DISCLAIMER: This article is not an advice or technical analysis of investments. Research carefully and consider the opinions of financial experts before choosing the type of investment.
Ten years ago, when news and talk about cryptocurrencies was still rare in the mainstream media and social media, Josephine Tjoa ignored the advice that she regretted later.
In 2011 a younger classmate on campus asked her to buy Bitcoin, starting with IDR 1 million.
"I remember my parents' message, don't invest carelessly. So I chose to save money in deposits and mutual funds through life insurance. Two years after that, the price of crypto assets began to rise, but I still haven't taken them."
In 2016 while already living in Australia Josephine decided to jump into the crypto boat, buying some digital assets which at that time were still very affordable.
"Actually I was far behind. If I bought it long before that, I would have been rich," said Josephine, who is in her final semester for a double degree in mental health nursing and hospital administration at Sydney's Australian Catholic University (ACU).
"I bought Bitcoin and altcoins, in 2017 the price of Bitcoin fell quite badly. But I still keep it, if I sell it I use it to buy other coins."
Josephine Tjoa Source: Facebook
According to Josephine, Bitcoin accounts amounted to 15 percent of her crypto asset portfolio, and a huge increase has occurred in altcoins, or digital assets outside of Bitcoin.
"I calculated that the increase was 10,000 percent. Initially I had enough assets to buy a motorcycle, then I could buy a car, now the value is enough to buy an apartment unit on the outskirts of Jakarta like BSD," he said
Josephine also financed her last 2.5 semesters of college from cashing in on crypto assets.
"Since January 2021, there has been an insane increase. I thought about injecting more funds to buy crypto, but I resisted," said this Psychology student.
"Now I only monitor crypto price movements two or three times a day from my cellphone while eating. I like money, but my passion is not there. My passion is mental health, I want to focus on building a career."
Afraid to miss the train
According to Josephine, the quiet talk and news of the exploding value of crypto assets has prompted many who doosn't want to miss the train.
"Nowadays there are many of FOMO (fear of missing out) because the hype (sensation) just by reading only the the news title. They might not understand it yet, but think 'Wow I missed it, I have to buy it'. This is indeed human nature, likes to compete. Even though the timing may not be right, people who got are rich from crypto because they buy the currency when the price is still very cheap," said Josephine.
"Before deciding to invest, people should read at least one book. There is no need to be afraid of missing a train because the train will come again, rather than taking the wrong train."
Ezra Toddy is the one who gets on the crypto train when the carriage is still empty.
He knew cryptocurrencies since Bitcoin was launched in 2009 due to his passion for computer games and networking.
"Initially the only players who knew Bitcoin were computer game players. Then in 2010 in America there were people who used Bitcoin for the first time for transactions, buying pizza," said Ezra.
"In 2011 I bought $100 to get 130 Bitcoins. Since then I have started saving and following the development of crypto money."
Every now and then Ezra sells his digital assets for various purposes or buys other crypto assets that he thinks have good prospects in the future.
Ezra Toddy cashed up Bitcoin for brick and mortar business. Source: SBS/Alfred Ginting
"I also use it to buy a new car and buy two Rolex watches. Take the kids on vacation, I cash in crypto. I want to enjoy the results. If there are friends who used to belittle me for believing in crypto, I say this is my watch made from crypto," said Ezra laughing.
Ezra said until last year his own wife did not believe that crypto assets could make money.
"She said, 'Why keep crypto, it can't be money'. Now she has experienced the results."
Decentralized financial system
Ezra said that crypto currency does not have an underlying asset price, like valuing an investment such as stocks.
"To assess crypto, look at the market capitalization (market cap) by multiplying the price of a coin or token by the number in circulation. Each coin must announce how many coins will be in circulation," said Ezra.
"Right now Bitcoin is the number one cryptocurrency by market cap, the number of coins in circulation is close to the set limit of 21 million coins. So some estimate its value will be up to $500,000 per coin."
Ezra diligently follows crypto news and developments through several portals. He looks at projects from blockchain that offer crypto.
Blockchain is a special database system that does not have a specific party responsible for the purpose of ensuring the security of transactions. In ordinary database systems, there are guards who can change entries, so that for example, fake transactions can be made to take money.
Cryptos create money, so there needs to be a way for the people involved to trust the transaction system not to steal the money they deposit.
Blockchain is run by a network of users (peer to peer), no one is responsible, so it is often called decentralized, in contrast to conventional financial systems that are run by certain parties such as banks.
Crypto transactions cannot be faked, hacked or double-purchased, which makes owners believe their crypto coins have value.
Each blockchain has a certain project and way of sophistication that makes its image attractive to people.
Some cryptocurrencies don't have projects, and some were originally created as a joke or meme to the crypto world hype, such as the dog-signed Dogecoin.
When launched in 2013, one Dogecoin was valued at US$0.00026, as of this article was devalued one Dogecoin $0.390972, up 1.500,000 percent.
Visual representations of digital cryptocurrencies, Dogecoin and Bitcoin. Source: Getty
Not long ago, the Shiba Inu coin appeared repeating the story of Dogecoin which released billions of very cheap coins to attract people to invest in crypto with little capital.
Ready to lose money
Ezra said for crypto currency people should use cold, or unused money, not funds for necessities of life.
"Everyone has a different tolerance for risk. So first identify each level."
Ezra once experienced his digital assets being snagged on the Cryptopia exchange from New Zealand which was hacked in 2019 and then was hit by financial problems and was liquidated.
"Until now the problem has not been resolved, people are still waiting for their money back. But the company is officially registered, so the New Zealand government is overseeing the liquidation process."
Ricky Hendrata who lives in Melbourne also had his crypto asset on Bitconnect lost around $8,000.
"Bitconect offers high-yield investments with a loan system. It's too grandiose. At first I put in $500, two weeks it turned out to be $1500. This makes people greedy, put in more," said Ricky.
"I put in $4,000, sold Ethereum for Bitconnect. I got in a bit late at the time, when it was booming. After two months of falling, the website was gone."
Ricky admitted that he had given up on touching crypto again, even though some of his friends invited him.
"In early 2021, my friend asked me to buy crypto again. I said I don't want small ones anymore, but want bigger coins like Bitcoin and Ethereum," he said.
In February 2021 Ricky spent $2,500 to buy 0.6 Ethereum coins, KardiaChain and Dogecoin.
Adrenaline gambling
Feeling himself better equipped to equip himself with crypto insights than he had in 2017, Ricky has now invested around $20,000.
"Now I do a lot of buying and selling for Dogecoin. Meme coins like Doge go up and down very quickly. Coins that have a large value can't do that, they need to be held for a longer time," said Ricky, who works as a mechanic at a premium car repair shop.
Ricky Hendrata looks at his smartphone every hour to keep up with the crypto world, especially tweets from big name such as Elon Musk and Vitelik Buterin. Source: SBS/Alfred Ginting
"At least every hour I have to look at my smartphone to see news, especially twitter from 'big fish' like Elon Musk or Vitalik Buterin. The news from the portal is a bit late," said Ricky.
"Like today Elon Musk tweeted that buying Tesla cars is no longer allowed to use Bitcoin. I know that half an hour after he tweeted. In the US people are still sleeping, it's still midnight. I immediately sold the Doge, two or three hours after that the price fell. "
After Doge reached the lowest price, Ricky bought again. Satisfaction comes when you see the Doge price chart crawling up.
"Buying and selling is more exciting because we see the politics of the 'big fish', and can make money just from watching the news. So it's like an addiction because I feel like someone is playing with my money, I want to know what's going on," he said.
Ricky also invests in stocks especially last year when the pandemic pushed the charts up and down very dynamic stocks.
"But in 2021 I stopped playing stocks. Stocks are safer but slower, crypto moves 24 hours a week. Stock market closes at 5, weekends don't move. Stocks can be read more clearly. But crypto is much more exciting, provokes adrenaline, because it's half a gamble ."
Ricky, who holds an advanced degree in automotive technology, occasionally does car repairs outside of his main job and sells used cars.
He is currently setting up a food trailer joint venture with some friends in the Footscray area.
"I like to cook, I love to eat, and I love to drive. So the concept of the food trailer will have a fixed day a week for car shows, car fans gather," he said.
Even though he is really enjoying buying and selling cryptocurrencies, Ricky said he would stop in the next year.
"It's an addiction over time, it could be too distracting and leave another job."
Even so, Ricky influences his co-workers to get involved in crypto.
"But I said to use the money that was given up to be lost, don't use savings or necessities of life. You have to be patient," he said.
"People who are new to crypto seeing a 20 percent increase are already feeling profit, so it's hot to put in more. Human nature, greed. It's like gambling."
