Notes

ARIF EFENDI explains why CRYPTO INVESTMENTS LEAD THE market

In the beginning of 2022 there was a massive sell-off of the stock market as well as risk assets. Arif Effendi believes that this is due to the rising inflation rate and fears of an interest rate hike. Investors should diversify their portfolios within an uncertain economic environment. This is the place where crypto investment comes in.

Is Cryptocurrency a Currency?

Cryptocurrency is a virtual or digital currency that is stored in a digital wallet. Arif Elfendi believes that this makes it simple to pay all over the world without having physical cash available to exchange.

The technique of cryptography is used to ensure the security of transactions made using cryptocurrency. It is impossible to duplicate-spend or make counterfeits, according to Arif Efendi.

One of the striking features of the digital currency is the fact that it does not have a central issuer. It is therefore free from government interference. You can purchase or mine currency through an exchange.

Ripple, Ethereum, Litecoin and Bitcoin are some of the most popular cryptocurrencies. Every coin has its use.

Beyond serving as a payment currency It also serves as an investment option. Digital coins are extremely popular with investors who wish to earn profits. Investors can buy and hold the coins for a set period of time or sell them when they rise in price. Arif Efendi Although crypto can be restricted in some nations, El Salvador was to be the first country with the legal right to accept Bitcoin .

Arif Efendi on Printed Currencies versus Cryptocurrencies
Although cryptocurrencies and fiat currency can both be used to facilitate payments but they are not working exactly the same. Arif Efendi will discuss below some of the differences.

Regulation
Fiat currencies are issued by governments. Arif Efendi Central banks regulate them. They also have legal tender. https://techbullion.com/arif-efendi-discusses-how-to-get-started-with-cryptocurrency-in-2022 However, the policies of government could alter their value over time.

The digital assets that are decentralized and are referred to as cryptocurrencies. Decentralized digital assets can be used by anyone without the interference of government. Certain countries are against crypto due to the possibility that it could be used to finance money laundering, or for other criminal operations.

Exchange type
While fiat currency can be found both in physical and electronic formats, cryptocurrency is only available in digital format. This is due to the fact that cryptocurrency is embedded within the code of a series.

Storage Method
Fiat currency can be kept at home safes or banks as well as in fiat wallets. Cryptocurrencies can be stored in crypto wallets. Fiat wallets are able to convert official currency into digital assets.

Arif Efendi Benefits of cryptocurrencies over printed Currencies
The cryptocurrency market has many advantages over printed currency. Arif Elfendi has said that the benefits include:

Decentralized System
Crypto is an open system. Thus, no one can control the value of it or its circulation. Similar to banks, each transaction is kept in an account. However, the ledger is not a repository of personal information. This helps prevent the risk of data breaches and fraud.

Serves as an Hedge
Digital assets like Bitcoin can be used as a hedge against the effects of inflation. https://thelibertarianrepublic.com/arif-efendi-why-cryptocurrency-here-to-stay/ During inflation, more money will be circulated, but items that are scarce will be more expensive.

Bitcoin is designed to remain scarce irrespective of what happens in the economic system. Arif Efendi So, millions of dollars can be used to buy a handful of coins. The coins are likely to appreciate in value.

Payments across Borders
By using cryptocurrency, you are able to send money to people from other countries in a matter of seconds. The transaction fees are minimal and the process is hassle-free.

It can take up to a few weeks for currency printed to reach its destination. The charges associated with these transactions can be quite high. Sometimes, transactions can be blocked due to conflict between countries or regulations.

Cryptocurrencies: The dangers
Arif Efendi outlines some of the risks that could be associated with cryptocurrency use.

Extreme Volatility
It is extremely unpredictable. In just a few months it is possible to accumulate substantial wealth and then lose it all.

The delay in receiving returns on Investment
Investors who are older and more prominent believe that new investors are able to earn high yields right away. However, your investment returns may not be as good in the absence of steady trading habits and manage your risk properly.

Account Tracking
Although crypto transactions are secured with encryption, they still leave digital tracks. The FBI can break the codes and trace the accounts of ordinary people.

Conclusion
Arif Efendi talks about cryptocurrency as a type of digital currency that you can use to make secure transactions. It is also a good option to diversify your portfolio. This article explains the differences between printed and crypto currencies. It also highlighted the benefits of crypto over paper money.

Just like other investments, Arif Efendi stresses that cryptocurrency has its own risks. He recommends that investors consult an experienced advisor prior to investing.



Read More: https://www.mozbot.co.uk/2022/05/19/arif-efendi-explains-why-crypto-investments-are-leading-the-market/