Stocks vs Crypto
Investment has now become one of the primary needs and lifestyle. Investing allows you to have additional income from a variety of assets. Investing also makes it easier for you to maintain the asset valuation value from inflation.
Among the various types of investments, crypto assets are one of the most attractive options today. Apart from being the big name Bitcoin, the potential profit is one of the reasons crypto assets are another investment choice outside of stocks, gold, and property.
In terms of popularity, crypto asset investment may still be less competitive with stocks. However, along with the increasing value of Bitcoin and public interest, crypto asset investments are increasingly being looked at.
Stock is a document that can show that a person or corporation has ownership in a company.
So, the more shares owned by investors, the greater the percentage of ownership of the company will be. In return, shareholders are entitled to benefit in the form of dividends in each period as well as capital gains.
To start investing in stocks, you need to register on a platform that is already registered with the Financial Services Authority (OJK) and the Indonesia Stock Exchange (IDX). After registering, you can access all information about the capital market through an application prepared by the platform you choose. .
Although we often hear that the share price of an issuer is referred to in the amount per share. However, to start buying and selling transactions you must buy at least 100 shares or as much as 1 lot.
Capital investment in the form of shares itself has a longer history than crypto. Stock investing dates back to the 1300s in Venice. Reported by Investopedia, money lenders in Europe trade securities to the public to reduce the risk of loans and high interest rates. This system later evolved and the perpetrators were known as brokers.
Then in 1513, Belgium launched a stock exchange in Antwerp. Stock exchanges are created as a meeting place for brokers and lenders for business, government, and individual debts.
The partnership is in the form of business and capital with returns in the form of income. However, there is no official form that can be transferred. Over time, the capital system has revolutionized according to market needs.
The first official stock exchange was formed in Amsterdam, the Netherlands, in 1602. The stock exchange was founded by the Dutch East India Company (Verenigde Oostindische Compagnie), otherwise known as the VOC. The Amsterdam Stock Exchange is the oldest stock exchange and is the first to legally trade stocks and bonds in the world.
Crypto assets that are commonly used for virtual transactions or investing in the internet network. Some of the most popular crypto assets include Bitcoin, Ethereum and Litecoin.
Slightly different from stocks that can benefit from capital gains and dividends. Crypto asset owners can benefit from trading profits as well as income from projects carried out using the cryptocurrency.
To start investing in crypto, you can use the various digital platforms available. In Indonesia itself, platforms related to crypto assets register with the Commodity Futures Trading Supervisory Agency (Bappebti).
Crypto asset investment was initiated by the launch of Bitcoin in 2009 by Satoshi Nakamoto. The emergence of Bitcoin was then followed by various other crypto assets such as Litecoin (Bitcoin hard fork) and Swiftcoin.
The first crypto asset exchange platform is Mt.Gox. This platform from Tokyo operated between 2010 and 2014. Throughout its operational life, MT. Gox handles 70 percent of investment and trading transactions worldwide. MT. Gox even became the leader of the exchange platform and the largest Bitcoin transaction intermediary in the world.
Advantages
Each investment has its own advantages for owners and users. The following are some of them:
Crypto
Prices that have the potential to increase high in the future
Relatively few investors
Relatively low transaction costs
Can be used for transactions abroad
The absence of a third party that regulates transactions or manipulates data
Prices are increasing amidst the pandemic conditions
Stock
Clear regulations and rules
The choice of issuer's industry varies
Get dividends regularly every period
Has the authority / right to attend the General
Meeting of Shareholders
Safe from asset theft
Deficiency
Apart from the advantages, each type of investment has its own drawbacks. Before deciding which investment to choose, you must know the risks that will be faced.
Crypto Assets
Legality risk: Government regulations and regulations that apply in a region
Liquidity risk: The ease with which crypto assets are traded and converted into other currencies
Market risk: The buying and selling price of an asset on a trading market
Operational risk: Technical problems that occur on the exchange platform used
Cyber attack risk: Crypto asset theft
Stock
Market risk: Price fluctuations in the capital market due to various factors, such as public sentiment, foreign exchange rates, interest rates, pandemics, and commodities
Suspension risk: Termination of trading transactions due to certain factors
Risk of delisting: Losing the list of names of a company in the trading market due to certain factors
Dividend risk: Distribution of profits that may not be given due to certain factors
Security risk: The security and political conditions of the country in which you invest
From the five points above, we can see that each investment option has its own risks. You can adjust the strategy as much as possible so that the risk of the investment options you choose can be minimized.
In fact, nothing can be certain that investing in crypto or stocks can be more profitable. All decisions depend on your preferences. There are various variables that must be considered and criteria that you can use as a guide in choosing an investment instrument and making the right strategy.
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