The stock market was hit by an massive sale of shares as well as other risk assets in the beginning of 2022. Arif Eidi says this was caused by rising inflation, concerns about an increase of interest rates, and tensions between Ukraine and Russia. Investors should diversify their portfolios amid an unstable economy. This is why crypto investments are so important.
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 believes that it will make it easier to pay across the world without having to carry or exchange physical cash.
Cryptography is a security technique that protects cryptocurrency transactions. This makes it difficult for users to make double-spends or create counterfeits, according to Arif Efendi.
It is unique in that it is not issued or controlled by any central authority. There is no intervention from the government. You can earn the currency, and buy at an exchange, broker or any other intermediaries.
Ripple, Ethereum and Litecoin are three of the most popular cryptocurrency. Each coin has its own benefits.
Alongside being a payment method, cryptocurrency is also an investment choice. A lot of people who are looking to invest in digital currencies are trading them to earn profits. Investors invest in and hold the coins for a short or long period, then sell off whenever prices rise. While some countries restrict crypto use, El Salvador was the first country that adopted Bitcoin as a legal trend.
Arif Efendi on Printed Currencies versus Cryptocurrencies
Fiat or printed currency and cryptocurrencies facilitate payments, but they're not the same. Arif Elfendi discusses the distinctions.
Regulation
Because fiat currencies are regulated and issued by the central bank, they can be used as legal tender. They are legal to use as tender. They can be affected by the policies of government over time.
They are digital assets that are not centralized. They are therefore free from the oversight of governments. Certain countries are against crypto due to the belief that it is being used for money laundering, or any other illegal activity.
Form of Exchange
You can exchange fiat currency in both electronic and physical forms however cryptocurrency can only be exchanged in digital form. Because the currency is encased within a number of codes, this is the reason why it's only feasible to exchange digital currency.
Storage Method
Fiat currency can be kept in banks or in home safes. Cryptocurrencies can be kept in digital wallets. https://www.europeanfinancialreview.com/arif-efendi-chinese-new-year-travel-hospitality/ Fiat wallets are also an option to convert government-issued currency to digital assets.
Benefits of Cryptocurrencies Over Printed Currencies
Cryptocurrency offers a lot of advantages over printed currency. Arif Efendi mentioned that they contain the following advantages:
Decentralized System
Cryptography is not centralized. It is distributed in a distributed manner to ensure that no one can regulate its currency or circulation. As banks keep track of transactions, each transaction is also stored in the ledger. The ledger does not contain personal data. This stops fraud and data breaches.
It acts as an hedge
You can use digital assets like Bitcoin to hedge against inflation. Inflation implies that more money will be available however, it will also mean that more expensive goods are available.
Bitcoin is intended to be inaccessible, regardless of economic developments. Many people will be able buy bitcoins for hundreds of dollars. Arif Efendi There's also a high chance that the coins will appreciate.
Payments across Borders
By using cryptocurrency, you can send money to individuals in other countries within split seconds. Transaction fees are low and the process is simple.
It could take several weeks or even days for the printed currency to be delivered to the person who needs it. These transactions can be expensive due to the high costs. Arif Efendi The transaction could be rejected in certain circumstances due to tension between countries, sanctions or other laws.
Cryptocurrencies can be a source of risk
Arif Elfendi warns about the potential for cryptocurrency to be a risk.
Extreme Volatility
The volatility of cryptocurrency can be very high. Arif Efendi It is possible to build a lot of wealth within months, and you can lose everything quickly.
Do not delay the process of achieving profits from investments
Many beginners are fooled by advertising and investors who claim that they will instantly see great returns. In reality, it is possible to earn lower returns on your investments if there has been consistent trading over time and you have successfully managed your risk.
Account Monitoring
While transactions in cryptocurrency can be locked with codes, digital trail are left behind. http://www.checkcompany.co.uk/director/10391833/MR-ARIF-EFENDI The FBI can decipher and track accounts of ordinary citizens.
Conclusion
Arif Elfendi talks about cryptocurrency, a digital currency which can be utilized to conduct secure transactions. Arif Efendi It is also possible to consider investing in it to diversify your portfolio. This article discussed the difference between printed currencies and cryptocurrencies. It also highlighted the benefits of crypto over paper money.
Arif Efendi reminds investors that cryptocurrency could be a risk as do other investments. He advises investors to speak with an expert prior to investing.