick and Tom panic-sell.
When people are fearful and worried, they may lose their investments. Create a list to identify cryptocurrency you would like to invest and wait for the red candles to show up.
An ideal time to invest is the weekend, as most institutional investors have closed their trades.
At present, we're witnessing a major shift away from traditional methods of investing, which requires you to require a broker to a more modern method, where you can purchase crypto from the comfort of your own home.
Arif Efendi Should I Purchase a Cryptocurrency?
If you visit Coinmarketcap.com, there are numerous cryptocurrencies on offer.
My top pick was Solana. POLIS followed by AVAX and ATLAS.
Arif Efendi It is even easier now to monitor and track your favorite coins. Tabtrader allows you to keep track of each move and determine when you need to buy more.
If you've held your crypto for a long time, you can either take the cryptocurrency and get airdrops or move them into wallets such as Trustwallet, Imtoken, or Myetherwallet. Secure passwords can be used to safeguard their users.
Keep your 12-word phrase in mind in case you need to locate your asset in the case of a host device getting lost or stolen.
Conclusion
All this information makes you your bank account and enable you to transact anywhere and anytime you want.