Bitcoin and crypto rise and fall like a roller coaster. The price movement can be hundreds of percent per year. Some even reach hundreds of percent per day. Isn’t that fantastic?
Currently, the highest squatting Bitcoin is at a price of IDR 851 million. This shows a value of 700 percent from February 2020 with a value of Rp. 100 million.
The increase in bitcoin price is rumored to bring big companies such as Tesla, Square, and Micro-Strategy to divert their assets from conventional (cash and resignation) to buy bitcoin.
Then, many questions arise, why did the Bitcoin price experience such a high price increase. And why does the risk also tend to be higher?
Unlike other assets, crypto assets tend to experience drastic fluctuations in price. Meanwhile, other assets, such as deposits, only increased by 7 percent per year.
JCI is only 6 percent, and gold has increased by 21.86 percent throughout 2020.
Why are crypto asset prices rising and falling so fast?
There are several things that affect the increase in the price of Bitcoin. Basically, the price of crypto assets is influenced by their demand and availability in the global market.
As an analogy, when the demand to buy Bitcoin increases, of course the Bitcoin price will also increase. This is what is happening to the current Bitcoin price.
On the other hand, if there are more sellers than buyers, then the price of Bitcoin will fall until the price point for the number of sellers and buyers is equal.
In addition, transactions from Bitcoin in global markets around the world occur 24 hours a day. So the buying and selling that occurs is carried out continuously and is more massive.
Unlike stocks, deposits, and other assets, transactions only occur during office hours.
High Risk High Gain Investments
Bitcoin is an investment that is high risk, high gain. This means that the value obtained can be very high, but in a matter of seconds or minutes the price can drop very far.
If the price of Bitcoin is rising, the profits can be many times more than stocks. Because stocks have performance that can be analyzed. Meanwhile, bitcoin is controlled by software using blockchain technology.
Ready to trade Bitcoin? Always instill in yourself that if you dare to invest you have to dare to lose.
What is the Legality of Crypto Assets in Indonesia?
Even though it is high risk and high gain, it does not mean that Bitcoin and altcoin investments are fake investments. In fact, the government has arranged this.
In Indonesia, crypto assets are tradable commodities, you know. The Ministry of Trade through the Commodity Futures Trading Supervisory Agency (Bappebti) issued Regulation number 7. This rule is concerning the Establishment of a List of Crypto Assets that can be Traded in the Physical Market of Crypto Assets.
The regulation contains technical procedures including requirements for determining crypto assets. Then the mechanism for adding and subtracting types of crypto assets being traded. As well as the settlement mechanism to customers as a result of delisting unregistered crypto assets.
so the status of crypto assets in Indonesia is legal and can be owned by anyone.
Bitcoin Goes Down Time to Buy, Bitcoin Goes Up Time to Sell
As is well known, Bitcoin is an investment with high price volatility. In other words, a Bitcoin investor can be rich overnight, but can also lose overnight. Then when is the right time to buy and sell Bitcoin?
Actually, the right time to buy Bitcoin is at the beginning of its appearance and sell the digital asset today. Even so, for you novice investors, don’t be discouraged.
You can still repeat this moment by buying Bitcoin when the price is low by relying on market conditions that are stagnant and bullish. Then sell it when the price peaks.
For Bitcoin information and other trading tips for beginners, you can see other interesting articles on Indodax.academy and Indodax’s official social media.