Arif Efendi, an experienced businessman, and investor recognized that cryptocurrencies have become an investment asset. In this article he shares his lessons and insights
Arif Emendi explains what is the difference between stock and Crypto
Investors like me need to know the difference between stocks and cryptocurrency. The two have a few similarities, but they aren't identical.
A cryptocurrency is a digital currency , or an asset which can be verified and recorded via an independent system by means of cryptography . This replaces the central authority. In contrast, stocks, also called equity are securities that represent ownership of a part of a firm.
With capital appreciation in mind, when buying crypto or stocks, and especially when prices rise individuals tend to purchase both.
Why do people buy cryptocurrency and stocks
Stocks are bought by people to vote for company decisions. Arif Efendi They may also invest in stocks to earn dividends from the company.
https://www.amazon.com/Mֳ¼badele-Sֳ¼recinde-Selanikli-Mustafa-Efendi/dp/6257900778 It is very simple to invest your money digitally into stocks using the next-generation platform, as well as other investment apps.
However, the procedure may appear similar, but there are still some notable differences. The Securities and Exchange Commission regulates stocks. But, trading with crypto is accessible from any smartphone or smart device anytime.
It is also possible to trade with crypto trading pairs or fiats.
Trading Crypto vs. Swing Trading
You might be wondering why it's better to invest in trading cryptocurrency regardless of the volatility.
Large market cap cryptos could have a swing of between 5 to 10%. Less popular cryptocurrencies, however, can increase 10 times per day.
This is actually a very rare situation in stocks.
If you had invested $1000 in Solana at $1.837 on January 1, 2021 the stake would have been worth $182,000 at today's market price of $182.
There is no need to be a weak investor in investing in crypto. A person who isn't familiar with the subject may be curious about how the money is made. There is no central authority that regulates cryptocurrency.
Therefore, their value stems from the cost of production, supply demand, adoption and availability in exchanges and utility.
Understanding Demand and Supply in Cryptocurrency
The textbook on economics explains that the cost of an asset will increase if its demand grows more quickly than the supply.
In the event of an earthquake at a particular place, the price of water will rise even when the demand is not changing. The same economic principle applies to cryptocurrency.
We are nearing the stage of mass adoption. This is when we see institutional investors such MicroStrategy as well as nations such as Ecuador making big bets on crypto. It's a wonderful time to be alive!
https://www.alamy.de/stockfoto-hilye-bakkal-ahmed-arif-efendi-139964997.htmlhttps://acikbilim.yok.gov.tr/handle/20.500.12812/534637 Be aware of the volatility risks
Similar to the stock exchange The value of cryptocurrency changes. A lot of people want to get into crypto and earn 100x earnings.
There is no guarantee that an asset's profitability will be constant, however it is important to be able to identify the time to dispose of an asset, or to make an income.
Warren Buffet stated, "Be cautious when you see others being greedy, and be greedy whenever you see others being afraid."
People in the crypto space are usually scared. The ideal time to purchase cryptocurrency is during the bear market. If the price of the cryptocurrency is declining. If every Tom, Dick and Harry is panic-selling.
Fearful people can lose their investment if they're nervous and worried. Create a list of cryptocurrencies that you want to invest in and then wait for the candle to light up red.
The weekend is the perfect time to buy, as most institutional investors will close their positions for the week.
We are witnessing a shift away from traditional investment methods that require a broker to be mandatory, to newer methods, where you can buy crypto from your home.
What Cryptocurrency should I buy?
You can choose from many cryptocurrency options when you go to coinmarketcap.com.
My favorite choice has always been Solana and is followed closely by AVAX and POLIS.
It's even easier to track your favorite coins and keep an eye on them. Tabtrader allows you to monitor each movement and decide the best time to invest or gain.
https://www.dreamstime.com/arifefendi280_info If your cryptocurrency has been held for a while, it is possible to take airdrops and transfer the coins to accounts. Trustwallet. Imtoken. Arif Efendi Myetherwallet.
It is also important to record your 12-word phrase to be able to restore your asset in case your host device gets missing or stolen.
Conclusion
By this, the bank you use is yours. You can conduct transactions anywhere on the planet at any time.