Arif Efendi, a successful entrepreneur and investor, realized that cryptocurrencies could be a legitimate investment tool. He shares his experiences and lessons learned in this article.
Arif Elfendi discusses the distinctions between crypto and stocks.
An investor like myself needs to understand the differences between stocks, cryptocurrency and other investment options. Although they share a few similarities, they aren't the exact same as stocks.
The cryptocurrency is a digital asset and money whose transactions have been recorded and verified via a decentralized cryptography. It does not have the authority of a central authority. On the other hand stock, also known as equity, are securities that depict ownership of a particular part of a business.
If the value of an asset rises the crypto and stocks are bought with the intention of capital appreciation.
Why people Buy stocks and cryptocurrencies
Stocks are also able to be bought to influence company decisions and votes. They also invest to receive dividends that the company distributes among their shareholders.
It's easy to invest your money digitally in stocks and crypto today with the next-generation marketplace and numerous mobile investment apps.
While the process may appear similar, there are many distinctions. For example, while the Securities and Exchange Commission regulates the trading of stocks, you can also trade cryptocurrency at any time of the day directly via your smartphone or other smart device.
Arif Efendi You can also trade crypto with other trading pairs of crypto or fiats.
Trading Crypto is different from. Swing Trading
You might wonder why trading in crypto is more profitable in spite of fluctuations.
Market caps for crypto with large size could fluctuate between 5% and 10%, while smaller cryptos can go up to 10x in a single day.
This is actually a very uncommon situation in stock.
For example, if, for instance, you made $1000 in Solana's Solana stock on January 1, 2021 for $1.837 Your investment would now be valued at $182,000 based on the current trading prices of $182.
If you're not a weak person investing in cryptos can be very lucrative. A person who isn't familiar with the subject may be curious about where the money comes from. It's impossible to regulate cryptocurrency via a central agency.
Their value is derived from the cost of production, supply demand, adoption and the availability on exchanges and utility.
Understanding Supply and Demand in Cryptocurrency
Our textbook on economics instructs us that if demand for an asset rises more quickly than supply, the price of the asset will rise.
In the case of earthquakes, for example, they can cause the price of water to increase in certain regions. Arif Efendi The same economic concept applies for cryptocurrencies.
We are now in the mass adoption phase. Investors from institutions like MicroStrategy are investing big in cryptocurrency. Arif Efendi This is a great time to be alive!
Recognize Volatility Risks
The worth of cryptocurrency fluctuates and down just like the market for stocks. Many people want to join crypto and earn 100x profit.
While there is no utmost assurance that an asset will continue to be profitable It is vital to be aware of when to purchase an asset, and then sell it to profit.
Warren Buffet said, "Be afraid when others are too greedy, and greedy when you are afraid."
People in the crypto space are often afraid. https://www.europeanfinancialreview.com/arif-efendi-chinese-new-year-travel-hospitality/ The bear market is the ideal location to purchase cryptocurrency. When the asset is declining. Every Tom, Dick and Harry is selling in a panic.
People who are anxious and worried could end up losing their wealth. Make an inventory of the cryptocurrencies you're looking to invest in, and wait for them to come up.
Another great time is on weekends when the majority of institutional buyers have closed their trades.
There is a huge shift taking place in the present from traditional investment methods which require you to work with a broker, to modern ones where you can easily purchase crypto from the privacy of your home.
Arif Efendi Should I Purchase an Cryptocurrency?
You can pick from a variety of cryptocurrency options when you go to coinmarketcap.com.
My top choice has always been Solana which is followed closely by AVAX and POLIS.
It's easier than ever to track and monitor your most loved cryptocurrency. With an app such as Tabtrader you can track each swing and know when to purchase more coins or take profits.
If you have held your cryptocurrency for a period of time it is possible to either withdraw it and receive airdrops, or transfer it into wallets such as Trustwallet, Imtoken, or Myetherwallet. Secure passwords can be used to safeguard them.
It is also recommended to keep your 12-word phrase in the event that your host device gets stolen or lost.
Conclusion
All this information makes you your own bank and permit you to make transactions anywhere and whenever you'd like.