How to Buy Bitcoin in Malaysia

What is bitcoin? Bitcoin is the world’s oldest and biggest digital currency by market cap, and is a form of decentralized electronic cash designed to provide a viable alternative to traditional fiat currency. Fiat currency is a form of money that is issued by a government and declared to be legal tender. This type of currency is not linked to any asset of value and can be printed at will by central governments. However, governments must be careful to avoid over-circulation, as this may cause a drop in value. Despite having to deal with a centralized authority like a bank to process the transactions, bitcoin holders can actually transfer their coins directly to one another on a peer-to-peer network.All bitcoin transactions are tracked on a public ledger known as the blockchain.

Are you interested in buying bitcoin but do not know how? Here is a step by step guide in buying bitcoin in Malaysia. First step is choosing a bitcoin wallet before you can actually buy any bitcoin. You need to set up a digital wallet in which you can store your bitcoin safely. In the world of cryptocurrency, these wallets do not really hold any coins but they actually store the private keys that you need to access to your public bitcoin address and sign transactions. There are many types of bitcoin wallet available such as hardware wallets, desktop wallets, mobile wallets, web wallets and paper wallets. In each types of bitcoin wallet, there are also a number of options available. Examples of hardware wallets include TREZOR and Ledger Nano S, which provide offline storage for your private keys. Desktop wallets like Exodus and Electrum enable you to download into your computer and used to store private keys on your hard drive whereas mobile wallets like Coinomi and Jaxx allow you to manage your bitcoin from your devices either Android or iOS. Other than that, web wallets including Blockchain Wallet and GreenAddress provide convenient access to your bitcoin online. Last but not least, paper wallets allow you to print out your bitcoin public and private keys. Then, you will use this piece of paper as your wallet.

After bitcoin wallet selection, you will need to decide how and where to buy your bitcoin. This step can be very complicated and may need you to do more research as there are so many platforms to choose from. To make things slightly easier, do take note that these platforms are actually differentiated into three categories namely the bitcoin brokers, cryptocurrency trading platforms and peer-to-peer (P2P) bitcoin exchanges. One of the quickest and simplest ways to purchase bitcoin is through the bitcoin brokers, which allows you to pay for your digital coins using fiat currency such as MYR or USD. Examples of this cryptocurrency brokers are Luno and Coinhako. It is consider simple because the platform is user friendly that allow familiar payment methods like bank transfer and credit card. However, this platform may charge a higher fees comparing to other platforms. Next is the cryptocurrency trading platforms like Huobi or Binance. This platform allows you to purchase bitcoin by using other cryptocurrencies. In terms of fees, this platform offers lower fees compared to the previous platform. In addition, it provides access to a wider range of coins. However, this platform is not suitable for beginners as you will need to already own another cryptocurrency account in order to use this one. Last but not least is the peer-to-peer (P2P) bitcoin exchange like LocalBitcoins and Paxful. What’s unique is that it cuts out the middleman and therefore, users are able to trade directly with one another. The level of freedom is much higher in this platform as compared to the others whereby you can specify on the price and payment methods as well as increased privacy in trading. One of its downside is that you may have to settle for a price higher than the market exchange rate. 

The final step is of course, buying your bitcoin by submitting an order via the platform that you have selected. As mentioned, the easiest platform is using the bitcoin broker. Thus, it is highly recommended for beginners. Regardless of the types of platform that you chose, you will be required to sign up for an account. Nevertheless, the regulatory requirement or terms and conditions may vary from platform to platform. The level of requirement must be fulfilled before you can start trading. With a registered and verified account, you need to enter the amount of bitcoin that you wish to buy, select your preferred payment method, review the total cost of the transaction and finalize your order. The exact steps will be dependent on the chosen platform.