Malaysia has a strong and dynamic community of Bitcoin miners. Although it pales in comparison with China, blockchain technology is growing vastly in Malaysia nonetheless.
Malaysia has a lot of potentials when it comes to the money markets. This is because the country has a large pool of well-educated investors who carry out sound and reliable research before putting their money into the market. This is evident in the blockchain technology sector where the internet has provided a great platform for cryptocurrencies to be traded. Malaysians have since joined the bandwagon and many have already profited. There is always the downside of any investment platform where many have been burnt as well.
Learn the trading rules
In Malaysia and in fact, any other markets, if you want to trade, you must know the rules. Knowing how the market works is crucial because it determines if you make or lose money but the rules will ensure that you do not take any wrong step or the consequences will be very damaging. So, before starting out in the blockchain sector, you need to get involved in a lot of reading and then find a digital exchange that you are confident of. After that, look for a cryptocurrency wallet where you can use to access anywhere and anytime. Security is imperative here, so tread very carefully.
Cryptocurrencies in Malaysia
The financial sector in Malaysia is regulated by Bank Negara Malaysia (BNM). This means that unless it is approved and controlled by the central bank, financial markets cannot operate in the country. However, the Bitcoin and Ethereum markets is a non-regulated and boundaryless sector because, like other cryptocurrencies and digital exchanges, they exist on the internet. As such, it is not possible to fully regulate them.
As such, BNM has put in place certain guidelines while providing a list of registered digital exchanges for reference by the public. Take note that despite offering the list, BNM does not condone to the operations and services offered by the exchanges and Malaysia has yet to recognize cryptocurrencies as legal tender.
Where and how do you trade cryptocurrencies in Malaysia
Determining the digital exchange is your first step. Once you have identified its legitimacy, then, you can start looking for ways to start trading. You need to have an account with the digital exchange to do this. Many banks in Malaysia allows you to have an account that can be used to buy Bitcoin. This includes:
- Hong Leong Bank
- CIMB Bank
- RHB Bank
The process is quite simple. First is the registration step where you will need to use your email address as your unique identifier. After that, a Two-Factor Authentication or 2FA will be required. This is, after all the most popular and secure method used for registration at the moment. After that, your cryptocurrency account is almost ready. Confirm your hash address which is known and unique for you and then, you can move your funds around.
Reliable exchanges in Malaysia
As mentioned, there are digital exchanges that are registered with Bank Negara Malaysia. Although they are not endorsed by BNM, they are considered to be more reliable than those that are in the unauthorized exchanges list. Among the exchanges in this list are:
- ADD Token
Bitcoin Mining in Malaysia
In most cases, the easiest way to get your hands on Bitcoin is to buy them from known and reputable exchanges like Luno and Belfrics. It is very simple as all you need is to have money in your bank, get to the right exchange for the right price and you can buy them. However, another popular method is to mine your own bitcoin. You will need to put in some investment into this because it requires you to buy some machines and a lot of patience. Basically, you need to have some very powerful computers which means you will need a space to house them. From there, you will need to pay for utility bills as they need to run on electricity.
Take note that mining your own Bitcoin or Ethereum might sound easy but it requires you to have a lot of patience as it takes time. Another downside to this is that you will be competing with a very large miner community from China as they have the largest groups. Most other types of cryptocurrencies can be mined but you should just stay focused on the popular ones which are BTC and ETH.
Malaysia Cryptocurrency Issues
While this might be an interesting and exciting market to enter into, there are many issues that must be considered before you venture fully. Among them include:
- As profitable as many might tell you, the cryptocurrency market is very risky. In fact, it is one of the most volatile ones around
- Be careful of scams. There is never any short-cut to profits
- Bursa Malaysia is not involved in any digital exchanges
- Bitcoin and Ethereum are the largest and most popular names in the cryptocurrency market. This is the same situation in Malaysia
- Cryptocurrency is a big thing in Malaysia, but it is not legal tender. It won’t be that soon that you can buy coffee with Bitcoin. However, some local stalls have started accepting Bitcoin