Jakarta, CNBC Indonesia – Crypto assets are currently on the rise, many retail investors are starting to dabble in trading this digital currency. There is even an assumption that many retail stock investors have moved to crypto trading.
Trading data on the Indonesia Stock Exchange (IDX) does show that the current stock movement is still sluggish, as indicated by the Jakarta Composite Index (JCI) because there is no sentiment that has significantly boosted the index.
Based on IDX data, this Friday (28/5) JCI closed up 0.12% at 5,848. But last month JCI minus 1.95% and year to date or the current year the main reference index is minus 2.18%.
This is in contrast to the price movements of crypto assets in the last few weeks which are considered to be able to provide how instant with aggressive price movements like in Bitcoin and Dogecoin.
Talking about risk, these two assets have their respective advantages and disadvantages.
The difference is that stock trading can be predicted with fundamentals and technical analysis because it has: underlying assets, while crypto assets are shapeless, and price movements are highly dependent on demand in the market.
Pilarmas Investindo Associate Director Maximilianus Nicodemus, said if you want to invest safely, then don’t take high-risk investments like Crypto.
You can choose to invest in stocks, bonds, deposits, as well as gold, so if you want to put in excess money to invest in a crypto portfolio, it is still very risky.
“Need to diversify, I used to try to play in crypto I thought it was lost money, even though it’s now incised how the big one. It must also be understood what crypto is like. Today’s retail investors have potential how brush it right away, we see the risk too,” he explained in the Investtime program, CNBC Indonesia, Tuesday (25/5/2021).
He recommended that investors diversify their portfolios at 5%-10% of the investment fund portion. Thus, it is best not to include all investment funds in crypto assets.
“Because entering crypto you have to be ready volatileBy the way, this is no longer a fundamental formula but speculation. We see that the opportunity is still there. But you have to understand the risks,” he explained.