Stock Investors Are Considered To Be Starting To Diversify To Crypto Assets

Crypto (photo: illustration: between)

JAKARTA - The increasing number of crypto investors is a marker of stock investors who are starting to convert portfolios into crypto assets.

However, according to Tokocrypto CEO Yudhono Rawis, he did not consider the phenomenon a shift in investment from the stock market to crypto because the two sectors have different risk profiles.

"There are money access factors or diversified efforts, where excess funds from investors are placed in crypto asset instruments to diversify portfolios for higher profits," Yudhono said, quoting Antara.

For information, the Financial Services Authority (OJK) revealed that the number of crypto investors increased to 20.24 million until June 2024, surpassing the total number of capital market investors of 13 million.

Although transaction liquidity in the stock market is higher, with the average daily transaction value reaching IDR 11.87 trillion from the beginning of the year until July 31, 2024, compared to the crypto market which was only IDR 1.66 trillion during the same period, it is interesting that the number of crypto investors continues to increase.

Yudhono highlighted the ease of access such as opening a crypto account or account and the flexibility of trading time 24 hours 7 days 7 days a week as the main attraction of crypto assets.

"Fluctuations without price limits provide a wider space for movement, although the risks are also high and yields are also high in the short term," he explained.

This makes crypto an attractive alternative for investors or traders who make daily transactions, thus ultimately increasing the turnover of crypto daily transactions.

According to Yudhono, several main factors that attract individual investors to the crypto market in Indonesia are accessibility, innovation, and profit potential.

Investors can easily make buying and selling transactions of crypto assets through crypto asset trading platforms that have obtained permission from regulators.

"Innovation in a new technology ecosystem such as decentralized blockchain is also believed by investors to change the landscape of Indonesia's financial sector going forward. Even though crypto assets are very volatile, several segments of investors are interested because they see greater profit potential in a shorter period of time," he said.

However, the development of the crypto industry in Indonesia is not without challenges. Yudhono assessed that the big challenge is how to continue to present the development and strengthening of products and services related to crypto assets while still prioritizing aspects of compliance, governance, regular transaction mechanisms, and good risk mitigation.

The two investment instruments have the potential to complement each other, create a more diverse and dynamic investment ecosystem in Indonesia.

"In addition, increasing financial literacy among the public is an important step in overcoming this challenge. Education about crypto investment risks and benefits as well as how to manage a good portfolio will help investors make wiser decisions," he said.

The strategic partnership between the crypto sector and traditional financial institutions is also considered to be able to expand access and increase investor confidence. He gave an example that the integration of blockchain technology with traditional banking services can create new financial products that are more innovative and in accordance with market needs.

With these steps, Yudhono added that the crypto market in Indonesia can continue to grow and become one of the important pillars in the investment world, along with the established stock market.

The transaction value of Tokocrypto is based on daily trading volume during the first semester of 2024 of more than 23 million US dollars or around Rp374 billion per day. This figure is an increase of 80 percent compared to last year's average trading volume.

The number of Tokocrypto users has now reached more than 4.5 million. Compared to the end of 2023, there was a growth of around 45 percent.