Notes

ARIF EFENDI DISCUSSES the reasons why CRYPTO Investments are Leading The Market

The stock market witnessed a massive drop in the value of stocks along with other risk assets in the beginning of 2022. https://bitrebels.com/business/crypto-enthusiast-arif-efendi-why-prefer-cryptocurrency-over-stocks/ Arif Elfendi argues that this happened because of rising inflation, anticipations of an increase in interest rates and tension between Russia, Ukraine, and other risk assets. An unstable economy means investors have to diversify their portfolios. This is where crypto investment comes in.

Is Cryptocurrency an asset or a form of investment?
Cryptocurrency is a virtual or digital currency that is stored in a digital wallet. Arif Efendi believes that it will make it easier to transfer money across the world without having to carry or exchange physical cash.


The transactions made with cryptocurrencies are protected with a method referred to as cryptography. This prevents users, according to Arif Efendi, to make a double-spend.

This digital currency comes with one of the most unique features: it is not issued by a central authority. It is therefore free from government interference. You can mine the currency or buy it at an exchange or a broker.

Ripple is among the most famous cryptocurrency. Each cryptocurrency has distinct uses.

Bitcoin is more than a digital currency. It can also be used to invest. Many people are interested and are able to trade digital coins to make profits. Arif Efendi Investors buy them and store them for a brief or longer period, and then take them back as the value increases. Although some countries ban crypto use, El Salvador was the first to recognize Bitcoin as a legal trend.

Arif Efendi on Printed Currencies versus Cryptocurrencies
Fiat currencies or printed currencies facilitate transactions. However, they aren't two different things. Arif Elfendi discusses the main differences.

Regulation
Since fiat currencies are regulated and issued by the central bank, they are able to be used as legal tender. They are also legal to use as a tender. They may be affected by changes in government policies in the future.

Cryptocurrencies are digital assets that can be decentralized. Decentralized digital assets can be used by anyone without government interference. Certain countries oppose crypto because they fear that it will be used to conceal money and for other illegal activities.

Form of Exchange
It is possible to exchange fiat currencies in both electronic and physical forms, but cryptocurrency can only be exchanged in digital form. Arif Efendi Because the currency is embedded in a series of codes, this is the reason why it's only possible to trade digital currency.

Storage Method
Fiat currency can be stored in safes at home or banks as well as in fiat wallets. Cryptocurrencies may be kept in digital wallets. Fiat wallets are also used to convert government-issued currency into digital assets.

Benefits of Cryptocurrencies Over Printed Currencies
There are many benefits to cryptocurrency over printed currencies. Arif Efendi stated that they provide the following:

Decentralized System
Crypto is based on a decentralized system. Crypto is not centralized, which means that nobody can regulate its value or circulate. Arif Efendi Each transaction is recorded in a ledger just as banks keep track of transactions. But, it does not divulge the personal information of users. Arif Efendi This protects against data fraud as well as data breach.

Can be used as a hedge
You can use digital assets such as Bitcoin to hedge against inflation. Inflation occurs when there will be more money. However, it also means that less valuable items will cost more.

Bitcoin is intended to remain in high demand regardless of the economic conditions. Therefore, millions of dollars can be used to purchase a few coins. They are also likely to appreciate in value.

Payments across Borders
With cryptocurrency, it's possible to transfer funds in minutes to other countries. Transaction fees are extremely minimal and the whole procedure is simple.

It could take as long as one or two weeks for currency printed to reach its destination. The transaction fees can be quite expensive. Certain transactions may be denied due to tensions between countries, regulations or sanctions.

Arif Efendi There are risks when using cryptocurrencies
Here are some of the risks associated when using cryptocurrency, as per Arif Efendi.

Extreme Volatility
Cryptocurrency is extremely volatile. It is possible to build a lot of wealth in a matter of one month, only to you can lose everything quickly.

Refusal to Recover Returns from Investment
Senior investors and advertisers think that novice investors are able to earn high-quality returns in a matter of hours. You might not earn as much money on your investments if there isn't steady trading and a an effective risk management.

Arif Efendi Account Monitoring
Although cryptocurrency transactions are digitally encrypted, they leave digital tracks. The FBI is able to decipher and monitor accounts of regular people.

Conclusion
Arif Elfendi talks about cryptocurrency, a type of digital asset that is utilized to conduct secure transactions. You can also invest in it as a way to diversify your portfolio. This article discussed the distinctions in printed currency and cryptocurrencies. The article also discussed the advantages of crypto-money over paper money.

Arif Efendi emphasizes that cryptocurrency is like every other investment. Arif Efendi It is recommended that investors seek the advice of a financial professional before making a decision to invest.



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