Bitcoin Increases More Than 10 Percent In A Month, Need To Learn Bitcoin Trading Science?

Illustration. (Photo: Unsplash)

JAKARTA - Bitcoin recorded an increase of more than 10 percent in one month. In early October 2021, the bitcoin price was only IDR 810 million. Now, early November 2021, Bitcoin has reached Rp930 million.

"The increase in Bitcoin occurred because of Taproot and several massive requests have occurred in the last few days. One of the reasons for the increase in Bitcoin is the increase in demand," said Indodax CEO Oscar Darmawan, in a written statement, Wednesday, November 10.

Bitcoin investment is a must in today's digital age. Therefore, beginners need to learn bitcoin, specifically the intricacies of this investment, before jumping into it.

However, before that, there were several factors that made Bitcoin so phenomenal, among others, the tremendous increase in the price of Bitcoin in recent years. Then, Bitcoin also began to be adopted by many well-known institutions, one of which was PayPal.

Subsequently, Coinbase went public on Nasdaq USA in April 2021 with a market cap of US$65 billion marking Bitcoin's entry to Wall Street. Next, according to the latest data from CoFTRA, there are more than 6.5 million crypto customers in Indonesia.

Exchange or exchange becomes a place for the buying and selling process of Bitcoin. The exchange provides services for buying, selling, storing and transferring crypto assets.

The function of this exchange is the same as a marketplace, which is a meeting medium between buyers and sellers. Transactions that occur are between traders (members) who are members of the exchange.

Given its role as an intermediary, the exchange itself does not carry out trading or buying and selling processes. They will only take a number of fees, such as selling and buying fees and withdrawing money.

To note, each exchange will choose crypto assets that can be traded on its marketplace. On the other hand, they also have different asset lists.

In transacting crypto assets, investors must determine the "pair" of coins to be traded. In this case, the exchange will provide a number of pairs on its platform. Bitcoin/Rupiah (BTC/IDR) is the most common pair here.

Given that Bitcoin transactions take place between members, both buying and selling, the price of bitcoin between exchanges can be different. For investors, they can monitor the most competitive bitcoin prices at any time, for example on Indodax.

Bitcoin Asset Function

To find out what can be done with Bitcoin, consider the following points:

- Bitcoin assets are collected with the aim that the price will rise in the future. It is known, this upward trend causes many people to want to invest in these crypto assets. - Making a profit is one of the goals of selling Bitcoin. The results can be transferred directly via a bank account into rupiah. - Other crypto assets that are considered more prospective will be a place to convert bitcoin. The process is also very easy because it is done via digital. - As a means of payment, now a number of places have accepted bitcoin as a transaction tool. PayPal has even accepted transactions with the digital asset recently.

Secure Bitcoin Storage Location

As with any other asset or medium of exchange, the important thing here is the location of storage. There are 2 keys that you can use as a Bitcoin owner, including:

- Public Key: is the public address for the transfer process. The public key is also open and known to people, as is the account number at the bank.- Private Key: this private address should not be known to people. In addition, the confidentiality of this Private Key must be highly guarded. It is the same as a bank account PIN.

To ensure the security of the private key, the step is that you must make sure to transact on an official exchange. The reason is, the private and public keys will be stored by the exchange when you transact in it.

Another safer way to store Bitcoin is to have a personal wallet. Thus, your crypto assets are not collected on the exchange, but in the personal wallet.