Cryptocurrency investment has become a global phenomenon in the last decade. In Indonesia, interest in Bitcoin, Ethereum, and other altcoins is increasing—especially among young people who are attracted to the prospect of large profits in a short time. However, like any other financial instrument, crypto is not a shortcut to wealth. When I first entered the crypto world, I made many mistakes as a beginner. These mistakes not only drained my portfolio but also damaged my confidence.

In this article, I will share five important things I wish I knew before starting to invest in cryptocurrency. This article is aimed at those who are still new to the crypto world, or even those who are just thinking about getting started. By understanding these basics, you can avoid common traps, build a wiser strategy, and increase your chances of success in the long run.

1. Crypto Volatility is Extremely High—Not for the Mentally Weak

When I first bought Bitcoin in 2017, its price rose more than 20% in a week. I thought this was "normal". But a week later, the price fell 35% in just 48 hours. I panicked, sold at a loss, and regretted it. That was the first lesson: volatility in crypto is brutal and can be stressful.

What is Volatility?

Volatility is a measure of how quickly and significantly the price of an asset can change in a short period. In crypto, volatility is often much higher than that of stocks, gold, or mutual funds.

Why is Crypto So Volatile?

  • Not regulated as strictly as stocks or bonds.

  • High speculation, many investors experience FOMO (fear of missing out).

  • News greatly affects prices, such as hacks, government regulations, or tweets from figures like Elon Musk.

  • Lower liquidity compared to traditional markets, meaning a few transactions can trigger significant price changes.

How to Handle It

  • Use cold money: Only invest money that you can afford to lose.

  • Have an exit plan: Determine when you will sell, whether for profit or loss.

  • Don't FOMO or FUD: Don't buy out of fear of missing out, and don't sell just because of panic from negative news.

  • Learn to understand the crypto market cycles: There are bull markets, there are bear markets. Don't follow the herd blindly.

2. Don't Keep All Assets on an Exchange, Use a Personal Wallet

One of my biggest mistakes was keeping all my crypto assets on an exchange. I thought it was safe—until one day, the exchange where I stored my funds got hacked. I lost some assets because I didn't have personal access to that wallet.

What is the Difference Between Exchange Wallet and Personal Wallet?

  • Exchange Wallet: You do not have full control over the private keys. If the exchange shuts down or gets hacked, your assets can be lost.

  • Personal Wallet: You keep the private key yourself, usually in the form of a seed phrase (12 or 24 words).

Types of Wallets

  1. Hot Wallet (digital): Examples include MetaMask, Trust Wallet. Connected to the internet, easy to use but more vulnerable to cyber attacks.

  2. Cold Wallet (hardware): Examples include Ledger, Trezor. Not directly connected to the internet, much safer for long-term storage.

Important Principles

Not your keys, not your coins.

If you don't hold the private key, it means that asset is not truly yours.

3. Crypto is Not a Get-Rich-Quick Scheme: Focus on Education, Not Hype

Crypto is often promoted on social media as a "shortcut to getting rich". Influencers show off screenshots of profits of tens of millions from unknown coins (shitcoins) that rise by thousands of percent. This is very misleading.

What Happens If You Just Follow the Crowd?

  • You could fall victim to pump and dump, where a coin's price is pumped by a group of people and then sold off en masse, leaving you at the peak price.

  • You will buy at the peak, sell at the bottom—opposite of the right investment principles.

What Should Be Done

  • Learn the basics of blockchain: What is mining, smart contracts, DeFi, etc.

  • Understand the types of crypto: Coin vs token, layer-1 vs layer-2, stablecoin, governance token.

  • Use trusted educational platforms: Binance Academy, CoinGecko Learn, and Investopedia can be great learning resources.

4. Don't Ignore Regulatory Risks

Many beginners think crypto is "law-free" and not affected by government regulations. But in fact, regulation greatly determines the safety and sustainability of your crypto investments.

Crypto Regulation Situation in Indonesia

  • BAPPEBTI is the agency that regulates crypto trading.

  • Crypto is not legal tender, but it is recognized as a digital commodity.

Impact of Regulations

  • Can affect the liquidity and price of certain coins.

  • Crypto tax (0.1% to 0.21% depending on the type of transaction) is starting to apply, so it must be considered in trading strategies.

5. Don't Forget to Diversify and Understand Your Portfolio

A classic beginner's mistake: going all-in on one coin. I once put 100% of my portfolio into a new altcoin because "they said it would moon". Two weeks later, the coin rugpulled. I lost everything.

Why is Diversification Important?

  • Reducing risk: If one asset falls, there are still other assets to support.

  • Optimizing opportunities: Some coins may rise while others fall.

  • Preventing total loss from scams or failed projects.

How to Diversify for Beginners

  • Don't just hold meme coins or low-cap tokens. Combine them with strong fundamental assets like BTC and ETH.

  • Diversify across various sectors: L1, DeFi, NFT, AI crypto, GameFi.

  • Use the DCA (Dollar-Cost Averaging) method: Invest small amounts regularly instead of all at once.

Conclusion: Starting More Wisely in the Crypto World

Crypto investment is not for everyone. But with the right approach—adequate education, risk management, and a long-term mindset—you can make crypto an important part of your financial strategy.

Here is a brief summary of five important things for crypto beginners in Indonesia:

LessonBrief ExplanationExtreme VolatilityCrypto prices can rise and fall sharply in a short time.Store in Personal WalletDon't just rely on exchanges for asset security.Avoid HypeLearn the fundamentals, don't just follow the crowd.Pay Attention to RegulationsComply with BAPPEBTI rules and pay attention to taxes.DiversifyDon't put all your eggs in one basket.

Bonus: How to Start Investing in Crypto Safely

  1. Register on official and registered exchanges. Examples include Binance, Indodax, or Tokocrypto.

  2. Verify KYC account for security and full access to features.

  3. Start with a small amount, e.g., Rp 100,000 for a trial.

  4. Use educational features and demo accounts if available.

  5. Use personal wallets for long-term assets.

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