Big investors often focus on long-term investments in private funds or venture capital projects, believing that locking up money for many years gives them higher returns 💼⏳.
But Jeff Park from Bitwise explains that cryptocurrencies are completely different: they allow for daily profits from liquidity and volatility ⚡💰, without the need to wait a decade like traditional investments.
Key points:
1️⃣ Liquidity and volatility: Cryptocurrencies are characterized by liquid markets that provide short-term profit opportunities from price fluctuations.
2️⃣ Effective trading strategies:
Arbitrage: Exploiting price differences between platforms 🤑
Market-making: Providing liquidity to the market to achieve stable profits 🔄
Trend-following: Following market trends to achieve additional returns 📊
3️⃣ Outstanding performance during volatility:
Example: In April 2024, while the price of Bitcoin dropped by 7%, some market strategies achieved annual returns of up to 70% 😲
4️⃣ A challenge to traditional institutions: Most institutions are still investing in venture capital, ignoring the ability to achieve significant profits from liquid and volatile markets.
💡 Summary: The primary advantage of cryptocurrencies lies in liquidity and volatility. A smart investor knows how to exploit this advantage to achieve short-term profits, rather than mimicking traditional investment methods that require long years of waiting.
#Cryptocurrencies #Trading #Smart_Investment #Liquidity #فرص_ربح