Millennial investors are now starting to look at trending crypto asset investments. Therefore, proportional education is needed in order to be able to increase the value of investment in Indonesia.
Investment in Indonesia also seems to be of interest to young people, this is shown by data from the Ministry of Trade (Kemendag) which released the latest report on the demographics of crypto asset investors in Indonesia. Interestingly, young people actually dominate the number of investors from a total of 14.1 million customers as of May 2022. This shows that the younger generation needs to get education related to crypto assets to strengthen the value of Indonesia’s investment.
According to the Ministry of Trade’s report, the demographics of crypto investors are dominated by the 18-24 year age group (32 percent), the 25-30 year old group (30 percent) and the 31-35 year old group (16 percent). Meanwhile, based on professional groups, the percentage of private employees dominates at 28 percent, entrepreneurs at 23 percent and students at 18 percent.
Responding to the growth of young investors who dominate in crypto asset instruments, of course, proper education is needed to get quality and healthy industry growth. Tokocrypto’s VP of Marketing Adytia Raflein said, the younger generation is more likely to be the most popular crypto investor and investment among millennials (aged 26-41 years).
Adytia observes, when compared to others, younger investors think that crypto assets will provide the best return on investment over the next decade. Therefore, education is needed to understand crypto assets thoroughly before investing.
Adytia also said that Millennial, Gen X and Gen Z investors are most likely to own crypto assets. However, looking at it in general, those who are young are still just joining in or being consumed by FOMO to invest in crypto assets. So there are some of them who are less comfortable with crypto volatility. Meanwhile, most of the others are optimistic and more aggressively invest in risky assets than their counterparts.
Looking at the behavior patterns of young investors in crypto assets, Adytia emphasizes the need for inclusive and sustainable education to provide a broad overview of investing in these risky assets. In fact, having good knowledge can make a clear and measurable investment plan.
Adytia also explained, Young Investors need to understand their risk profile first. Make sure to only invest as much as they can afford and don’t expect to make quick profits easily. In order to limit the risk, it is not permissible to invest all of the savings in crypto holdings, instead, must diversify the investment portfolio.
Then, it is not recommended to invest all funds in only one type of crypto asset. Young investors have more time to try out new assets and gain experience in investing. Crypto can make alternative investments for the younger generation in the long term because it tends to stay strong and get through any financial crisis that may occur in the future. Crypto asset investment is still considered potential although it has experienced a decline in recent times.
Data from We Are Social reports, there are a total of 205 million Indonesian internet users in 2022. This means that 73.3% of the total population in Indonesia has been touched by the internet, this is of course a big capital for Crypto Warehouse to target potential investors in Indonesia. various regions of Indonesia. This figure is certainly proof that the gate of limitations in today’s market is no longer a constraint. Of course, this opens up greater opportunities for digital economy players to further explore various investment potentials, especially in the crypto sector.
BAPPEBTI noted that as of February 2022, the number of crypto investors has reached 12.4 million people. This large number is expected to continue to grow along with the development of digital information and education relevant to crypto.
Crypto Warehouse underlines the important role of its platform as an educational tool to support users’ success in investing in crypto assets. Because today’s crypto is often stigmatized as an elusive investment asset. Crypto Warehouse wants to create a crypto investment ecosystem that is more friendly to everyone. The company also wants to make investment transactions easier.
The public must be aware that crypto is a high-risk business. So don’t let those who play in crypto actually ruin their business. Strengthening regulations and education is considered important in line with the growing public interest in crypto assets.
Businesses with high risk of course must be balanced with more information and guidance to consumers. So, there is a high responsibility to accompany it.
The government should also be involved by strengthening regulations, in order to prevent a complicated bureaucracy. Technological sophistication, of course, should not hinder the investment process.
Literacy on crypto investment opportunities really needs to be intensified, this is needed so that potential investors have the ability before entering the investment world that can be accessed without having to leave the house. The number of crypto investors at a young age, of course, must be properly nurtured in order to increase the value of investment in Indonesia.
)* The author is a contributor to investment observers
