Investing in cryptocurrencies was a legitimate investment asset for businessman and investor Arif Efendi. Through this article, he shares some of his lessons and insights.
Arif Efendi compares Cryptocurrency and Stocks
Efendi starts by saying that you ought to understand the difference between Cryptocurrency and stock. Although they aren’t the same, cryptocurrencies and stocks, have similar characteristics.
In place of a centralized authority, cryptography records and verifies transactions in a decentralized system. In contrast, stocks are securities that represent ownership of a part of a company.
People buy stocks and Crypto with capital appreciation, especially when the asset-held price rises.
Stocks and Cryptocurrency: Why do people buy them?
In the case of stocks, people buy them to vote and affect company decisions. Also, they invest in stocks for dividend payments that the company distributes to its shareholders.
Investing digitally in Crypto and stocks has never been easier, thanks to the next-generation marketplace and different mobile investment apps.
Although the process may appear the same, some significant differences remain. The Securities and Exchange Commission regulates the trading of stocks, but you can trade Crypto directly from your smartphone or smart device.
In addition, you can trade Crypto with other crypto trading pairs or fiat currencies.
Arif Efendi Talks Swing vs. Crypto
In light of the volatility, you may wonder why it is more profitable to trade cryptocurrencies.
With its large market cap, Crypto can move by 5% to 10%. In a single day, smaller cryptocurrencies can jump by 10x.
In the stock market, this is extremely rare.
In 2021, if you had invested $1000 in Solana at $1.837, your investment would be worth $182,000. That investment would be at the current trading price of $182.
Investing in cryptocurrency can be rewarding if you are not a weak hand. Cryptocurrencies might seem confusing to beginners, but any central authority does not regulate them.
Cost, supply, demand, adoption, and availability on exchanges determine the product’s value.
How Can You Mine Cryptocurrency?
Cryptocurrency units are released into the world through mining, which typically involves validating transactions. Cryptocurrency mining is theoretically possible for the average person but has become increasingly difficult in proof-of-work systems like Bitcoin.
According to Efendi, as Bitcoin grows in complexity, it requires more processing power. Bitcoin miners affirm transactions and add them to the blockchain by fixing advanced mathematical issues.
For their work verifying transactions, miners are rewarded with Cryptocurrency. Mining cryptocurrencies with proof-of-work also consumes a lot of energy.
Bitcoin mining consumes electricity at an annualized rate of 127 terawatt-hours (TWh), more than Norway’s total electricity consumption.
It is impractical for the average person to earn Crypto by mining in a proof-of-work system. Choosing validators in proof-of-stake models happens randomly based on how much they stake, requiring less computing power.
To participate, you must already own a cryptocurrency and have nothing to lose if you don’t own a cryptocurrency.
An Overview of Cryptocurrency Supply and Demand
Arif Efendi says that if the demand for an asset increases faster than supply, the price will increase.
Water prices will increase if there is an earthquake in a particular area. Cryptocurrencies work on the same principle.
Today, institutional investors like MicroStrategy and countries like Ecuador are betting on cryptocurrencies.
Arif Efendi Says Accept the Risks
Just like stocks, the value of cryptocurrency fluctuates. Many people want to get into Crypto and make 100x their investment.
Assets are not guaranteed to remain profitable but knowing when to buy and sell is crucial.
Warren Buffet said, “Be fearful when others are greedy and greedy when others are afraid.”
People in the crypto space are generally fearful. If cryptocurrency is declining and Tom, Dick, and Harry are all panic selling, that’s the best time to buy it.
People may lose money when they are fearful and worried. It would be best to list cryptocurrencies you wish to invest in and wait for the red candles to appear.
When institutional investors close out their weekly trades, the weekend is another great time to buy.
Traditional investing methods no longer require a broker, as you can now buy Crypto from the comfort of your home.
Arif Efendi’s Recommendations
You can choose from several cryptocurrencies on coinmarketcap.com.
Solana (SOL) has been one of Arif Efendi’s favourites, followed by AVAX, POLIS, and ATLAS.
Monitoring your favorite coins is now easier than ever before. With an app like Tabtrader, you can track each swing and know when to buy more or take profits.
You can take your cryptocurrency and collect airdrops or put it in wallets such as Trustwallet, Imtoken, or Myetherwallet. Also, remember to protect it with strong passwords.
You must keep your 12-word phrase to restore your asset if your host device disappears.
The Future of Cryptocurrency
It is undeniable that Cryptocurrency has taken the world by storm. Bitcoin and Ethereum currently lead the movement. But many people wonder what Cryptocurrency’s future will be.
Looking into the future, it is clear that Cryptocurrency will become more popular and widespread.
The more people adopt Cryptocurrency, the more its value will continue to rise, making it an even more attractive investment option.
Additionally, as the technology around cryptocurrency continues to develop, we can expect to see even more innovative applications of this groundbreaking technology. Overall, the future looks promising for Cryptocurrency and those who invest in it.
One of the main reasons is that Cryptocurrency is not subject to traditional currency regulations. This fact means that Cryptocurrency can be used in more countries and by more people.
Cryptocurrency is decentralized, meaning no country or organization controls it, making it more resilient to financial crises and other shocks.
Finally, Cryptocurrency has a limited supply, so its value is likely to increase over time. For these reasons, Cryptocurrency is an excellent long-term investment.
All this information makes you your bank, and you can transact wherever and whenever you like.
Who knows, maybe you can donate enough ROI to your favorite charities.
For more information like this, follow Arif Efendi on Twitter at https://twitter.com/arifouo.