Notes

ARIF EFENDI EXPLAINS WHY CRYPTO INVESTMENTS are leading the market

The market for stocks experienced an large sell-off of stocks, and other risk assets, in the beginning of 2022. Arif Efendi Arif Efendi says that this was due to the rising inflation, expectations of a rise in interest rates and the tension between Russia and Ukraine. The investment in crypto can be a fantastic way to diversify your portfolio in the midst of a volatile economy.

Is Cryptocurrency a Currency?
Cryptocurrency is a virtual or digital currency that is stored in a digital wallet. Arif Efendi is of the opinion that digital wallets make it possible to pay international transactions without physical cash.

The cryptography technique is used to secure transactions with cryptocurrency. This makes it impossible for users, as per Arif Efendi, to make a double-spend.

This digital currency has an unique characteristic that it's not issued centrally. This means that there is no government intervention. You can either mine the currency, or purchase it from an exchange or broker.

Ripple, Ethereum and Litecoin are the three most well-known cryptocurrency. Every coin has its own use.

Beyond being a transaction currency The cryptocurrency is also a means of investment. Arif Efendi Many people are looking to trade digital coins for profit. https://www.scienceworldreport.com/articles/62025/20230306/arif-efendi-explains-why-reliance-on-renewable-energy-is-arriving-quickly.htm Investors are able to purchase and keep the coins for a certain amount of time or sell them as they rise in price. Although some countries restrict the use of cryptocurrency El Salvador became the first to recognize bitcoin as a legally-enforceable option.

Arif Efendi on Printed Currencies versus Cryptocurrencies
Fiat or printed currencies and cryptocurrencies facilitate payments, but they're not the same. Arif Efendi explains the differences below.


Regulation
The central bank is responsible for regulating fiat currencies because they are issued by government agencies. They also have legal to use as a tender. However, they may be devalued over time due to government policies.

The digital assets that are decentralized and are referred to as cryptocurrencies. They can be used without the supervision of government. Some countries do not like crypto due to the possibility that it could be used for money laundering or other illegal operations.

Exchange type
While fiat currency can be found both in physical and electronic formats, cryptocurrency can only be used in digital format. Because it is embedded by a series code and is not exchangeable in electronic or physical form.

Storage Method
Fiat currencies can be stored in banks, safes at home, or in fiat wallets. http://www.checkcompany.co.uk/director/10391833/MR-ARIF-EFENDI The cryptocurrency should be stored in digital wallets. Fiat wallets are also utilized to convert government issued currencies into digital assets.

Benefits Cryptocurrencies Have Over Printed Currencies
The cryptocurrency market has many benefits compared to printed currencies. Arif Elfendi shared that they have these advantages:

Decentralized System
Cryptography is not centralized. The system is distributed in a decentralized manner to ensure that no one can control its currency or circulation. Since banks track transactions, each transaction is stored in an account called a ledger. But, it does not divulge the personal information of the user. This helps prevent the loss of data and fraud.

It's Used As A Hedge
Digital assets such as Bitcoin can be used to hedge against inflation. Inflation means that more money will be accessible however, it will also mean that more expensive goods are available.

Bitcoin is intended to remain unaffordable regardless of economic conditions. Many people will be able buy bitcoins for thousands of dollars. There is also an excellent chance that the coins could rise in value.

Payments across Borders
You can send money from one country to another using cryptocurrency in a matter of seconds. There are minimal transaction fees and it is very easy.

However, printing currency could take days, or weeks to reach the person who needs it. Transaction charges are also high. Your transaction may be denied in some cases because of tensions between nations, sanctions , or other regulations.

Cryptocurrencies can be a source of risk
According to Arif Efendi there are risks to be aware of when the use of cryptocurrency.

https://www.linkedin.com/posts/arif-efendi-4a128a3a_blessings-to-everyone-celebrating-activity-7080165988989558784--frJ Extreme Volatility
Cryptocurrency is unstable. Within a short period of time it is possible to accumulate substantial money, and then be unable to keep the entire amount.

Be sure to avoid delays in earning the investment's return
The older investors and the professionals in advertising frequently convince novice investors that they can earn high returns immediately. But, consistent trading and risk management is the key to maximising your returns.

Account tracking
While cryptocurrency transactions are secured by codes, they also leave digital trails. The FBI is able to track the accounts of common citizens and decipher the code.

Conclusion
Arif Elfendi discusses cryptocurrency, a digital currency that can be used to secure transactions. You can also invest in it as a way to diversify your portfolio. This article clarified the differences between crypto currencies and printed currencies. It also shared the benefits of crypto over paper money.

https://kemenag.go.id/author/m-arif-efendi Arif Efendi emphasizes that cryptocurrency is like every other investment. He suggests that investors ensure that they speak with a qualified financial advisor before making a decision to invest.



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