[PRESS RELEASE] Millennial-style Digital Investing: Profit or Threat? | Difussion #68

February 24, 2022 1:53 pm || By

Google Meet, February 17th, 2022 — Digital investment is a form of investment carried out with a certain application using the internet network. Recently, digital investment has received lots of attention from young people. However, cases of digital investment scams often appear. In response to that, CfDS held Difussion #68 with the theme ‘Millennial-style Digital Investment: Profit or Threat?’ by inviting Achie Mahfudloh (Founder of Stockgrow Indonesia) and Perdana Karim (Research Assistant CfDS) as speakers, along with Eka Nur Raharja (Community Outreach Assistant CfDS) as the moderator.

Digital Investment Scams and How to Avoid Them

Karim stated that digital investment scams could attract people’s attention because they offered a tremendous return on investment. With large profits, digital investments seem to be the best choice if people want quick profits. To identify whether a digital investment is a scam, at least 3 (three) signs can be seen. First, digital investment scams claim to provide the maximum possible profit with minimal capital. Frequently, digital investment scams also use sweet words in promoting their products. Second, digital investment scams involve influencers to carry the promotion. Third, if the digital investment application is not available in any app store, it means that the digital investment is suspicious. These three signs are not a definitive aspect. However, if all three are found, the public should be more vigilant.

Karim then continued his presentation by explaining several things that can be done to avoid digital investment scams. Before entering the world of investment, it is better to research both investment instruments and their advantages and disadvantages. Next, ask other people who have experience in this world for investment. Finally, Karim reminds, “The mindset for investment, especially for millennials, is not to be afraid of missing out (FOMO) and start small.” This is aimed to avoid losses that may occur.

Digital Investing Tips for Millennials

Achie started his presentation by presenting the primary differences between conventional and digital investment. Digital investment is considered to have advantages over conventional investments because it is practical, up to date, easy, and self-managed. As Karim said, Achie emphasized the importance of research before investing, starting from the type of investment, market, risk, to their license. First of all, people must know which market they want to invest in, whether in the money market, capital market, foreign exchange, commodity market, or crypto market. Each type of market has different characteristics. In addition, there are 2 (two) transaction mechanisms that must be considered, namely the spot market and the futures market. The spot market is suitable for making long-term investments, while the futures market can be an option for those who want to make short-term investments. After knowing the market mechanism, further analysis must be carried out. Each market has its own method of analysis. For example, investing in stocks can be preceded by analyzing the company’s financial reports. On the other hand, in contrast to stocks, investing in crypto must be preceded by a project classification analysis.

In addition to providing a comprehensive overview of digital investment, Achie also provides tips for novice investors. Here are some of the tips:

  • Use idle cash
  • Set aside at least 20% of your monthly income to invest
  • Get to know your own risk profile
  • Diversify your investment
  • Keep investing

To close the presentation, Achie emphasized, “If we want to get profit, we must know which investment instrument is the right one. Take a risk for sure, but take that risk with research to minimize the risk.”

Author: Aridiva Firdharizki
Editor: Firya Qurratu’ain Abisono