Nevertheless, fret not. Luno — Malaysia’s first and leading regulated cryptocurrency exchange is here…
… to guide you through every step of your financial fitness journey.
Recently, they kickstarted a campaign called #MoveWithLuno, which aims to empower Malaysians to build a stronger understanding of digital assets and investing as part of their financial literacy initiative to dispel common misconceptions about cryptocurrencies. To boost the campaign further, they’ve also appointed national athletes, Pandelela Rinong (Olympic diver) and Zaquan Adha (professional footballer), as Brand Ambassadors to share their financial journeys and how they’ve incorporated Luno into their investment plans.
That’s not all. In response to users’ requests, Luno has expanded its range of investible digital assets to 9, with the newest coins being Uniswap (UNI), Chainlink (LINK), Cardano (ADA) and Solana (SOL). This makes Luno a regulated platform that has the largest coin offering in the country. As of today, Luno Malaysia has over 700,000 customers.
Now, without further ado, let’s address your question and take a look at what to consider when investing in cryptocurrencies.
But, before we get into that, do you know which cryptocurrencies are available in Malaysia?
As of the time of writing, the Securities Commissions (SC) Malaysia have approved the buying and selling of the following listed cryptocurrencies:
|SC Approved Cryptocurrencies in Malaysia|
|Currency||Symbol||Founder||Founding Year||Security||Notes||Available on Luno|
|Bitcoin||BTC||Satoshi Nakamoto (pseudonym)||2009||PoW||It’s the first and most widely recognised cryptocurrency.||/|
|Ethereum||ETH||Vitalik Buterin||2015||PoW, PoS||Has the 2nd largest market cap in the market and uses smart contracts that power up the NFT market such as OpenSea.||/|
|Litecoin||LTC||Charlie Lee||2011||PoW||It’s a highly liquid cryptocurrency available on most major cryptocurrency exchanges, making it ideal for traders.||/|
|Ripple||XRP||Chris Larsen &
|2013||"Consensus protocol"||The purpose of XRP is to serve as an intermediate mechanism of exchange between two currencies/networks.||/|
|Bitcoin Cash||BCH||-||2017||PoW||It’s a cryptocurrency that originally came from Bitcoin as a result of a hard fork in the blockchain.||/|
|Uniswap||UNI||Hayden Adams||2018||PoW||It allows anyone with an Ethereum wallet to swap tokens directly using smart contracts. This also means Uniswap itself does not hold any assets in custody.||/|
|Chainlink||LINK||Sergey Nazarov & Steve Ellis||2017||PoS||It’s a decentralised blockchain oracle network built on Ethereum.||/|
|Solana||SOL||Anatoly Yakovenko & Raj Gokal||2017||PoS||It has become popular in the NFT and DeFi spaces as Ethereum users seek out new platforms with faster and cheaper transactions.||/|
|Cardano||ADA||Charles Hoskinson||2017||PoS||Billed as a third-generation blockchain, it’s designed to provide better scalability and security compared to other smart contract platforms.||/|
- Proof of Stake (PoS) relies on the number of crypto assets a validator has.
- Proof of Work (PoW) is based on the amount of effort required by miners to solve complex equations.
Now, how do we determine which coin to buy and what are the factors we need to consider?
Image source: Medium
Crypto is a high-risk investment because the prices often fluctuate by huge amounts within a short period. So it’s hard to tell what’s going to happen next. But, if you’re up for it, there are ways to evaluate a cryptocurrency so you can invest with more confidence.
1. Read the white paper
First and foremost, like any investment, you should understand what you are buying into. This can be done by reading the white paper. It’s a document outlining the goals and strategies for the cryptocurrency’s usage. There are also details of how the token will be distributed among the investors as well as its supply limits. This info would give you an idea of your investment potential. So if there’s no white paper, that itself is a red flag.
2. Evaluate the market metrics
Image source: CoinGecko
There are 3 basic market metrics that you should evaluate - the market capitalisation (an indicator of the dominance and popularity of cryptocurrencies), trading volume (how much the cryptocurrency has been traded within a specified time frame) and supply metrics (to understand the potential scarcity of a coin). You can get this info by visiting any cryptocurrency aggregator.
3. Study the price history
Generally, coins with a lower market cap are susceptible to pump-and-dump schemes. So by checking its past performance, you can get an idea of how the asset has been doing. This can give you a rough idea of the long-term and shorter-term performance of the coin.
4. Gain insights from the crypto community
Image source: Luno Facebook Community Page
A vibrant community that is creating and using the coin is just as crucial as elements like utility, security, compliance, and market cap. Search broadly across social media for mentions and talks of the coin. Check if the community moderators are contributing to debates, promoting news stories, and responding to inquiries. This can help you get insights about the market movements and reap the benefits of investing in cryptocurrencies.
Don’t know where to begin? Check out Luno Discover or Luno’s Facebook Community. Luno is dedicated to making crypto-related content easier to digest and available to the masses, helping you understand the basics first.
5. Consider future viability
Now if we are looking to invest for the long term, we have to consider which coin has a practical purpose in the blockchain ecosystem. For instance, Ethereum. Many smart contracts, non-fungible tokens (NFT) projects and businesses depend on their technology, so this shows that there’s a potential for it to retain its value over time.
Image source: Twitter
“How do I kickstart my financial fitness journey through cryptocurrency in Malaysia?”
There are many exchange platforms in the market for you to buy and sell the listed cryptocurrencies in Malaysia. However, to protect yourself from any unnecessary issues in the future, we’d suggest you opt for DAX that are regulated by SC under the Digital Assets Guideline.
That said, not all regulated exchanges in Malaysia offer all of the crypto mentioned above. If you're keen to invest in these approved coins, you can consider Luno.
Image source: DividendMagic
Besides being a regulated platform that has the most coin offering in the country, it sure does a great job of making crypto investing as straightforward as possible. Their simple-to-follow mobile application and website suit everyone, at all levels. Not to mention, the entry cost is low too. You can start investing in cryptocurrencies from as low as RM1.
But, that’s not the only reason why you should consider them. Security is also important for any crypto exchange. With Luno, you can invest with peace of mind. They keep most of their customer’s crypto in “deep freeze” using a multi-signature wallet where the keys are generated and stored entirely offline and offsite. This makes it difficult for anyone to hack and steal since physical access is required.
Depositing money into the Luno wallet is very easy too; and, it won’t take days. You can deposit MYR funds instantly into your account via FPX. Additionally, as part of the #MoveWithLuno campaign, the exchange has also invested in localising its app and content in Bahasa Melayu, which is now available for all users. This is helpful if you’re much more comfortable navigating/consuming using the said language.
So, why not #MovewithLuno today? As part of a collaboration with Luno Malaysia, here’s an exclusive promo for new users wanting to invest. Use this referral code: LNSTRT30 to get RM30 worth of BTC, when you buy RM100 in BTC.
Learn more about Luno HERE to see if it's the right exchange for you.
Whatever decision you make, it should go back to your goal of buying cryptocurrency. There’s no way of telling what will take off and what won’t, so in cases like this, you just have to trust your due diligence and make an educated choice.
That said, you don’t have to do it alone. Luno is there with you through every step of your financial fitness journey as part of its effort to make cryptocurrency investing accessible for all.
Anyway, are you a crypto investor as well? How do you determine which coin to buy? Do share with us in the FB comment section.
Note: This article is for informational and educational purposes only and you should not construe any such information as investment or financial advice. Investing in cryptocurrency is high risk and may result in the loss of capital as the value can fluctuate. We recommend individuals to consult with a licensed financial planner for detailed financial advice on whether cryptocurrency is a good investment option.The SC's approval of the listing of digital assets on Luno does not amount to nor indicate that the SC has recommended or endorsed the product or service.
*The above article is intended for informational purposes only. Loanstreet accepts no responsibility for loss that may arise from reliance on information contained in the article.