Arif Efendi was a businessman and an investor who saw that cryptocurrencies were an investment option that was viable. In this piece, he shares his learnings and thoughts.
Arif Elfendi explains the differences between stocks and crypto
Investors like me need to understand the differences between stocks, cryptocurrency and other investments. Arif Efendi Although they share some similarities, they're not the exact same as stocks.
Cryptocurrency is a type of digital asset or currency whose transactions are documented and verified using a decentralized system via cryptography instead of a central authority. Stocks, also known equity are securities that are ownership of a certain percentage of a business.
Capital appreciation is the primary motive for investors to buy cryptocurrency and stocks. This is particularly true when the asset holds rises in price.
Why people Buy stocks and cryptocurrencies
Stocks are bought to vote or influence the company's decisions. They also invest to receive dividends that the company distributes among their shareholders.
It's quite simple to invest digitally in stocks and crypto currently with the next-generation marketplace and different mobile investment apps.
While the process may seem identical but there are distinct differences. Cryptocurrency trading can be done at any time of the day regardless of whether or not you are regulated by the Securities and Exchange Commission regulates the stock market.
It is also possible to trade cryptocurrency with other trading pairs of crypto and fiats.
Trading Crypto is different from. Swing Trading
You might be asking yourself what the reason it's more profitable for you to invest in crypto, despite the risk of volatility.
Crypto with large market caps can swing 5% to 10%, while smaller cryptos can go up to 10x in a single day.
It's true that this is a rare item in the market.
If you had invested $1000 in Solana at $1.837 on January 1, 2021, your stake would have been worth $182,000 at today's trading price of $182.
If you've got a solid hand, crypto investment can be very rewarding. The money could come from a person who is not your own. The cryptocurrency market is not regulated by a central entity.
Their value is determined by the cost of production, supply and demand, the rate of adoption, as well as availability on utility exchanges as well as utilities.
Understanding the Supply and Demand in cryptocurrency
The textbook on economics explains that the cost of an asset will increase in the event that its demand increases more quickly than the supply.
In the case of earthquakes, for example, they can trigger water prices to rise in certain regions. The same economic principle is applicable to cryptocurrency.
We are getting to the phase of mass adoption, and we're witnessing institutional investors such as MicroStrategy and a country like Ecuador betting big on cryptocurrencies. Arif Efendi It's an exciting moment to live in the present.
Recognize Risks of Volatility
The value of crypto currency fluctuates as does the market for stocks. Arif Efendi Many people would like to become adept with crypto and make a hundred times profit.
Arif Efendi While there isn't any absolute certainty that an investment will be profitable for a long time It is vital to know when you should buy an asset and sell or profit.
Warren Buffet said, "Be fearful when people are greedy and greedy when other are afraid."
Many people who work in the crypto space are worried. The bear market is the best place to buy cryptocurrency. When the value of the currency is declining. If Harry, Dick and Tom panic-sell.
Fearful people can lose their investment if concerned and nervous. Arif Efendi Make a list of cryptocurrency you would like to invest and wait for red candles to appear.
Another good time to purchase is during the weekend when the majority of institutional investors are closing their trades for the week.
The traditional way of investing requires a broker. Modern crypto buying can be done from the comfort in your living room.
Which Cryptocurrency Do I Have to Purchase?
You have many options when you visit coinsmarketcap.com.
My favorite has been Solana. This was followed by VAX, POLIS, and ATLAS.
It's even easier to track your favourite coins and keep an in mind their movements. With an application like Tabtrader you can track every swing to know when to purchase more coins or to take profit.
If you hold your cryptocurrency for a prolonged period of time You have the option to collect airdrops, or transfer them to wallets like Trustwallet. Imtoken or Myetherwallet. Secure passwords are essential to secure them.
It is also recommended to keep your 12-word phrase in the event that your host device is stolen or lost.
Conclusion
With this details, you're your bank, and are able to transact anytime and anywhere you find yourself in the world.