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ARIF EFFENDI explains how CRYPTO INVESTMENTS RULE the market

The market for stocks witnessed an massive drop in the value of stocks and other risky assets in the beginning of 2022. Arif Elfendi argues that the reason for this was rising inflation, anticipations of an increase in interest rates and tensions between Russia, Ukraine, and other risk assets. A volatile economy means that investors need to diversify their portfolios. This is where crypto investment comes in.

Is Cryptocurrency a form of currency?
Cryptocurrency is a virtual or digital currency that is stored in a digital wallet. Arif Elfendi believes that this allows you to pay all over the globe without physical cash to exchange.

The process of cryptography ensures the security of transactions made using cryptocurrency. It is impossible to duplicate-spend or create counterfeits according to Arif Efendi.

The most striking feature of this digital currency is that it is not issued by any central body. Arif Efendi It is therefore free from government interference. Arif Efendi You can earn the currency, and buy at an broker, exchange or another intermediaries.

Ripple, Ethereum (Litecoin), Bitcoin and Ethereum are among the most well-known cryptocurrency. Each coin has its own uses.

It can be used as an investment tool. Many are looking to trade digital coins for profit. Investors purchase and keep them for a limited or longer period, and then take them back as the value increases. Though some countries place limitations on cryptocurrency, El Salvador became one of the first nations to accept Bitcoin.

Arif Efendi on Printed Currencies versus Cryptocurrencies
Fiat currencies or printed currency facilitate payments. But they are not one and the same. Arif Efendi explains below a few of the differences.

Regulation
The central bank is responsible for regulating fiat currencies because they are issued government-issued. Arif Efendi They are legal and legal tender. However, they may lose their value as time passes because of the policies of governments.

Cryptocurrencies are digital currencies that are not decentralized. These are digital assets that are able to be utilized independently from the state. Some countries oppose crypto due to the possibility that it can be used for money laundering, or for other criminal actions.

Form of Exchange
Although fiat currency is able to be exchanged electronically as well as physically, cryptocurrency is not able to be traded digitally. This is due to the fact that the currency is embedded into the form of a set of codes.

Storage Method
Fiat currency can be stored in safes at home and banks or in fiat wallets. Arif Efendi They should be kept in digital wallets. Fiat wallets are also used to convert government-issued currencies into digital assets.

The advantages of cryptocurrencies over paper currency
The cryptocurrency is an excellent alternative to printing currency. Arif Elfendi shared that they include:

Decentralized System
Crypto is a decentralized. Crypto is not centralized, which means that no one is able to control the value of it or make it circulate. Each transaction is recorded on an account just like banks record transactions. The ledger doesn't reveal any personal information. This stops the theft of personal data and fraud.

Serves as a Hedge
To hedge against the effects of inflation digital assets like Bitcoin can be utilized. Inflation means that more money will be accessible, but more expensive items.

Arif Efendi Bitcoin is designed to be unaffordable regardless of economic situation. It is possible to buy bitcoins for thousands of dollars. There is also a high possibility that the coins could appreciate in value.

Payments across Borders
You can send money in a matter of minutes to anyone, anywhere using cryptocurrency. Costs for transactions are low, and the process is easy.

However, printing currency may take days or even weeks to reach the person who needs it. In addition they are subject to expensive fees. In some cases the transaction may be declined because of the tension between nations or sanctions and laws.

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

Extreme Volatility
Cryptocurrency is unstable. It's possible to accumulate an enormous amount of money in a matter of one month, only to lose it all in a flash.

You can delay getting your returns
Many beginners are deceived by advertisements and investors who claim that they will immediately start seeing high returns. You may not make the same amount of money from your investments if there isn't regular trading and an effective risk management.

Account Tracking
While cryptocurrency transactions can be locked with codes, digital trail remain. The FBI can read the codes and track the accounts of common citizens.

Conclusion
Arif Efendi talks about cryptocurrency as a digital asset that you can use to safeguard transactions. For diversification, you could also invest. This article examined the differences between cryptocurrencies and printed currencies. Arif Efendi It also discussed the advantages of crypto-money over traditional paper money.

Arif Efendi points out that cryptocurrency, as with all investments, has its own risks. He recommends that investors contact a professional financial advisor prior to investing.


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