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ARIF EFFENDI SHOWS WHY CRYPTO Investments Are Leading The Market

In the first quarter of 2022, the market experienced an massive drop in the value of stocks and other risky assets. Arif Elfendi claims that the reason for this was increasing inflation, anticipations of an increase in interest rates and tension between Russia, Ukraine, and other risk assets. Arif Efendi An unstable economy means investors have to diversify their portfolios. This is where crypto investing 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 that this will allow payments to be made across the globe, without the need to transport and change cash.

Arif Efendi The technique of cryptography is used to protect transactions using cryptocurrency. This prevents users, as per Arif Efendi to double-spend.

An outstanding feature of this digital currency is that it is not issued by any central entity. There is no government intervention. You can make money from the currency or purchase it at an exchange or broker.

Arif Efendi Some popular cryptocurrencies are Bitcoin, Ethereum, Litecoin, and Ripple. Each coin has its own benefits.

The cryptocurrency could also be employed to invest. Many who are interested in digital currency trade them for profits. Investors buy and hold for a long or short period, then sell off whenever prices rise. Although crypto is not allowed in all countries, El Salvador became the first nation to legally allow Bitcoin.

Arif Efendi on Printed Currencies versus Cryptocurrencies
While both fiat and cryptocurrency facilitate payments, they are not exactly the same. Arif Efendi explains below a few of the differences.

Regulation
Since fiat currencies are issued by the government and the central bank, it is the central bank that regulates the issue. They are also considered to be legal tender. However, their value may be affected over time by government policies.

They are digital assets that are not centralized. They are digital currencies that are able to be utilized independently of the government. Some countries don't support crypto due to the belief that it's being used for money laundering, or any other criminal activity.


Form of exchange
Fiat currency can be converted into physical or electronic form However, cryptocurrency is only available in digital format. This is because cryptocurrency is embedded in several codes.

Storage Method
Fiat currencies are stored in home safes, banks, or fiat wallets. Cryptocurrencies are held in crypto wallets. Fiat wallets can also be used as an option to convert government-issued currency to digital assets.

Benefits of cryptocurrencies over printed Currencies
Cryptocurrency is a great alternative to printing currency. Arif Efendi said that they offer the following:

Decentralized System
Crypto is not centralized. The system is distributed in a distributed manner which means that no one is able to control its currency or circulation. Because banks keep track of transactions, every transaction is also recorded in the ledger. https://scholar.google.co.id/citations?user=1H3CimcAAAAJ However, it does not reveal personal data. This prevents theft and data breaches.

Serves to be a Hedge
In the context of inflation protection digital assets such as Bitcoin can be used as a hedge against inflation. Inflation can lead to more money being circulated, however it will result in cheaper items.

Bitcoin is designed so that it is scarce no matter what happens to the economy. It will be scarce even though thousands of dollars can be spent on them. There is also an excellent chance that the coins could appreciate in value.

Payments across Borders
It is possible to transfer money from one country to the other by using cryptocurrency in just a few seconds. It is easy to send money, and there aren't charges for transactions.

In contrast, printed currency could take days, or weeks to arrive at the intended recipient. The fees associated with such transactions are high. Arif Efendi Sometimes, transactions can be blocked due to conflict between nations or rules.

Cryptocurrencies aren't always safe
According to Arif Efendi there are risks to be aware of when using cryptocurrency.

Extreme Volatility
Cryptocurrency is a volatile asset. It is possible to make huge gains in a short time and lose everything in a flash.

Arif Efendi The delay in receiving returns on investment
People who are older and advertisers think that novice investors are able to earn high-quality returns in only a couple of hours. However, it's possible to earn less from your investments if there's been consistent trading throughout the years and you have taken care of your risks.

Tracking of accounts
Even though cryptocurrency transactions are protected with codes, they leave digital footprints. The FBI can read the codes and trace the accounts of common citizens.

Conclusion
Arif Efendi discusses cryptocurrency as a type of digital asset that you can use to safeguard transactions. It is also possible to invest in it to diversify your portfolio. This article explains the differences between cryptocurrencies and printed currencies. It also highlighted the benefits of crypto over paper currency.

Arif Efendi emphasizes that cryptocurrency is similar to any other investment. He recommends that investors contact an expert financial advisor prior to investing.



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