In Bastia’s office, Icar and Bastia were deeply discussing the future of the cryptocurrency market. Icarwas engrossed in Bastia’s knowledge, starting to build her own investment strategy¹ while listening to her advice.
“Icar, you know that the cryptocurrency market is a place with high volatility², right? So, we have to be more careful. Let’s discuss how to build a strategy,” Bastia asked.
After a moment of thought, Icar slowly began to speak, “I plan to diversify the risk by investing in various cryptocurrencies. Also, I intend to establish a long-term investment strategy, not being swayed by short-term market fluctuations.”
Bastia smiled and responded, “That’s a good idea. And in your investment strategy, you should also consider the latest trends in blockchain technology³. This technology will greatly influence not only the cryptocurrency market but also the entire financial market.”
They delved deeper into market analysis⁴, reviewing various investment opportunities and risk factors. Bastia explained to Icar about the recently surging #DeFi (Decentralized Finance) projects and the #NFT (Non-Fungible Token) market.
“Icar , recently DeFi projects are receiving a lot of attention. DeFi is a system that offers traditional financial services through blockchain, allowing users to conduct financial transactions such as loans and investments without a bank. These projects often offer high yields,” Bastia explained.
Icar listened attentively. Bastia continued to explain the NFT market.
“Also, you should keep an eye on the NFT market. NFTs are tokens that prove the uniqueness of digital assets. For instance, digital art, music, videos, etc., can be sold as NFTs. This market is still in its early stages, but it has great potential for the future.”
They also discussed #Web 3.0⁵, which aims for a more decentralized and user-centric internet, closely associated with blockchain technology. Icar strived to learn about these new concepts, seeking investment opportunities for the future.
“Web 3.0 is the evolved form of the current internet, focusing more on data ownership and privacy. These changes will greatly affect the cryptocurrency market, offering new investment opportunities,” Bastia explained.
Icar’s eyes sparkled. She absorbed this new information, and various investment ideas popped up in her mind. Bastia emphasized the importance of devising investment strategies in these new markets and predicting future changes.
“Icar, in these new markets, the existing investment strategies are not enough. You need to read the market flow and develop the ability to predict future changes. Only then can you succeed in investing.”
They ended their meeting that day with a promise to each other. Bastia promised to explore more advanced strategies in their next meeting. Icar decided to do more research and gain more knowledge in the meantime.
“Icar, next time we will delve deeper. Are you ready?” Bastia asked.
With a confident smile, Icar replied, “Yes, I am ready.”
They said goodbye to each other and left the office. Icar returned home harboring hope for the future with her newfound knowledge. However, there was also a sense of anxiety in her heart. She knew that the cryptocurrency market entailed unpredictable volatility and risks, and it was impossible to avoid these risks completely.
Bastia hinted that she would introduce more deep and complex investment strategies at their next meeting. Icar felt intrigued by her words and looked forward to their next meeting with a pounding heart.
Notes
¹ Investment Strategy: A set of rules or guidelines that an investor follows when buying, holding, and selling assets.
² Volatility: A metric that indicates how much the price of a market or a particular financial product fluctuates over time.
³ Blockchain Technology: A digital technology that stores data in ‘blocks’ connected continuously through ‘chains’.
⁴ Market Analysis: An activity that investigates and analyzes various elements of the market to evaluate the current state and future prospects of the market.
⁵ Web 3.0: A concept that aims for an evolved form of the current internet, focusing more on data ownership and privacy protection.