Cryptocurrency Update By BMB FIN TECH – The Financial Services Authority (OJK) estimates that the business model trend for financial technology providers (fintech) is influenced by the development of cryptocurrencies. Cryptocurrency is one of the investment instruments that is currently on the rise, especially among millennials.. Well, for those of you who are interested in trying their luck by investing in these investment instruments, there’s nothing wrong with finding out what crypto is.
Cryptocurrency Update By BMB Fin Tech
Cryptocurrency is a digital or virtual currency that is guaranteed security by cryptography. With cryptography, this digital currency becomes almost impossible to counterfeit.. The record of all transactions made is stored in the blockchain. Blockchain is widely spread between one computer and another and is connected in a network that is widespread so that it is not centralized in one place, otherwise known as decentralization.
Simply put, crypto is a digital currency that can be used for transactions between users without the need to go through a third party. Apart from being used as a transaction tool, many users use cryptocurrency as an investment instrument. This is due to the fluctuation in the value of the virtual currency. Here also applies the law of supply and demand (supply-demand). That is, the more people who invest in cryptocurrencies, the higher their value will be.
In Indonesia, crypto assets that are categorized as digital gold have obtained legality through the Commodity Trade Supervision Agency (Bappebti) Regulations. Based on the 2020 CoFTRA Regulations, a total of 229 crypto assets, including the three names above, were declared legal to be traded. It’s just that, crypto assets are only intended as a means of investment, not as a legal exchange rate.
BMB Fin Tech – Crypto Profits
1. Digital
Cryptocurrency is a digital currency which means it only applies to computers. Cryptocurrency does not exist in a physical form that we can hold every day. However, because we can sell/exchange our cryptocurrency for ordinary money (called fiat money), we can withdraw our money at any time.
2. Peer-To-Peer
Cryptocurrency can be used for the purpose of transactions from one person to another online. Transactions are carried out directly using a network known as the blockchain. In other words, there are no third parties as intermediaries, this is very influential and is then known as decentralization which we will discuss in the next point.
3. Global
cryptocurrency is the same in every country. With this, transactions can be carried out freely between countries without being affected by exchange rates. Well, this is what many people like. If we transfer money between countries, our money must first enter our bank account (usually when transferring abroad the bank requires us to open an account).
Then our Rupiah money must be exchanged for the currency of the destination country, then transfers between countries are carried out. through the central bank. With Crypto, there is no need to do this and digital currency transfers can be done instantly on the spot.
4. Encrypted
so that every transaction is kept confidential. Each user will have a code for transacting with cryptocurrencies. And every time a transaction is made, the user cannot see who the transaction was made by. No real name appears in every cryptocurrency transaction. Moreover, there are no rules about who can use cryptocurrency and what it is used for.
5. Decentralized
Money transactions generally always involve a party that mediates each transaction, such as a bank. But in the cryptocurrency world, there are no such banks or parties. Everyone is responsible for their own money. Allegedly this is a financial model for your future. This is what later became known as Defi or also stands for Decentralization Finance.
6. Truthless
in using cryptocurrency, you don’t need to trust anyone in the system, because the system will make transactions and cross-check these transactions. When a transaction has been written in a blockchain, it cannot be changed by anyone.
BMB Fin Tech – Types of Cryptocurrencies
Many types of cryptocurrency can be spent. Here are 3 types of cryptocurrency that you can make investment instruments.
1. Bitcoins
The most popular cryptocurrency is of course Bitcoin. This is the most highly valued cryptocurrency in the world.
2. Ethereum
L Like other types of cryptocurrencies, Ethereum also runs on a blockchain mechanism. The difference is, Ethereum uses a concept called a smart contract. The smart contract is written coded on the blockchain. When the terms of cooperation are met between the two parties who are transacting, the transaction will be executed immediately.
3. Bitcoincash
Bitcoin Cash is a fraction of Bitcoin. Many people think that Bitcoin Cash is a faster and more affordable alternative to obtain than Bitcoin, which has a very high price. As a side note, we need to remember that crypto is a very high risk type of investment. Before investing, it’s good that our financial condition and health are good first. Create a good emergency fund and cash flow first.
BMB Fin Tech – Crypto Money Investment Guide
Before deciding to invest using crypto money, it would be nice if you first knew some of the investment guidelines:
1. Understand The Risks
The first thing you should know is the risk you will get. Investing in crypto money is a high risk, meaning the risk is very large. When the value is rising it can be very high but when it goes down it can fall very much.
2. Understand Crypto Types And Characteristics
There are many types of crypto money, starting from Bitcoin, Ethereum, Tether, and XRP, to Dogecoin. All of these types have their characteristics, and you should know about them before buying crypto money.
3. Understand The Legality Of Crypto Traders
Currently, Bappebti or the Commodity Futures Trading Regulatory Agency notes that there are at least 13 companies registered as crypto asset traders. You must make sure to buy crypto money only from companies that have been registered with Bappebti because it means that the company meets the requirements and can be accountable for its credibility.
4. Understand Security
Previously it was explained that crypto has a risk that is prone to crime on the internet. Therefore, make sure you know the steps or strategies that must be taken to keep your crypto money safe. Stay Safe with BMB FINTECH
