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Beginner’s Guide: How To Buy Bitcoin in Malaysia

Believe it or not, Bitcoin was trading at $0.10 but today it has grown so much. As of today, when I’m writing how to buy Bitcoin in Malaysia, 1 Bitcoin is equal to RM65538.41. I know it’s crazy and it’s predicted to soar to $20.000, Bloomberg reported.

In Malaysia, we are seeing increasing numbers of people investing in Bitcoin and other cryptocurrencies. To most of the investors, Bitcoin plays an important role in online trading in the future. And if you still new to this, then you should keep reading.

how to buy bitcoin in Malaysia guide

As of writing this blog, 1 Bitcoin equals to 65538.41 Malaysian Ringgit. Source: Google Finance

Step by Step Guide: Buy Bitcoin in Malaysia

how to invest bitcoin in Malaysia
Bitcoin 101: How To Buy Bitcoin in Malaysia 2017

It’s likely that over the past couple of months you have heard about cryptocurrencies or more specifically Bitcoin. Everyone would like to own Bitcoin right now. If you plan to invest or buy Bitcoin in Malaysia, then you have come to the right place on the internet.

Without further ado, let’s dive into the guide!

What is Bitcoin

what is bitcoin Malaysia
Photo by: The Sun

First of all, you have to make sure you know what’s Bitcoin.

Bitcoin is the first decentralized digital currency, created and held online. It’s the first example of a growing category of money known as the cryptocurrency. Who can control it? The answer is no one. That’s the beauty of it. Unlike printed note like MYR, USD, SGD and others currencies.

bitcoin decentralized
Source: iqoption

In fact, one of the most notable attributes of Bitcoin is its decentralization as compared to conventional money.

Decentralised = Environment where power and functions are distributed away from a central authority. And, there is no government or banks are getting involved in transaction that means lower fees and no fear of blocking the account.

In short, it is a peer-to-peer virtual currency without any flat currency counterpart.

Watch this video to know more about Bitcoin:

Who Is The Founder of Bitcoin

who is satoshi nakamoto

This creator of Bitcoin is known as Satoshi Nakamoto.

No one knows exactly where is he (or she) now, but we will never forget the fact that Satoshi Nakamoto is the inventor of the blockchain. Nakamoto implemented the bitcoin software as open source code and released it in January 2009.

Top 3 Characteristics of Bitcoin

 

Here are 3 distinct characteristics of Bitcoin which make it so unique currency to explore about.

  • Transparent
  • Decentralised
  • Non-repudiable

Transparent

The biggest advantage presented by Bitcoin technology — comes in the form of creating a completely transparent trading system.

Decentralised

Bitcoin has no central control: no central repository of information, no central management, and, crucially, no central point of failure.

Non-repudiable

Bitcoin ensures the reception of a payment, meaning that whoever you’re trading with can’t scam you by claiming that they never got the money.

Recommended: Watch the video of Udemy to know more about the characteristics of Bitcoin.

What is a Bitcoin Address?

bitcoin address

A bitcoin address is something similar to your bank account number. It’s a unique 26-35 digit combination of letters and numbers and it’s used to receive Bitcoin from others. Also, people also can send Bitcoin to you from your Bitcoin wallet by scanning your unique QR code.

Bitcoin Malaysia

Question: Is Bitcoin legal in Malaysia?

The current status of Bitcoin in Malaysia is still unregulated. The Bank Negara Malaysia’s regulations over the cryptocurrencies have yet to be announced. Anyway, The Bank Negara to announce if Cryptocurrency to be banned by 31 Dec 2017 as reported by TheStar.

So, please take this into consideration before investing in Bitcoin or any other digital token before the official announcement from the Bank Negara.

How To Own a Bitcoin in Malaysia

bitcoin malaysia blog

Okay, now you have a better idea of Bitcoin. It’s time for us to explore more on where can we get Bitcoin in our home country. There are basically two ways where you can own Bitcoin, one is by mining and the second one is by buying them.

Mining Bitcoin in Malaysia

What is Bitcoin Mining?

As mentioned above, Bitcoin doesn’t have a central government. With that being said, we rely on miner to use special software to solve math problems and are issued a certain number of bitcoins in exchange.

Thus, if you want to earn some bitcoin we have a proposal for you. You can mine them by connecting your computer to a network, running it 24/7 and dedicating computing technology to the solving of complex mathematical problems.

To get started, you’ll need a good mining hardware or get cloud mining services. Then, you’d definitely need a mining software too. In our opinion, mining Bitcoin yourself isn’t easy and the ROI takes time. So, try it if you really enjoy it, or else we think you should just skip mining Bitcoin.

As you may already know, you can own Bitcoin by buying it. Let’s explore and see how we can buy Bitcoin today.

How To Buy Bitcoin in Malaysia

bitcoin malaysia

Where do I buy bitcoins online? Fret not, here are the guides on how Malaysia can buy Bitcoin.

  • Firstly, get yourself a Bitcoin Wallet
  • Then, buy and trade Bitcoin through exchanges

Why do you need a Bitcoin Wallet?

The reason is pretty simple. Without a wallet, you can’t receive, store, or spend bitcoins.

You need a medium to store them before you can even buy Bitcoins. The cryptocurrency communities named this medium as wallets. Please bear in mind that there’s no “one size fits all” Bitcoin wallet. Wallets come on different platforms with different features.

Bitcoin Wallets in Malaysia

With so many options available, let’s check out what are the reputable wallets we have in the Malaysia’s market.

  • Luno – Luno makes it safe and easy to buy, store and learn about digital currencies like Bitcoin in Malaysia. Buy Bitcoin or Ethereum with MYR via Interbank GIRO / IBFT.
  • LocalBitcoins – It is a person-to-person bitcoin trading site.
  • Remitano – Buying BTC with MYR (bank transfer to sellers).
  • Coinhako – Buy and Sell Bitcoin Instantly With MYR
  • Cex.io – Buy with debit or credit cards

1. Luno Malaysia

luno bitcoin wallet malaysia
Luno Bitcoin Malaysia

The Bitcoin Wallet which is widely used by Malaysian traders in Malaysia. Luno is a Bitcoin pioneer and have been around since 2013. To date, they have successfully processed more than a billion dollars in transactions and have happy customers in over 40 countries.

According to TheSunDaily, Luno has over 100,000 verified customers in Malaysia.

luno malaysia bitcoin
Luno – one of the safest ways to buy Bitcoin online in Malaysia.

The company makes it safe and easy to buy, store and learn about digital currencies like Bitcoin in Malaysia. If you wish to trade Bitcoin online, look no further!

Luno Bitcoin Review:

luno bitcoin review
Source: buybitcoinworldwide

Go to Luno Bitcoin today! Sign up and buy or sell MYR 250.00 or more (exchange excluded), and you will receive MYR 5.00 worth of Bitcoin.

2. LocalBitcoins

localbitcoins malaysia

Another online Bitcoin trading site in Malaysia is LocalBitcoins. It’s a marketplace where buyers and sellers meet online or offline to trade Bitcoins.

You can also get Bitcoin quote almost instantly. See the screenshots below on to how to buy Bitcoins online at LocalBitcoins platform.

Step-by-step Guide: LocalBitcoins as Example

Step 1:

Register an account at LocalBitcoins. You will get a digital wallet and ready to buy or trade Bitcoins.

Step 2:

how to buy bitcoin in Malaysia on LocalBitcoins

Once you registered successfully, just key in the number of Bitcoins you want to buy in Ringgit Malaysia (MYR) and click search. In fact, the list will be automatically listed all of the Malaysia trades if you’re in Malaysia.

Step 3:

buy bitcoin online in Malaysia
Buy bitcoin online in Malaysia on LocalBitcoins.

TraderID (Reputation Score & Amount of Trades) ^ Response rate.

From the list of advertisements, choose one from a trader with a good reputation score and a high amount of trades.

Response time guide:

  • Green ( within 5 mins)
  • Yellow ( within 30 mins)
  • Grey ( more than 30 mins)

Then, you can click the ‘Buy’ button to see more information about the trade.

Step 4:

local bitcoins Malaysia guide

 

You’ll be seeing more information after clicking “Buy” button. For example, the confirmed price of BTC, payment method (Bank transfer Malaysia), user’s ID, trade limits, location and payment window. In addition, it also included the trading terms of the Bitcoin seller.

Tips: Read through all of the terms carefully before submitting the trade request. If you don’t agree or understand, please seek for supports from LocalBitcoins.

Remember: Beware of fraudsters! Check the profile feedback, and take extra caution with recently created accounts.

Step 5: 

One step closer to own your first Bitcoin!

Once the payment is made, click the “I have paid” button. Your Bitcoins will be available once the seller verified your payment. And it will be available in your wallet after the verification.

LocalBitcoins Review:

 

Local Bitcoins Review
Source: buybitcoinworldwide

Trade Bitcoin at LocalBitcoins today.

3. Remitano

remitano malaysia
Buy and sell Bitcoins at Remitano.

Remitano provides escrowed peer to peer Bitcoin marketplace where people buy and sell Bitcoin easily and safely. They also offer simple user interface, lower transaction fees, and 24/7 customer service and support.

Currently, it operates in many countries including United States, Australia, Malaysia, Nigeria, Vietnam, Cambodia, China and is growing every day.

Trade at Remitano today. You can also get FREE Bitcoin if you send your friends referral links. Instantly earn 140.00 USD for every one of your friends who joins Remitano.

4. Coinhaku

A Bitcoin wallet service for consumers to buy, sell and secure their Bitcoins. It’s the first Asia Bitcoin startup which aims to make Bitcoin trading accessible in Asia. And today, they are operating their services in Malaysia.

coinhako review

5. Cex.io

CEX.io is a place for everyone who wishes to simply buy and sell Bitcoins. Simply create an account and deposit funds based on your local currency. As for our case, we choose Ringgit Malaysia (MYR) to trade.

Bitcoins then can be kept on your balance in a safe cryptocurrency cold storage, traded, or withdrawn to personal wallets at any moment.

As mentioned, you can purchase BTC with the credit card or bank transfer.

If you wish to trade at CEX.io, visit their official website now.

How Do I Protect My Bitcoin Wallet

tips to protect bitcoin wallet
Photo by: HOTLITTLEPOTATO

Assuming you own a virtual wallet now, protecting it like your baby is a must! Here are 10 tips for you to securing your wallet. Remember: keeping it safe and secure is your number 1 priority!

  1. Active two-factor authentication
  2. Separate your funds – use cold storage
  3. Use escrow service
  4. Beware of phishing website and email
  5. Double check the address
  6. Check the locks – make sure it is “https”
  7. Do not use free WiFi to trade
  8. Backup your wallet – stored in a safe place

How To Receive Bitcoin

bitcoin address

If you want someone to send you bitcoin, you can use your wallet’s request function, or just give the sender your wallet address. Even though the address looks like a 26-32 alien password, it doesn’t have to be secret. You can also display it publicly and ask for donation or payments.

Once the unique address has received funds, a new address will be displayed the next time you click “Request”.

5 Things To Consider Before Buying Bitcoins

bitcoin malaysia blog

Question: Should I invest in Bitcoin?

Well, you may see a lot of peoples became rich by buying Bitcoin in early years. One of the very good examples is Winklevoss twins became first Bitcoin Billionaire after investing $11m just four years ago.

But there are some of the very important cautions you need to consider before putting your money on it. And here are 5 points for your references.

1. Bitcoin is Volatile

The unpredictability of Bitcoin’s value makes it an extremely risky investment.

2. Research Before You Invest

Another golden rule everyone should know is don’t put money into something you don’t understand. Make sure to follow news about the blockchain, cryptocurrencies and Bitcoin before buying one.

3. Beware of Scammers

In Malaysia, scammers are riding on bitcoins popularity to cheat investors like what had happened in the foreign-exchange and gold investments. Kindly beware of the existence of promise fixed returns. Keep in mind that there’s no free lunch in this world.

4. Research Where Bitcoin is Accepted

Because most importantly is Bitcoin is widely accepted right? Do some research on what are the e-commerce websites started to accept Bitcoin in the payment transaction.

we accept Bitcoin

We Accept Bitcoin” is often used by online merchants to notify shoppers they recognize Bitcoin as payment.

5. Digital Currencies Isn’t Legal in Malaysia Just Yet

is bitcoin legal in Malaysia?

We are still waiting for official announcement from Bank Negara whether or not Digital currencies are allowed in Malaysia. According to news, Bank Negara will regulate digital token if it’s approved and it’s expected to announce by end of this year.

Is Bitcoin Halal?

This is especially for our Islamic friends in Malaysia. Based on Matthew J. Martin, Blossom Finance, a Fintech startup based in Indonesia, “Bitcoin is Halal as a payment network.”

As a payment network, Bitcoin is halal. In fact, Bitcoin goes beyond what more conventional closed banking networks offer. Unlike conventional bank networks which use private ledgers where there’s no guarantee that the originator actually owns the underlying assets, Bitcoin guarantees with mathematical certainty that the originator of the transfer owns the underlying assets. Conventional banks operate using the principle of fractional reserve, which is prohibited in Islam.”

If you’re interested to study more about it, please read a published articles by Congecko.

Final Thoughts

It’s important to understand how Bitcoin works before investing any money. To date, Bitcoin is still unregulated in Malaysia and it’s very uncertain to invest for now. Our bits of advice to you take some time to understand Bitcoin, how it works, how to secure bitcoins, and measure it at your own risk.

Lastly, if you enjoy reading today’s guide on How To Buy Bitcoin in Malaysia, make sure you share it and follow our blogs! We will constantly provide great contents about the Blockchain, Bitcoin and cryptocurrencies in Malaysia.

P/s: We included some referral links on our blogs. We’ll earn some commision if you do any transaction from the links, that’s how we feed our tummy and maintain the website. 🙂

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