Understanding the Risks of Crypto Investment

Anything is possible in investing in crypto assets. Their value can jump or fall sharply in a matter of hours. In fact, there is a lot of fraud in crypto investment.

KOMPAS/ADITYA DIVERANTA

Front view of Gatuk Indarto's WinCash Wallet application which was deactivated when accessed on Wednesday (1/12/2021). The app becomes a digital wallet where WinCash Coin crypto assets are transacted.

JAKARTA, KOMPAS — As transactions continue to increase both inside and outside the physical market of crypto assets, investors must be prepared for all investment risks, such as fraud and scamming.

2021 was a phenomenal year for crypto asset trading in Indonesia due to the sharp increase in the value of transactions during the year. As of November last year, the transactions of crypto assets reached a total of Rp 802.5 trillion (about US$55.70 billion), according to data from the Commodity Futures Trading Regulatory Agency (Bappebti). The figure far exceeded the transaction value of Rp 64.9 trillion recorded last year. Likewise, the total number of registered investors in crypto assets on the physical market reached 10.5 million people in November of last year.