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

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: 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.

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 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.

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. 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 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?

The 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

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.

Open a Bitcoin trading account at one of the brokers listed above.

Account registration is usually a quick and painless process when dealing with tier 1 brokers.

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.

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