Cryptocurrency is a virtual currency that has no physical form. Cryptocurrency has many types and transactions can be easily done via the internet.
Bitcoin cryptocurrency continues its increasing trend entering 2021. Even the digital currency managed to record a record high of $ 40000.
The positive trend of successive Bitcoin increases at the beginning of this year is evidence of the increasing public trust in crypto assets as a promising investment option, especially in this pandemic. This moment is also an opportunity for the wider community who want to start investing in crypto asset trading without having to worry excessively.
What are Crypto Assets?
Crypto assets are digital currencies used for virtual transactions on the internet network. Secret passwords that are quite complex serve to protect and maintain the security of this digital currency. Also known as "Cryptocurrency", the name comes from a combination of two words, namely "cryptography" which means a secret code, and "currency" which means currency.
Unlike conventional currencies which are centralized, digital currencies are in fact decentralized. Neither party is present and acts as an intermediary in a transaction. Payments in digital currency take place from sender to recipient (peer-to-peer). However, all transactions carried out are still recorded and monitored in the Crypto Asset network system.
Uniquely, there are crypto-asset miners who record these transactions and earn commissions in the form of digital money that can be used.
Although it has been developed since the 1990s, it has only been around the last 10 years that crypto assets have become known to the global community. Some types of Crypto Assets that are often used include Bitcoin, BitcoinCash, Litecoin, Ethereum, Monero, Ripple, and others. Currently, there are more than 1,000 Crypto Assets circulating around the world, and more will be in the future.
In Indonesia, crypto assets are indeed classified as new investment instruments. So there is still a need for comprehensive education for the Indonesian market related to safe and reliable crypto asset trading. Here are some things that prospective traders need to understand before starting to invest in crypto assets, including:
Ensure the Legality of the Exchange
When deciding to invest in crypto assets, choosing a media exchange to make transactions is important to ensure the safety of asset investment. Make sure the selected exchange is legal and registered.
Currently there are 13 companies or entities that have received a registration certificate from Bappebti as crypto asset tradersin Indonesia, these companies are PT Crypto Indonesia Berkat (Tokocrypto), PT Upbit Exchange Indonesia (Upbit), PT Tiga Inti Utama (Triv), PT Indodax Nasional Indonesia (Indodax), PT Pintu Kemana Saja (Pintu), PT Zipmex Exchange Indonesia (Zipmex), PT Bursa Cripto Prima, PT Luno Indonesia Ltd (Luno), PT Rekeningku Dotcom Indonesia (Rekeningku), PT Indonesia Digital Exchange (Digital Exchange), PT Cipta Koin Digital (Koinku), PT Trinity Investama Berkat (Bitocto), and PT Plutonext Digital Aset.
Learn the types of crypto assets that are of interest
Before starting to invest, traders need to understand the types of cryptocurrencies on the market. Bitcoin (BTC) is indeed a favorite. But there are also others that are popular like BitcoinCash (BCH), Ethereum (ETH), Ripple (XRP), Tether (USDT), and others.
By understanding these types of coins, prospective traders can check their availability on their preferred exchange. For example, Tokocrypto provides 34 types of coins, Indodax has 110 types of coins, while Zipmex provides 15 coins.
However, traders need to be careful in choosing coins for this investment, because many types are not yet popular and their price movements are very aggressive. Including DOGE, which was recently popular thanks to Elon Musk's tweet.
Completeness of Owned Trading Features
Every exchange must have excellent trading features offered to traders to support their transaction activities. However, there are some features that are important and useful for traders such as the price chart features for conducting an analysis.
Then there is a cut loss feature that can help traders limit certain price losses, also a short-selling feature to ensure traders continue to profit even though the price of their crypto assets is experiencing a decline. Make sure the exchange chosen by the trader can meet the needs of this feature.
Applied Security Technology
The last thing that is important for traders to pay attention to is the use of technology to ensure the security of transactions on the chosen exchange. The majority of exchanges in Indonesia have used security standards such as Two Factor Authenticator (2FA) and confirmation via email and SMS.
However, traders can further ensure the safety of the exchange from websites that document security tests for exchanges around the world such as coingecko or cer.live.
Tokocrypto, for example, gets Binance Cloud technology support which is tested as one of the exchanges with a rating of (9.35), ensuring guaranteed layered security when traders make transactions. Then Zipmex partnered with BitGo to provide digital wallet security with an insurance policy of up to 100 million US dollars. While Pintu uses curv.co technology to ensure the security of crypto assets with maximum protection.
In addition, by having an exchange registered with BAPPEBTI, it is almost certain that they also have ISO 27001 certification on Information Security Systems and have also been registered with the Ministry of Communication and Information Technology.
The importance of Planning and Analysis when trading crypto assets
Buying and selling crypto assets can be said to be more difficult than traditional assets and stocks. Because of the high volatility and risks involved in it. So that it requires proper planning and execution in order to benefit.
Having a trading plan or a detailed trading plan before even trading is very important. Because it can help avoid psychological factors such as emotions, bias, or logical errors that can affect trading performance. That way, you can be sure that decisions aren't made amidst the heat of asset movement.
A successful Crypto trader will focus on technical analysis. As a virtual currency that does not have the authority or rules of any other institution, making Bitcoin price very dependent on its users, both buyers and sellers.
So, precise and accurate technical analysis is absolutely necessary to profit from Crypto trading. Technical analysis helps you gather some useful clues in predicting the future value of Bitcoin as well as making the right decisions to make a profit.
Amount of Service Fee
In conducting crypto asset trading transactions, there is a service fee scheme that is charged to traders, namely purchase and withdrawal fees. Keep in mind that there are several exchanges in Indonesia such as Tokocrypto, Pintu, and Luno that provide a flat rate for withdrawal fees. But there are also those who use a percentage scheme according to the nominal withdrawal such as Indodax.
Of course, the flat rate scheme will be more profitable for traders. Not only that, there are also transaction fees as a market taker that will be charged to traders. The market taker fee is a fee discount if a trader makes a transaction by joining an existing queue of prices. For example, if a trader buys Bitcoin for IDR 10 million through Tokocrypto, you will be charged a cut fee of 0.1%, which is IDR 10,000 or if you buy through Indodax, you will be charged a fee of 0.3%, which is IDR 30,000.
Buy when the price is cheap and sell when the price goes up
Knowing when to buy and sell digital assets are tips traders and investors need to know. Because it can be a way to reduce investment risk. So that market timing is one of the important things for crypto asset trading. With crypto asset prices that easily rise and fall, it makes the market difficult to predict its movements, especially for beginners.
Market Timing means the investor's ability to determine when to sell and when to buy an asset. Purchasing digital assets when the price is low is highly recommended for novice investors. Generally, you can take advantage of market conditions that are stagnant and bullish. Where the moment of the take profit action makes the asset price decrease and investors can enter the market.
A buying strategy when the asset price is cheaper involves analyzing charts, short-term and long-term average price movements. As well as historical support trends, and gradual buying.
Don't be fooled by low prices
Low prices are always attractive, as is the case with Bitcoin trading. Most traders are attracted to low priced cryptocurrencies and trade them for Bitcoin. This is a big mistake because even though the price is affordable, the market value is quite low.
So instead of focusing on the price of the currency, you should focus on the market value because that is what will bring you profit. Remember, Crypto is the future.
Pay attention to price spreads
Like buying gold, there is a price spread or difference between buying and selling prices that traders must pay attention to. The difference in buying and selling prices is not too large, which will expand the space for traders to make decisions on their crypto assets.
Continue to learn to trade crypto assets
Because something is still relatively new, if you are interested in investing or trading crypto assets, then you must continue to learn it. Fortunately, there is currently a lot of content about cryptocurrency and blockchain.
In cyberspace, you can seek basic knowledge and introduction, media exchange education, to crypto-asset investment tutorials that are circulating in the form of interactive text and videos. This content will certainly be very useful, especially for beginner traders who want to explore investing in crypto assets.
Since the time of the pandemic, a large number of webinars have been held on various matters, including trading crypto assets. Taking webinars is one of the easiest ways to learn crypto assets directly with an expert.
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Finally as a closing. From all this, it should be noted that all trades have risks. Crypto-asset trading is an activity where most people get lost in their own emotions, and this can be a serious problem. Therefore, before plunging into the world of Crypto trading, you should have the right time limit to calculate profits and losses.
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Thanks for the information and the post. But I need more information on accurate or better way to buy and sell crypto and also determine how much profit I made minus broker fee.