Cryptocurrency is an investment option that is currently being discussed by many people, especially young Indonesians. However, do they really understand this high-risk investment?
As we all know, the typical youth is FOMO. Sometimes, they just follow the trend without knowing how the fundamentals are.
Moreover, the trend of investing in cryptocurrencies, if you do not fully understand it, there is a possibility that you will not make a profit but stagnate.
To find out more about this, StratX KG Media conducted desk research from several credible sources. We found various interesting insights that could be records for brands from the banking sectors, fintech, or financial regulatory services.
Crypto For the Youths: FOMO?
Reporting from the site bitocto.com which has conducted a survey with its audience, 65,5% of young Indonesians are interested/liked investing in cryptocurrency. From that data, the majority said they wanted to have additional income from this digital asset. So, they want to learn to understand blockchain technology.
Still from the same data, most of them even choose the trading method, then some of the rest choose the mining method and the others choose both methods. Trading and mining in cryptocurrencies certainly require comprehensive knowledge.
They understand that cryptocurrencies are long-term investments, so it is never too late for them to try and learn to understand these investments.
Another interesting insight that we have found is the age of them. Reporting from Deputy Minister of Trade of Indonesia, Jerry Sambuaga, he said the data states 80%-90% of customers or users of cryptocurrency trading are those who aged 20-30 years.
This number is based on data up to July 2021 which states that there are at least 7,4 million people in Indonesia who carry out cryptocurrency investment activities. In the same month, daily transactions of cryptocurrencies reach IDR 2,3 trillion. This is a significant growth from last year which was previously stated IDR 180 billion per day.
The Ministry of Trade state that the number of customers and the number of cryptocurrency transactions in Indonesia increased significantly.
Then, How Do Indonesian Youths Understand Cryptocurrencies?
Based on data from Binance Indonesia, there are at least five types of cryptocurrency traders that stand out the most:
- Speculators, these types of traders usually will join many groups that discuss cryptocurrencies in the hope of getting information which digital assets are profitable. However, they do not understand the fundamentals.
- Uninformed investors, these traders will use the services of other people to manage their cryptocurrency investments. They will check the portfolios occasionally.
- Informed investors, in the contrary of number 2, this type traders invest in cryptocurrency independently. They are doing research, studying the fundamentals, then planning to purchase the digital assets.
- Day trader, this type of trader is an active person to buy and sell the digital assets in a short time.
- Swing traders, they are those who can hold the transaction for the long term.
From the five types of traders above, one of them could be a way for young Indonesians to understand cryptocurrency.
Insights for Brands
From the various explanations above, there are several insights that can be used as references for brands before making the next strategy.
First, Indonesian youths do not just follow trends or FOMO towards cryptocurrencies.
Second, they understand that cryptocurrencies are a high-risk investment but can still earn them extra income. So, they want to learn to understand the various fundamentals in it.
Third, cryptocurrency transactions in Indonesia have increased significantly. This will encourage various parties to develop how these digital assets can grow in Indonesia.
Fourth, there are still some of them who are involved in cryptocurrency but lack of information.
So, What Brands Can Do?
Brands from the banking, fintech, or financial regulatory services sector can have a strong hand in helping Indonesian youths invest in cryptocurrencies.
The first thing brands can do is taking a role as their mentor. From the various insights above, one thing that is clearly visible is that they need knowledge so that the steps they take in cryptocurrency will not end in losing.
For this reason, brands need to do research to find out what kind of knowledge is needed for them. After that, brands can determine how the communication pillars will be built as a step towards for them.
The second thing, brands can start this educative communication by holding a campaign. The campaign can be in the form of webinars, online seminars, or using daily content on various social media platforms.
It should be noted that the content to be communicated continuously can be ensured to be credible and accountable. Brands need to ensure this can be maintained properly.
Apart from those explanation above, another fundamental that brand can remember is transparency. Indonesian youths are increasingly critics with the information they get. They can filter the information easily with all of things in internet.
Therefore, transparency is something that also needs to be communicated by brands. Considering that transparency is a sexy thing to talk about in the economic sector, where in general, it is often neglected.