This article will give an overview of some cryptocurrency exchanges open to the Indonesian public. I have done some online research and, in no particular order or preference, will give a light overview of these brokers and exchanges. I will start with the ones that surfaced on the net in a search first so they may be listed by the most popular. My next article will cover the storage of your cryptocurrencies.
The first one I came across is Luno. Luno is an exchange which allows the purchase of Bitcoin and Ethereum. Bitcoin and Ethereum are two major cryptocurrencies available for investment. The exchange has an app available for both Android and iOS so you can monitor your investment.
To open your Luno account, steps must be followed.
- Sign up and be verified. The verification process must be completed before moving forward.
- Deposit fiat money into your Luno wallet. Your wallet is like a bank account. The investor will deposit fiat money (previous article) into the online wallet. It’s just like going to the bank and depositing fiat money into a savings or checking account. The website acknowledges the investor can use a credit card to make purchases. This is a very dangerous game. You are pre-warned.
- Then, from your wallet, an investor can purchase either Bitcoin or Ethereum from the Luno exchange.
The website has a learning portal which will help an investor understand with greater depth these two cryptocurrencies. The online learning portal is offered in eight different languages including Indonesian. Luno has been in operation since 2013 and works in 40 different countries. It is recommended to not use the Luno online wallet for long. There could be some security issues.
Coinmama offers an alternative to Luno for cryptocurrency investments. When I first started to explore the field of cryptocurrencies, I set up an account at Coinmama. I eventually went with another exchange instead. The fees are a little higher than some other exchanges or options. Like Luno, Coinmama has the same requirements for setting up an account.
- Register your account with Coinmama and go through the verification process.
- Coinmama does not offer a wallet. This means the investor will have to select a way to store their purchase. My next post will cover wallets.
- After the investor’s funds have been authorized and a wallet address confirmed, then the purchased cryptocurrency can be received.
- Like Luno, Coinmama allows cryptocurrencies to be purchased with a credit card. That is great if the market goes up, not so great if it goes down.
Indodax used to be called Bitcoin.co.id and claims to have 1,672,209 users. Indodax offers 44 digital assets and 53 trading pairs. Trading pairs means cryptocurrencies can be traded for cryptocurrencies. There are five physical locations for Indodax in Indonesia: Jakarta, Semarang, Surabaya and two in Bali. If an investor were close to one of these physical locations, cryptocurrencies could be purchased with IDR.
In lieu of listing the steps on how to register under each exchange, the registration process is very similar throughout. There is a verification process to ensure the identity of the user. Because I am an American, I cannot open an account here. I tried. The process is straight forward and Indodax has an online wallet for storage of assets. It is always a good idea to store cryptocurrencies in a location offline.
While researching, I came across another exchange. This one goes by the name of Liquid. I began to make an account here to report on the ease of set-up. It is essentially like the other exchanges/brokers. There is a verification process with IDs and the rest of the steps are similar to the others. It is not open for Americans as best I can tell. It also seems to be the beginning of a one-stop shopping experience. This exchange offers an opportunity to lend cryptocurrencies for a return in interest. I invested in a start-up attempting to do the same thing. I wasted my assets and lost money in the venture. Bad advice. The exchange is designed for both novice and expert traders. This exchange may be a rising star in the field with many trading pairs and advanced technology for the trader.
The bottom line is there are several ways to enter into this market. Research is the way to determine which will work best. Always look into the fees being charged per trade and any other fees. See what the fee is to transfer fiat money to your bank account after a sale of cryptocurrencies. A lot of times the fees is where the gouging begins. Just be aware of them. This is a brief synopsis of a few exchanges. Being an American has cut me out of utilizing local exchanges. I have to go through my VPN and trade in the American markets. I don’t engage in day trading at the moment, so being restricted a little is not a big deal. I just “hodl” and wait for the right time to sell to maximize my profits. You invest and trade as you see fit.