Disclaimer: This article is meant to be an educational piece and not used as financial advice.
In today’s day and age, it would be impossible for you to have never heard of cryptocurrency or Bitcoin. The digital economy has been on the rise in recent years, and many Malaysians have started to get involved.
Your lepak session at a mamak with friends could also now be filled with discussions on cryptocurrency as well as NFTs.
But, if you’re completely clueless on what’s going on and how to get started, don’t fret. Here’s a quick ‘how to invest in cryptocurrency for dummies’ guide for you!
How to get started in Malaysia
The government does not recognise cryptocurrencies as legal tender, but it has announced that they are not banned.
Anyone can trade cryptocurrencies through regulated exchanges by the Securities Commission Malaysia (SC). The only 3 regulated exchanges in Malaysia are Luno, SINEGY, and Tokenize.
You may also trade through unregulated international exchanges which include Binance, Kraken and Huobi.
Different exchanges have different transaction fees, withdrawal limits, payment modes, and verification processes.
Although, most cryptocurrency exchanges include its own wallet, you can also get your very own separate physical or digital cryptocurrency wallet.
How you can start trading
As an example, we will show you how you can start trading on Luno, which accepts deposits from local banks easily.
Step 1: Creating an account
Create an account on their website or mobile app. Sign up for an account with an email and a password. You will then be asked to authenticate your identity by submitting photos of your identification card and a selfie.
The account creation process will take you 1 to 2 days before you can finally start trading. Once it is verified and your account is ready, you can start depositing money into Luno from your bank account.
Step 2: Depositing money into your cryptocurrency account
Once your account is good to go, you can now start to deposit some money into your account on the exchange.
Do note that there is a RM0.70 charge for deposits under RM100. Meanwhile, for bank transfers, the minimum deposit is RM1, whilst for FXP instant transfer, the minimum deposit is RM10.
For bank transfers, do make sure you fill in the unique reference code in the recipient reference/payment details section whilst you are making the transfer.
After you are done, go back to Luno to click the ‘I’ve made the deposit’ button.
Luno advises you to use your own bank account to make the transfer and to not make cash deposits. You also must not transfer the same amount within 24 hours.
Step 3: Start buying cryptocurrency
Once your deposit is in, the amount will be displayed in your Luno wallet. You can now start buying Bitcoin, Ethereum, Litecoin, or Ripple which are all available on Luno.
To do this, you can either buy through the wallet:
Or the exchange, which features a more comprehensive price chart and shows the price of the coin both in USD and MYR.
It is highly advisable to always include a slightly higher or lower limit price when buying a coin, depending on whether the price is trending upwards or downwards at that moment.
The minimum Bitcoin you can purchase on Luno is BTC0.0005. Take note of how much that is in ringgit right below the amount fill.
You should also know that sometimes your trade will not be successful due to a drastic price change. To resolve that, go to your ‘Wallets’ to cancel that transaction and try it again.
To sell a coin, the process is just the reverse of buying a coin.
If you want to learn more on different types of buying and selling, do read up on the differences between a limit, market, and stop-limit.
What to know before getting involved
As with anything new, there are always risks involved especially when it comes to money.
So do make sure you take the time to learn more about cryptocurrencies by joining Telegram groups, online communities like Reddit, YouTube videos and many others.
Stay safe and always remember to not make any reckless transactions! As with anything you invest in, there is always the risk of losing it all, so do make sure that whatever money you put in is money that you’d be comfortable losing.
Have you started investing in cryptocurrencies? Do YOU have any words of wisdom or tips for beginners? Let us know in the comments.
Also read: Facebook, Instagram & YouTube are Planning to Integrate NFTs Into Their Platforms
