Crypto investment has become a daily occurrence for the digital generation. But despite its growing popularity, that doesn't mean everyone immediately understands and grasps the ropes. Many people just jump in without hesitation, simply because they see their friends making a fortune overnight.
However, if you have sufficient information from the start, the potential for "losing capital" can be much lower. Here are five important things you should know before starting to invest in crypto, especially for those just starting out in Indonesia.
1. FOMO Is the Enemy
When the price of $BTC skyrockets or new coins are hotly discussed on social media, it's hard not to jump in. But #FOMO (Fear of Missing Out) often leads to irrational and detrimental decisions.
Many people buy coins when they're trending upwards, without understanding the project. When the price drops, they panic. The end result? They sell at a loss. However, if you had done your research beforehand, you wouldn't have panicked and the situation would have been more calm.
The main thing is:
Don't buy a coin just because it's viral. Really research what the coin is, who the developer is, what its function is, and what its future prospects are. Crypto isn't just about following a trend—it requires strategy and logic.
2. Diversification is Important
One common initial mistake is investing all your capital in one asset. For example, investing it all in Bitcoin, or even in a small altcoin that promises to "go to the moon."
In the investment world, diversification is key to reducing risk. For example, allocate your portfolio across several asset classes: most of it to stable assets like #BTC or $ETH , some to potential altcoins like $SOL and #bnb , and the rest for experimentation or short-term investments.
It's not just the type of coin; the platform itself is also important to consider. Storing everything on one exchange? It's a big risk if something unexpected happens. Consider combining an exchange and a personal wallet for added security.
3. Crypto Risks Are Real
Crypto can indeed give you quick profits, but the risk of loss is also great. The price can rise 20% in a day, but it can also drop 50% without warning.
Due to its high-risk, high-return nature, it's crucial to use safe cash. Don't invest your spending money, emergency funds, or wedding savings in the crypto market. It's scary.
And one thing to be wary of: there are a lot of scam schemes disguised as "crypto investments" out there. If anyone promises guaranteed returns, daily profits, or a suspicious referral system—it's best to back away slowly.
4. Basic Analysis Makes Life More Peaceful
You don't have to be a professional trader to analyze the market. Simply understanding the basics is enough to help you make wiser decisions.
There are two main types of analysis:
Fundamentals, which focus on the coin project, team, whitepaper, and roadmap.
Technical, which is more about price charts, candles, volume, and indicators such as RSI or MACD.
Understanding support and resistance can also help you know when to buy and sell. Don't just buy based on someone's tweet or a YouTube video with a clickbait title. Conduct your own research (DYOR). There's plenty of free crypto educational content readily available.
5. Security is your own responsibility
One thing that's often underestimated: asset security. In crypto, there's no third party to help if something goes wrong. There's no call center to recover lost assets due to forgotten passwords or incorrect transfers.
Therefore, it is very important to understand about wallets:
Hot wallets (like Trust Wallet or MetaMask) are suitable for daily transactions.
Cold wallets (such as Ledger or Trezor) are safer for storing long-term assets.
Don't forget to enable 2FA (Two-Factor Authentication), and never share your private key or seed phrase with anyone, not even customer service—if it leaks, your assets could be lost in seconds.
No need to rush, the important thing is consistency.
Entering the crypto world can be an exciting step with significant potential. But there's no need to rush. Slow is the key, because this market isn't a sprint—it's more of a marathon.
It's okay if you don't understand everything right away. Enjoy the learning process, learn the key terms, try small investments first, and don't be easily tempted by sweet promises of instant profits.
The important thing is to start with knowledge, not reckless capital. Because in the crypto world, the more you understand, the better prepared you'll be to face the market's ups and downs, which can sometimes be unpredictable.
