Ordinary People Should First Understand The Risks Of Investing In Cryptocurrencies, Observers: Don't Be Tempted By Big Profits

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JAKARTA - Founder of Traderindo.com Wahyu Laksono reminded the general public to understand the risks of investing in cryptocurrencies or cryptocurrencies that have recently become one of the most popular investment and financial transaction alternatives in the world.

"Every investment is a risk. Well, the main thing is, see if the product is regulated or not? My advice to the layman, do not have to mess with his thoughts. For the layman just trust the government first. The level is there first," said Wahyu through a statement in Jakarta, quoted from Antara, Monday, May 10.

According to Wahyu, the risk of cryptocurrency investment is relatively large because the medium of exchange uses only cryptography, with no guarantee of assets from investments invested. Price fluctuations are also very high, so it becomes one of the trading transactions that are classified as highly speculative.

Another risk to watch out for, he continued, is that cryptocurrency trading positions are not an asset, but are traded like derivatives markets. This condition has the potential to raise the opportunity of embezzlement fraud and bodong transactions.

Wahyu suggested that for the lay people, it is better to choose to invest in regulated products and have legal certainty. After understanding the risks, investors are encouraged to transact domestically in institutions that have obtained permission from the Commodity Futures Trading Supervisory Board (Bappebti).

The public is also asked not to be tempted by the lure of large profits, but when in fact check, the institution offering investments is not listed in Bappebti.

Entry into the system, he continued, will reduce the risk of crypto investment from legal certainty. He also discourages people investing in crypto institutions abroad because they are attracted to celebrities or the world's rich.

"The point is, if the public, if you want to trade crypto, should transact in a place that has been supported by the system, there is protection from the government, yes already put into Bappebti or BBJ," ujar Wahyu.

Wahyu added, currently, the regulation of crypto assets in Indonesia is still in terms of commodity trading and has not entered the realm of financial and banking markets. He assessed that the move is likely to be done by the Government to stem the flow of funds abroad for investors interested in investing in crypto assets.

He assessed that the level of financial literacy in Indonesia is still relatively low, although there is a group of people who have large funds and like speculation in the financial markets, especially in cryptocurrencies.

"There are certain groups that are elitist, there are a handful of people who have a lot of money. This is unstoppable because the context is global and digital. Want to use regulations like anything, the government will not be able to, want to be banned can not. Ordinary investors and beginners are what need to be protected," said Wahyu.