Until now, crypto assets remain one of the investment options that can be profitable, so it is essential to know how to invest in safe crypto assets.
It is essential to understand how to invest in crypto assets so that the funds invested can generate profits as additional income. That’s because crypto assets can provide relatively significant gains quickly.
Given the relatively high risk of crypto assets, some investors, especially beginners, lose when investing in this digital asset. Of course, to jump into the world of investment on this one, you need to learn and know everything about crypto assets, or what we usually call them. DYOR or Do Your Research. Here is the full review.
What Are Crypto Assets?
The definition of crypto assets, namely digital assets with blockchain technology that, cannot be duplicated or counterfeited. Crypto assets are also universal and can be accepted worldwide.
Many countries have legalized crypto assets as legal payments in their territory. It is also essential to know that, in practice, crypto assets are also decentralized.
This means that you no longer have to deal with other parties when transacting using crypto assets, so the transfer of ownership is only from the first party to the second party, without an intermediary.
Uniquely, when transacting with crypto, you don’t have to convert it into another value, which is undoubtedly different from conventional currencies, which will have different values ??in each country.
However, you can still use crypto assets for investment purposes. In this case, you can still buy crypto assets and turn them into investment ones.
Why Are Many People Interested in Crypto Assets?
Many people have started using crypto assets as investment instruments. This happens because crypto assets are seen as having strength and uniqueness that other valuable assets or investment instruments do not. Here are some of the attractions of crypto assets as investment assets that you need to consider.
1. Easy to get
The first attraction lies in the ease of obtaining this digital asset. It is known that many digital platforms can be used to buy crypto assets, one of which is well-known, Indodax.
In addition to buying crypto assets, it will be straightforward to resell and get Rupiah in cash later.
2. Fluctuating Prices
The fluctuating price is also one of the advantages of crypto-asset currencies that attracts the interest of many investors.
As is known, the price increase in crypto assets is very drastic, so investors will be able to gain profits in a short time if the price of this digital asset rises.
3. Wide choice of currencies
Another reason is that a wide choice of currencies is available for crypto assets. To date, more than tens of thousands of crypto assets are already available.
Although not all of these assets can be obtained in the Indonesian market, you can get a large selection of crypto assets later.
However, the unit value and price offered by these assets will vary. Several crypto assets are also so substantial in the market that they are worthy of being used as investment assets qualified as money earners.
How to Invest in Crypto Assets Safely
Of course, no investment is free from risk, including crypto assets. The risk in crypto assets can be called pretty good. Therefore, it is essential for you to know how to invest safely in crypto assets so that you can benefit in the future. Here are some tips for investing in crypto assets for beginners that you need to know.
1. Use cold cash for crypto assets
Since crypto assets are investments with a reasonably high risk, you are strongly advised to invest in crypto assets using cold money or funds that will not be used shortly and have not been allocated to a need. That is, this money is an excess property owned.
As a reminder, the way to get cold money is, of course, by first completing all existing routine obligations, such as paying bills, and installments, setting aside emergency funds, and savings.
The purpose of using cold money is to not add to the risk of the investment you want to make. When this cold money is at risk of being lost later, you don’t need to sacrifice funds for other needs.
2. Choose a verified platform
Next, what is essential for you to know is to choose a digital platform supervised by the Commodity Futures Trading Regulatory Agency (CoFTRA).
One company that already has a license to manage crypto assets is Indodax (PT Indodax Nasional Indonesia). With his permission in his pocket, of course, Indodax can be a trusted trading platform for crypto assets in Indonesia, which is highly recommended for you.
3. Studying crypto assets
In addition to having different prices, each crypto asset has its own distinctive or unique characteristics and characteristics. Of course, those who want to invest in crypto assets safely should study and know more about each of these assets before choosing one.
In this case, please check all the information available on the internet and expert reviews. Indodax has a website Indodax.academy, where you can learn everything about crypto for free. In addition, you should also pay attention to each crypto asset’s movement before choosing it.
Given the fast movement of crypto assets, it’s also a good idea for you to get an overview in a few days/weeks.
4. Don’t rush to make decisions
Short ups and downs are indeed the peculiarities of crypto assets. When it goes down, for example, you don’t need to rush to sell it because there are still opportunities for the asset to go up in the future.
On the contrary, it becomes a golden opportunity for you to repurchase it. The reason is it is possible that the value of the purchased asset will increase later, and you also manage to get a profit when the price rises.
What are Other Ways to Get Crypto Assets?
In addition, there are several ways you can do if you want to get crypto assets, including the following.
It can be translated as a mining process, and mining is a way of getting crypto assets by mining. The trick is to use sophisticated computer equipment, a crypto miner asset.
Mining these crypto assets is closely related to blockchain. The process itself starts with the verification of transactions in the blockchain. Once verified, the transaction will be added to the blockchain to obtain crypto assets.
As for the benefits of mining, people who succeed in becoming miners don’t need to know how to count and math. However, if you use this method, the user must have high-spec software and hardware to mine crypto assets.
Next is farming, which aims to take rewards with ownership of crypto assets. You can produce other crypto assets if you have obtained the asset.
The way it works is related to Liquidity Providers (LPs), whose role is to provide coins paired with other coins and used as liquidity on an exchange or exchange.
For example, you have ETH and pair it with USDT to get ETH-USDT LP. Well, when a trader makes an ETH-USDT transaction, you will get a reward from the gas fee issued by the trader.
The prize amount obtained will be adjusted to the percentage of the contribution in the liquidity. For example, if someone has 1% of the existing liquidity, the reward he gets is 1% of the total gas fee. It should also be noted that this method will be more valuable if the calculation is carried out on a weekly/daily period.
Finally, you can also do crypto asset staking, a method centered on trading crypto assets. The way it works is by storing assets in a wallet (wallet) that has this service.
Later, an investor’s assets will be stored on the blockchain with a consensus Proof-of-Stake (PoS) algorithm for a certain period. The profit itself depends on the locked crypto asset’s price, amount, and activity.
Usually, the duration of locking will have an impact on the benefits that will be obtained later. For information, this method of getting crypto assets is very suitable for investors who want a passive income from crypto assets.
However, if you choose this method, you must research before selecting the platform to use. This is important because investors will lock their crypto assets for a certain period. Well, within that timeframe, developers can’t sell coins.
Thus a review of how to play the safest and most profitable crypto assets that can be worth a try from now on. Also, check out other recent articles about crypto assets, blockchain, and others only at Indodax Academy.