Notes

ARIF EFFENDI DISCUSSES Why CRYPTO Investments Lead The Market

The stock market saw an massive drop in the value of stocks as well as other risk assets during the beginning of 2022. Arif Efendi explains that this was because of the rise in inflation, expectations of a hike in interest rates, as well as the tension between Russia and Ukraine. An unstable economy means investors must diversify their portfolios. This is where crypto investments come in.

Is Cryptocurrency a currency or an investment?
Cryptocurrency is a virtual or digital currency that is stored in a digital wallet. Arif Efendi believes it helps to make worldwide payments without the requirement to carry cash in physical form.

https://filkom.ub.ac.id/profile/staff/arif.efendi Cryptocurrency transactions are protected with a method referred to as cryptography. It is not possible to duplicate-spend or create counterfeits as per Arif Efendi.

One of the striking aspects of the digital currency is that it doesn't have an issuer central to it. There is no government intervention. You can either mine the currency yourself, or purchase it at an exchange or a broker.

The most popular cryptocurrency include Bitcoin, Ethereum, Litecoin, and Ripple. Every coin has its own use.

https://belleten.gov.tr/tam-metin-pdf/1323/tur Cryptocurrency is not only a currency for transactions, but also a way to invest. Many people are keen on trading digital currencies for profits. Investors can purchase digital coins, store them for a time, or sell them off when their price rises. Although cryptocurrency can be restricted in some countries, El Salvador was to be the first country with the legal right to accept Bitcoin .

Arif Efendi on Printed Currencies versus Cryptocurrencies
Fiat currencies or printed currencies facilitate transactions. But they are not identical. Arif Efendi explains below a few of the distinctions.

Regulation
Because fiat currencies are issued by government and the central bank, it is the central bank that regulates the issue. They are considered legal tender. But, their worth can be affected over time by policy decisions of the government.

Cryptocurrencies, which are digital assets decentralized they are also referred to as cryptocurrencies. They are therefore free from the control of the government. Certain countries are against crypto because of the possibility that it can be used to finance money laundering or other illegal actions.

Form of exchange
The ability to trade fiat currency in electronic and physical forms, but cryptocurrency is only exchangeable in digital form. This is due to the fact that cryptocurrency is embedded in the form of a set of codes.

Storage Method
Fiat currency is stored in home safes, banks, or fiat wallets. Cryptocurrencies are stored in crypto wallets. Fiat wallets let you convert government-issued money into digital assets.

Advantages of Cryptocurrencies over Print Currencies
The advantages of cryptocurrency over printed currency are many. Arif Efendi Arif Efendi said that the benefits include:

Decentralized System
Cryptography is decentralized. Crypto is decentralized, meaning that no one is able to control its value or circulate. Arif Efendi Similar to banks, each transaction is kept in a ledger. The ledger, however, does not contain any personal information. This safeguards against data fraud as well as data breach.

Serves as a hedge
Digital assets like Bitcoin to protect yourself against the effects of inflation. Inflation could lead to more money in circulation, but also less expensive prices for the items in short supply.

Bitcoin is designed to be scarce regardless of economic conditions. Therefore, you will be able to purchase a few coins for thousands of dollars. Additionally, there is a high possibility that the coins will rise in value.

Payments across Borders
You can transfer funds from one nation to another with cryptocurrency in just minutes. The transaction fees are minimal and the procedure is simple.

Arif Efendi However, printing currency could take days, or weeks to reach the person who needs it. These transactions can be expensive due to the high cost. In certain instances your transaction could be declined because of conflict between countries as well as sanctions, regulations, and other.

Cryptocurrencies pose a risk
According to Arif Efendi there are risks to be aware of when using cryptocurrency.

Extreme Volatility
Cryptocurrency is unpredictable. It is possible to build a substantial amount of wealth in just a few months, only to lose it all within a day.


Do not put off obtaining results from your investment
Beginners are frequently misled by advertisers and older investors into thinking that they'll immediately begin to see high returns. In reality, it is possible to earn lower returns on your investments if there has been consistent trading over the course of time and you have managed your risks well.

Account tracking
The transactions made with cryptocurrency are encrypted by codes, but they leave digital footprints. The FBI is able to track the accounts of ordinary citizens and decipher the codes.

Conclusion
Arif Efendi discusses cryptocurrency as a digital investment option that can be used for secure transactions. You can also invest in it as a way to diversify your portfolio. This article will explain the differences between crypto and printed currencies. It also highlighted the benefits of crypto over paper currency.

Like other investments, Arif Efendi stresses that cryptocurrency is not without risk. Arif Efendi He suggests that investors consult an experienced financial professional prior to investing.



My Website: https://belleten.gov.tr/tam-metin-pdf/1323/tur