What is crypto deposit? Maybe you are also curious about what a crypto deposit is. Before explaining about crypto deposits, maybe you still don’t know much about what deposit and crypto are.
What is Deposit?
According to KBBI, a deposit is an amount of money kept in a certain account for security purposes or ease of transaction. The use of the word deposit is widely used for buying and selling purposes.
In addition, the word deposit is also widely used for investment purposes. For example, when you make a deposit to the bank for investment purposes. Investing in a bank by placing money in an account is called a deposit. You will get interest when you make a deposit at the bank with an average interest rate of 2 to 3 percent per year.
What Is Crypto?
After knowing what a deposit means, then the next is the meaning of crypto. Crypto itself is a digital currency that is not tied to any country or any central bank. So, this crypto is independent and not affected by inflation in the world.
Examples of cryptocurrencies themselves are bitcoin, ethereum, dogecoin, XRP, and others. Even so, cryptocurrencies have very high fluctuations and are included in the high risk category of investments. Like stocks, investments in bitcoins can have very high values over time and can also go down a lot over time.
As an example is bitcoin. At the beginning of its appearance, the price of one bitcoin was only IDR 14,000, but as of April 14 2021 the price of one bitcoin touched IDR 925 million. Then, on April 25 2021, the price dropped dramatically with the price of one bitcoin costing IDR 728 million.
Crypto Deposits Are…
Then, what is a crypto deposit? The definition of a crypto deposit is saving money in the form of crypto currency for buying and selling or investment purposes. Simply put, you buy how many grams of gold with the rupiah you have. Meanwhile, a crypto deposit is buying how many pieces of crypto currency you have with the rupiah.
So, later when you make a crypto deposit, you will get an asset in the form of the crypto itself. With the current popularity of crypto currency as an investment instrument, many people are flocking to invest in crypto.
Why Do So Many People Invest in Crypto?
Why are so many people investing in crypto? On average, many people want to invest in cryptocurrencies because fiat currencies, such as rupiah, yen, ringgit, and others, which are used as the country’s official currency, continue to decline due to inflation every year.
Inflation itself is a decrease in the value of the currency. There are many factors that cause inflation. The worst inflation was in 1988 during the monetary crisis that almost hit the whole world at that time.
An example of inflation is the value of IDR 100,000 in 2015 and will be different from the current 2021. If in the past maybe Rp. 100,000 could buy a lot of things, now Rp. 100,000 doesn’t buy a lot of things.
Therefore, many people want to invest in crypto that is not bound by inflation. Thus, the value of money in crypto will not decrease due to inflation which causes the currency to continue to decline every year. Even though the price may go up and down rapidly, the value will remain the same.
In Indonesia itself, cryptocurrencies are still prohibited from being used as buying and selling transactions. However, cryptocurrencies are allowed as an investment vehicle. For those of you who want to invest in crypto currency, we will explain how to make a deposit in crypto.
To make a deposit in this crypto everything is completely online. So, make sure you have an internet connection and a device that can connect to the internet.
How to Deposit Crypto?
To make a deposit in crypto, you need to choose an exchange. The Exchange has a function to bring together crypto buyers and sellers. Exchange has services for selling, buying, storing, and transferring crypto assets. The exchange does not carry out its own crypto buying and selling transactions, but only as a place to carry out crypto transactions. It is the sellers and buyers who make transactions on the exchange.
Exchange has different crypto currencies to be traded. So, it could be that one exchange trades bitcoins, while the other exchanges don’t trade bitcoins. The next steps are to make a deposit in crypto. The steps for making a deposit in crypto are as follows:
1. Opening a crypto deposit account
To make a deposit in crypto, you need to open an account on an exchange. It’s like opening an account at a bank, but all the processes are online. At this stage of opening an account you need to fill in personal data such as name, email address, and agree to the policies and terms of the agreement and privacy policy.
At this stage of opening an account, you can apply via a website or application that you can download on the Google PlayStore or AppStore. So, the process at this stage of opening an account all takes place online and there is no need to fill in wet paper or signatures.
2. KYC Verification Steps
After you open an account, the next step is to verify KYC. This step is the most important step because even though you can already open an account on the exchange, if you don’t pass this verification then you can’t deposit crypto on the exchange.
This KYC verification has an important role so that all participants in the exchange are kept safe and AML (anti-money laundering) policies can be implemented properly. In this KYC verification process, you need to fill in some important information.
This important information, such as uploading ID photos, filling in personal data, and taking selfies with normal movements and random movements. This KYC data processing requires at least one working day.
In this verification process, many people often fail. This is because the personal data that is filled in is not true and accurate. When taking a photo with an ID card, the results must clearly show the ID card and face.
Preferably, the face is in the middle position and the KTP is also held in the middle position so that it is clearly visible. Don’t wear accessories that don’t show your face clearly, such as wearing a hat or glasses. In addition, when making movements try to be precise, so that the verification process can run smoothly.
3. Crypto Deposits
After passing KYC verification, the next step is to make a cryptocurrency deposit. There are two deposits that you can use, namely fiat deposits and crypto deposits. The two deposit steps are as follows:
a. Fiat
This rupiah deposit is made by depositing into a predetermined account. Later, this deposit will be used to buy crypto assets, such as bitcoin, ethereum, XRP, and others.
For a minimum deposit, the average starts from IDR 30,000 to IDR 50,000. However, there is also a minimum deposit of IDR 500,000.
There are several ways to make a deposit with an account. The method is as follows:
- By using a bank transfer, it can be through an account or virtual account;
- via e-wallet, such as Paypal, Google Pay, Amazon Pay
- make a cash deposit to the office
- by using a credit card
b.Crypto
For crypto deposits, you can also use the crypto assets that we have, such as bitcoin, ethereum, XRP, and others. Later, each exchange will have a list of coins that are accepted as deposits.
Deposit fees with this crypto are much cheaper compared to bank transfers. Each exchange has a minimum deposit that varies depending on the type of coin.
The Final Word
Those were the ways to make crypto deposits. Indeed, currently crypto is a popular investment instrument. However, when investing in crypto, you need to have discretion because the price fluctuates. So, make sure the money used for investment is not money that is really needed.
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Author: Muhammad Zaki Fajrul Haq
Follow me at @mzfajrulhaq (Instagram) or @ZakiFajrul (Twitter).