Ethereum, commonly known by its ticker symbol ETH, is the second most popular cryptocurrency asset after Bitcoin. It's no surprise that many people are interested in buying, selling, and investing in Ethereum. It boasts a very high market capitalization, and the process of cashing out or exchanging Ethereum for Indonesian Rupiah is relatively straightforward.
This guide provides a complete overview of the steps you can take to buy and sell cryptocurrency assets, specifically converting Bitcoin or Ethereum into Rupiah through a trusted crypto application.
Understanding Ethereum
Ethereum is a decentralized blockchain system and the largest cryptocurrency by market cap after Bitcoin. Its native network token is called Ether (ETH). The Ethereum network serves as a primary platform for numerous other crypto projects by implementing a tokenization mechanism using smart contracts.
The creator of Ethereum is Vitalik Buterin, who was 21 years old at the time of its creation. Of Russian-Canadian descent, he and other initial contributors successfully secured funding for the Ethereum project through a public online sale in the summer of 2014.
The Ethereum project team raised over $18.3 million USD in Bitcoin, equivalent to approximately IDR 260 billion at the time. Initially offered to the public through an Initial Coin Offering (ICO), Ethereum's price was $0.311 USD, with over 60 million ETH sold, making it one of the most successful crypto projects ever.
Ethereum's main goal is to be a global, decentralized platform for various applications. Its mechanism allows users to create and run censorship-resistant software. At the time of writing, Ethereum holds the second position with a market capitalization of over $44 billion USD. Its wide utility, such as enabling decentralized applications (dApps), contributes to its high demand.
Is It Easy to Buy and Sell Ethereum for Rupiah?
Absolutely. As previously mentioned, Ethereum is one of the most popular and widely used cryptocurrencies. It serves as the foundational basis for many other crypto assets that utilize tokenization mechanisms. Ethereum is also available on numerous major exchange platforms, making transactions convenient.
Its transaction process is generally faster than Bitcoin's, with lower fees and quicker processing times.
Steps to Buy and Sell Ethereum for Rupiah on a Crypto Platform
Converting ETH to IDR through a registered crypto application is very simple. You can sell the ETH assets you own in just a few steps. Using a platform that is officially registered and supervised by the Indonesian commodity futures trading regulatory body (Bappebti) ensures that every Ethereum investment and trade is secure and safe from fraud.
Key advantages of using a registered platform for Ethereum (ETH) buying and selling activities include:
- Enhanced security and comfort due to official licensing and Bappebti supervision.
- Very low minimum transaction amounts.
- Instant and easy account opening process without the need for in-person meetings or branch visits.
- Lower transaction fees with instant processing.
How to Buy Ethereum on a Crypto Application
1. Log In to the Application
The first step is to log in to your crypto application account. If you don't have an account yet, you will need to register first to be able to buy and sell crypto assets like Ethereum or Bitcoin.
These platforms are typically available for free download on the Google Play Store and Apple App Store. You can also often access them via their official websites.
2. Top Up Your Balance
The next step is to deposit funds. Press the deposit button on the Home page, then select 'Crypto Funds'. Choose your deposit method, such as a transfer to an available Virtual Account number from a supported bank or other options. After making the transfer, remember to check that your crypto fund balance has been updated in the application.
3. Buy Ethereum
Once everything is ready, the next step is to buy Ethereum with the Rupiah you deposited. To execute a buy or sell order, you need to place an order within the application or on the exchange's website.
Before you proceed, it's important to understand the types of orders available:
- Limit Order: This is a new transaction order that will only be executed when the market price moves to touch the price set by the limit order. If the price doesn't reach the set level, the transaction will not be completed.
- Market Order: This type of order is executed immediately at the current market price. So, when you place a buy order, it will follow the prevailing market price at that moment.
Next, follow these steps to buy Ethereum:
- Open your crypto application and click on the 'Search' page, then select the 'Crypto Asset' tab.
- Choose between a 'Market' or 'Limit Order' to buy crypto instantly or at your desired price.
- Enter the amount of 'Crypto Balance' you wish to buy. Then click Buy.
- Before confirming, double-check your crypto asset order details. If everything is correct, check the box on the 'Purchase Confirmation' page. Then, click Buy.
- Wait a moment, and your Ethereum purchase order will be complete!
For those looking to dive deeper into advanced trading tools and real-time market execution, you can explore more strategies and platforms here.
4. Sell Ethereum
The process of selling Ethereum for Rupiah is also quite straightforward on a crypto application. The steps you need to follow are:
- Open your crypto application and click on 'Portfolio'.
- Select and click on 'Crypto Assets', then choose the Ethereum you want to sell.
- After that, click 'Sell'.
- Choose 'Market or Limit Order' and enter the amount of crypto asset you want to sell. Then, click 'Sell'.
- Wait a moment, and your Ethereum sale order will be complete!
Fees for Buying and Selling Ethereum
Besides an easy transaction process, registered platforms typically offer very affordable and transparent fees for every transaction.
Please note that fees usually include a broker fee (Maker-Taker) and Value Added Tax (VAT). A income tax may also apply specifically to sell transactions. Always check the latest fee schedule on your chosen platform's website.
Tips for Buying and Selling Ethereum
Ethereum is a crypto asset with rapidly increasing adoption. At the time of writing, there are hundreds of platforms that allow you to access the Ethereum market from wherever you are.
However, this can sometimes make transacting Ethereum confusing, especially for those new to the crypto world. Therefore, using a officially registered and trusted platform with easy access is recommended.
There are several factors to consider before deciding to buy or sell Ethereum:
Price
Before you decide to buy or sell ETH assets, remember to first conduct research to understand Ethereum's potential price movements. You can get this price information by looking at price movement charts on a daily, weekly, monthly, and yearly basis.
Furthermore, you should compare the buy and sell prices of ETH across different exchange platforms. Ensure the platform you choose does not sell an asset at a price too far from the global market rate.
Trading Fees
You also need to compare trading fees on various exchange platforms to know how much it will cost you to transact ETH. This is because each exchange has different policies regarding trading fees. Always ensure the transaction fees charged by your chosen platform are reasonable and not excessively high.
Withdrawal Methods and Fees
In addition to the two points above, you also need to look at the methods and what withdrawal fees are charged and provided by an exchange. Don't forget to check how long it takes to complete a transaction, for example, from exchanging Ethereum to Rupiah being sent to your bank account.
Minimums and Transaction Limits
Exchanges have their own policies and usually impose minimum or maximum sale limits on a crypto asset. Another important factor is the daily withdrawal limit for fiat currency like Rupiah. Always make sure that if you sell ETH or other crypto assets, it complies with the policies in effect at the exchange you use.
Security
Security is a critical feature on any exchange platform. Always use a trusted application. Don't forget to use additional features like two-factor authentication (2FA) via an authenticator app or email to enhance the security level of your account.
Support
Also ensure you choose a platform that offers real-time support. Check what user support looks like for that platform. Is it accessible via email, chat, or phone? And what is their response time?
Frequently Asked Questions
How long does it take to sell Ethereum and receive IDR?
The time can vary per platform. Typically, the sale of Ethereum is processed quickly on the exchange. The subsequent withdrawal of IDR to your bank account can take from a few minutes to several hours, depending on the platform and bank processing times.
Is it safe to use crypto applications in Indonesia?
Yes, provided you use an application that is officially registered and supervised by Bappebti. Always verify the platform's regulatory status before depositing funds. Registered platforms must comply with strict security and operational standards.
What is the minimum amount of Ethereum I can buy?
The minimum purchase amount differs on each platform. Some allow you to buy very small fractions of an ETH (e.g., 0.001 ETH), making it accessible even with a small initial investment. Always check the specific minimums on your chosen application.
What's the difference between a market order and a limit order?
A market order executes immediately at the best available current market price. A limit order allows you to set a specific price at which you want your order to be executed; it will only complete if the market reaches your price, giving you more control but no guarantee of execution.
Are my profits from selling Ethereum taxable?
In Indonesia, income from crypto asset trading is subject to income tax and VAT. The specific tax treatment can be complex, so it's advisable to consult with a tax professional to understand your obligations based on your transaction volume and profit.
Can I use Ethereum to pay for goods and services directly?
While some online and offline merchants accept Ethereum directly, it's more common to sell your ETH for IDR on a registered exchange and use the fiat currency for payments. The ecosystem for direct crypto payments is still growing.