rtmark

How to Buy Bitcoin in Malaysia – A Beginner’s Guide

Want to learn how to buy Bitcoin in Malaysia? This expert guide covers everything you need to know.
Michael Graw
Author: Michael Graw

Last Updated: June 24, 2020
Cryptocurrencies in Malaysia
Cryptocurrencies in Malaysia

Over the past decade, Bitcoin has gone from a fringe digital token to a mainstream alternative to traditional currency. Bitcoin is now accepted for everything from shopping online to paying for goods and services at many physical stores. Plus, for many cryptocurrency enthusiasts and traders, Bitcoin serves as the base currency for buying and selling thousands of other digital coins. So, are you wondering how to buy Bitcoin in Malaysia?

Whether you want to buy Bitcoin to hold it for the long term or to start trading cryptocurrencies, this guide will cover everything you need to know. We’ll review the top Bitcoin brokers and give you all the information you need in order to buy Bitcoin in Malaysia.

    How to Buy Bitcoin in Malaysia in 3 Quick Steps

    Want to buy Bitcoin right away? Follow these three steps to get started:

    Step 1: Open an Account

    Open a trading account with a broker that allows Bitcoin trading, such as eToro.

    Step 2: Deposit Funds

    Fund your brokerage account using a credit or debit card, bank transfer, or e-wallet.

    Step 3: Buy Bitcoin

    Decide how much money you want to invest, set up the trade, and click ‘Buy’.

    75% of retail investors lose money when trading CFDs with this provider. Crypto assets are highly volatile unregulated investment products.

    Step 1: Choose a Top Bitcoin Broker

    When it comes to learning how to buy Bitcoin in Malaysia, choosing a top provider is essential. There are many brokers and cryptocurrency exchanges out there, so you need to narrow down the options and choose the right platform for you.

    To help you out, we’ve reviewed the top platforms which allow you to buy Bitcoin in Malaysia. They all offer robust and secure trading platforms, so you don’t have to worry about the safety of your funds and personal information.

    1. eToro - Buy Bitcoin with 0% Commission

    Founded in 2007, eToro is recognized as one of the world’s best platforms on which to buy Bitcoin. One unique aspect of eToro’s platform is that it lets you both buy Bitcoin and purchase the actual cryptocurrency, as well as trade contracts for difference (CFDs), both with 0% commission. Trading CFDs means you can go short and speculate on the price going down, and you can also trade with 1:2 leverage, meaning you can double the value of your trade.

    eToro is also well known as a social trading platform that allows you to interact with other users. In addition, it offers copy trading through the CopyTrader tool. This allows you to copy the portfolio of any trader on eToro, which is a great tool for beginners to have.

    This broker also offers a mobile cryptocurrency wallet which you can use to store your Bitcoin. You can get started with a $200 deposit (around 853 ringgit), which you can make via a bank card, bank transfer, PayPal r Neteller.

    eToro is licensed and regulated by various top-tier authorities such as the Financial Conduct Authority (FCA), Australian Securities and Investment Commission (ASIC) and Cyprus Securities Exchange Commission (CySEC), so you can buy Bitcoin in confidence.

    Our Rating

    • Low Fees: 0% commission
    • Social Trading: CopyTrader and CopyPortfolio features
    • eToro Wallet: Safely store your coins
    • Regulated: FCA, ASIC & CySEC licences
    • High CopyPortfolio Minimum: Requires $5,000
    75% of retail investors lose money when trading CFDs with this provider. Crypto assets are highly volatile unregulated investment products.

    2. Plus500 - Bitcoin CFD Broker with Tight Spreads

    Plus500 is a UK-based broker that is a market leader when it comes to CFDs, largely due to its low fees. There’s no commission on trades, and the spreads are some of the most competitive around, meaning you can trade Bitcoin CFDs in an affordable way.

    Even better, this brokerage gives you access to a lot more than just Bitcoin. You can trade any of a dozen top digital coins, as well as invest in a Bitcoin-Ethereum blend that gives you exposure to both currencies, all through Plus500’s excellent proprietary platform.

    Plus500 comes with a variety of tools to help you profit from active Bitcoin trading. The highly regulated platform includes technical charts, an economic calendar, and price alerts. You can get started with a £100 deposit (around 541 ringgit), and you can deposit with a range of methods, including PayPal.

    • Tight Spreads: Pay less to buy and sell Bitcoin
    • Many Currencies: Trade any of 12 top digital coins
    • Price Alerts: Never miss a buying opportunity
    • Only CFDs: Can't buy actual Bitcoin
    80.5% of retail investor accounts lose money when trading with this provider.

    3. IG -Bitcoin Broker with Advanced Trading Tools

    IG is a well-established broker that you can rely on for safe Bitcoin trading. The broker itself is listed on the FTSE 250, and as such is highly regulated. That’s a major plus considering that not every cryptocurrency brokerage has your best interests in mind.

    IG offers trading on Bitcoin as well as seven other top cryptocurrencies through CFDs. You can trade with leverage up to 2:1 for any digital coin. The spread on Bitcoin trades at IG can be a bit high compared to other brokers, but you won’t be hit with a ton of non-trading fees.

    In addition, IG comes with some very advanced trading tools you can use to increase your profits. The broker offers its own charting software with price alerts and trading signals, or you can connect to your trading account with the popular MetaTrader 4 software. This is a great option if you want to set up automated Bitcoin trades or test out new strategies.

    • Highly Regulated: Listed on the FTSE 250
    • Low Fees: No withdrawal and low inactivity fees
    • Advanced Charts: Trading signals plus access to MetaTrader 4
    • Limited Selection: Only eight currencies available for trading
    There is no guarantee you will make money with this provider.

    4. Coinbase: Bitcoin Exchange with Over 10m Users

    Launched in San Francisco in 2012, Coinbase is a cryptocurrency exchange that boasts over 10 million customers worldwide and that has facilitated over $40 billion in crypto transactions.

    As one of the largest crypto exchanges, Coinbase allows users to buy and sell almost all of the most popular cryptocurrencies. Users can purchase Bitcoin and other currencies with fiat currency via credit cards, debit cards and PayPal.

    While Coinbase’s fees can be quite high (1.5%–4%) depending on the transaction method, it is widely considered to be one of the safest and easiest-to-use cryptocurrency exchanges in the world.

    Last, Coinbase offers cryptocurrency wallets via the great Coinbase Wallet mobile app, which allows users to easily manage most of the top cryptocurrencies in a safe and secure environment.

    Our Rating

    • Trusted: Over 10 million users
    • Mobile Wallet App: Securely store your Bitcoin
    • Choice of Payment Methods: Accepts PayPal
    • Fees: Higher than some other platforms
    There is no guarantee you will make money with this provider.

    Step 2: Learn How the Bitcoin Market Works in Malaysia

    Before you can dive headfirst into buying and selling Bitcoin, it’s important to understand how the Bitcoin market works. Here, we’ll cover everything you need to know.

    What is Bitcoin and How Do You Buy It?

    Bitcoin is a digital currency, also known as a cryptocurrencyBitcoin is a digital currency, also known as a cryptocurrency. It is somewhat different from traditional currencies in that it is completely decentralized and not backed by any government. As a result, the value of Bitcoin is not fixed, but rather rises and falls based on supply and demand just like stock shares.

    Bitcoin stands out in the world of cryptocurrencies because it was the first digital coin created using blockchain technology. Today, it remains the most widely traded digital currency and has a market cap of $175 billion.

    By comparison, Ethereum, the second most traded cryptocurrency, has a market cap of just $26 billion. Many less popular cryptocurrencies can only be bought by exchanging Bitcoin and not by using ringgit or dollars.

    There are several ways to buy Bitcoin. Firstly, you can go through a broker that offers traditional trading services. For example, some Malaysia forex brokers also allow you to buy Bitcoin. Note that some brokers let you buy Bitcoin directly, while others only let you get exposure to Bitcoin through CFD trading, where you speculate on the price of Bitcoin without owning the underlying asset.

    Another popular way to buy Bitcoin is through Bitcoin exchanges. Exchanges let you trade traditional currencies or cryptocurrencies for other cryptocurrencies at the current market rate, but often charge steep fees. If you’re buying Bitcoin, you’ll need a Bitcoin wallet to store your coins in. Luckily, many exchanges offer their own Bitcoin wallets.

    Interested in other types of trading? Learn how to buy stocks in Malaysia.

    What Can You Buy with Bitcoin in Malaysia?

    Thanks to Bitcoin’s popularity, it is now accepted as payment for a wide variety of goods and services in Malaysia. You can use Bitcoin to pay for purchases from many online stores, as well as at many physical shops in cities like Kuala Lumpur. Bitcoin is also accepted as payment by many international companies like Microsoft, so you can use it to purchase software or video games.

    Not all businesses advertise that they accept Bitcoin for payment. If you have Bitcoin and want to spend it, be sure to ask whether it is accepted.

    What is the Cheapest Way to Buy Bitcoin in Malaysia?

    The cheapest way to buy Bitcoin in Malaysia is to go through a cryptocurrency broker or a cryptocurrency exchange that offers low fees, such as eToro. Both types of platforms will enable you to exchange ringgit or US dollars for Bitcoin.

    Brokers typically make money off the spread, whereas exchanges often have flat fees. Make sure to check what a broker or exchange will charge before settling on one. If you use a broker, also ensure that it offers digital wallets.

    When is the Best Time to Buy Bitcoin in Malaysia?

    Bitcoin’s price is always fluctuating in response to supply and demand. Ideally, you will buy when the price of Bitcoin is low and sell or use your coins for purchases when the price is high.

    So, what causes the price of Bitcoin to go up or down? Generally, the price of Bitcoin rises when the global market is facing uncertainty. If the stock market is falling or traditional currencies are losing value, traders turn to Bitcoin and other cryptocurrencies as safe-haven assets and push up the price. The cost of Bitcoin tends to fall when times are good.

    There are many other factors that can affect the price of Bitcoin. These include regulatory changes, competition from other cryptocurrencies and events such as hacking.

    What Regulations are in Place for Buying Bitcoin in Malaysia?

    The Malaysian government has taken a friendly view towards cryptocurrencies like Bitcoin. In fact, the Securities Commission of Malaysia recently approved a new cryptocurrency exchange within the country.

    Most of the regulations that exist around Bitcoin in Malaysia are designed to protect investors. For example, there are limits on how much leverage you can use when trading cryptocurrency CFDs. The Securities Commission also must approve any Bitcoin broker or exchange before they can operate within Malaysia.

    Some of the top Bitcoin brokers, such as eToro, are also licensed by a number of respected bodies from across the world, like the UK’s FCA and Australia’s ASIC.

    What Risks are Involved with Buying Bitcoin in Malaysia?

    Bitcoin price chart from 2014 to 2019The biggest risk when buying Bitcoin in Malaysia is that the price could go down. Bitcoin is notoriously volatile and has seen huge falls in value in the past, so there’s the chance you could lose money. In that case, your options are either to hold Bitcoin for months or years to come, or to sell your coins for a financial loss. In order to see a return on your coins, you need to buy Bitcoin at a low price and correctly predict increases in value.

    Another important risk that’s unique to Bitcoin trading is security. Your coins are typically extremely secure when you keep them in a digital wallet. However, any scammer who gets access to your e-wallet could potentially steal your coins. It’s essential that you are vigilant about cybersecurity and don’t fall for phishing schemes that could compromise the integrity of your Bitcoin wallet.

    Step 3: Learn How to Buy Bitcoin in Malaysia

    Depending on what platform you use, you have a couple different options for how to buy Bitcoin.

    How to Buy Bitcoin with PayPal

    If you want to buy Bitcoin with PayPal, you’ll likely need to go through a broker like eToro. You can use PayPal to fund your brokerage account and then buy Bitcoin. Alternatively, you can connect your PayPal account to a credit card, and then use your card to fund your brokerage account. PayPal is one of the fastest and more affordable ways to buy Bitcoin.

    Many cryptocurrency exchanges won’t accept PayPal because of the risk of chargebacks. Sellers have to worry that you will ask PayPal to reverse the transaction after they transfer the coins. In that case, the buyer would keep both the cash and Bitcoins.

    How to Buy Bitcoin with a Debit Card

    Almost every exchange and cryptocurrency broker accept debit cards. In fact, buying Bitcoin with a debit card is extremely simple. Just make sure that your bank works with cryptocurrency exchanges, as some banks have banned crypto transactions. If that’s the case, you can still use your debit card to fund a brokerage account.

    How to Buy Bitcoin with a Credit Card

    Credit cards have the same risk of chargebacks as PayPal, so they’re also not often welcome at cryptocurrency exchanges. But many brokers that offer Bitcoin trading allow you to fund your account by credit card. So, you can easily buy Bitcoin with a credit card from any broker that offers e-wallets to store your coins. However, keep in mind that some platforms charge higher fees for credit card use.

    How to Buy Bitcoin with Perfect Money

    Perfect Money is a popular digital transaction platform that works well for buying Bitcoin from an exchange. Many exchanges accept payment through Perfect Money since it doesn’t allow for chargebacks in the same way that PayPal does. Just log into an exchange and link your Perfect Money account to buy Bitcoin.

    Some brokers will let you fund your trading account with Perfect Money, but many do not. You’ll need to find a broker that accepts this payment system in order to use it.

    Step 4: Open a Bitcoin Trading Account

    Now we’ve taken you through how to buy Bitcoin in Malaysia, you can begin trading. We’ll walk you through the process of opening a brokerage account and buying Bitcoin for the first time using eToro.

    We like eToro because it offers new Malaysian crypto traders an opportunity to actively learn from experienced traders. It also allows users to buy Bitcoin 0% commission, so it’s one of the most affordable platforms around. Here are the specific steps you need to follow to get started on eToro:

    Create an Account and Verify Your Identity

    It’s easy to create an account on eToro. Simply click the ‘Join Now’ button on the homepage of eToro.  After you fill out the application form, you will be asked to verify your identity and address. Upload any government-issued ID and a recent utility bill to pass the verification process.

     

    Deposit Funds

    Deposit a minimum of MYR 215 ($50) to get started. To deposit funds, you can use PayPal, Neteller, Skrill, UnionPay, wire transfer as well as debit/credit cards supported by MasterCard, VISA, Maestro and Diners Club International.

    Deposit money in your eToro account using credit card, PayPal, Skrill, or another method

    Buy Bitcoin

    Once you have money in your account, navigate to the crypto market by clicking the ‘Trade Markets’ button on the left side of the screen.

    Go to the BTC page to buy Bitcoin. Decide how much Bitcoin you want to buy and enter a stop loss or take-profit level if desired. When you’re ready to complete your purchase, click ‘Trade’.

    How to buy Bitcoin in Malaysia using eToro

    Conclusion

    Buying Bitcoin is one of the most common ways that Malaysian traders get into cryptocurrency trading and investing. You can hold Bitcoin for the future in anticipation that the price of this digital coin continues to rise and use it to pay for everyday purchases in the meantime. Or, you can attempt to profit off short-term fluctuations in the price of Bitcoin by actively trading the currency.

    Now you know how to trade Bitcoin in Malaysia, you may want to get started right away. If you do, we recommend using eToro, thanks to its 0% commission, strict regulation and excellent social trading tools. Simply click the link below to get started today.

    eToro: Buy Bitcoin with 0% Commission

    Our Rating

    eToro Malaysia
    • Buy Bitcoin with no commission
    • Buy and sell Bitcoin or trade CFDs
    • Social and copy trading tools
    • Highly regulated
    eToro Malaysia
    75% of retail investors lose money when trading CFDs with this provider. Crypto assets are highly volatile unregulated investment products.

    Resources

    To ensure we bring you the most reliable and accurate information possible, our writers use primary sources to support their content. These include studies, government resources and commentary from industry experts.

    Bank Negara Malaysia. “Statement on Bitcoin.” https://www.bnm.gov.my/index.php?ch=en_announcement&pg=en_announcement&ac=49&lang=en. Accessed 8 June, 2020.

    Bank Negara Malaysia. “Digital Currency.” https://www.bnm.gov.my/index.php?ch=en_digital_currency&lang=en. Accessed 8 June, 2020.

    Securities Commission Malaysia. “Media Statement on Initial Coin Offerings.” https://www.sc.com.my/resources/media-releases-and-announcements/media-statement-on-initial-coin-offerings. Accessed 8 June, 2020.

    FAQs

    How can Malaysians buy Bitcoin?

    Malaysians can use the cryptocurrency brokers mentioned above to buy Bitcoin. These are secure platforms that will allow them to buy BTC. The usual payment methods they support are PayPal, Skrill and credit/debit cards.

    How much money do I need to buy Bitcoin?

    There is essentially no minimum amount you can invest in Bitcoin. You just need enough money to meet your broker's minimum required deposit.

    What is a Bitcoin wallet?

    A Bitcoin wallet allows you to store, receive and send BTC. You should keep the majority of your BTC holdings in a Bitcoin wallet because it is highly secure and can only be accessed by you.

    Will my cryptocurrency trading earnings be taxed?

    In Malaysia, you are taxed on profits from buying and selling Bitcoin and other cryptocurrencies. If you are worried about the tax consequences of buying Bitcoin, we recommended that you consult your accountant to learn more.

    All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
    Michael Graw

    Michael is a writer covering finance, new markets, and business services in the US and UK. His work has been published in leading online outlets and magazines.