Cryptocurrency Trading Malaysia

Trading Online with Bitcoin in Malaysia

Online retailers are the most common type of parties who are ready to accept digital currencies. Meanwhile, brick and mortar retailers too are beginning to see Bitcoin as a good way of accepting transactions. However, in a recent report, the F & B industry too is taking notice.

Among them are foot stalls who have since advertised that bitcoin is accepted. In major cities like the Klang Valley, there are now food stalls stating they accept Bitcoin and Etherum, collectively 2 of the largest cryptocurrencies globally. Some food stalls in smaller cities are accepting them as well although they are more prone to accepting only bitcoin.

Still in infancy stages

Although merchants have started accepting cryptocurrencies, this is still a very new market. A lot of merchants are gearing up for what will happen once cryptocurrencies become mainstream and those who have started the ball rolling will surely benefit from it.

Besides that, there has been a few training centre that has sprung up in recent months that offer people who like to know more about how cryptocurrency works, the trading mechanism and other related issues. One of the exchanges operating has recorded a million wallets ever since. To put that into context, around 1000 bitcoins were traded in a single day which amounts to about RM50 million while the value between RM2 and RM3 billion is being traded in Bursa Malaysia daily.

What about volatility?

The risks and liabilities have all been mentioned numerous times. Whatever the situation, there are many other concerns especially amongst Malaysia’s investors. Among them:

    1. Price – Perhaps the biggest concern with cryptocurrency is the fact that its prices have been surging and fluctuating uncontrollably.
    2. Options – there are literally thousands of different cryptocurrencies in the world today and they are all readily available online. While Bitcoin and Etheruem is currently the top 2 currencies, users can buy from any which means the risk of losing is obviously higher
    3. ICOs – known as initial coin offerings, they are mushrooming because it is easy and there are now even local ones too
    4. Knowledge – Malaysians need to be well educated about how this works. It is not about bitcoin or Dash but it is the blockchain technology which should take center stage.

Top things you must know about Bitcoin

One thing for sure, no one is able to grasp everything there is to know about Bitcoin. In fact, even the most sound investors or the most tech-savvy ones would need time before they get the hang of it. The basic idea is that it is a digital currency and is among the 800+ out there. Bitcoin is the oldest cryptocurrency in the market which has been around for slightly less than a decade.
Here are the top things you should know about Bitcoin before considering jumping into this market.

      1. How it started – Bitcoin started in 2008 by Satoshi Nakamoto. The date of its birth was actually 3rd January. Nakamoto published a proof of concept that was published but he just vanished in 2010 which was then picked up by other developers. It must be stated that the true creator of Bitcoin is still unknown as Nakamoto has denied it all this while. Some names have surfaced but nothing is confirmed
      2. You can use Bitcoins for spending – the first bitcoin transaction took place in May 2010 which was to buy pizza. Since then, it has been used for all types of transactions that include paying for air tickets and hotel stays. The first pizza was purchased for 10,000 bitcoins which was at a very low value then. In November 2017, 10,000 bitcoins is equivalent to almost USD100 million.
      3. Illegal trading using Bitcoin – the US FBI shut down a darknet site Silk Road in 2014 where bitcoins were used to buy and trade drugs. Then, the US government took over all the wallets that contained about 150,000 bitcoins. That was a moment when the US government became the largest bitcoin holder before selling them off to bidders.
      4. Risk from hackers – Bitcoin is not entirely safe from hackers. Like any financial engine and the fact that it operates fully online, it is open to threats. The biggest setback came in 2014 when about USD$460 million of bitcoin currency was hacked and stolen from Mt Gox.
      5. What the billionaire investors think? – so far, Bitcoins have a bit of both. Warren Buffet has warned against investing into Bitcoin. Others have supported it. The main challenge is spending your money in something virtual (online). But that was what happened when E-Commerce first came in.
      6. Bitcoin Billionaires – There has been some really remarkable successful investors which include the Winklevoss twins (Cameron and Tyler). In 2013, they bought USD11 million worth of Bitcoin. They were later declared the first Bitcoin billionaires when the value hit USD11,000. This has even attracted celebrities like Gwyneth Paltrow and Ashton Kutcher, to name a few
      7. Financial institutions taking notice – although Bitcoin is not regulated by any agency, it has attracted a lot of interest from large financial institutions. Among them is Fidelity Investments while many others have become more receptive although rejected it initially.
      8. What is going on now? – as at the end of 2017, the value of Bitcoin is USD18,000 per unit. About 16.7 million Bitcoins are circulated around which is about a market capitalization of around USD300,600 billion. To put that into context, it is higher than top firms like IBM and Disney. The price slump to $10k and hovering around 8k and waiting for next moment to surge again.

Best strategy for Bitcoin investment

Bitcoin is a market not for the faint-hearted. Like any other volatile markets, investing in Bitcoin has its risks which means you can easily profit or lose. Hence, you need to take precautionary steps before jumping in. Better still, you should know what strategy before entering the market and stick to it!

What you get in investing into cryptocurrencies?

Why you should invest in Bitcoin? There are almost 900 different ones, which one should you take and when would be a good time? We will try to give you the answers to these bugging questions.

How big is Crytocurrency?

One thing for sure, those who are for cryptocurrencies believe that it is the future of investment and that it is definitely here to stay. After all, since Bitcoin enter the scene, it has made inroad across the world. There will not be so much talk, particularly from the finance fraternity if it has not created any waves. Some has strongly claimed that Bitcoin and digital currency is a bubble and would be ready to burst anytime.

What it means to have Bitcoin?

Owning any form of Bitcoin means you become part of the worldwide community to have some form of share in this currency. Never before has there been any currency in the history of the world to be this huge. To put that into context:

      1. Bitcoin will be the single biggest currency if it ever gets there
      2. The value of a single Bitcoin could breach the USD10,000 mark if it is dominant

How do you actually invest into Bitcoin?

The numbers never lie, the value of Bitcoin has increased by more than 25,000% since it came into the market back in 2011. Meanwhile, its alternative (and another major currency), Ethereum has increased by nearly 3,000% since 2016. As a whole, the market capitalization has already breached 10,000% in the last few years. With such an amazing performance, it is no wonder analysts are fast concluding that it is a bubbling and is heading to destruction.

Have you missed the ship?

The usual question is that since Bitcoin has already peaked, wouldn’t you have missed the chance to invest? The answer is No! because it is like investing in any other financial market. If you had known this 5 years ago, you wouldn’t have been reading this now. Before going further, know this, investing in cryptocurrencies is very high-risk.

Rule No:1 – Don’t overinvest

This is the best advice any analyst will tell you. NEVER overinvest. You need to be able to invest and go about your normal life. This means that you must be ready to lose all your investment (should it come to that!) in Bitcoin and still have enough to live by. This is one of the most important rules of investment whether it is in stocks, Forex, or any other platforms.

What is your plan?

This can be quite easy because you need a starting point.

    1. Build your portfolio: Note that Bitcoin is not the only currency around. In the past, (before 2017), Bitcoin was the only one. Today, we have what is known as Altcoins and there you have more choices. Take them as penny stocks but you need to build a portfolio around it. Bitcoin is still the standard but it NOT the only one.
    2. Filter the good and the bad ones – Do your homework. There is no way you can make any money without any research. Look for those with very transparent vision and where the development team is constantly heard. Determining which Altcoin to invest in means you must be sure that you have access to these information as and when you need to. Transparency is key!
    3. Find reliable Exchanges – You can very much find the exchanges everywhere. Buying Bitcoin is quite easy but finding a reliable one might be challenging because you’d never know when they disappear after a while. It’s best not to keep your crypto in exchanges.
    4. Good time to buy? – This is the golden question most people will ask. Generally, there is no best time. What we have observed is to buy when the price is stable and mostly after an extreme surge follows by a nose dive and stabilised for a few months, Definitely not when it’s at its peak or when its crashing. The crashing can be prolonged to 3 to 6 months. US and Australia taxation year end month which is May to June will have a big impact and not a good time to buy for short term investment, as most buyers will sell off earlier to avoid tax.
    5. Not like other markets – one thing for sure, if this is a bubble, it is not the same as the other previous ones. So don’t make such comparison to decide. Take time to invest, don’t act hastily. If it jumps 500%, chances are it might happen again.

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