Learn about the differences and similarities between the cryptocurrency market and the traditional market | Opinion

The first step before you start investing your capital is to understand what kind of investor you are. There are three profiles and each has some factors that define it, such as, for example, your risk tolerance and how long you want to keep your investments ‘held’.

The conservative investor is the one who gives up the search for greater returns, because, as the name suggests, he prioritizes security in his investments, taking risks to a very low degree.

This type of investor usually has a greater need to maintain equity and liquidity. Because of this, they invest, more commonly, in fixed income assets, such as direct Treasury bills, for example.

If you consider yourself a conservative investor and love safe investments, but want to be a part of the cryptocurrency market, I highly recommend you to get acquainted with Receivables tokens, which have no volatility, payments are faster and fixed in advance, in addition to having high returns compared to other fixed income products. .

As the name suggests, the moderate investor profile is associated with those who accept a greater amount of risk so that they can achieve greater profitability. He will also be able to make conservative investments, such as fixed income, but as he is willing to take more risks, he can also invest in variable income products, such as stocks, real estate funds, and even some of the more solid cryptocurrencies on the market.

Following the logic that a conservative investor does not take risks and a moderate investor is more open minded, we can understand that it is the bold (also known as aggressive) profile that seeks higher returns, giving up part of the security.

Thus, the enterprising investor invests a larger percentage of his portfolio in riskier investments. Among the most popular options, we can mention stocks and cryptocurrencies themselves. However, there are other types of investments that can bring great returns, but carry equally great risks.

Now that you know your investor profile, the next step is to diversify your portfolio, according to investments that fit your profile. Among the options, there is the crypto market and the traditional market. Here are some differences and similarities:

• work hours: When we say that the cryptocurrency market never sleeps, it is because it operates 24 hours a day, seven days a week, all over the world. In this way, the investor has the freedom to choose the best times to make his trades. The situation is different in the traditional market, as its working hours, which are usually from Monday to Friday, are from 10:00 am to 5:00 pm;
• safety: The technology that guarantees security in the crypto market is Blockchain, which is a chain of blocks that acts as a kind of ledger, with records of all transactions executed. Being decentralized and immutable, it makes life difficult for those trying to hack the system. Exchanges, while also being secure, have already suffered from hacker attacks;
• Decentralization: Exchanges depend on regulations set by the country and need regulatory bodies in order to function. Here in Brazil, for example, we have the central bank. However, the cryptocurrency market has a decentralized system that does not depend on governments or regulatory institutions. This does not mean that it is not subject to local law.

• The values ​​of taking the first steps in the market: Both in the cryptocurrency market and in the traditional currency market, it is possible to take the first steps with low values. However, on the stock exchange, for example, shares are traded in lots, which allows the investor to choose to buy whole or fractional lots. Already in the cryptocurrency market, it is possible to start your investments with reasonable values. Tokens, for example, can be purchased at prices starting at R$25!
• Volatility: Volatility is a very sensitive topic when we think about the cryptocurrency market. But those who think that the traditional market is not subject to it are wrong. The golden tip is to know how to deal with market volatility, because at certain times, it can bring good returns to the investor. But, as I said above, there are similar options for fixed income, such as debtors tokens;
• patience: Regardless of whether you invest in the crypto market or the traditional market, patience is key. It takes calmness and knowing how to wait for the right moment, whether to buy and sell crypto assets or your stocks. In these moments, it is essential to put reason first and not allow emotions to control your situations. Ex: If there is a market downturn, don’t despair. Analyze the scenarios and wait for the right timing to take action. Diversifying your portfolio with multiple assets is the best strategy. convert part of your assets into dollars, invest in cryptocurrencies and tokens and avoid big impacts in times of crisis;
• scratches: When you choose to enter the investment world, you need to understand that there are risks in both the crypto and traditional markets. In order for you to make the best choices and reduce the chance of losing your capital, be sure to study the market, analyze the data, and start small.

Nowadays, to be able to make good investments, you don’t need to own big stocks, have a multi-million dollar business, win the lottery or have an inheritance. Within the capabilities of each investor profile, everyone can be a part of the investment world.

For example, the token brings what I call the democratization of investments, where you can start with a low amount, take your first steps in the cryptocurrency market and explore all the possibilities and opportunities that it offers. Be part of the revolution now!

About the author

Daniel Kokeri is the CEO of asset tokenization firm Liqi Digital Assets. A technology entrepreneur, he was the founder of BitcoinTrade.

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