Notes

ARIF EFENDI explains the reasons why CRYPTO INVESTMENTS LEAD THE market

The market saw a significant sell-off of stocks, and other risky assets, in the early months 2022. Arif Eidi claims that this was caused by rising inflation, concerns about an increasing interest rate, as well as tensions between Russia-Ukraine. In a volatile economy, investors must diversify their portfolios and this is where investing in crypto is a good option.

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 Arif Efendi believes that digital wallets make it possible to transfer money internationally without the need for physical cash.

The process of cryptography protects transactions with cryptocurrency. https://washingtonindependent.org/english-football-fair-play-rules-capitalist-arif-efendi/ It is not possible to duplicate-spend or create counterfeits as per Arif Efendi.

It is unique in that it is not issued or managed by any central agency. There is no government intervention. You can either mine or buy the currency via an exchange or broker.

Ripple, Ethereum (Litecoin), Bitcoin and Ethereum are only a few most well-known cryptocurrency. Each coin has its place in the.

Beyond its role as a currency for transactions, cryptocurrency serves as an investment tool. A lot of people want in trading digital currencies for gains. Investors can purchase digital coins and keep them for a longer or shorter time. They then sell them at a time when prices increase. 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 currencies help with transactions. But they're not identical. https://www.facebook.com/arif.efendi.14811692/ Arif Efendi will explain below the differences between them.

Regulation
Since fiat currencies are issued by the government and the central bank, it is the central bank that regulates the issue. They are legal tender. But, they can decrease in value as time passes because of government policies.

Cryptocurrencies are digital currencies that are not decentralized. This means that they can be used without the supervision of the government. Certain countries are against crypto due to the possibility that it can be used for money laundering or other illegal operations.

Form of Exchange
While fiat currency can be traded electronically as well as physically, cryptocurrency cannot be exchanged digitally. Since 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 currencies are stored in safes at home, banks, or fiat wallets. Cryptocurrencies are held in crypto wallets. Fiat wallets can be used to convert government currency into digital assets.

Advantages Cryptocurrencies have over printed Currencies
The advantages of cryptocurrency over currencies printed. Arif Efendi Arif Efendi mentioned that they contain the following advantages:

Decentralized System
Crypto is not centralized. It is impossible to regulate or control its value or circulation. Each transaction is recorded on the ledger in the same way banks keep track of transactions. Arif Efendi However, it does not reveal personal information. This stops data breaches and fraud.

It serves as a hedge
As a way to hedge against inflation digital assets like Bitcoin can be utilized. Inflation is when there is more money, but it also means that things that are less valuable will cost more.

Bitcoin is intended to be scarce regardless of economic developments. Arif Efendi So, thousands of dollars will be able to purchase a few coins. The coins are likely to appreciate in value.

Payments across Borders
You can send money instantly to any country using cryptocurrency. There are minimal transaction fees and it's very simple.

Printed currency, on contrary, could take a couple of days or even weeks to arrive at the person who needs it. Transaction fees are also exorbitant. In certain instances, your transaction will be denied due to the tension between nations, sanctions, and regulations.

Cryptocurrencies: The Risks
There are a few risks that come along with cryptocurrency, according to Arif Efendi.

Extreme Volatility
It's extremely unstable. You can build a lot of wealth in just a few months, only to lose it all in a single day.

You could delay receiving your returns
Professionals in the field of advertising and older investors frequently convince novice investors that they can make huge profits instantaneously. But constant trading and risk control are key to maximizing the returns you earn.


Account Monitoring
Even though transactions in cryptocurrency are encrypted digitally however, they leave digital footprints. The FBI can crack the codes and track normal accounts of citizens.

Conclusion
Arif Efendi speaks about cryptocurrency as a type of digital currency that is able to be used for secure transactions. To diversify your portfolio, it is possible to also invest in. This article explains the distinctions between crypto currencies and printed currency. The article also discussed the advantages of crypto over paper money.

Arif Efendi points out that cryptocurrency, as with all investments is not without risk. He recommends that investors contact an experienced financial professional prior to investing.



Read More: https://acikbilim.yok.gov.tr/handle/20.500.12812/534637