Bitcoin and Ethereum are cryptocurrencies that you can exchange for goods and services. These types of transactions are secure because of the small print that they are recorded on a public ledger. This makes it unhidden from the public, however the identities of the vendor and recipient still remain anonymous.
The character of Bitcoin and other cryptocurrencies is that of the decentralized element. to shop for Bitcoin is to record all transactions across the planet and to be stored on the blockchain, which may be a public ledger that’s found on all of the computers within the network. All ledgers are synchronized with no master ledger.
Mining is known as the verification and updating process for all Bitcoin transactions. They are independent with random miners being selected randomly across the planet to verify transactions over a given period of time. Once completed, the data of the transaction is incorporated into a block which is linked to a block chain and miners will then receive a bit of Bitcoin as a gift for the verification process.
Four Must-knows Before You Buy Bitcoin
- It is volatile – Looking at the prices of cryptocurrencies such as Bitcoin and you will realize that its value is capable of rising and falling sharply in a short space of time. Not only are cryptos volatile, they are also a very new asset class making them highly unpredictable so only invest amounts you are willing to lose
- Security is of maximum important – Understanding the difference between your public and private key when you are holding or storing Bitcoin is important to secure your BTC
- Bitcoin transactions are not cancellable or refundable – Once a transaction is submitted into the BTC network, it can not be cancelled so double check your details before making your transaction
- Bitcoin is not 100% anonymous. Your public address and details of transactions are visible to everyone, so if anonymous transactions are important to you, make sure to double check the receiving address before sending a Bitcoin payment.
Types of Cryptocurrency Exchange
There are mainly three types of cryptocurrency exchanges that you can choose from, which are Bitcoin Brokers, cryptocurrency trading platforms and Peer-To-Peer (P2P) exchanges. More details on buying Bitcoin in Malaysia using different types of cryptocurrency exchange as below.
Brokers allow users to purchase Bitcoin using fiat currency like USD or MYR. These brokers offer beginner friendly platforms by using familiar payment methods like bank transfer, mastercard or open-end credit. One main downside of brokers is that their fees would be above other options to buy bitcoin. E-toro and Binance are two of the simplest cryptocurrency brokers you may go for in Malaysia.
Cryptocurrency trading platforms
Trading platforms are one among the ways to get Bitcoin using other cryptocurrencies. Exchanges like Binance and Kraken tend to supply lower fees than other brokers and supply access to a large sort of Coins. However, this manner of trading isn’t suitable for beginners as you’re required to already own another cryptocurrency to utilise this sort of exchange.
Peer-to-peer (P2P) exchanges
Peer-to-peer exchanges remove the middlemen when buying Bitcoin and permit users to trade directly with each other. A seller will have the liberty to specify the price they need to sell their Bitcoin for and their accepted payment methods very like Shopee or Lazada.
This method also allows trading with increased privacy but you will want to accept a price that’s above the market charge per unit. LocalBitcoins and Paxful are great samples of peer-to-peer exchanges.
Buying Bitcoin in Malaysia
After you’ve got selected your chosen platform, you’ll then just need to submit an order for your chosen coin. For novices, the foremost convenient way is to truly use Bitcoin brokers first. The advantage of easy to use methods will certainly outweigh the upper fees from a Bitcoin broker.
Whichever platform you’ve got chosen to urge started with, an account is required to be registered with the exchange first. There’s a level of regulatory requirements that you just are subject to reckoning on the exchange. Levels of personal information required would come with your full name, contact information and proof of ID before being allowed to trade.
After verifying your account, you’ll start by selecting what quantity BTC you wish to shop for and also the thanks to buy Bitcoin either using positive identification or mastercard,etc and review the fees and total cost of the transaction before finalising your purchase of bitcoins.
Exact steps would depend upon the payment method and sort of platform you so follow below for a way to get Bitcoin.
How to Choose the Proper Bitcoin Exchange to Shop for BTC in Malaysia
With so many platforms to decide, selecting the most effective cryptocurrency exchanges for bitcoin that suits your needs would be rather challenging to shop for BTC in Malaysia. you ought to take into consideration the below factors when comparing exchanges in Malaysia
- Location of crypto exchange and regulations: You should check out where the crypto exchange as different regulations would apply on different cryptocurrency exchanges out there. This will affect you on how much personal information you are required to provide to the platform for verification purposes.
- Security: You should also check on the type of security features that the exchange is employing to protect your information and assets. Most crypto exchanges that you can use to buy bitcoin in Malaysia usually have some sort of SSL website encryption or PGP encrypted emails, 2-Factor authentication, insurance on invested assets and using a cold wallet storage.
- Fees: Some exchanges offer more competitive prices for their fees that are charged while others would charge no fees but they collect commissions on their rates for cryptos. Some exchanges with higher fees however do mean that they provide a faster and premium service so it is up to you to select which crypto exchange is more suitable for you.
- Transaction Limits: Cryptocurrency exchanges would sometimes impose a limit to how much you can deposit or withdraw BTC from your account and varies on how verified your account is or how much volume you are trading. Does the exchange have restrictions in place to limit how much you can withdraw from your account or within a 24-hour period?
- Supported digital currencies: Another important factor is to check out what cryptos are supported on the exchange as you would want to know if the cryptos you are looking for are available.
- Customer support: This is important as you will be able to quickly get in touch with the exchange’s representatives if you ever face a problem with a transaction. Check what contact methods are available by prioritising a telephone call or online chat which should be the fastest ways to contact for support
- Reputation: Research the exchange’s name or Bitcoin forums to find out what other user’s experiences are on this platform.
How am I Able to Purchase My Bitcoin?
In Malaysia, there are many alternative ways you’ll be able to purchase Bitcoin with each having its own pros and cons.
Buy Bitcoin with Cash
If you’d opt to use cash to get Bitcoin, you can look for a peer-to-peer exchange to find a seller who accepts cash to buy bitcoins. You can also choose options such as purchasing and selling Bitcoin by loading a prepaid card with cash and subsequently use it to get Bitcoin on a platform which accepts prepaid cards, like Bitit does.
Buy Bitcoin with Bitcoin ATM
A Bitcoin ATM could even be utilized by depositing cash into the ATM which may then be converted into Bitcoin. Sadly, in Malaysia, there’s currently only 5 Bitcoin ATMS within the whole country, one in Negeri Sembilan, Langkawi, Ipoh, Klang and Petaling Jaya so no luck for those of you living in East Malaysia.
Lastly you’ll be able to select an exchange that enables depositing funds into your account by way of wire bank transfer like Western Union or MoneyGram and buy Bitcoin using cash.
Buy Bitcoin with a mastercard or revolving credit
Many cryptocurrency exchange options in Malaysia that allow purchasing Bitcoin employing a mastercard or open-end credit. These varieties of platforms like Coinbase and Coinmama allow you to create quick, easy to use and convenient purchases.
Credit card or revolving credit transactions however would tend to possess higher fees after you buy digital currency and a few banks don’t even allow customers from buying crypto with plastic. Credit cards are more widely used than debit cards but some platforms still allow you to get digital currency with debit cards.
Buy Bitcoin with Paypal
If you like to buy Bitcoin using Paypal, you’re in luck because it is certainly the way to buy cryptocurrency, however you need to know that not lots of platforms accept Paypal.
The biggest advantage of shopping for Bitcoin with Paypal is that it’s easy to use. However you’ll must shop around for the proper platform as although some exchanges would accept Paypal, they may not accept MYR so you wish to remember the fees that apply. VirWox and Paxful are two of the platforms which accept PayPal.
Buy Bitcoin together with your checking account
In Malaysia, in a different way to get Bitcoin are to decide on a platform that accepts bank transfer deposits like Coinbase, Coinhako and Luno.
Depositing funds employing a checking account doesn’t attract any fees but it does take a touch of your time until the funds are cleared into your exchange account.
Things to think about before making a checking account transfer is to require under consideration any transaction limits which may apply. Take note of any fees that are charged by the cryptocurrency exchange or broker and also how long it’ll hold funds to arrive.
Buy Bitcoin with another crypto
If you would like to trade another crypto for Bitcoin, you’d have to find something called trading pairs denominated as BTC/ETH or BTC/DASH. What this suggests is that you simply can either trade ethereum for Bitcoin (BTC/ETH) or Dash for Bitcoin (BTC/DASH) Bitcoin is listed on an enormous range of trading pairs on many crypto exchanges so this could not be hard to seek out.
You will however have to explore for exchanges that provide the trading pair you’re trying to find.
Buy Bitcoin anonymously
If you’re looking to get Bitcoin anonymously in Malaysia, most exchanges would require you to verify your identity first so you may be limiting your choices during this regard. However there are some ways to buy and sell Bitcoin anonymously.
Peer-to-peer platforms like LocalBitcoins will allow you to trade directly with a Bitcoin seller under an anonymous alias or employ a Bitcoin ATM to anonymously deposit cash and have it converted to BTC and subsequently transfer it to your Bitcoin Wallet.
Another way is to get Bitcoin with a prepaid mastercard or cash via a platform that doesn’t require plenty of ID- but as mentioned previously it can be hard to search out such platforms. Finally you’ll trade Altcoins for Bitcoin on an exchange that doesn’t require proof of ID.
Purchasing from a Malaysia Exchange
Many options are available once you are choosing to get Bitcoin, either using overseas exchanges or crypto exchanges locally in Malaysia. There are both pros and cons after you are buying from a Malaysian Bitcoin exchange as shown below.
- Bank Negara Malaysia (BNM) regulated Malaysian exchanges that are registered and must go with regulations and reporting obligations
- You are able to trade for Bitcoin using MYR
- Malaysian-based exchanges would support local payment ways like bank transfer and mastercard transactions
- Local customer support is simpler to access and wouldn’t must take into consideration any geographical zone differences
- You will be under consumer protection if your funds go missing because of theft or hacks.
- Due to the regulations set for such local exchanges, you may get reduced anonymity thanks to the quantity of personal details and proof of ID that you just must provide to urge yourself verification.
- The registration process is longer (some up to some days) than exchanges that don’t require ID verification
- Some international platforms like Binance and Coinmama based overseas would offer far better liquidity thanks to their trading volumes.
Other Ways to Shop for Bitcoin
Other than using crypto trading platforms there’s actually in a different way to induce crypto in Malaysia without actually buying it. First off, you’re ready to charge Bitcoin for goods and services. an invitation of payment in Bitcoin rather than MYR is truly very valid, although this is able to be hard to induce a buyer to really do so. Second way – which is truly not recommended during these times – is for mining Bitcoin.
The drawbacks of this option is that Mining utilizes a large amount of resources and time required for Bitcoin Mining to really be profitable. A final thanks to get Bitcoin is to earn free Bitcoin through one or two but time-consuming ways through online games and Bitcoin faucets. These usually include watching ads and playing puzzle games and getting rewarded with Bitcoin.
Using OTC to purchase Bitcoin
If you’re an experienced trader looking to trade an outsized volume of cryptocurrencies, for instance MYR150,000 or more you will want to reconsider performing this transaction through a standard exchange.
This is often because not only will you be exposed to slippage, which substantially increases the value of your trade, but you may even be subject to risks of hacking and theft related to traditional cryptocurrency exchanges.
To resolve this issue and mitigate such risks, Over-The-Counter (OTC) brokers could potentially offer better prices with increased transaction limits and a faster interval for large-volume traders.
Frequently Asked Questions (FAQ)
Q: Can I Buy an amount less than 1 Bitcoin?
Yes. Every single BTC is divisible to 0.00000001 BTC, so it is possible to buy a small fraction of a coin with its value apportioned appropriately.
Q: Can I store my Bitcoin on an exchange?
While some exchanges do offer storage services for your cryptocurrencies, it is generally not recommended as they are a popular target for hackers and you lose control of your private keys. As such, the recommended way to store your coins are on a secure, private wallet – which some exchanges offer as well.
Q: What is the fastest way to purchase BTC?
The quickest most efficient way to buy BTC is probably through a Bitcoin ATM. If there is a Bitcoin ATM nearby, you just need to deposit cash and have it converted to BTC. IF not Bitcoin ATM is available, using a service that does not require any ID verification would be the next fastest option.
Q: What determines the price of BTC?
Bitcoin’s price is determined by supply and demand of traditional economics. There is a limited supply of BTC in the market and new coins are generated at a predictable rate but several factors do exist to influence demand like ease of use, acceptance of businesses to accept Bitcoin, regulations, increased regulation and market competition.
With over 10 years of experience working as a financial analyst, Eric is highly aware of the potential of cryptocurrency, particularly Bitcoin, and the impact it will bring towards the global economy. He is committed to share everything he knows about crypto here at Crypto Digest News.