Want to Start Crypto Investing? This is the step by step! #StartYourCryptoJourney

Crypto investment in Indonesia is on the rise now! Many people are interested in trying it, but not a few are confused about where to start. Well, this article will discuss step by step for those of you who want to start investing in crypto in Indonesia. Starting from the reasons why now is the right time to invest, to how to keep your assets safe. So, if you are curious how to start investing in crypto step by step, let's read this article!

Why Crypto Investment?

Before we dive into the step by step of crypto investment, it is important to know why now is the right time to start investing in crypto. The main reason is the popularity and potential of crypto which continues to increase from year to year.

The adoption of blockchain and crypto technology by large institutions has also made crypto increasingly attractive to investors. The approval of Spot Exchange-Traded Funds (ETFs) for Bitcoin and Ethereum in various countries and the presence of large players such as Fidelity, BlackRock, and Grayscale offering crypto investment products further increase liquidity and provide retail investors with the confidence to invest.

Choosing the Right Crypto Investment Platform

After understanding why now is the right time to invest in crypto, the next step is to choose the right platform to start your investment journey.

There are many crypto investment platforms available. One of the biggest and most trusted is Binance. Binance has been recognized as the world's largest crypto exchange occupying the top position in terms of trading volume and having more than 120 million users. In fact, this platform received a score of 9.9 on CoinMarketCap, making it the top choice for investing and trading crypto.

Fundamental Analysis

Before deciding to invest in a particular token, the first step that investors must take is to carry out fundamental analysis. Fundamental analysis is the foundation of crypto investment which helps you to find out the intrinsic value of a token and distinguish between scam projects and serious projects that have real value. You can carry out fundamental analysis by examining various factors, such as:

1. Read the Whitepaper

Reading the whitepaper is an important first step in conducting fundamental research before investing in crypto. A whitepaper is an important document that contains detailed information about a crypto project, such as goals, technology, etc

2. Tim Developer

The team behind the crypto project is also important to consider. Who is behind this crypto? What is their background? A strong team often indicates a serious and potential project.

3. Tokenomic

Next is one of the most important but often overlooked things in fundamental crypto analysis, namely tokenomics.  Tokenomics is everything related to the economics of a token, such as market cap, circulating supply, token distribution, etc.

4.Analisis On Chain

On-chain metrics such as total active addresses, transaction count, transaction volume, and total assets staked (on PoS protocols) can provide insight into the level of user activity and engagement with the token.

Utility dan Use Case Token

The next step is to check the utility and use case of the token you want to invest in. Does this token have any real function? The utility and use case of a crypto asset are fundamental aspects that determine how much value and long-term adoption a token has.

Tokens with clear use cases and utility tend to gain greater adoption and are usually more resistant to market fluctuations. The following are examples of utilities from Bitcoin and Ethereum

Bitcoin: 
Bitcoin has a limited supply, namely only 21 million BTC, which gives it deflationary properties similar to gold. This makes Bitcoin not only a medium of exchange but more popular as a store of value.

Ethereum: 

In contrast to Bitcoin, Ethereum is a pioneer of smart contracts, which is the foundation for building various decentralized applications (dApps) and also Web3.  Ethereum is also open source which makes it complex and flexible than Bitcoin. 

The Importance of Conviction

Investing requires conviction, especially in a volatile market like crypto. This conversion is not solely based on trends that are being widely discussed, but must be supported by a deep understanding of the fundamentals and utility of the token you choose. By building this conviction, you can maintain calm and make rational decisions when the market is unstable.

Investments based on careful analysis and strong conviction not only reduce risk, but also help in overcoming FOMO (Fear of Missing Out) which often drives unwise investment decisions. 

Avoid FOMO and Greed

FOMO (Fear of Missing Out) and Greed are the things that must be avoided most in the world of investment. FOMO often appears when token prices rise sharply, making investors afraid of missing out and ultimately buying without analyzing first.

On the other hand, Greed appears when investors do not take profit on a token according to the initial plan because they hope to get a bigger profit. Both of these things lead to the potential for significant losses when the market experiences a correction or high volatility, so it is important to stick to an investment strategy that has been planned and based on careful analysis.

The Importance of Self Custody

The FTX event in early November 2022 served as a harsh reminder of the importance of self-custody in the crypto world. FTX, then considered one of the largest and most trusted crypto exchanges, suddenly faced severe liquidity problems, causing many users to lose access to their funds stored on the platform.

This incident underscores a basic principle in the crypto world: "Not your keys, not your crypto," which means that if you don't have control over your private keys, your assets don't actually belong to you. Self-custody is a way to ensure you have full control over your digital assets, maintaining their security and accessibility without relying on third parties. Self custody consists of 2 types, namely hot wallets and cold wallets

Hot Wallet: One example of a popular hot wallet is the Binance Web3 Wallet. Binance Web3 Wallet is a digital wallet that is integrated with the Binance ecosystem, allowing investors to store, send, and receive various types of crypto. The wallet also supports interaction with DApps, opening up more investment opportunities such as staking, yield farming, and participation in DeFi. Security is strengthened with features such as two-factor authentication (2FA) to ensure assets are protected from cyber threats.

Cold Wallet: Examples of famous cold wallets are Trezor or Ledger. By using Trezor or Ledger, private keys are stored on secure hardware, reducing the risk of hacking or scams that often occur on exchanges or hot wallets. This cold wallet is air-gapped, not connected to the internet, so it provides a very high level of security and is ideal for long-term asset storage.

Starting a crypto investment in Indonesia is currently very interesting and full of opportunities. By understanding the reasons behind the growing popularity of crypto, choosing the right platform like Binance, and conducting fundamental analysis, you can start on the right foot. Make sure to always avoid FOMO and Greed, and stick to the planned investment strategy.

Disclaimer: Investing and trading crypto assets is a high-risk activity. All information presented here is for educational purposes and is not a recommendation or invitation to buy any asset