Cryptocurrency : What is it and What You Should Know About it

 Cryptocurrency has been one of the hot topics these days, especially since the COVID 19 pandemic was declared by WHO (World Health Organization) last year. These digital currencies have rocketed high and there are even some currencies worth hundreds of millions rupiah for each piece. There are several cryptocurrencies available in this world but in Indonesia, there is only 229 cryptocurrency which has been legalized by Bappebti (Badan Pengawas Perdagangan Berjangka Komoditi), some of you may have heard about it. Such examples are Bitcoin, Litecoin, Digibyte. Ethereum, Chainlink, Binance Coin, and Vidycoin among others. Vidycoin has been gaining popularity in Indonesia these past few months. Its price drastically increased from a mere 20 rupiah at the beginning of March and now sits at around 100 rupiahs for each piece.

For those who don’t know what cryptocurrency is, here’s a short explanation of it.

A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology - a distributed ledger enforced by a disparate network of computers. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.

Here’s why you should start paying attention to cryptocurrency

First, Bitcoin, one of the most popular cryptocurrencies has increased to an astounding 345% in 2020. This rise was also backed up by a number of fundamentals not just from a flicker of euphoria as what has happened before.

Second, cryptocurrencies have been widely received as a means of payment. As it is a decentralized network it makes a perfect choice for online trading. But it hasn’t been accepted as the norm of payment in Indonesia yet.

Third, cryptocurrency exchanges have been legalized in Indonesia under Bappebti.

This rising trend has piqued the interest of many people. At the same time, it is also an easy way for scammers to take advantage of these people with minimal knowledge of cryptocurrency. That’s why in this article I’m going to tell you how to trade cryptocurrency safely and legally.

The trade of cryptocurrency differs from the stock exchange where investors use brokers who will do the transaction in the market. In cryptocurrency, investors won’t go through a broker instead they will directly do the transaction with other investors in a specialized platform for crypto exchange. Crypto transactions are bridged by these marketplace platforms. 

There are tons of fake applications that swindle the users, that’s why you should always be careful and check the credibility of the platform you use. Even Though some websites sound really nice and offer a great deal of fortune, you should always be wary because high gain means there are high risks behind it. Here are a few of the best platforms with a minimal fee that have already been approved by Bappebti, Indodax, Tokocrypto, Rekeningku, Pintu, Luno are such examples.

Meddling in cryptocurrencies may be categorized as “legal betting”. There are people who get addicted to continuously buying cryptocurrencies without any backup plans and speculations. These people will mostly end up bankrupt or tied up in a huge debt. You should always be tactful and be careful, trading in cryptocurrencies also requires great analytical skills to speculate the trend. If you’re not careful you could lose quite a sum of money.

That’s why you should only use your pocket money that has been separated from your living costs, tuition fee, and miscellaneous fees that is required in your everyday life. Limit your spendings and thread carefully. There are always ups and downs in trading. You can’t always get the profit you want. You gain some, you lose some. That’s how the world works.

In conclusion, it’s okay and totally safe and legal to trade in cryptocurrencies. But you should always be careful with your placement of money. As long as you trade on the right side of the law you’ll be fine from scammers. It doesn’t hurt to be extra vigilant and careful.

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by Neysa Nataniella  /  XIIA2 / 19