Cryptocurrency occasionally experiences a significant price spike as a business item. For instance, Bitcoin initially cost IDR 0 when it was released in 2009, but by 2021 it will cost IDR 900 million more. Despite missing the mark in 2022, it does not change the reality that cryptocurrency continues to be the investment strategy with the largest gain even in the absence of a tangible form.
What is the Crypto Business?
If "business" is defined as an endeavor made to generate profits, then "cryptobusiness" or "cryptocurrency business" refers to an effort to purchase and resell cryptocurrency in order to generate revenue. Actually, this is relevant to mining and asset storage in addition to buying and selling.
In reality, several cryptocurrencies can already be used for trades. However, fiat currency, which is more frequently utilized in daily life, will ultimately replace cryptocurrency currency. Cryptocurrency has transitioned from being a means of payment in the digital world to an object of investment as a result of its sharp rise in value.
Cryptocurrency is still a valid method of payment online. As long as the two parties dealing accept cryptocurrency, it can be used for purchasing, selling, and paying for services. Is it lawful? Cryptocurrency does not require legal institution legal recognition because it is not connected to any nation's legal system.
Why Do People Buy Cryptocurrency?
In general, those in business will seek for items whose prices are rising steadily. This is done with the intention of reselling it later at a profit. This justification also holds true for the widespread interest in trading different kinds of crypto assets.
The cost of crypto currency is rising steadily. You will earn by about IDR 250 million if you buy one Bitcoin coin in 2020 and sell it in August 2022. According to some estimates, the profit on the sale of a Bitcoin coin in 2030 will be roughly IDR 8 billion.
Many people are willing to purchase crypto because of the rise in price of these coins over time. Most people who purchase cryptocurrency do so with the intention of reselling it in the future as its value is expected to rise. People still don't use cryptocurrency for everyday trading transactions very often.
In fact, if you think about it, crypto currency has no physical form or commodity. Cryptocurrency is an asset that is independent of the real world, yes. The community's consensus that the virtual coin has a value is the sole thing that gives it value.
Several factors affect the public's faith in cryptocurrencies. First, because crypto coins are so highly protected, it is hard or practically impossible to copy them. Second, the value of cryptocurrencies is becoming a benchmark as more and more sizable businesses accept payments made in this manner.
Digital money is distinct from cryptocurrency money. Cryptocurrency's value cannot be set by any authority because it is not subject to the laws of any nation. However, specific economic policies adopted by powerful individuals have an effect. For instance, the price of the most well-known cryptocurrency fell after Elon Musk stated that he would no longer accept Bitcoin payments.
How to Manage a Cryptocurrency Business?
The management of cryptocurrency enterprises is similar to that of stock investments or commodity firms. In essence, when the price is high, the asset's owner will sell the item. Investors will purchase additional potentially profitable crypto assets in order to duplicate their earnings. The difficulty in the cryptocurrency industry is in acquiring assets.
The first step in starting a crypto firm is to gather assets. There are three ways to obtain cryptocurrency assets: buying assets, mining, and airdrops. Each of the three has advantages and drawbacks that are specific to it.
•Mining cryptocurrency
•Purchasing cryptocurrency assets
•Using airdrops
1. Crypto Mining
If you choose to purchase cryptocurrency by mining, you must have the necessary tools. Because the machine runs continuously, you must set up a computer with a powerful GPU and significant daily electricity expenditures. Although some people do so, smartphones are obviously less useful.
Later, without having to purchase them, you'll receive blocks holding some coins. For instance, when mining Bitcoin, sufficient hardware will produce a block of the currency in ten minutes. 6.25 Bitcoins will be included in one of these blocks. Can it go on? Obviously not. Once there are 21 million Bitcoins worldwide, new coins will no longer be produced.
2. Buying Crypto Assets
You will need to have some money set aside if you choose to buy cryptocurrency assets. For instance, you would need about IDR 352 million to purchase one BTC currency in August 2022. However, you can purchase BTC cryptocurrency shards or satoshi assets at a more reasonable cost.
On a cryptocurrency, you can purchase just a portion of the coin at a cost that works for you. Young people with little capital frequently use this cryptocurrency business strategy. To obtain the proper profit, you still need a substantial amount of fiat money capital.
Of course, you have to set aside some of your salary in order to accumulate enough wealth. Approximately 20% of the total monthly wage is the recommended income distribution for investments, according to experts. Save your cash until you have enough to purchase ethereum coins such as Satoshi. Of course, it is best to do so once the emergency money has been replenished.
You can invest 20% of your pay in a fund management platform to increase the effectiveness of capital preparation. As an illustration, you could add it as a funding program to People's Capital.
Your contributions to People's Capital will support numerous MSMEs in Indonesia. You will receive a profit share of 18% annually on the capital amount of the profits made by these MSMEs, with a 95% guarantee of the safety of your investment. In this manner, the money you need to purchase digital assets will increase in addition to the monthly contributions you make from your wage allowance.
3. Benefit from Airdrops
A new cryptocurrency coin will be released every month or for a set amount of time. New cryptocurrency is typically introduced by giving it away for free to unrelated individuals, much like Bitcoin did in 2009. This is a free cryptocurrency airdrop or distribution.
Some people consciously pick this chance to operate a cryptocurrency business. The benefit is undoubtedly that no capital preparation is necessary. The coins will be added to the e-wallet as long as the information year for downloading the new currency is there. Next, watch for a coin to reach a high price and then sell it when it is appropriate.
Sadly, new cryptocurrency prices are seldom as volatile as they were when Bitcoin was launched in 2009. Not all cryptocurrency types can endure since it is unstable, preventing their prices from rising or even dropping after successfully rising. Even though a crypto coin has the same security method as other, more marketable currencies, this is what causes it to go unsold and be abandoned by the community.