The Importance of Learning the Ins and Outs of Crypto as a Digital Asset

Before the Bitcoin price went public, Lawrence Samantha, who is currently the Founder & CEO of an investment platform cryptocurrency named "Nobi", has started to be interested in studying technology-based digital assets blockchain this. Background of a programmer, he began to explore these various types of digital currency until he finally believed that crypto was the most perfect digital asset.

But behind the perfection of crypto assets, there are many things that must be learned in order to understand the ins and outs of their use. Although currently crypto assets in Indonesia are limited as commodities, there are already several platforms that offer easy ways to profit from various types of crypto assets, one of which is Nobi.

In addition, Lawrence also revealed several other reasons to encourage people to invest in crypto assets. Decentralized technology on platform blockchain allows users to monitor movements and carry out transactions without intermediaries, in other words this technology offers a more transparent system. In terms of price, one type of crypto asset, namely Bitcoin, is referred to as the asset with the highest increase over the last 10 years.

Of course, some of the facts above sound tempting to some people. However, with all the advantages it has to offer, it is important to learn the ins and outs of crypto as a digital asset.

High risk and volatility profile

With the high level of security on offer, crypto assets are also known to be highly volatile, meaning they can go up high quickly and then suddenly drop quickly as well. Then the question arises, are crypto assets suitable for the market in Indonesia?

Quote from Coindesk, "Crypto market is volatile due to the decentralization system that causes no central authority to stop it. Therefore, the price of crypto assets can be considered to represent investor sentiment more fairly. This implies a pure market".

Lawrence also said that Indonesia is actually quite behind in terms of crypto assets with an understanding percentage of only about 2%, while in the United States there are more than 10% of people who have used this product. Regarding high risk, Lawrence emphasized, "All investments will have high risk if there is no desire to learn."

Various types of crypto assets

The Ministry of Trade (Kemendag) noted that investors in crypto assets until May 2021 had already break through to 6,5 million people with a transaction value of IDR 370 trillion. This figure has exceeded the number of capital market investors on the Indonesia Stock Exchange. This proves the high interest of Indonesian people in investing in crypto assets.

There are more than 3,000 types of crypto assets circulating around the world, and there will be more in the future. Recently, CoFTRA published a list 229 crypto assets that can be traded in Indonesia. Some of the types that are often used include Ethereum, Dogecoin, Ripple, Stellar and the most popular Bitcoin. There are only 21 million bitcoins worldwide.

Among the many crypto assets with high volatility in circulation, it turns out that there is one category stablecoins. Reporting from Coinbase, A stablecoin is a digital currency that is pegged to a "stable" reserve asset such as the US dollar or gold. Stablecoins are designed to reduce the volatility associated with non-pegged cryptocurrencies such as Bitcoin.

Ongoing learning process

When starting something, there is always a learning process that must be followed. Not much different when the internet first entered Indonesia, not everyone understands how to use it. But as time goes by and the benefits are increasingly felt, people are increasingly interested in learning more.

Likewise with crypto assets, which are also referred to as investment alternatives in this digital era. In terms of technology, there have been a lot of innovations that have emerged in the last ten years in the world cryptocurrency. More and more derivative products of crypto as digital assets. This shows that the more people who are involved in this industry, the more innovation will be present.

As someone who has studied crypto assets from the start, Lawrence advised that everyone who wants to get into crypto asset investing must be willing to learn. Understand the most fundamental in investing and its products [crypto assets]. Recognize its nature and continue to monitor its movements. As the saying goes, if you don't know, you don't love.

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