Sciencelovers - Crypto investment is now the most talked about investment by the public. Moreover, the recognition of crypto assets by vario...
Crypto asset investments are digital assets that are used to transact in a virtual internet network. Unlike conventional currencies, which are centralized, this digital asset is decentralized.
In its operational activities, crypto-asset transactions run peer-to-peer (P2P). This means that all purchasing and payment activities run directly from the sender to the recipient. Crypto asset transaction activities are also transparent because their entire history will be recorded and monitored by nodes in the blockchain network system.
There are thousands of crypto assets in the world. Not all of them have good fundamentals to be used as investment choices. In Indonesia, CoFTRA has only legalized 229 types of crypto assets such as Bitcoin, Litecoin, Ethereum, Ripple and others.
Numbers are currently circulating in all corners of the world and are expected to continue to increase. This increase certainly does not escape the increasing desire of users to invest in crypto. The reason is, investing in crypto asset wallets turns out to have a much more attractive interest rate than banks.
Even though they have high interest rates, in fact investing in crypto assets has its own risks, such as price volatility and liquidity. Therefore, you should pay attention to the following 4 things before deciding to invest in crypto.
4 Things to Pay Attention to Before Investing in Crypto
1. Crypto Investment Fundamentals
Before starting to invest in crypto, it's a good idea to study and understand the types of crypto assets on the market. Find out why the crypto asset was created, how it works, what it is used for, what the vision is, and how it will develop in the future.
By properly understanding the fundamentals of crypto assets, you can minimize the possibility of being 'trapped' in unprofitable coins. As a first step, you can start investing in crypto using cryptocurrencies that are on CoinMarketCap's top 10 list.
Usually the top 10 crypto assets with the largest capitalization in the market will have a higher level of availability. So, these assets are easy to find on various exchange platforms. The liquidity of these ten assets is also unquestionable. So, you don't have to worry about having difficulties when buying and selling in the market.
2. Make Sure Your Investment Strategy Has Been Appropriate
Every investor has their own investment strategy. Usually, this strategy is done to lower your risk profile. So, if your investment strategy has been focused on the long term, then crypto investing could be a good choice for you.
Because, like investments in general, crypto investments have compound interest effects. It's different if your team chooses a short-term investment, it might be a good idea to reconsider investing in crypto.
3. Choose an Exchange Platform whose Legality is Guaranteed
Before deciding to invest in crypto, you should choose the right exchange platform. Of course, you should choose a regulated exchange platform. This is important and even mandatory to do to ensure the security of the crypto assets that you will buy later.
If you invest in crypto in Indonesia, then make sure the platform you are using is legal and regulated by the Commodity Futures Trading Regulatory Agency (BAPPEBTI) and Kominfo.
Meanwhile, if you plan to invest in crypto in another country, you can adjust your choice according to the regulations in that country.
4. Your Perception About Crypto Investment
This last thing comes from yourself. Because this is about your consistency in crypto investments. If you believe in the future of crypto assets, then holding them (and accumulating ownership) with crypto investments is the right move.
Originally, the crypto assets that you store also have fundamental values and uses that are quite clear, such as Bitcoin and Ethereum. In general, so far, analysts have assessed the Bitcoin price factor as being on the supply and demand-side based on the limited supply of Bitcoin, which is 21 million pieces. Hence, this crypto asset is suitable as a wealth protection asset.
Meanwhile, the use-value of Ethereum lies in its usefulness as an exchange rate on the Ethereum and DeFi networks. Thus, the supporting factor for the future price of Ethereum will lie in network updates and the development of DeFi technology adoption in the future.
Basically, just like real currency, crypto investments also bring attractive benefits. You can get benefits in the form of capital gains from the difference between the selling and buying prices of assets. Well, the decision to invest in crypto or choose other investment products, of course, still depends on your decision!
Crypto Investment Tips 2022, Don't Be Fooled!
Cryptocurrency investment (cryptocurrency) becomes attractive for investors with high guts. If you know the gap, you can get very promising results. However, you should not just invest.
Understand in advance the do's and don'ts when investing in crypto assets. As much as possible you avoid mistakes that may occur. This will also reduce the risk of loss.
Launching from The Times on Wednesday (12/1/2022), here are 6 tips for investing in cryptocurrencies. Don't be fooled!
1. Have a strategy for trading crypto
It is not easy to separate genuine cryptocurrency recommendations from scams. There are plenty of 'sharks' out there waiting to take your money.
Crypto investment scams are on the rise and soar to 7,118 in the first nine months of 2021.
The value is up 30 percent when compared to 2020. So when you are faced with a lot of information about cryptocurrencies, step back from the things that are currently hype.
Try to look critically at the project. How many users does it have? What problem does it solve? Is there any connection with the industry? Avoid coins that promise but haven't delivered anything yet.
2. Manage risk
Some people who offer crypto trading tips may not have your best interests at heart. So don't get stung by making the same mistakes as others.
Set limits on how much you invest in a particular cryptocurrency and don't be tempted to trade with more money than you can afford.
Cryptocurrency trading is a high-risk investment and more traders lose than not.
3. Diversify the crypto portfolio
There is no point in investing too much in one cryptocurrency. As with stocks, spread your money between different cryptocurrencies.
That way, you don't risk being overexposed if any of them drop in value. Mainly because the market price of this investment is very volatile. There are thousands of coin options to choose from, so do your research before choosing one.
4. Investment for the long term
Beginners are often easily carried away by scams. What often happens is that beginners are often tricked into panic buying when prices are low. Cryptocurrencies will not go away. Instead, leaving your money on the market for months or years can offer you the best rewards.
5. Automate purchases
Just like common stock, purchases use automatic purchases. Most cryptocurrency exchanges, including Coinbase and Gemini, allow you to set up repeat purchases.
Deciding when to buy and sell is quite stressful. Setting up an auto buy or sell will take the stress out of trying to time the market by buying the currency at the lowest possible price or selling at the highest price. This is something that even market professionals struggle to get right.
6. Use Bots
Trading bots can be useful in some circumstances, but bots are not recommended for beginners looking for crypto investment tips.
Often, they are just scams in disguise. If there was a real algorithm that perfectly timed your buy and sell trades, everyone would use it! Don't be fooled!
