Getting to Know Crypto Assets, Digital Assets That Many Today’s Investors Lyrics
KOMPAS.COM Cryptocurrency or crypto assets are instruments investment that is now popular among investors.
Basically, cryptocurrency is a digital asset that utilizing blockchain or blockchain technology. Asset security it is protected with cryptography .
To note, cryptography or cryptography is a process secure and confidential communications. That is, the message content can only be known to the sender and receiver.
Cryptography plays a role in ensuring that a digital asset is not can be faked. This process also guarantees that a transaction does not occurs repeatedly ( double-spend ).
Most crypto assets, such as Bitcoin, are a collection of decentralized network ( decentralized network ) based on blockchain technology.
Thus, crypto assets are not created by one central authority, For example, the central bank. Therefore, crypto assets are considered more secure and is not affected by government intervention or political conditions if compared to other investment assets.
WHY ARE INVESTORS INTERESTED IN CRYPTO ASSETS?
As the foundation of crypto assets, blockchain can be leveraged to develop more sophisticated technology in a number of sectors industries, such as finance, healthcare, telecommunications, and transportation.
Blockchain allows a financial transaction or business process occurs without intermediaries. To execute the business, the transaction only rely on a network of a few secure computers. Because it does not many parties are involved, the process becomes more efficient and safe.
(ALSO READ: CONFUSED OF INVESTING GOLD OR BITCOIN? SEE 4 DIFFERENCES BOTH FOLLOWING!)
To illustrate, you need an intermediary when sending money to other people. This does not apply to blockchain technology. Because this technology allows you to send digital assets to friends without going through middleman .
This is seen as an attractive investment opportunity. Some investors believe that blockchain and digital assets have extensive exploration space.
For them, investing in crypto assets is one of the a way to get high profits, while supporting future technological developments.
UNLIMITED POTENTIAL IN LIMITED AMOUNT
Some crypto assets, such as Bitcoin, have high availability limited. To note, the total available Bitcoin reaches 21 million. As of January 2022, 18.92 million of them have been traded.
PEXELS/WORLDSPECTRUM Illustration of bitcoin, crypto asset, cryptocurrency. By knowing the amount of Bitcoin remaining, investors will be more its easy to calculate the time Bitcoin will run out. In addition, investors also can see the prospects or changes in the price of Bitcoin in the future.
For example, if the number of Bitcoins is getting scarcer, but the number of the interest increases, the value of Bitcoin will increase.
This can be seen in the price charts of cryptocurrencies, such as Bitcoin and Bitcoin Ethereum, which has increased in recent years. Due to conditions In this case, investors also consider that crypto assets are profitable, moreover in the long run.
(ALSO READ: BEFORE START INVESTING BITCOIN, WATCH THE 3 ASPECTS FIRST FOLLOWING)
However, like other investment instruments, crypto assets too has a number of risks. Before starting to invest, potential investors must study the opportunities and risks of this investment in detail so you can be wiser in investing.
One of the risks in investing in crypto assets, for example Bitcoin, is a more volatile value than other types of investments.
This means that the price of Bitcoin and other crypto assets may decline quickly. Therefore, potential investors need to be vigilant and not Its easy to panic when this happens.
ORIGIN OF CRYPTO ASSETS
There are two ways to get crypto assets, namely mining and exchange platforms. In mining , potential investors need technical knowledge and computer equipment with certain specifications.
Potential investors also need to use the computer equipment continuously to mine crypto assets. It requires large amount of electricity consumption.
Therefore, a number of environmental activists have asked crypto developers to to change the method to be more energy efficient.
Meanwhile, the exchange platform is a method that tends to easier because it can be accessed via the mobile application or website . Potential investors can buy digital assets with currency rupiah or US dollars.
Before buying the investment instrument, make sure that the application the exchange platform provider has been supervised by the Agency Commodity Futures Trading Supervisor (CoFTRA).
As a recommendation, potential investors can invest through Luno Indonesia. Through this application, potential investors can invest safely, legally and easily.
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