The market capitalization of all global crypto assets as of Friday (16/7/2021) based on CoinMarketCap data touched 1.32 trillion US dollars. This figure is certainly uncertain, sometimes up and sometimes down. However, the current crypto trading trend is gaining popularity among traders. Famous for profits that can reach 1000% and can also fall suddenly, what is crypto trading? And how to profit from cryptocurrencies?

What is crypto, actually?

Cryptocurrency or popularly known as cryptocurrency is very much talked about today both among investors and traders. Many investors and traders have tried their luck with crypto trading and made 100% profits, but many have also ended up disappointed due to the current fall of several cryptocurrencies. So, what is crypto? Crypto is a digital or virtual currency that is secured with cryptography and has no physical form.

Cryptography is a method used to protect information and communication channels through the use of codes. The use of cryptography makes crypto impossible to manipulate, which means crypto transactions cannot be forged. Cryptocurrency transaction recording is centralized in a system called blockchain technology. Unlike other conventional currencies such as the rupiah, US dollar, and euro, cryptocurrencies are not "issued" and regulated by a specific country, government, or central bank, the nature of cryptocurrencies is decentralized. 

Even though it is known as "currency", crypto in Indonesia cannot be used as a means of payment. So it is not surprising that crypto in Indonesia is only an investment tool and a trading asset for traders.  Reporting from CNBC, Bappebti noted that the number of crypto asset investors in Indonesia as of the end of February 2021 reached 4.2 million people and the average daily value of crypto trading transactions reached IDR 1.5 trillion per day.

Definition of trading crypto

What is crypto trading? Is it the same as forex trading? Crypto trading is an investment activity in the form of buying and selling cryptocurrencies with the aim of making a profit. If you're familiar with trading forex, stocks, or commodities, then crypto trading isn't much different. In simple terms, crypto trading profits are obtained from the difference between the buy and sell prices by making buy transactions when the price is low and sell transactions when the price is high.

The difference between crypto trading and other investment assets is that crypto has a high level of volatility.  Unlike forex, the volatility level of digital currencies has no limits, the price of a cryptocurrency can rise up to 100 percent and can also go down and "free fall". For example, at the beginning of this year the price of Bitcoin soared to 930 million rupiah because it was driven by the statement of Tesla CEO, Elon Musk who approved the use of Bitcoin for payment.

Unfortunately, after a few months, this decision was postponed and the price of Bitcoin fell gradually to 470 million rupiah. The value of cryptocurrencies is highly dependent on market adaptation, popularity, and government actions against these cryptocurrencies. Examples are the US government's decision to impose a tax on cryptocurrencies and the Chinese government's policy banning the use of cryptocurrencies has caused major cryptocurrencies to decline sharply.  Then, what about in Indonesia? In Indonesia itself, crypto assets are included as commodities that can be traded on the futures exchange under the supervision of Bappebti. So, don't worry, crypto trading in Indonesia is a legal investment.

How to trade crypto for beginners?

Who says crypto trading is hard for beginners? Here are instructions on how to buy, sell or trade crypto for beginners.

1. Choose a crypto trading platform

The first thing you have to do if you want to try to make a profit from cryptocurrency trading is to choose a crypto buying and selling platform or commonly called an exchange. A cryptocurrency exchange is an online platform where you can exchange one cryptocurrency for another and buy and sell crypto assets. For beginners, make sure the exchange you choose is legal and officially registered with Bappebti. Crypto trading can be done for 24 hours, 7 days a week or non-stop on the platform you have chosen. The platform can be downloaded on smartphones, so you can trade anywhere and anytime. There are various exchange options today, you can do your research first before deciding. What are the things to consider when choosing an exchange? Here are the instructions.

  • Features of crypto trading on exchanges

Every exchange must have excellent trading features that are useful when making transactions. There are several important features such as price charts for analysis, a cut loss feature that helps traders limit losses, and a short selling feature that ensures traders continue to make profits even if the price of your crypto assets is declining. Make sure the exchange you choose has superior features that benefit you.

  • Service fees and spreads

In making transactions, there will usually be a service fee scheme charged to traders, namely around purchase and withdrawal fees. Some exchanges provide a flat rate for withdrawal fees and some use a percentage scheme according to the nominal amount of withdrawals. The flat rate scheme is certainly more profitable for traders. Not only that, there are also transaction fees as a market taker charged to traders. The market taker fee is a fee discount if a trader makes a transaction by participating in an existing price queue. For example, a trader who buys Bitcoin for IDR 10,000,000 through the T exchange will be charged a deduction fee of 0.1%, which is IDR 10,000.

  • Security Technologies implemented

The next important thing that traders should pay attention to is the use of technology to guarantee the security of transactions. The majority of exchanges in Indonesia have used security standards such as Two Factor Authenticator (2FA) and confirmation via email and SMS. However, to ensure the security of transactions, you can choose an exchange that is registered with Bappebti, because they have ISO 27001 certification on information security systems and have also been registered with the Ministry of Communication and Informatics.

2. Choosing a cryptocurrency

For those of you who are interested in crypto trading, there are 10,000 types of cryptocurrencies currently traded. However, in Indonesia there are 229 crypto assets that have been registered with Bappebti. However, based on CoinMarketCap data, there are five most popular cryptocurrencies that have the largest market capitalization in US dollars and you can consider them when choosing a crypto coin. Here is a breakdown of the best crypto coins that have good prospects and fundamentals.

  • Bitcoin

Famous for being the world's first cryptocurrency, Bitcoin is the cryptocurrency with the largest market capitalization or valuation in the world. Currently, the total market valuation of bitcoin reaches 671.78 billion US dollars or around IDR 9,673.63 trillion (exchange rate of IDR 14,400). This amount is equivalent to 43.34 percent of the total crypto asset market valuation which reached 1.5 trillion US dollars. In April, the price of Bitcoin touched the highest price in the range of 64,000 US dollars per piece or equivalent to 930 million rupiah, but has now declined to 30,000 dollars or 430 million rupiah.

  • Ethereum

Ethereum is actually a software or software based on a blockchain network. The blockchain network-based application has a crypto asset called Ether. Ethereum was also the first to introduce the concept of smart contracts. Ether is the digital currency with the largest market capitalization, which is 261.58 billion US dollars or 16.83 percent of the overall cryptocurrency market valuation. The Ethereum software itself was created to expand the use of blockchain beyond Bitcoin and can be used for a wider range of applications.

  • Tether

Tether is the crypto asset with the third largest market capitalization in the world with a total market valuation of currently 62.89 billion US dollars with a market dominance of 4.06 percent. The price of tether is pegged to the US dollar, which is why it is often referred to as a stable coin and tends to be more stable than other volatile cryptocurrencies. When it was first launched in 2014, one tether was pegged at one US dollar. Tether once reached a high price of 1.32 US dollars in 2018.

  • Binance Coin

Currently, Binance coin is listed as the cryptocurrency with the fourth largest market capitalization with a total market valuation of 52.69 billion US dollars. Binance exchange is the largest crypto asset trading platform based on the volume traded, so this platform created Binance coin, or BNB token as a means to pay transaction fees on the platform. The amount of BNB is limited to just 200 million tokens.

  • Cardano

In fifth place with a valuation of 45.82 billion US dollars is occupied by Cardano. This amount is equivalent to 2.96 percent of the overall cryptocurrency market valuation. Cardano is a third-generation blockchain platform, Cardano's crypto asset is called ADA. This crypto asset was developed by one of the creators of Etherum, Charles Hoskinson in 2015 and launched in 2017. The Cardano blockchain network was created as an alternative to Ethereum. Currently, the price of ADA is in the range of 1.03 US dollars. ADA once reached a high price in the range of 24.5 US dollars in mid-May. If you've already downloaded one of the crypto trading apps on your smartphone, you'll find a variety of cryptocurrencies in addition to the ones mentioned above. Traders should also be careful in choosing coins because many types of crypto coins are not yet popular and their price movements are very aggressive. 

3. Make a purchase on an exchange

Once you have chosen a crypto trading platform, the trader then registers to create an account. Well, to be able to trade crypto, you can make purchases on exchanges, traders must first transfer funds to an account or commonly known as a "wallet" or "wallet". Traders can usually use local currencies such as rupiah or other crypto assets. Traders can then "buy" on the exchange which is a request to buy crypto assets at a pre-selected price. And vice versa, you can do "sell" which is a request to sell a crypto asset at a pre-selected price. Exchanges basically only act as a provider of facilities for traders to buy and sell crypto, because only as a liaison, this platform where crypto is traded does not determine the price, so who determines the price? Crypto prices move based on market movements.

4. Know when to buy and sell 

A basic tip for beginner traders before learning deeply about fundamental and technical analysis is to know when to buy and sell crypto to reduce investment risk. Market timing is an important key, considering that the price of crypto assets easily rises and falls, making it difficult for the market to predict its movements for beginner traders. Market timing is the ability of traders to determine when to buy and sell an asset. Buying cryptocurrencies when the price is falling is highly recommended for beginners. Banner Press Release

What are the best crypto trading apps?

Crypto trading in Indonesia can be done on various crypto trading platforms which are widely available in the form of applications that can be downloaded on smartphones. This crypto platform functions like a marketplace that brings together sellers and buyers, and can transfer and store crypto assets. The platform facilitates the transaction. Here are the best crypto trading applications that are officially registered at Bappebti.

1. Indodax

Indodax is the first crypto asset marketplace platform in Indonesia. Having been downloaded more than a million times, Indodax has 1.9 million verified members, this exchange is estimated to be the largest in Indonesia to date. Indodax has a deposit requirement of IDR 500,000 with payment can be made via bank transfer or other digital wallets and has a fee of 0.3 percent in every sale, purchase, and withdrawal transaction. Indodax also implements 2FA (Two Factor Auntentication) which is an online security feature, where users will verify their identity twice. So, when logging in to an account on Indodax, after entering the user ID and password, the user will be asked to enter a special code sent via SMS or using Google Authenticator on the phone. This ensures that each transaction is validated by the account user himself. Indodax itself provides 110 crypto assets. 

2. Tokocrypto

Tokocrypto is a crypto asset trading platform that was founded in 2017, and began operating in May 2018, and was introduced to the public in September 2018. Having been downloaded more than 500,000 times, Tokocrypto received investment from Binance, one of the largest exchanges in the world today. The minimum deposit requirement at Tokocrypto is IDR 50,000 and can be done by bank transfer and via OVO with free deposit fees. Tokocrypto implements a flat rate scheme for withdrawal fees of IDR 5,500. Regarding security, Tokocrypto implements 2FA. There are 34 crypto asset coins or tokens that you can choose from on Tokocrypto. 

3. Rekeningku

Operating since 2017, Rekeningku is a crypto asset buying and selling platform and has been downloaded 100,000 times. The minimum deposit requirement is IDR 50,000 and accepts deposits in various ways including bank transfers, bank virtual accounts (Mandiri and Permata) and e-wallets (Dana, LinkAja, OVO). However, deposits with VA and e-wallets are subject to a fee, while bank transfers are free. My account has also implemented 2FA and provides 44 crypto asset coins or tokens. Withdrawal fees on My Account will be charged at 0.75%, while sales and purchases will be charged at 0.1% for takers.

4. Pintu

Pintu is a fairly new crypto asset buying and selling platform because it was only launched in 2020. Although it is new, Pintu has been downloaded 500,000 times and many users feel that the pintu app is easier to use and differentiates Pintu from its competitors. Pintu has a minimum deposit requirement of IDR 50,000 and accepts deposits by bank transfer and VA (BNI, Mandiri, BRI). My account implements 2FA with a combination of verification via email, SMS, and Google Authenticator. This gate provides 10 crypto asset coins or tokens. Pintu applies a withdrawal fee with a flat scheme of IDR 4,500, while the sale and purchase fee is free.

5. Luno

Luno was founded in 2013 and is based in Singapore, and has been operating in a number of other countries including Indonesia since the beginning of 2015 with a total of 5,000,000 downloads. Luno has a minimum deposit requirement of IDR 50,000 and accepts deposits by bank account transfer with VA for a fee of IDR 4,000. Luno provides five crypto asset coins or tokens. Luno implements a flat scheme of Rp6,500, while sales or purchases are at a rate of 0.08%-0.1%.

Let's get acquainted with GICT Coin!

GIC also has a crypto asset known as GICT Coin. GICT Coin is a digital currency used to transact within the GIC ecosystem. Similar to other cryptocurrencies, GICT Coin uses blockchain technology. Specially, currently GICT Coin has been listed on CoinGecko, this certainly increases the credibility of GICT Coin. Trading GICT Coin itself can be done on the Primadax and Crex24 exchanges. Not familiar with GIC? Let's get acquainted.

Unlike other conventional brokerage firms, GIC through the GICTrade platform provides a solution for traders who do not want to be charged with high trading fees. GICTrade is a peer-to-peer trading platform that brings together traders and market makers. So, what is special about GICTrade? As a platform that brings together traders and market makers, you as a potential customer can certainly choose between the two, namely becoming a trader or a market maker.

GICTrade's role as a transaction venue provider can minimize costs and help maximize profits for traders and market makers as well as create a fair transaction atmosphere and results. Traders will benefit from the absence of commission fees and low swap fees and spreads due to the presence of market makers as liquidity providers. You can also join the trader community on GICtrade's Telegram to ask fellow traders directly about their trading experience.

Also follow GIC's Instagram to get webinar information and various attractive prizes. In addition, on YouTube GIC, traders can also learn to trade for free! Don't worry if you're a beginner, GIC has an ecosystem that will help you start from trading platforms, trading education, copy trading features, and other features that make it easier for you to invest. What are you waiting for? Get more features that fully support you to start investing and trading forex through GIC. Make transactions simpler, safer, and more profitable. Start by creating a demo account. How sure you want to trade crypto?