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Sunday, August 7, 2022

Tips for Investing with Crypto

Cryptocurrencies or crypto assets are digital assets built on a blockchain network. The blockchain network consists of many computers. This decentralized structure allows crypto assets to grow, without having to be under the control of a government or a particular central authority.  Apart from being a transaction tool, Crypto is also widely favored by the public as an investment. The ease of transactions and the promise of high returns make investors, especially millennials and Gen Z, who are attracted to this digital currency. The prestige of Crypto as an investment alternative has been increasing since the 2021 pandemic took place. Like other investment tools, of course, you need to know the ins and outs of Cryptocurrency. Don’t let your intention to invest just follow the trend. If you want to get more tips for crypto, you can simply visit the
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Here we present some tips before investing using Crypto.

1. Don’t Panic When Going Down

It should be understood that Cryptocurrency is a high-risk high-return investment tool that has high fluctuations. Don’t panic when the money you have suddenly dropped. Wait for the right moment to make a decision. This is because what has decreased is the value, not the number of coins you have.

2. Hold for Long Term

Some people invest in Crypto for the short term. This is natural, given that these virtual assets fluctuate rapidly. If you pay attention, actually Cryptocurrencies have long-term potential. Especially with the relatively high transaction costs, holding it patiently is a reasonable decision.

3. Diversify

Like any other investment tool, it is important for you to diversify. Don’t just focus on Bitcoin, look for other digital currencies that have the potential for investment. At least you have an alternative if one of your coins suffers a loss.

4. Understand and Know the Product

As mentioned above, there are more than 2,200 types of Crypto currently circulating in the virtual market. Of the hundreds of thousands of types, choose a coin whose regulation is correct. Also, make sure they are already in the Blockchain system.

5. Diversification in Investment

In investing, you may include crypto as an instrument that adorns your investment portfolio. However, you should not forget to diversify to more stable and safe instruments as your risk mitigation strategy.

If you are looking for a promising investment instrument for the long term, then you can join a business joint venture through equity crowdfunding that can give you promising benefits in the long term.

Crypto can be used as a normal currency, such as United States Dollars or other currencies. However, there is a big difference because cryptocurrencies are currently not regulated or regulated by any bank. Summarizing from the book Cryptocurrency Trading Guide Fundamental & Technical Analysis for Cryptocurrency Thinkers, the history of crypto begins in 1983 when cryptographer David Chaum created an anonymous electronic cryptographic tool called e-Cash.

Then in 1995, DigiCash was created and implemented as an early form of payment in the form of electronic cryptography using software and encryption to withdraw notes from banks.

Most crypto companies create their own currency called tokens. Companies can also use an online ledger system or online ledger.

This ledger contains anonymous user identities, cryptocurrency balances, and transaction records. The system is equipped with a firewall and strong cryptography to ensure that all online transactions are monitored securely. Here’s how crypto trading works:

  • Prospective customers open an account with Crypto Asset Commodity Trader.
  • After passing a series of Know Your Customer (KYC) procedures, potential customers can be approved as customers, so that they have an account to transact.
  • Customers make transactions through Crypto Asset Commodity Merchants (Exchangers).
  • Transactions can be in the form of exchanging (purchasing) assets with Fiat Money (IDR) or vice versa. Customers can also make exchanges between crypto-assets or place quotes on buying or selling crypto assets.
  • Make a deposit of funds to the Segregated Account of the Crypto Asset Commodity Trader (Exchanger).
  • Funds in the account are used to purchase Crypto Assets. 70% of the funds will be deposited with the clearing house and 30% will be deposited with the Crypto Asset Commodity Trader.
  • Crypto asset transactions (public and private key) will be stored by the Crypto Asset Commodity Trader in the Storage Manager, both “Hot Wallet” and “Cold Wallet”.
  • There are financial records between the Crypto Asset Commodity Trader and the Futures Clearing House including crypto asset ownership records.
  • The Futures Clearing House will verify the financial amount with crypto assets in the Depository Manager.
  • Reporting transaction data from Crypto Asset Commodity Traders, Futures Clearing Houses, and Depository Managers to the Futures Exchange as price reference and market monitoring.

Thus a discussion of the meaning of crypto, the legal basis, and trading mechanisms for beginners.


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