Here’s The Tips For Investing in Bitcoin and Other Cripto Currency

Investing in crypto assets or cryptocurrencies has become increasingly popular these days, especially after large companies like Tesla and MasterCard paid attention to Bitcoin.

Both of them provide support by making Bitcoin a legal means of payment in the near future. Bitcoin itself is just one of hundreds of cryptos in existence, like Ethereum and Ripple.

Being the most popular crypto, the price of Bitcoin has reached 49,714 US dollars or the equivalent of Rp. 696 million (exchange rate of Rp. 14,000 per US dollar) per chip on Sunday trading (14/2/2021). Thus, this crypto asset has strengthened by more than 20,000 US dollars since the beginning of 2021.

The increasing trend that continues to occur is increasingly attractive for investors to make crypto an investment instrument. However, there are things that need to be considered if you are interested in buying crypto assets.

Capital Futures analyst Wahyu Laksono said the change in crypto value movements was very high. In addition to providing a large profit potential, at the same time it can also cause large losses.

“Crypto is trending. However, the volatility is very, very high, (changes can be) in some time, maybe hours,” he told Kompas.com, quoted on Tuesday (16/2/2021). He gave an example like Bitcoin which had reached the level of US $ 38,000 per chip on November 1, 2020, but on the same day its value dropped US $ 7,000 to US $ 31,000 per chip.

Therefore, he said, it would be appropriate to have large capital when investing in crypto assets. If not, the small funds will continue to erode until they run out when the crypto value drops.

“This means that the value is very large. Even the smallest scale investor, namely the micro, the funds will be threatened with exhaustion,” said Wahyu.

On the other hand, if an investor enters at the highest crypto price, the potential for loss will be even greater, because movement after reaching the highest price is very susceptible to correction. For those who enter at a very high stage, it is clear that there is also a big risk if you expect to increase immediately. Buying at high prices, especially in historical highs, is very vulnerable to correction.

Even though in long term is still rising, “he explained. Wahyu said, this condition had happened around 2017-2018, where the price of Bitcoin had dropped from 19,000 US dollars per chip to only 4,000 US dollars per chip. ”(If you look at the current conditions) it is bitter for those who have lost, but very sweet for those who hold on to assets, he added.

Therefore, said Wahyu, investing in crypto assets must clearly understand the investment pattern and target. Choose to invest in the short term, medium term, or long term. If for the medium and long term, the potential for profit is considered greater.

As long as it has a sufficiently large willingness of funds coupled with the averaging position capability. Also read: Collaborating with Ovo and Bareksa, Unika Atmajaya Launches the Fintech Curriculum. Meanwhile, if the investment target is for short terms, it must take into account the potential for correction. On the other hand, it would be more appropriate to buy crypto assets at their lowest price if the objective is short-term.

Wahyu emphasized that relying on technical factors is quite important for cryptomania. Because crypto assets have no clear fundamental basis except market sentiment.

Source: Kompas.com