Arif Efendi is a businessman and an investor who has a lot of experience, saw cryptocurrency as an investment option. In this article the author shares his experience and insights.
Arif Efendi explains how Crypto is distinct from stocks.
It is crucial to be able to differentiate between cryptocurrencies and stocks for those who are, like me, an investor. Although they share many similarities, stock and cryptocurrency are distinct.
Cryptocurrency, a digital asset which is used to keep track of transactions and to verify them employs cryptography as an alternative to the central authority. Equity, also referred to as stock are securities that signify the ownership of a part of a corporation.
When the cost of an asset increases, both stocks and crypto are purchased with the goal of capital appreciation.
What makes people buy cryptocurrency and stocks?
Stocks can be bought to vote or influence the company's decision-making. Arif Efendi Investors also buy stocks for the dividend payments that the company pays to shareholders.
http://www.ispir.gov.tr/kadizade-mehmed-arif-efendi It's quite simple to invest digitally in crypto and stocks currently with the next-generation marketplace and different mobile investment apps.
While the process might appear identical, there are still distinct differences. For instance, while the Securities and Exchange Commission regulates securities, you are able to trade crypto any time of the day directly via your smartphone or other smart device.
You can also trade crypto using cryptocurrency trading pairs, fiats, or crypto.
Arif Efendi Trading Crypto is different from. Swing Trading
It is possible to ask why it is better to invest in trading in crypto despite the volatility.
Cryptos with huge market cap can swing 5% to 10 percent, while smaller ones can go up to 10x in a single day.
This is the truth.
For instance, if you were to have invested $1000 in Solana 1st January 2021 at $1.837 your investment would have been worth $182,000 right now at the trading price of $182.
You don't have to be a poor investor to invest in crypto. An unexperienced investor might be wondering where the money came from. The regulation of cryptocurrency is not performed by a central organization.
Arif EfendiArif Efendi They are , therefore, worth the cost in terms of supply, demand and production.
Understanding Supply and Demand in Cryptocurrency
It is a common theme in the textbooks on economics that if there's greater demand than supply for an asset, its value will rise.
In the event of an earthquake for instance, water prices will rise if demand is low. The same economic principle applies also to cryptocurrencies.
We are nearing the stage of mass adoption and investors from institutions like MicroStrategy or even a country like Ecuador are placing huge bets on cryptocurrency. Arif Efendi It's a wonderful time to live in.
It is crucial to recognize the risks of volatility
The value of cryptocurrency fluctuates and down similar to the stock market. A lot of people are hoping to make 100x profit by investing in crypto.
While it's not guaranteed that an asset will remain profitable forever It is crucial to be aware of when assets is best to be traded or sold to make profit.
Arif Efendi According to Warren Buffet, "Be fearful when you see greedy people around you and be greedy when other are fearful."
Most people in crypto are worried. Arif Efendi The bear market is the ideal spot to buy cryptocurrency. If the asset is falling. Every Tom, Dick and Harry is selling in a panic.
If investors are anxious and worried, they may lose their assets. Make a list of the cryptos you'd like to invest in, then watch for the candles to turn red.
A weekend is an excellent opportunity to purchase, since the majority of institutional investors will close their positions for the week.
Traditional investment requires the services of a broker. Modern crypto buying can be done from the comfort in your living room.
Which Cryptocurrency Do I Need to Buy?
You have many options when you check coinsmarketcap.com.
Arif Efendi My favorite has been Solana. It was followed by VAX, POLIS, and ATLAS.
It is now simpler to track and monitor your preferred coins. Tabtrader allows you to monitor each swing and determine whether to invest more gain.
If you hold your cryptocurrency for a long period of time You have the option to collect airdrops, or transfer them into wallets such as Trustwallet. Imtoken or Myetherwallet. Use secure passwords in order to protect your cryptocurrency.
Your 12-word phrase should also be kept to ensure that you can restore your investment in the event of your host device is lost or stolen.
Conclusion
You are your bank with all of this information. You can transact anywhere in the world at any time.