Notes

ARIF EFENDI EXPLAINS WHY CRYPTO INVESTMENTS ARE LEADING THE Market

The stock market saw an massive drop in the value of stocks along with other risk assets in the first months of 2022. Arif Effendi thinks this is due to growing inflation rate and the fear of an interest rate rise. In a volatile economy, investors need to diversify their portfolios. This is where crypto investment comes in.

Is Cryptocurrency an investment or a Currency?
Cryptocurrency is a virtual or digital currency that is stored in a digital wallet. Arif Efendi believes digital wallets make it possible to make international payments without the need for physical cash.

Cryptography is a method of security that protects the transactions made with cryptocurrency. Arif Efendi It is impossible to duplicate-spend, or even create fakes as per Arif Efendi.

The most striking feature of this currency digital is that it is not issued by any central entity. As a result, there is no government interference. You can either mine or buy the currency through an exchange or broker.

Arif Efendi Ripple is among the most popular cryptocurrency. Each coin has its own unique uses.

Alongside being a payment method it is also an investment option. Many people are interested and are able to trade digital currencies to earn profits. Investors buy and hold for a long or short period, then sell off when there's a price increase. While some countries have limitations on cryptocurrency, El Salvador became one of the first countries to accept Bitcoin.

Arif Efendi Arif Efendi on Printed Currencies versus Cryptocurrencies
While fiat currencies and cryptocurrencies allow for payments, they are not the exact same. Arif Efendi discusses the distinctions below.

https://belleten.gov.tr/tam-metin-pdf/1323/tur Regulation
Because fiat currencies are regulated and issued by central banks, they are able to be utilized as legal tender. They are also considered legal tender. However, government policies can affect their value over time.

Cryptocurrencies are decentralized digital assets. They are thus free of the oversight of governments. Certain countries do not approve of the usage of crypto because they assume that it is used for money laundering or other illicit operations.

Form of Exchange
Five currencies can be exchanged electronically or in physical form. However, it can only be exchanged digitally. Since the currency is embedded in a series of codes, this is why it is only feasible to exchange digital currency.

Storage Method
Fiat currencies are kept in safes at home, banks or in fiat wallets. Cryptocurrencies are held in crypto wallets. Fiat wallets are also able to convert government-issued currencies into digital assets.

Benefits of Cryptocurrencies over Print Currencies
The advantages of cryptocurrency over currencies printed. Arif Efendi said that these benefits comprise the following benefits:

Decentralized System
Cryptography is not centralized. It isn't possible to control its circulation or value. Like banks, every transaction is recorded in an account. However, it does not reveal personal information. This prevents fraud and theft of data.


Serves as an hedge
Digital assets such as Bitcoin to hedge against inflation. Inflation is when there will be more money, however it will also mean that items with less value will be more expensive.

Bitcoin is intended to be scarce, regardless of economic events. You can purchase bitcoins for thousands of dollars. It is likely that the coins could appreciate in value.

Payments across Borders
It is possible to send money immediately to any country using cryptocurrency. The fees for transactions are low and the whole process is straightforward.

Print currency will take several days to reach the recipient. These transactions can be expensive because of the high fees. Certain transactions may be denied due to tensions between different countries, laws or sanctions.

Cryptocurrencies pose a risk
According to Arif Efendi there are risks to be aware of when using cryptocurrency.

Extreme Volatility
Cryptocurrency can be volatile. It is possible to accumulate a significant amount of wealth in just a few months only to lose it all in a single day.

The delay in receiving returns on Investment
Advertisers and older investors make it seem that beginners are able to earn high returns immediately. It is possible that you won't make more money from your investments if you don't do regular trading and effective risk management.

Account tracking
Although crypto transactions are secured with encryption, they still leave digital footprints. The FBI is able to decipher and track accounts of ordinary citizens.

Conclusion
Arif Efendi discusses cryptocurrency as a digital investment option that can be used to make safe transactions. It is also a great way for diversification of your portfolio. Arif Efendi This article outlined the distinctions between printed currencies and cryptocurrencies. The article also highlighted the benefits of crypto over paper currency.

Arif Efendi points out that cryptocurrency, as with all investments, has its own risks. He advises investors to consult an experienced advisor prior to making a decision to invest.



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