“I pretty much went all in, but I learned a lot” — a confession from a first-time crypto trader.
Written by : Francisca Adinda
This article is purely personal opinion and experience, not investment advice.
The popularity of digital currencies (cryptocurrencies) in Indonesia is currently increasing. The largest exchange in Indonesia (Indodax) noted that the number of their users during the first half of 2021 increased by around 1 million users, with a total of 2.21 million users by the end of June 2021.
It is undeniable that people have become more active in seeking information about cryptocurrencies, either through social media, communities or following updates regarding the development of new startups joining the crypto ecosystem wagon.
It is no exception for me; starting with Fear of Missing Out (FOMO), I continued to explore crypto and eventually dragged myself directly into becoming a crypto trader. I am even willing to allocate my clothes shopping budget to invest in crypto; what a way to learn!
I agree that all women should at least know how to trade crypto, as an additional skillset: learning about managing finances independently, and how to invest appropriately. Trust me, you can’t ignore all of these technological updates, for better or worse.
The world is experiencing a generational shift into Millennials and Gen Z, where they are more technologically-savvy and open to innovations; seeking transparency at the next level. The technology that runs behind cryptocurrency is also impossible to ignore; this space has gone from curiosity to punchline to viable investment.
I signed up to various crypto market platforms such as Indodax & Tokocrypto. Based on my experience as a new trader, the psychological side is critical.
Reading a ‘candlestick’ is a roller coaster of emotion: seeing the chart’s up and down movement, and determining when is the right time to sell or buy the coin I want is exciting. Even though I only made a little margin or profit, my first trading experience at that time made me curious and addicted.
The popularity of crypto is also inseparable from the strong sentiment and forward-look from the community. So that you know, Dogecoin managed to become the most famous crypto throughout the last semester.
Indodax noted, Dogecoin managed to get a total trading volume of up to 33.5 trillion in 2021 and was followed by Bitcoin with a total of 24 trillion and Binance Coin at 19 trillion.
The popularity of Dogecoin cannot be separated from Elon Musk, who is known to openly support the crypto asset bearing the Shiba Inu dog logo. Elon, one of the wealthiest people in the world, often tweets something related to Dogecoin on his Twitter account; and most times when he provides information about Dogecoin, this asset soon rises.
The price of Doge, which is still relatively cheap, makes retail investors buy up this asset in substantial quantities so that the price can rise along with the high interest in Doge.
Indeed, from my experience and closest friends, one of the impetus for investing in crypto is that it is still significantly undervalued and has great potential.
The rise and fall of the coin’s price are unpredictable, so joining crypto communities is also very important to help predictions; they feel so passionate. Most of them find it for the investment, but they stay because they realise this is the new internet.
In line with the increasing popularity of crypto in Indonesia, the government is also paying attention. Starting from the Deputy Minister of Trade to BAPPEBTI (ICDX), they push these assets to be traded on the commodity futures exchange. Like other assets traded formally, crypto assets are also planned to be taxed, the rate of which is around 0.05%, or lower than shares subject to 0.1%.
Besides taxes, Indonesia is also reportedly open to the possibility of creating a Central Bank Digital Currency (CBDC). The issuance of this CBDC is based on three considerations: a legal payment instrument in Indonesia, monetary policy, macroprudential and payment systems, and technology-based payment instruments.
I think cryptocurrency, in a nutshell, has gotten to a point where everyone is starting to take it seriously. Crypto is very sexy, and my experience being a crypto trader was challenging, but it’s worth trying.
I believe that with the emerging technology today and despite the hype, cryptocurrency can positively impact the world.
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