The correct way to play crypto needs to be understood well so that this investment is not only profitable but also safe. There are many fraudulent investments in crypto. Need to be careful.
Cryptocurrency and bitcoin buying and selling transactions have boomed in recent years. The price rose fantastically up to thousands of percent in a short time, which made many people interested in trading or investing in it.
However, not a few people are also deceived by fraudulent investments in this digital asset. Cases of rug pulls, scams, scams, are common and the trend tends to increase.
To avoid being trapped by these scams, investors need to carefully know how, the right crypto trading process. How to play and invest in anti-fraud crypto.
Here are the steps to play crypto that you should pay attention to:
1. Select Exchange Crypto Broker
The process of buying and selling crypto assets, one of which is Bitcoin, is carried out through an exchange or exchange. The services on the Exchange are to buy, sell, store and transfer crypto assets.
This exchange functions like a marketplace, a place that brings together buyers and sellers of crypto assets. Crypto asset transactions occur between members or merchant members of the exchange.
Exchange does not do buying and selling. Its role is only to be an intermediary and will collect a number of fees, such as fees for buying and selling and withdrawing money.
Each exchange will determine the types of crypto assets that can be traded on their marketplace. Each exchange has a different list of crypto assets.
2. Look for the Official Marketplace Registered with CoFTRA
The number of cases of exchanges or brokers being conceded reminds us that even though there have been many actions to maintain the security of the exchange from hacker attacks, there are still cases of burglary.
In Indonesia, CoFTRA, as the regulator of crypto robot tranding binance, has issued registration marks to 13 companies as “Prospective Crypto Asset Physical Traders”. It is recommended that crypto asset transactions in Indonesia be carried out only at these 13 regulated companies.
Overseas, crypto exchanges are also widely available. However, we must ensure that they are legitimate institutions and have clear permits.
Exchanges that have been registered with CoFTRA meet the following criteria:
paid up initial capital of Rp 100 billion
maintain a final capital balance of Rp 80 billion.
provide the necessary documents,
provide system access to BAPPEBTI (read only), as well as
submit periodic reports on the implementation of cryptocurrency trading.
I prefer one that is regulated in Indonesia under CoFTRA. The reason is simple, if anything happens, it’s easy for me to complain to the office.
It’s different, for example, if the exchange is abroad, let alone not yet officially regulated by the Indonesian authorities, which if something happens, it will be very difficult for me to make a complaint or complaint.
Companies that are officially registered with CoFTRA also have strong capital. CoFTRA regulations stipulate that the minimum capital for companies registered as crypto asset traders is IDR 100 billion and for licensed companies IDR 1 trillion.
To build a solid security system requires no small capital.
It will be very dangerous if the company only has a small capital, where the company’s ability to build a solid security system in a sustainable manner will be limited.
For example, overseas, several conceded exchanges are ready to compensate consumers for stolen crypto assets. This exchange has strong capital to be able to make refunds, in addition to building a security system.
Meanwhile, small companies with limited capital are usually unable to make replacements. Let alone compensate, creating a strong security infrastructure is also not easy with limited capital.
And also keep in mind that currently in Indonesia there is no insurance or consumer protection fund in bitcoin trading. So, in the event of theft of crypto assets, customers can only depend on the exchange company completely.
3. Register and Open an Account
To start playing crypto, consumers must open an account on an exchange. The method is as follows:
First , download the crypto application in the app store, according to the chosen marketplace, for example TokoCrypto, Indodax, Pintu or others.
Make sure to choose an official APK. Don’t get caught up in downloading fake or scam apps.
Second , you will be asked to fill in data, such as name, e-mail, username, password and mobile number for the account registration process.
4. Verify Data
After the account is created, the customer must then verify to be able to make transactions such as deposits, withdrawals and trading on crypto assets. Verification is done by:
take photo ID
selfie photo while holding an ID card.
The verification process is carried out completely online. No need to come to the branch office and no need to send data and documents.
As long as the data is correct, the account verification process will run in less than 12 hours and the account has been successfully verified.
5. Setor Deposit Minimum
After the account is registered, the customer needs to deposit funds into the account that has been opened, in order to carry out crypto buying and selling transactions.
The minimum deposit is different for each crypto exchange. Indodax for example asks for a minimum deposit of IDR 500,000.
Exchange accepts deposits in various ways, namely:
transfer bank (rekening & virtual account)
e-wallet (EGG, GoPay, ShoppePay)
Retail at Alfamart.
Deposit fees by bank transfer are usually free, while other transfer methods incur a fee.
6. Buy Asset Kripto
Before making a purchase, the customer must determine the pair of crypto assets to be transacted. There are tens or even hundreds of crypto assets available on exchanges.
Buy bitcoin or crypto assets using rupiah deposits. Purchases can be made 24/7 between exchange members.
When buying a crypto asset, such as Ethereum, Cardano or Solana, the investor is essentially investing in the project, which is the underlying or underlying asset of the crypto. The better and more prospective the project, the higher the value of crypto assets.
Therefore, it is very important to analyze crypto projects before investors start investing.
What is the aim of the project? What problem is the crypto project trying to solve?
The crypto coins that investors will buy need to be analyzed for use cases, ecosystems and advantages over other crypto projects. Why this project is good and useful that the coin is worth buying.
CoFTRA itself not only regulates the issue of official exchanges but also the types of crypto assets that can be traded. Because a lot of fraud occurs in crypto assets, where the project is a scam and the money is taken away by the maker.
CoFTRA regulations as a regulator and crypto authority in Indonesia stipulate that the types of crypto assets that may be traded on official exchanges in Indonesia must meet the following criteria:
based on distributed ledger technology ;
utility crypto assets or
asset- backed crypto assets and
has a market capitalization value , is ranked in the top 500 crypto asset market capitalization, is entered in the transactions of the world’s largest crypto asset exchange, and has economic benefits.
7. Store in a Cryptocurrency Wallet
Storing crypto and bitcoin purchases made in the wallet. This wallet can be exchanged or managed by yourself.
Like money, a wallet or wallet is very important to maintain the security of the crypto assets that we have. Do not let the wallet be broken into and the currency in it is stolen.
Investors have two wallet storage options:
Store in exchange wallet. This is an easy and practical way because when you are about to make a transaction, you just have to access it. However, saving on an exchange wallet has a risk, namely being burglarized. Many cases of crypto theft occur in wallets on exchanges that have been hacked by hackers.
Keep it in your own personal wallet. This is the safest way because the wallet itself is not connected to the internet (air gap) so it is less likely to be hacked. However, the wallet itself is not practical and costs money because every time you make a transaction you have to send it back and forth to the exchange.
Have you ever seen a wallet address?
The alphanumeric shape is quite long and unique. It is difficult to remember, in contrast to the bank account number which is quite short, so it is easy to remember.
The problem is, if the wallet address is wrong, bitcoin can be sent to the wrong person and cannot be recovered. In contrast to the wrong transfer at the bank, the customer may still be able to ask the bank to return the funds.
In bitcoin, there are no intermediaries, such as banks, so any transactions that have occurred cannot be undone or reversed. Wrongly writing the wallet address will definitely be sent to the wrong person and can’t be helped anymore.
So, make sure that the wallet address is written correctly, before sending bitcoins or cryptocurrency assets.
8. Sell Crypto Assets
The process of selling crypto assets is easy on the exchange. The important thing is that the crypto balance is already in the exchange wallet.
Sales can only be made through an exchange because you need a selling opponent to be able to complete a sale and purchase transaction.
If the crypto is still in a personal wallet, then the asset must first be transferred to a wallet exchange to be transacted.
When selling, we have to choose a crypto pair, for example Bitcoin/Rupiah, so that the sales proceeds will enter as Rupiah which can be withdrawn to the account.
You can also choose other crypto pairs, such as Bitcoin/Eth, so that the proceeds from the sale are stored in another cryptocurrency.
9. Withdraw Money to Account
After completing the sale, the customer can withdraw funds from the exchange to a personal bank account.
Currently, some brokers also provide facilities to be able to send money to e-money accounts, such as OVO, Gopay, Dana.
Exchange will ask the customer to perform a number of verification steps before withdrawals to the account can be made. Verification, among others, via email and 2-factor authentication.
The customer is asked to pay a withdrawal fee by the broker. The amount varies depending on the broker.
10. Ensure Google Auth 2FA Security
Exchanges in Indonesia on average have implemented 2FA (Two Factor Authentication) which is an online security feature, where users will verify identity 2 times.
When logging in to an account in the marketplace, after entering the user ID and password, the user will be asked to enter a special code from the Google Authenticator application on the cellphone.
This method guarantees that every transaction is validated by the account user himself. Not only must you know the user ID and password, but also have access to a cellphone, to be able to open an account.
The problem is, on some exchanges 2FA is not mandatory. Customers can still choose not to use 2FA.
The safe way to play crypto is to add 2FA as an additional verification layer.