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In the beginning of 2022, there was an massive sell-off of stocks as well as risk assets. Arif Elfendi claims that this happened because of rising inflation, anticipations of an rise in interest rates, and tension between Russia, Ukraine, and other risk assets. In an unstable economy, investors have to diversify their portfolios. https://acikbilim.yok.gov.tr/handle/20.500.12812/534637 This is where investing in crypto can help.

Are Cryptocurrency an investment or a currency? investment?

Cryptocurrency is a virtual or digital currency that is stored in a digital wallet. Arif Efendi believes that it will make it easier to make payments all over the world without the need to carry and change physical cash.

Cryptography is a method that secures transactions using cryptocurrency. This prevents users, as per Arif Efendi, to make a double-spend.

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

Arif Efendi Ripple, Ethereum, Litecoin and Bitcoin are some of the most popular cryptocurrency. Every coin has its uses.

Arif Efendi Arif Efendi It isn't just a currency for transactions it is also a method to invest. A lot of people want in trading digital currencies for profits. Investors can buy and hold the coins for a set period of time, or sell them as they rise in price. While cryptocurrency isn't legal in all countries, El Salvador became the first country to allow Bitcoin.

Arif Efendi on Printed Currencies versus Cryptocurrencies

Fiat and printed currency, as well as cryptocurrency facilitate payment. However they are different. Arif Elfendi explains which are the distinctions.

Regulation

Fiat currency is issued by governments. The central bank is the one that regulates them. They are legal tender. However, their value could be affected over time by government policies.

Cryptocurrencies are decentralized digital assets. They are digital currencies that can be used independently of the government. Cryptocurrency is not supported by some countries since it could be used to transfer money, or to serve other illicit purposes.

Form of Exchange

While fiat currency can be found in physical and electronic formats, cryptocurrency can only be used in digital form. This is due to the fact that cryptocurrency is embedded into an array of codes.

Storage Method

Fiat currency can be kept in safes, banks, home, or in fiat wallets. Cryptocurrencies are stored in crypto wallets. Arif Efendi Fiat wallets can also be used to convert government-issued currencies into digital assets.

The advantages Cryptocurrencies offer over printed Currencies

There are many benefits to cryptocurrency over printed currency. Arif Efendi explained that they include:

Decentralized System

Cryptography is decentralized. It is not possible to control its circulation or value. Since banks track transactions, every transaction is also documented in an account called a ledger. However, it does not reveal personal data. This helps prevent fraud and data breaches.

Arif Efendi It's Used As A Hedge

Digital assets such as Bitcoin can be used to hedge against the effects of inflation. Inflation will lead to more money being circulated, however it will result in cheaper things.

Bitcoin is intended to be scarce, no matter what happens in the economic system. It is therefore possible to buy a few coins for hundreds of dollars. Also, there is a high possibility that the coins will rise in value.

Payments across Borders

With cryptocurrency, it is possible to transfer funds in moments to other countries. Costs for transactions are low, and the process is simple.

Print currency may require several days to reach the recipient. The fees associated with transactions like these are astronomical. Some transactions will be rejected due to tensions between nations, rules, or sanctions.

Cryptocurrencies could be risky

According to Arif Efendi there are risks to be aware of when the use of cryptocurrency.

Extreme Volatility

The potential for volatility in cryptocurrency is quite high. It is possible to accumulate a lot of wealth in just a month, and then go through it all in a flash.

The delay in receiving returns on investment

Beginners are frequently deceived by advertisements and investors who claim that they will immediately begin to see high returns. https://filkom.ub.ac.id/profile/staff/arif.efendi In reality the investment returns might not be as good if you do not have steady trading habits and are able to manage risk effectively.

Account tracking

The transactions made with cryptocurrency are encrypted by codes but leave digital footprints. The FBI is able to track the accounts of ordinary citizens and crack the cryptographic codes.

Conclusion

Arif Efendi talks about cryptocurrency as a digital currency that is a secure option for transactions. https://soundcloud.com/arif-efendi-189561043 It is also possible to invest in cryptocurrency to diversify your portfolio. This article discusses the differences between printed and crypto currencies. It also highlighted the advantages of crypto currency over paper money.

Arif Efendi warns that cryptocurrency has its own risks, similar to other investments. He advises investors to consult a professional advisor before investing.