Indonesia is one of Asia's most thriving emerging markets. As technology evolves and new financial systems like cryptocurrencies are developed, the country is keen on becoming a major player in the crypto space. In a bid to accommodate crypto trading and investments for Indonesian citizens, the Ministry of Trade declared Bitcoin a legal crypto asset and classified it as a commodity.
Over time, the Indonesian government keeps releasing crypto-friendly regulations, providing more clarity on how citizens should approach cryptocurrencies. First, you should be aware of Indonesia's financial services regulatory bodies. The Bappebti, Indonesia's futures exchange supervisory board, is responsible for regulating crypto. In line with this role, the Bappebti introduced some regulations governing the licensing of crypto exchanges.
As of 2020, the Blockchain Association of Indonesia announced that there were more than 1.5 million crypto traders in the country. If you want to buy Bitcoin in Indonesia, you must take note of certain facts. For example, crypto is considered a commodity and not a legal tender, meaning you can't use Bitcoin or other crypto coins to buy goods or pay for services. This article explains how to buy bitcoin online in Indonesia for trading and investments.
What do I need to buy Bitcoin in Indonesia?
You need the following before you can buy crypto coins on a cryptocurrency exchange in Indonesia.
- An identity card is required to complete the KYC process.
- A private internet connection. You should avoid using public WiFi while performing financial processes, which may pose security problems.
- A cryptocurrency account on an Indonesia-licensed exchange or brokerage.
- A phone to receive account verification codes and, on occasion, an email for two-factor authentication (2FA).
- A bank account or e-wallet through which you can fund your account with Indonesian rupiah in order to purchase cryptocurrencies.
- A cold wallet to store your crypto assets if you plan to keep them for an extended period of time. As you learn how to buy bitcoin, remember to pay attention to security precautions to keep your assets safe from threats.
4 Easy Steps of buying Bitcoin in Indonesia
- Choose a crypto exchange.
The Indonesian cryptocurrency market has many exchanges, including popular ones like Tokocrypto and Indodax.
- Create an account.
After you've chosen your preferred crypto exchange, create an account on the platform and complete the KYC registration process. The "Know-Your-Customer" (KYC) process is a legal requirement and serves the purpose of confirming your identity.
- Fund your account.
There are different ways to add funds to your crypto account: using the P2P service, a bank transfer, or paying using your card.
- Buy Bitcoin
You can buy Bitcoin on the exchange by choosing a pair that matches your fiat currency. Alternatively, you can buy some stablecoins like USDT and use the USDT to buy Bitcoin. Once your buy order is filled, your BTC will be deposited in your Bitcoin wallet.
Many investors choose to invest in Bitcoin because crypto provides decentralization and has various profitable ventures.
Where to Buy Bitcoin in Indonesia
Indodax, formerly Bitcoin Indonesia, was established in 2014. With over 1.6 million registered users, Indodax is among the biggest crypto exchanges in Indonesia. Its popularity is due to the fast deposits and withdrawals of the Indonesian Rupiah. Indodax has a good customer support service that's open 24/7. The trading interface is beginner-friendly, with more advanced features for pro traders. In the IDR market, you'll find crypto coins and their prices against the Rupiah. You can also explore the USDT market, where crypto assets are priced against the USDT stablecoin.
Tokocrypto is another popular crypto exchange in Indonesia, founded in 2018. Its goal is to become the largest exchange in Southeast Asia and to achieve this, the exchange partnered with Binance in 2021 to launch a campaign that further increased its popularity. The exchange has its own native token called "Toko Token." There's 24/7 customer support if you need help with any issues. The user interface is simple, and you can deposit money into your crypto wallet using Indonesian Rupiah.
Binance is the leading crypto exchange worldwide, with over 120 million users. Founded in 2017, the crypto exchange is licensed in several countries and accounts for over half of the world's crypto trading activities. As an Indonesian resident, you can buy and sell crypto coins on Binance using fiat through a local bank transfer or a debit or credit card. There are two trading interfaces on the mobile app, one for newbies and another for pro traders, so you can choose the one that suits you.
Huobi is another major player in the crypto market. It's a Seychelles-based exchange founded in 2013 and has a good reputation. The exchange provides its services in Indonesia, with over 200 cryptocurrencies available for trading. Huobi has a native token called Huobi Token (HT), which can be a good investment as its value increases in tandem with the expansion of the exchange. The user interface is impressive, and trading on the exchange appears fluid and straightforward.
Bitcoin.co.id is an Indonesian crypto exchange founded in 2013. Currently, it has over 500,000 registered users and is very popular among the Indonesian community. There are two ways to buy Bitcoin on the platform: the first is to use the "quick buy" option, which allows you to buy BTC using Indonesian Rupiah. The second method is buying from the spot market, which requires depositing some funds in your account and then choosing a cryptocurrency pair to buy. The quick buy is fast and attracts more fees than buying at the spot market.
CoinsBene was established in Germany in 2019. With a mission to make crypto relevant for everyday transactions, CoinsBene has grown to become one of the most popular crypto exchanges globally. You can buy and trade Bitcoin, Ethereum, and other cryptocurrencies on the platform. Deposits in different fiat currencies are available, including the Indonesian Rupiah. The platform has partnered with several e-commerce companies, gaming platforms, and brands like Amazon, PUBG, iTunes, Kroger, Google Play, Netflix, eBay, Walmart, Uber, Burger King, Nike, and Spotify.
OVO is not a crypto exchange - it's a mobile wallet that serves as a payment platform for Indonesian citizens. Currently, they've added support for buying and selling crypto coins, including Bitcoin. Aside from buying and selling BTC, you can also make money from Bitcoin by mining the coin through bitcoin hosting services.
What are the advantages of buying bitcoin in Indonesia?
- Decentralization: Because Bitcoin is decentralized, it operates independently of conventional organizations such as banks and governments, giving its users more autonomy and control.
- High Liquidity: Bitcoin is one of the most traded cryptocurrencies, creating a highly liquid environment that makes it easy to buy and sell anytime. One of the things you should learn about how to buy Bitcoin online in Indonesia is how to identify highly liquid exchanges. A simple tip is to choose exchanges that have high daily trading volumes.
- Cross-border Transactions: Bitcoin is the best choice for cross-border payments and international transactions since it enables quick, secure, and borderless transactions.
- Investment Opportunity: Bitcoin's price has increased significantly since its release, and many experts think that trend will continue in the future. For many investors, Bitcoin is a popular choice to hedge against inflation and earn passive income.
- Profits from trading. Before the advent of cryptocurrencies, the only financial markets available were the forex and stock markets. Now, traders can register on a cryptocurrency exchange to trade cryptocurrencies and earn profits.
- Improved Privacy: When you fund your account with Bitcoin, all your transactions are kept secure and private, enabling users to manage their financial activities and control their assets.