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Getting to Know Crypto Assets and Their Functions


Getting to Know Crypto Assets and Their Functions


Although it is no longer a new thing, in recent years the conversation about crypto assets has grown bigger and bigger. One of the skyrocketing popularity of crypto assets is based on the number of influential figures abroad who promote their preferred type of token as an investment in the future. The uniqueness of crypto assets is often reported as one of the factors that can bring huge profits to investors. However, behind these advantages, there are risks that deserve to be understood more deeply. Then what is a real crypto asset?


Definition and function of crypto assets

In general, a crypto asset or cryptocurrency is a digital currency. The main purpose of this cryptocurrency is as a medium of exchange for transactions carried out online. Regarding its own security, cryptocurrency transactions, both buying and selling assets and transactions using cryptocurrencies, are protected by cryptography or secret passwords as part of their security.


The transaction process is usually carried out in a peer to peer manner, which connects one device to another on the internet without a server. In other words, the owners of cryptocurrencies are free to transact to anyone without a third party regulating their turnover. Even so, all forms of transactions made are still recorded and monitored by a network of crypto assets known as blockchain.

Blockchain itself is a computing system that underlies the formation of existing crypto assets. Functionally, blockchain exists for blocks that are interconnected with each other that record asset transactions and business networks online. Not only noting, the blockchain also distributes information on transactions that take place around the world to cryptocurrency owners who want to see it. However, the information is confidential and only appears a code as the identity of the perpetrator of the transaction.


The development of crypto assets

According to its own history, this cryptocurrency has actually been developed since 1983 by David Chaum in the United States. At that time, David Chaum introduced cryptographic electronic money which could only be used in 1995 with the creation of Digicash. But at that time, people who wanted to transact had to have special hardware and software that limited many people from using it.


It wasn't until 2009 that Satoshi Nakamoto introduced Bitcoin as the first decentralized cryptocurrency. This allows the cryptocurrency created by Satoshi Nakamoto to be used on various platforms without having to require special devices except the internet network. With the acceptance of these cryptocurrencies on various digital platforms, it has finally paved the way for the emergence of other crypto assets to date.


Crypto asset regulation in Indonesia

In Indonesia itself, crypto assets owned by anyone cannot be used as a means of payment. However, if you are interested, investing in crypto assets is still allowed. This is explained through the Letter of the Coordinating Minister for the Economy Number S-302 / M.EKON / 09/2018 concerning the Follow-up implementation of the Coordination Meeting on Crypto Asset Regulation as a Commodity Traded on the Futures Exchange.


Based on the Letter of the Coordinating Minister for the Economy, crypto assets are considered commodities that can be traded on the futures exchange. This is done based on consideration of the potential for large investments that can help economic development in Indonesia. This crypto asset investment is also further carried out under the supervision of the Commodity Futures Trading Supervisory Agency (Bappebti).


Through Bappebti Regulation Number 5 of 2019, it is explained that crypto assets are intangible commodities in the form of digital assets that are traded as investment instruments. Regarding crypto assets that cannot be used as a means of transaction, this has actually been regulated through Law Number 7 of 2011 concerning Currencies. In the Law, it is explained that the legal tender in Indonesia is rupiah currency. In other words, crypto assets cannot be used as a means of payment in Indonesia. The only way to be able to transact is of course by converting the crypto assets you own into rupiah.


Crypto asset risk

Even though it is considered safe with a security system based on cryptography, crypto assets as investment instruments still have their own risks. The risk is explained by the Financial Services Authority (OJK) based on an alert from the national media. OJK explained that the value of cryptocurrencies is volatile and uncontrollable. This leads to increases and decreases in the value of cryptocurrencies that can occur at any time and for no apparent reason. In addition, OJK also does not supervise and regulate crypto assets. These risks must be understood by the Indonesian people before starting to invest in large values.


Alternative investment instruments

For those of you who feel that crypto assets can present great risks for your financial condition, it would be nice if you continue to use investment instruments that were first popular in Indonesia as an activity in seeking investment that can generate profits in the future. These investment instruments include bonds, deposits, and mutual funds. Let's get to know the three investment instruments.



As one of the popular investment instruments in Indonesia, bonds are an investment in the form of debt statements issued by the government or corporations. However, it is not uncommon for the debt statement to be issued by individuals. In the bonds issued, there is a statement that every purchase of assets from these bonds investors are entitled to interest as a form of ownership. The interest is as a profit from the value of assets owned by bond investors.



Deposits are one of the investment instruments that are no longer unfamiliar to most Indonesians. Basically, deposits have a function similar to savings as a means of storing funds. When you want to keep funds on deposit, you can choose a tenor or period that can be adjusted to your needs. Deposits have a relatively larger percentage of interest than ordinary savings. Based on the selected time period, later you can take back the investment capital and the profits that will be obtained from the deposit program.


Mutual funds

Similar to crypto assets, mutual funds are one of the investment instruments that have increased in popularity in recent years. Especially among young people. Mutual funds themselves are an investment product in the form of a collection of funds that are managed as investment capital to be converted into various types of products, such as stocks, bonds, and other financial and investment products. The funds raised are managed by an investment manager, a management or professional institution tasked with managing your investment activities.


For those of you who are interested in starting to invest, mutual funds can be the investment instrument of choice. In facilitating investment activities, you can buy mutual fund assets through CIMB Niaga. CIMB Niaga is an officially registered mutual fund selling agent and is committed to offering convenience to you in making investments with a period of time and risk as needed.


You can get one of these conveniences through OCTO Mobile. This digital banking product  from CIMB Niaga makes the investment process feel much easier. The reason is, OCTO Mobille allows you to invest anywhere and anytime. For more information about mutual fund investment through OCTO Mobile,