One of the most valuable assets @leofinance has besides the value of the token itself, is how very educational it can be, even for amateurs in topics related to crypto, investment, and finances overall.

Today we're going to overview, what is the knowledge I've gotten so far on LeoFinance, and how understanding these basic concepts can improve your financial actions.

All of my life I've been curious with the things that really get my attention. I firmly believe in self education and how by repetition as mistakes one can gain knowledge even to expert levels. I'm not denying professional education. I'm just implying that with some basic knowledge, and that extra dedication, goals may be closer than farther.

Although finances, investing, economics, are not really my strong. I'm really enjoying what I've organically learned by visiting LeoFinance by reading great quality content.

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Let's see what concepts I have learned so far and define them with my own words.

Investment

Investment is the action of acquiring an asset, in the hopes of generating earnings over the course of time via appreciation of the acquired good. In all investments there is a degree of risk.

Speculation

Speculation is more involved with risks and is some sort of gambling action because speculating implies transacting in order to generate profit based on market values. It involves capitalizing in short term, thus as higher the risk, higher the rewards. We have a clear example of speculating with the whole WallStreetBets situation.

Arbitrage

The reason of knowing this concept arose by seeing the term constantly used on LeoFinance.

In simple words, arbitrage is an action that allows to get profit of an asset that is identical or same in use but differ in prices in different markets; So let's say $Hive average price at .20 but is trading at .30 in Bittrex... There you go, not that hard to do the math and what would be the action to take.

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In the next post, we're going to disclose how I applied these concepts in real situations and the results. Stay tuned!

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HIVE ON AND ROAR WITH LEO!!

Posted Using LeoFinance ^Beta