Crypto Investment Learning Tips, Taking Advantage of Bitcoin Rally Momentum
Crypto prices are going crazy. For those of you who are just learning to invest, of course, you don't want to miss this momentum
Netgenz - Stock Tips | The price of bitcoin (BTC) is getting 'crazy' lately. The cryptocurrency with the largest capitalization value broke in the range of US$54 thousand per chip. In fact, it had touched the US $ 55,147 as of Thursday (7/10). According to coinmarket.com, bitcoin is at a rate of US$54,479 per chip. The figure rose 0.52% in the last 24 hours or 26.35% in the last seven days.
The price of bitcoin often rises to break records. bitcoin had reached its highest level at the level of US $ 20 thousand per chip in 2017 yesterday. However, the price of bitcoin plummeted to as low as US$3,000 per chip in 2019. This is because China is cracking down on cryptocurrency ventures.
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Furthermore, the price rebounded strongly to the level of US$8,000 in May 2019. It did not stop there, the price of bitcoin continued to soar until it touched US$20 thousand per chip in December 2020. Bitcoin also seems to be moving stronger and penetrated the US $ 30 thousand per chip in early 2021. Now, bitcoin has settled above the US $ 54 thousand per chip.
If you watch the trend, bitcoin seems to be growing constantly during the covid-19 outbreak. If a person buys bitcoin in 2017, the profit is more than 100%. This is definitely interesting for people who want to try to invest and enjoy money over and over again.
Found, crypto money is still prohibited as a means of payment in Indonesia. However, crypto is also a commodity futures exchange, so it doesn't matter as long as it is used as an investment or a commodity traded by market actors.
Crypto money is regulated by the Commodity Futures Trading Supervisory Body (CoFTRA) of the Ministry of Trade through CoFTRA Regulation No. 2 of 2019 concerning the Implementation of the Physical Commodity Market on the Futures Exchange. Then, what are some things that need to be prepared if you want to try investing in cryptocurrencies?
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1. Finding a Crypto Money Trading Base
The founder and Chief Executive Officer (CEO) of Bitocto Milken Jonathan explained that citizens must find a base that trades cryptocurrencies legally and has been registered with CoFTRA.
Bitocto, said Milken, is a base that has been legal and registered with CoFTRA. "You can go straight to the base. In essence, the crypto exchange base has done all the roles of the exchange, clearing, and so on," said Milken. In tune, Indodax CEO Oscar Darmawan explained that residents must find a base that trades crypto assets to start investing. If they choose Indodax, residents can take the program in the App Store or Playstore. Also, read How surveysay to make money online.
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"Then beginners can register by following the guidelines listed on the register menu," said Oscar. Furthermore, residents will receive e-mails to clarify. After clarifying, residents can return to the official base site and log in using the registered e-mail and password.
"After that, beginners do two-way authentication," added Oscar. When all processes have been carried out, residents can immediately carry out business transactions.
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2. Cold Money
Meanwhile, Milken explained that citizens should use 'cold money' to invest in crypto assets. Cold money means funds that are not used for a certain period. This is so that the financial cash flow (cash flow) is not disturbed. That way, the invested funds do not have to be taken in a short period.
3. Determine Blue Chip Assets
In addition, Milken recommends that citizens start investing by choosing 'blue chip' crypto assets. Assets that are interpreted, namely bitcoin and ethereum (ETH). "Start investing in crypto-assets with a concentration on bitcoin and ethereum in the early stages as a beginner," said Milken.
According to Milken, blue chips or non-blue chips can be seen from the market capitalization value, trading value, liquidity, and how many bases are trading cryptocurrencies. "There are only two definitions of blue chips from my point of view, bitcoin and ethereum because from number three to the bottom, the ranking of market capitalization values often fluctuates," explained Milken.
4. Read a lot and follow the changes
Next, Milken explained that citizens must be diligent in reading about crypto investments. This is so that people understand the various terms in crypto assets, the trend of cryptocurrency movements, and their essentials.
In addition, citizens who invest in any instrument, including cryptocurrencies, must be aware of domestic and global changes. The problem is that it will affect the movement of crypto money. "Must keep up to date with information," added Milken.
He explained that some of the essential sentiments that affect cryptocurrencies are economic, regulatory, and political conditions. So, citizens must understand the dynamics. "But, of course for this crypto, there is a sentiment and a market cycle of its own," said Milken.
For example, information regarding the President of El Salvador Nayib Bukele who legalized bitcoin as a legal tender in the country has given positive sentiment for crypto money.
"Suppose positive information related to El Salvador makes prices rise. On the other hand, mining tires in China have made bitcoin go down. Another example, the strengthening of the US dollar can also make bitcoin prices decline and vice versa," said Milken. In rhythm, Oscar reminded residents to learn crypto money if they wanted to taste money from the instrument.
He explained that a good crypto asset has high liquidity. This was followed by a large trading volume, being traded on several grounds, and having a large number of community members.
"It's only right that crypto assets with good conditions like that the price must continue to rise and provide traders with profits," said Oscar. Oscar said that if a person chooses to invest in a short period, the most profitable crypto asset is a utility type of crypto asset, such as bitcoin.
"Because in general, they (types of utility crypto assets) have high price volatility, so they can be used by traders to make buying and selling actions," explained Oscar. Furthermore, if you are looking for crypto assets at constant prices, Oscar said residents can choose tether (USDT). The price of the cryptocurrency will depend on the price of gold, silver, US dollars.
"This type of crypto asset gives traders an advantage when used as a store of value because the price tends to be constant," said Oscar.
5. Buy When Prices Fall
When the price of crypto assets is inflamed, Oscar explained that residents can take advantage of the moment to buy at affordable prices. The problem is that it will provide large profits to investors when prices have risen again.
"Investment is basically buying something at an affordable price and selling it when it's expensive. So, the asset decline is a time to buy, put, and market it when the price goes up," said Oscar.
He gave an example of bitcoin having broken through to its highest level at the US $ 60 thousand per chip. That way, residents who initially bought bitcoin at the rate of US $ 40 thousand-US $ 50 thousand per chip, then sold it at a price of US $ 60 thousand per chip, then get a profit of about 20 percent - 50 percent.
Meanwhile, Milken explained that the reduction and increase in crypto prices are normal. When it declines, investors can use it to acquire assets at a lower price. However, he said bitcoin as one of the cryptocurrencies continues to be in an increasing trend. This is because the supply of bitcoins is limited in the market.
Milken gave a message that citizens should not sell when the crypto price is at a support point or low level and should not buy when the price is at resistance or high level.