What Is Crypto Investment? Understand How to Play and the Risks

What is crypto investment? You must be familiar with the term digital currency. Since Ghozali went viral selling his selfies on NFT, people are now increasingly interested in making crypto investments. Do you know about this one investment?

This crypto investment is a type of investment that you can prepare for both the short and long term. However, of course you need to know first what are the risks of going through this one investment. Often hear Bitcoin or Ethereum, right? Crypto investment allows you to know more with two examples of these types of crypto.

 

What is Crypto Investment?

What is crypto investing? Crypto investment is the buying and selling activity of crypto assets carried out on exchanges such as marketplaces. This is a platform that brings together sellers, buyers and those who transfer crypto assets. The activity occurs between members of the associated exchange.

Crypto assets are stored in digital wallets. Transactions also occur directly between investors without any intermediary brokers.

There are many of the best crypto investment choices today. Starting from Bitcoin, Ethereum, XRP, VIDIX, and others.

Crypto Investment Strategy for Beginners

It is very important for you to know that this crypto investment has a very high risk. Higher than stock. However, all you can learn and persevere to get satisfactory results.

What are the crypto investment strategies if you are a beginner?

Don't Panic When Prices Drop

Beginners often panic when they see prices drop drastically. Then there is what is called FOMO (fear of missing out) and also FUD (fear, uncertainty and doubt).

  The decisions you make are only based on emotions and no longer think logically and research. The mental turmoil that occurs causes steps to buy or sell more based on emotional conditions without doing comprehensive research first.

HODL Strategy for the Long Term

Crypto investment for beginners can use the Hold On for Dear Life (HODL) strategy. Hold on to the crypto you have even if the price is falling.

For example, you are a Bitcoin miner, never sell the BTC that you have, no matter how low the price is. Hold on for long-term investments even though the crypto price may be in a free fall at the moment. Hold tight to the crypto you have.

Diversify Coins

Don't just focus on Bitcoin, you can vary it to other forms of crypto, for example to Ethereum. So that when Bitcoin falls, the risk of loss is still smaller because you have other crypto.

Understand and Recognize Coin Characteristics

Before choosing the type of coin for you to make an investment choice, make sure you understand and get to know the characteristics of each coin that you will choose. What are the trends, what are the fluctuations like, and so on.

Prioritize Choosing a Stablecoin

You can convert your crypto which is volatile with a more stable asset. This method can reduce the stress conditions of investors when the market is falling.

Crypto Advantages and Risks

The returns and risks from these crypto investments tend to be equally high. The profit potential is very large, but if it is falling, the potential loss is also quite large. What are the potential benefits and risks of each?

Crypto Investment Advantages

The advantages of crypto investment that you are likely to get include:

• High returns
• Universal around the world
• Transparent.
• Quick and easy
• Can't be faked.
• Can be used as an e-commerce payment tool.

 

Crypto Investment Risks

Crypto investment risks that are also very likely to occur include:

The lack of regulation so that the security guarantee is low.

It is very volatile, meaning you can experience losses at any time.

It is still considered illegal and many illegal transactions use crypto.

Basically, this crypto investment is an investment with high volatility, so it requires the intelligence and patience of the perpetrators.

Experienced investors will not rush to sell crypto when prices are dropping. On the other hand, there are those who buy crypto when the price drops with the aim of long-term investment. You need to make all decisions carefully.

Do you want to try investing in crypto on the exchange of your choice? It's easier to buy using LinkAja balance from Telkomsel. One digital wallet for your various transaction activities, anytime and anywhere.

Not only for buying crypto, LinkAja also helps you pay taxes, BPJS, monthly bills and various other expenses. Easier and faster without having to carry cash everywhere.

LinkAja is a solution to help the problem of financial inclusion in Indonesia so that it is more advanced and continues to grow.

Top up your LinkAja balance now and start learning small investments in the exchange. Want to try investing in Bitcoin, just use your balance at LinkAja.

What is crypto investing? You already understand enough about the strategy and the risks, right? Well, just try it now from the cellphone. LinkAja helps you make transactions easier anytime and anywhere.