Arif Efendi was an investor and businessman who recognized that cryptocurrencies could be an investment opportunity. In this article, he shares his learnings and thoughts.
Arif Emendi clarifies what is the difference between stock and Crypto
An investor like myself needs to know the differences between stocks, cryptocurrency and other investment options. Stocks and cryptocurrencies share many similarities, but they aren't the same.
Cryptocurrency, a digital asset which is used to record and verify transactions employs cryptography as an alternative to the central authority. In contrast stock, also known as equity are securities that show ownership of a particular part of a firm.
If the value of an asset is rising both crypto and stocks are bought with the intention of capital appreciation.
Why do people buy stocks and cryptocurrencies
Stocks are bought by investors who purchase stocks to be able to vote and influence decisions of the company. Additionally, they invest in order to earn dividends, which the company distributes among their shareholders.
It's easy to invest your money digitally in crypto and stocks today with the next-generation marketplace and numerous mobile investment apps.
It might appear to be the same but there are significant differences. For instance, while the Securities and Exchange Commission regulates securities, you are able to trade crypto at any time of the day directly via your smartphone or other smart device.
You can also trade crypto with crypto trading pairs, fiats, or crypto.
Trading Crypto vs. Swing Trading
It is possible to wonder why it's more profitable trading crypto, despite the high volatility.
You can see the 5% to 10 percent swing in cryptos with an enormous market cap even smaller cryptos can reach 10x in a particular day.
https://www.scienceworldreport.com/articles/62025/20230306/arif-efendi-explains-why-reliance-on-renewable-energy-is-arriving-quickly.htm This is actually a very unusual situation in the stock market.
For example, if you were to have invested $1000 in Solana 1st January 2021, at $1.837 the investment would be worth $182,000 at the price of trading of $182.
It can be extremely rewarding investing in crypto if you don't have weak hands. https://find-and-update.company-information.service.gov.uk/officers/Ey_lyqyWi7zYIDz6gqhtbb_89cc/appointments An uninitiated person might be interested in knowing where the money comes from. It is not possible to regulate cryptocurrency from a central agency.
Thus, their value comes down to the cost of supply and production as well as the demand and acceptance.
Understanding Demand and Supply in Cryptocurrency
The textbook of economics tells us that the cost of an asset can rise in the event that its demand increases faster than its supply.
If there's an earthquake at the area that is affected by water, the price of water will go up if the demand for the water is not. The same economic concept applies to cryptocurrency.
We are in the mass adoption phase, and we are seeing institutional investors like MicroStrategy as well as a country such as Ecuador betting big on cryptocurrencies. It's a wonderful time to live in the present.
Recognize the Risks of Volatility
The worth of crypto goes up and down similar to the stock market. Many are keen to invest in crypto and make 100x profits.
While there is no utmost assurance that an investment will always be profitable however, it is essential to know when you should buy an asset and sell or take profit.
According to Warren Buffet, "Be fearful when other people are greedy, and be greedy when others are afraid."
Most people who work in the crypto market are afraid. Arif Efendi Bear markets are the best place to buy cryptocurrency. When the asset is going down. If Harry, Dick, or Tom are in panic selling.
Arif Efendi If investors are anxious or scared, they may lose their holdings. You should make a list of cryptocurrency you would like to invest and wait for candles to light red.
Another option to buy is on weekends, when institutional investors close their trading for the week.
There is a massive shift happening right now from traditional investment strategies which require you to work with a broker to newer methods where you can easily buy crypto from the privacy of your home.
Arif Efendi Which Cryptocurrency Should I Buy?
You can pick from a variety of different cryptocurrencies when you visit coinmarketcap.com.
My favorite has been Solana. This was followed by VAX, POLIS, and ATLAS.
It's now easier than ever before to monitor and track your preferred currency. Tabtrader is an app which lets you track every single swing to determine when it's time to make a profit or invest in more.
If you've been holding your cryptocurrency for an extended period of time, you could use it to collect airdrops, or transfer them to wallets like Trustwallet, Imtoken or Myetherwallet and make sure you use secure passwords to safeguard your coins.
Also, keep your 12 words handy so that you can retrieve your valuables in the case of a host device becoming lost or stolen.
Conclusion
With this information, you are your bank, and you are able to transact anytime and anywhere you find yourself in the world.