Arif Efendi a successful businessman and investor has realized that cryptocurrencies could be an investment tool. Here are his insights and lessons.
Arif Efendi discusses the reason Crypto is different from stocks.
It is vital to know the difference between cryptocurrency and stock If you're like me an investor. https://www.amazon.com/Mֳ¼badele-Sֳ¼recinde-Selanikli-Mustafa-Efendi/dp/6257900778 The two have a few similarities, even though they're not the same.
Cryptocurrency, a type of digital asset which is used to keep track of transactions and to verify them employs cryptography as an alternative to the central authority. Stocks, also known as equity, are securities which represent ownership in a part or company.
If the value of an asset is rising both crypto and stocks are purchased with the goal of capital appreciation.
Why people Buy Stocks and Cryptocurrencies
Stocks are bought by people who vote on company decision-making. They also invest in shares to receive dividends that the company distributes to its shareholders.
It's simple to invest now in shares and crypto using the next-generation marketplace.
The process may appear similar, but there are important differences. It is possible to trade cryptocurrency at any time you'd like, even if the Securities and Exchange Commission regulates the stock market.
You can also trade crypto using other trading pairs of crypto or fiats.
Trading Crypto is different from. Swing Trading
Now you may wonder what the reason it's more profitable to trade in crypto despite the volatility.
The largest market cap cryptocurrency could have a swing of between 5 to 10 percent. Smaller cryptocurrency, however, may increase 10 times every day.
Arif Efendi It's the truth.
If you had $1000 invested in Solana at $1.837 1st January 2021 Your stake would have been worth $182,000 at today's price of $182.
If you're not afraid, crypto investment can be very lucrative. The money can be from a foreign source. It is not possible to regulate cryptocurrency through an authoritative central authority.
Therefore, their value stems from the cost of production, supply demand, adoption and availability on exchanges and utilities.
https://islamansiklopedisi.org.tr/abdulbaki-arif-efendi Understanding the Supply of Cryptocurrency and Demand
Our economics textbook instructs us that if the demand for an asset rises more rapidly than supply, the asset's price will also rise.
If there's an earthquake at an area that is affected by water, the price of water will rise if the demand for it is not. The same principle of economics is applicable to cryptocurrency.
Arif Efendi We are nearing the mass adoption phase. This is where we witness institutional investors like MicroStrategy as well as nations like Ecuador placing huge bets on cryptocurrency. It's a wonderful time to live in.
It's important to recognize the potential risks associated with volatility
The cost of crypto fluctuates exactly the same way as the stock market. Many people are eager to invest in crypto to earn 100x profit.
While it is unlikely that the asset will be profitable however, there are times when it is worth the effort to buy an asset, and then either sell it or profits.
Warren Buffet stated, "Be cautious when you see others being greedy, and be greedy whenever others are afraid."
Many people in the cryptocurrency sector are scared. The bear markets are the best times to invest in crypto. When the value of the currency is declining. If Harry, Dick, or Tom are panic-selling.
If investors are anxious or fearful, they could lose their holdings. Create a list of cryptocurrency you would like to invest in, and keep an eye out for red candles.
Another option to buy is on weekends, since institutional investors close their trading for the week.
There is significant change in the way we invest. Instead of requiring the services of a broker, you are able to buy crypto in your home.
Which Cryptocurrency Do I Need to Purchase?
Visit coinmarketcap.com to see the various cryptocurrencies that you can select from.
My personal favorite was Solana. It was followed by VAX, POLIS, and ATLAS.
It's even easier to monitor and track your preferred coins. Tabtrader allows you to keep track of each move and determine when you need to purchase more.
Arif Efendi If you've been storing your cryptocurrency for a while and you're able to take it and get airdrops. You can also transfer them to wallets such Trustwallet or Imtoken and then create passwords that are secure to keep them safe.
Keep your 12-word phrase in mind so that you can retrieve your valuables in the scenario of the host device getting lost or taken.
Arif Efendi Conclusion
All this information will make you your bank and allow you to make transactions anywhere and anytime you want.