Bitcoin is the first and one of the most valued cryptocurrencies today. Bitcoin's penetration in Malaysia is growing, and you should consider investing in it. In this article, you'll learn why and how to buy bitcoin in Malaysia, and how to convert fiat to bitcoin and bitcoin to fiat on any cryptocurrency trading platform Malaysia. You'll also learn how to get bitcoin cheaper to make more profits and how long it takes to buy bitcoin.
Why You Need to Buy Bitcoin
The price of bitcoin has risen by over 40,000% since 2014, making it one of the most rewarding assets in the financial market. As more countries and investors adopt bitcoin, here are some reasons to buy it:
Reliability
Bitcoin's reliability makes it a good coin for Malaysians to hold as an investment as it has consistently outperformed other financial assets in the market. The price of bitcoin increased by over 300% in 2020 and reached $68,789 in 2021 to mark a +200% price change. Bitcoin is different from stocks and offers an additional portfolio diversification from traditional assets. As bitcoin demand and adoption increase, the price will continue to increase. Ultimately, it remains an excellent idea to buy bitcoin Malaysia.
Anonymity
Bitcoin and other cryptocurrencies offer anonymity as a core feature. Although bitcoin wallet addresses and transactions are public on the blockchain, you can transact money and assets anonymously, keeping your identity private. Bitcoin offers greater privacy and anonymity than traditional payment systems.
Low Transaction Fees
Bitcoin transaction/network fees are among the lowest in the crypto ecosystem, allowing you to send money and pay for goods while paying lower fees than traditional payment systems. Bitcoin fees may vary depending on the network conditions, but it remains cheaper than most other cryptocurrencies’. The drawback is that transactions may not go through if the fee increases after payment is initiated.
High Liquidity
If you want to invest in cryptocurrency, bitcoin is a great asset to consider because of its high liquidity. Bitcoin’s high liquidity means a more stable market, faster transactions, and accurate analysis. It also means that you can easily transact bitcoin by selling or buying it, exchanging it for other assets. You can sell bitcoin instantly with a low commission as there are always buyers. There are over 260,000 bitcoins traded daily.
4 Steps in Buying Bitcoins
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Choose where to buy
If you ask where to buy bitcoin in Malaysia, look no further. It is best to buy bitcoin from a cryptocurrency exchange. A crypto exchange is a platform, like a stock trading platform, where you can exchange, sell, and buy cryptocurrencies. Crypto exchanges differ in functions, features, commissions, security, and payment options. Here are the important points to consider when choosing a cryptocurrency exchange Malaysia.
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Fees: Fees are charged when you buy or sell cryptocurrencies. Some exchanges also charge trading fees. Fess may increase with time depending on the network conditions, and some exchanges charge commissions in advance. Therefore, it is important to find exchanges that charge low transaction and trading fees, zero or low withdrawal fees, and no deposit fees for fiat and cryptocurrencies. Although fees may depend on network conditions, the best exchanges keep fees minimum and don’t charge extra.
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Coins: Look for exchanges with a wide range of crypto assets because, in the future, you might want to diversify your asset portfolio. Consider exchanges with a wide coverage of cryptocurrencies that you can buy or sell and trade.
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Location: Exchanges are subject to local and regional laws and regulations. You must choose licensed exchanges with regulated consumer protection laws. Consider a legal crypto exchange Malaysia and any local Malaysia crypto exchange. Do not get involved with unregulated exchanges, as they can liquidate investors’ funds without repercussions.
2. Create an account
Once you choose an exchange, you can proceed to register an account. Simply download the app or use the exchange's web page. You'll have to go through Know Your Customer (KYC), a legal requirement in Malaysia. KYC requires you to submit documents to verify your address and identity. Most exchanges require a photo ID, utility bill, or a copy of a recent bank statement with your address on them. Verification is typically completed instantly or, rarely, within a few days. Some exchanges now require only your photo ID number for verification.
3. Payment options
The next step is to buy Bitcoin (BTC). Buying Bitcoin is easy and can be completed using three methods:
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Direct deposits: You can transfer funds directly from your bank account to the exchange’s account. This process typically takes some time but might be completed instantly. The duration depends on the exchange and bank. This method is often slow.
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Buying with a credit card: If you prefer, you can buy Bitcoin with a credit card. It is fast and convenient to use a credit card, but the credit card provider or exchange will charge a higher commission. Some credit card providers may not allow crypto purchases or will charge high commissions for issuing cash. Some exchanges do not allow credit card deposits as the commissions are high.
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Buying with a debit card: The best method is to buy Bitcoin with a debit card. The commission is lower than credit cards and processing bank transfers and payments.
You should consider the size of commission that you’ll pay on purchases when choosing a method. Larger purchases will naturally have larger commissions.
4. Buy Bitcoin
When you buy Bitcoin in Malaysia, you can choose the amount you want. There is a minimum amount that you can buy, but you don't have to buy a whole bitcoin. You can buy a few MYR worth of bitcoin on most exchanges. Simply enter the MYR value, and the exchange will calculate the equivalent BTC. Most exchanges offer two ways to purchase bitcoin; spot market and instant buy. Some only offer spot purchases.
Instant Buy
You can buy bitcoin using the instant buy feature using a credit card. The first step is to select the asset (bitcoin), preview the current price and conditions, check the credit card details, and complete the purchase. Instant buy is a great option to buy bitcoin Malaysia, due to its speed and convenience. Instant buy is made at the current market price and can be done with fiat or other cryptocurrencies on the exchange. The downside is that you make less profit than the spot market.
Spot Market
The spot market allows flexibility in buying and selling. You can set your parameters and sell or buy through several types of transactions. You can trade cryptocurrency Malaysia through two basic types of transactions; market orders and limit orders. Market orders typically have low commissions, while limit orders allow you to set a price for buying or selling with a lower commission. There may be others depending on the exchange. Spot transactions allow you to buy or sell instantly at your price.
What to do after the purchase
After you purchase bitcoin, you can either leave it on the exchange for holding or trading or send it to an external wallet. You retain control of your bitcoin either way. It is often better to move your bitcoin to an external wallet with complete control of the wallet than wallets on exchanges.
Using a Crypto Wallet
An external crypto wallet is not attached to any exchange and to which you hold the private keys. While some exchanges have independent external wallets, most external wallets are unaffiliated with exchanges. External wallets typically cover many assets that exchanges may not cover.
Advantages over exchange wallets
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Crypto coins in external wallets remain under your control since there is no third-party involvement.
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You have more secure storage options such as paper wallets, cold storage, wallet key, hardware wallet, etc.
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External cryptocurrency wallets eliminate the risk of phishing attacks.
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External wallets are more suited for bitcoin transactions, decentralized finance (DeFi), and daily spending.
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On-the-go access to funds allows you to buy, sell, and spend your crypto assets easily.
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External wallets sometimes offer the storage of assets that exchanges have not added to their platforms.
Disadvantages
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It could take some time to learn external wallets.
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You may permanently lose funds if private keys get missing.
Keep Your Bitcoin On An Exchange
Suppose you choose to keep your bitcoin on a crypto exchange Malaysia. In that case, you may not miss out on much as most cryptocurrency exchange Malaysia makes it easy for investors and traders to perform crypto transactions. Here are some benefits of holding your crypto assets on an exchange:
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Fluid, one-time security: You’ll only ever need to secure and remember your exchange login details.
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You can easily and quickly replenish your crypto assets through spot or instant buy options.
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Most exchanges offer financial features for managing crypto-related financial operations. Some exchanges allow users to export transaction details for tax filing.
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Easy access to manage portfolio, investment, and monitor price movement.
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If you want crypto p2p Malaysia, you should use an exchange.
Once you know how to invest in bitcoin in Malaysia, you should consider the security of exchanges before performing trades. Here are some factors to look for:
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Offline storage of over 90% of users’ crypto assets to guarantee safety.
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KYC and anti-money laundering (AML) regulations
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Two-factor authentication for login, withdrawals, and profile edits
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Insurance on deposits
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Crypto lending and farming
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Multi-signature wallets with multiple private keys for withdrawals
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Anti-phishing regulations.
The Risks Of Buying
As with all financial and digital assets, there are risks associated with buying bitcoin. Some of these are:
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Price volatility: Bitcoin’s price volatility is a double-edged sword that may see you in profits or loss. Bitcoin’s value may reduce after purchase or increase before purchase, effectively reducing the profits on buying or selling. Professional Bitcoin traders perform analysis before buying or selling.
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Security: There is always a risk of purchasing bitcoin from other sources, especially P2P.
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Irreversible transactions: Any transaction to the Bitcoin network is irreversible. This makes it difficult to recover funds from phishing attacks.
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Capital gains tax: Malaysia taxes the gains made on buying and selling cryptocurrencies, including bitcoin.
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Bitcoin is traceable: Bitcoin transactions are traceable. While the identity of the sender or receiver might remain unknown, the path is public and can be traced.
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Infantile regulation: Bitcoin payment and other associated features are currently unregulated in many countries. Bitcoin regulation is infantile and continues to grow.
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Network: Although the Bitcoin network is faster due to a recent update, it is increasingly difficult to add new coins to the network through Bitcoin mining. This encourages price volatility.
Cryptocurrency Mining
Bitcoin mining is a better alternative to buying bitcoin on exchanges. You can earn bitcoin at a lower price than the market price and make some profits through mining. If you want to be profitable using the best bitcoin mining software, you should use the Minery hosted mining model. Minery’s hosted mining provides a way to earn bitcoin and begin your bitcoin mining with a low-risk, no-work, and low-capital method. When you earn bitcoin through mining, you effectively buy at a discount and can make profits, provided other market conditions are favorable. Minery’s hosted mining can help you to achieve that.
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