Heard friends talking about Bitcoin? Seen news about cryptocurrency making millionaires? Wondering if you should invest?

Before you hand over any money, you need to understand what cryptocurrency actually is, how it works, and how to avoid losing everything to scams.

This guide explains cryptocurrency from scratch, shows you the only legal ways to buy it in Malaysia, and walks you through your first purchase step by step.

What Actually Is Cryptocurrency?

Cryptocurrency is digital money that exists only on computers. There are no physical coins or notes. Instead, ownership is recorded on something called a blockchain, which is a digital ledger that everyone can see but nobody can cheat.

Bitcoin was the first cryptocurrency, created in 2009. Since then, thousands more have appeared. Ethereum, Solana, Cardano are all different types of cryptocurrency, each with different features and purposes.

Why would anyone want digital money instead of ringgit?

Some people believe cryptocurrencies will become the future of money because they work without banks or governments controlling them. Others treat them as investments, hoping the price will rise. Some use them to send money internationally without expensive bank fees.

The thing to understand: Cryptocurrency prices swing wildly. Bitcoin has crashed by 50% or more several times. You could invest RM1,000 today and find it worth RM500 next month. Or RM2,000. Nobody knows. This is not like putting money in a fixed deposit where you know exactly what you will get back.

Is Cryptocurrency Legal in Malaysia?

Yes and no. This confuses many people, so let’s be clear.

In Malaysia, cryptocurrencies like Bitcoin and Ethereum are not considered legal tender. This means you cannot use them to pay your taxes, settle official debts, or walk into most shops expecting to pay with crypto. The ringgit is the only currency that must be accepted for payments in Malaysia.

But you can buy, sell, and hold cryptocurrency as an investment if you use a platform approved by the Securities Commission Malaysia (SC). These approved platforms are called Digital Asset Exchanges, or DAX for short.

Technically, trading cryptocurrency on unregistered or foreign platforms is not illegal, but it is strongly discouraged by Malaysian regulators.

Platforms that are not registered with the Securities Commission Malaysia (SC) operate outside the protection of local laws. If something goes wrong, such as the exchange getting hacked, going bankrupt, or disappearing with your money, you have no legal protection in Malaysia.

To reduce your risk, it is best to use a SC-approved DAX. These platforms are licensed to operate in Malaysia and must follow local regulations that are designed to protect users.

The Six Approved Cryptocurrency Exchanges in Malaysia

Only six cryptocurrency exchanges are currently approved to operate in Malaysia. Five have been approved. One has preliminary approval but is not yet fully operational.

Never use any platform not on this list. The SC maintains an official list of approved exchanges at sc.com.my. Check it before opening any account.

Understanding Each Exchange

Luno Malaysia: If You Have Never Bought Cryptocurrency Before

Luno was the first cryptocurrency exchange approved in Malaysia back in 2019. It is designed specifically for people who have never touched cryptocurrency before.

The interface is deliberately simple. You will not see confusing charts or complex trading options when you first log in. Everything uses plain language. The learning section explains concepts like “what is a blockchain” and “how to store cryptocurrency safely” without assuming you know anything.

You can start with just RM10, making it perfect for testing the waters. Deposit money using FPX (the same system you use for online banking) or through Touch ‘n Go eWallet. The money arrives instantly. When you want to withdraw, it takes one business day to reach your bank account.

Luno offers two ways to buy. The instant buy option lets you purchase cryptocurrency immediately at a fixed price, but you pay around 2% in fees. The exchange option has much lower fees (0 to 0.1%) but requires you to place an order and wait for someone to match it, which takes more time and knowledge.

Security measures: Luno keeps 95% of customer cryptocurrency in cold storage, meaning offline where hackers cannot reach it. You must use two-factor authentication (2FA) to access your account, adding an extra security layer beyond your password. Customer assets also have insurance coverage.

Customer support: Local team available through email and live chat. Help articles are available in both English and Bahasa Malaysia. Response times are generally good, though support can be slower during market volatility when many people contact them at once.

Who should choose Luno: Absolute beginners who want the simplest possible experience and do not mind paying slightly higher fees for convenience. If you have never invested in anything before and find financial platforms intimidating, start here.

SINEGY DAX: If You Want a Local Company

SINEGY is based in Penang and was one of the first exchanges licensed by the SC in 2019. The company focuses on transparency, showing detailed trading data and real-time statistics that some other platforms keep hidden.

Bank transfers for deposits are free but take one to two business days to clear. FPX deposits are instant but cost RM10. There is no minimum deposit requirement.

The fee structure benefits active traders. If you place a maker order (an order that adds liquidity to the market by waiting to be matched), you pay nothing. If you place a taker order (immediately buying at the current market price), you pay 0.25%.

Security measures: Cold storage for customer funds, mandatory 2FA, and regular third-party security audits. The platform undergoes frequent compliance checks given its early licensing status.

Customer support: Email support during Malaysian business hours. Response times are reasonable but not as fast as some competitors. All guides and help materials are available in English and Bahasa Malaysia.

Who should choose SINEGY: People who prefer supporting a local Penang-based company and those who value transparency in trading data. Also suitable for more active traders who can benefit from zero maker fees.

Kinetic DAX (KDX): If You Want More Cryptocurrency Options

Rebranded from Tokenize Malaysia, Kinetic DAX (KDX) is a fully registered digital asset exchange under the Securities Commission Malaysia (SC). It offers the widest selection of SC-approved cryptocurrencies in Malaysia, including all 23 approved tokens, giving you more choices beyond just Bitcoin and Ethereum.

The minimum deposit is RM100. Trading fees range from 0.1% to 0.25%, depending on your trading volume. FPX deposits are instant, and withdrawals typically take one to two business days to reach your bank account.

The platform interface balances beginner-friendly features with tools for more experienced traders. You can use a simple buy option or explore more detailed trading features as you gain confidence.

Security measures: Segregated customer accounts (keeping your funds separate from company funds), mandatory two-factor authentication (2FA), and regular third-party security audits. The platform follows strict SC guidelines to protect customer funds.

Customer support: Available via live chat and email, with a help centre offering FAQs in both English and Bahasa Malaysia. Response times are generally quick during business hours.

Who should choose KDX: Investors who want access to a broad range of SC-approved cryptocurrencies and those looking to diversify beyond the most common tokens like Bitcoin and Ethereum.

MX Global: If You Want Professional Trading Tools

MX Global received its licence in 2021 and has grown rapidly with backing from Binance, one of the world’s largest cryptocurrency exchanges. It offers strong liquidity (meaning you can buy and sell quickly without moving prices much) and advanced trading tools whilst remaining accessible to everyday investors.

There is no minimum deposit. Fees are competitive and based on your trading volume—the more you trade, the less you pay. FPX deposits are instant. Most withdrawals are completed the same day, which is faster than most competitors.

The platform offers both a simple interface for beginners and advanced charting tools for experienced traders. You can switch between modes depending on your comfort level.

Security measures: Enterprise-grade security including cold storage, mandatory 2FA, and biometric login available through mobile apps (fingerprint or face recognition). The Binance backing brings additional security infrastructure.

Customer support: In-app chat, email support, and comprehensive online guides. Support quality is generally strong given the platform’s resources.

Who should choose MX Global: People who plan to become more active traders and want a platform they can grow into. Also suitable for those who value fast withdrawals and strong liquidity. If you already use Binance internationally (though remember, this is illegal in Malaysia), MX Global offers a familiar experience within legal bounds.

HATA Digital: If You Want the Lowest Fees

HATA Digital became Malaysia’s fifth fully licensed exchange in 2024. As the newest entrant, it competes aggressively on price, offering some of the lowest fees in Malaysia.

Instant buy and sell costs just 1%, which is half what some competitors charge. Order book trading fees range from 0% to 0.4% depending on volume, with maker orders potentially costing nothing. There is no minimum deposit.

The platform is modern and straightforward. It may not have all the advanced features of older exchanges, but for most people buying cryptocurrency as an investment, it has everything needed.

Security measures: Cold storage for most funds, mandatory 2FA, and modern security systems. As a newer platform, it has the advantage of being built with current security standards rather than legacy systems.

Customer support: Live chat, email support, and an online knowledge base. Support quality is still establishing its track record given how new the platform is.

Who should choose HATA Digital: Cost-conscious investors who want to minimise fees and do not need advanced features. If you plan to make larger purchases where a 1% difference in fees adds up, HATA becomes increasingly attractive. The newer platform may appeal to those who prefer modern interfaces over legacy systems.

Torum International: Not Ready Yet

Torum International has approval-in-principle from the SC but is not yet fully licensed. This means it is working towards meeting all regulatory requirements but cannot yet offer full services to the public.

The platform plans to combine social media features with cryptocurrency trading, allowing users to follow other traders and discuss investments. This could be interesting for people who like the social aspect of investing, similar to platforms like eToro internationally.

Who should consider Torum: Nobody right now. Wait until it receives full SC licensing before opening an account. Once fully licensed, it might suit people who enjoy social investing and learning from other traders. Until then, use one of the five fully licensed platforms.

What Cryptocurrency Can You Actually Buy?

Licensed Malaysian exchanges can only list cryptocurrencies approved by the SC. Currently, there are 23 approved cryptocurrencies, of which 15 are designated as Shariah-compliant.

The approved list includes:

Bitcoin (BTC): The original cryptocurrency, created in 2009. The most widely known and most valuable. Think of it as digital gold that people buy hoping it will increase in value.

Ethereum (ETH): The second-largest cryptocurrency. Beyond being digital money, developers use it to build things like digital games, trading platforms, and financial services. These automated agreements are called “smart contracts.”

Solana (SOL): A cryptocurrency similar to Ethereum, designed for building things like digital games, trading platforms, and other online services. It processes transactions faster and cheaper than Ethereum.

Cardano (ADA): Another cryptocurrency like Ethereum and Solana, where developers can build digital services. Cardano focuses heavily on academic research and peer review before making changes.

Polkadot (DOT): Designed to help different blockchains communicate and share information with each other, similar to how your phone can work on different networks.

Ripple (XRP): A highly liquid and actively traded cryptocurrency in Malaysia, XRP is also on the SC’s approved list and is Shariah-compliant.

And ten others, with the list subject to change as the SC reviews and approves additional cryptocurrencies.

You cannot buy popular cryptocurrencies like Tether (USDT), Binance Coin (BNB) as these are not approved by the SC. If someone tells you they are trading these on a Malaysian platform, they are either using an illegal exchange or being scammed.

How Cryptocurrency Trading Actually Works

If you have never bought investments before, the process is simpler than you might think, though you need to understand two different ways to trade.

Step one: Deposit ringgit into your account. This works exactly like topping up an e-wallet. You can use FPX (instant but sometimes charges fees) or direct bank transfer (free but takes one to two business days). Some platforms also accept Touch ‘n Go eWallet.

Step two: Choose how to buy. This is where people get confused because there are two methods:

Instant buy and sell is the simplest option. You click a button, the platform shows you the current price, you confirm the purchase, and you immediately own the cryptocurrency. This is perfect for beginners. The downside? You pay higher fees, typically 1% to 2% of your purchase.

Order book trading is cheaper but more complex. Instead of buying instantly at the current price, you place an order saying “I want to buy Bitcoin at RM280,000.” Then you wait for someone else to agree to sell at that price. If someone matches your order, the trade happens. If nobody matches it, you wait or cancel the order. Fees are much lower, typically 0.1% to 0.25%, but it requires understanding how markets work.

For your first purchase, use instant buy. Once you are comfortable and have researched how markets work, you can explore order book trading to save on fees.

Step three: Decide where to store your cryptocurrency. You have two options:

Leave it on the exchange (convenient if you plan to trade regularly, but you are trusting the exchange to keep it safe). Move it to your own digital wallet (more secure for long-term holding, but you are responsible for not losing access).

For beginners, leaving it on a licensed exchange is fine. The platforms are regulated and must follow strict security standards. If you accumulate a large amount or plan to hold for years, research moving to a private wallet.

Your First Purchase: A Step-by-Step Walkthrough

Let’s walk through buying your first cryptocurrency. We will use Luno as our example since it is the most beginner-friendly platform. The process is similar on other exchanges.

Before you start: Have your IC or passport, a Malaysian bank account, and a smartphone or computer with internet access ready.

Step 1: Create your account. Go to Luno’s website (luno.com) or download the Luno app from the App Store or Google Play. Click “Sign Up” and enter your email address and create a password. Make your password strong, mix uppercase and lowercase letters, numbers, and symbols. Write it down somewhere safe.

You will receive a verification email. Click the link to verify your email address.

Step 2: Verify your identity. This is required by law. Click on your profile and select “Verify Identity.” Take a photo of your IC or passport using your phone camera. The app will guide you through this. Take a selfie for facial recognition. This confirms you are who you say you are and prevents money laundering.

Verification usually takes a few hours but can take up to two business days. You will receive an email when approved.

Step 3: Enable two-factor authentication. This is essential for security. Go to Settings and find “Security” or “2FA.” Download Google Authenticator or Authy on your phone (free apps). Scan the QR code shown on Luno. The app will generate a six-digit code that changes every 30 seconds. Enter this code to complete setup.

Now, whenever you log in, you will need both your password and the current six-digit code from your phone. This means even if someone steals your password, they cannot access your account without your phone.

Step 4: Deposit ringgit. Click “Deposit” or “Wallet” and select “MYR” (Malaysian Ringgit). Choose FPX for instant deposit or bank transfer for free but slower deposit. If using FPX, select your bank and log in through your online banking. Authorise the transfer. The money appears in your Luno account within seconds.

If using bank transfer, Luno will show you their bank account details. Go to your online banking and transfer money to that account. Include the reference number Luno provides. The money will appear in one to two business days.

For your first time, try RM50 or RM100. Do not invest your life savings until you understand how everything works.

Step 5: Buy cryptocurrency. Click “Buy” and select which cryptocurrency you want. For your first purchase, Bitcoin or Ethereum are sensible choices as they are the most established. [8] [9] Enter how much you want to buy. You can enter either the ringgit amount you want to spend or the amount of cryptocurrency you want to receive.

The platform shows you the current price and how much cryptocurrency you will receive after fees. Review this carefully. If you are happy, click “Confirm Purchase.” Your cryptocurrency appears in your account immediately.

Step 6: Watch what happens next. The price will change. Sometimes it goes up, sometimes down. This is normal. Do not panic if it drops 5% or 10% in a day. Cryptocurrency is volatile. Check your account occasionally but do not obsess over every price movement.

What not to do: Do not immediately buy more because the price is rising. Do not panic sell if the price drops. Do not tell everyone on social media how much you bought. Do not share your account details with anyone claiming to be from the exchange.

Understanding Fees And Costs

Cryptocurrency trading has several types of fees. Understanding them helps you avoid nasty surprises.

Trading fees are charged each time you buy or sell. Instant buy/sell typically costs 1% to 2%. Order book trading costs 0.1% to 0.25%. On a RM1,000 purchase, instant buy might cost RM20 whilst order book trading costs RM2.50. The savings add up on larger purchases.

Deposit fees vary by method. FPX deposits are instant but might cost RM5 to RM10. Bank transfers are free but slower. Some platforms charge nothing for any deposit method.

Withdrawal fees apply when you move ringgit back to your bank account. Typically RM5 to RM15 per withdrawal. Some exchanges offer a certain number of free withdrawals per month.

Network fees apply when you move cryptocurrency off the exchange to your own wallet. These go to the blockchain network, not the exchange, and vary based on network congestion. Bitcoin transfers might cost RM10 to RM50 depending on how busy the network is.

Hidden in the spread: Some exchanges make money through the “spread,” the difference between the buying price and selling price. If Bitcoin is trading at RM280,000 on the open market, an exchange might let you buy at RM282,000 and sell at RM278,000. That RM4,000 difference is called the spread. 

Always calculate the total cost before buying. A platform advertising “zero fees” might have a wide spread that costs you more than another platform with clear but small fees.

Security: Protecting Yourself From Loss

Cryptocurrency security has two parts: protecting yourself from scams and protecting your account from hackers.

Protecting from scams:

Never trust WhatsApp investment groups. Legitimate exchanges never recruit through WhatsApp groups or Telegram channels. If someone adds you to a group promoting “guaranteed” cryptocurrency profits, leave immediately and block them.

Never send cryptocurrency to someone claiming they will “multiply” it. This is always a scam. Nobody can guarantee profits. Nobody can double your Bitcoin in a week. These are all scams.

Never give anyone your password or 2FA codes. Not to customer support, not to someone claiming to help you, not to anyone. Real customer support never asks for passwords.

Never invest because a celebrity “endorses” it on social media. Scammers create fake celebrity accounts or use deepfake videos. Always verify endorsements on the celebrity’s verified official accounts.

Be suspicious of platforms promising unrealistic returns. If someone claims you can earn 10% per month guaranteed, it is a scam. Traditional investments earn 3% to 5% annually. Anything claiming much higher guaranteed returns is a red flag.

Only use SC-approved exchanges. Before opening any account, check the SC’s official website to verify the platform is licensed. Scammers create fake versions of real exchanges with similar names.

Protecting your account:

Use two-factor authentication always. This is your main defence against hackers. Even if they steal your password, they cannot access your account without the 2FA code from your phone.

Create a strong, unique password. Do not reuse passwords from other websites. Use a password manager if you struggle to remember multiple passwords.

Beware of phishing emails. Scammers send fake emails pretending to be from exchanges, asking you to click links and log in. Always type the exchange URL directly into your browser rather than clicking email links.

Use a secure internet connection. Do not log in to your cryptocurrency account using public WiFi at cafes or shopping malls. Hackers can intercept public WiFi connections.

Keep your phone and computer secure. Use screen locks, keep your operating system updated, and install reputable antivirus software.

Tax And Legal Obligations

Many people assume cryptocurrency profits are tax-free. This is incorrect.

Cryptocurrency profits may be taxed in Malaysia. The tax treatment depends on whether you are investing or trading:

If you buy cryptocurrency and hold it long-term, then sell at a higher price , this might be treated as a capital gain. Malaysia does not have a specific capital gains tax for individuals, but the Inland Revenue Board (LHDN) can assess gains under income tax if they consider it part of your income-generating activities.

If you actively trade cryptocurrency (buying and selling frequently to profit from price movements), your profits are almost certainly taxable as business income. Tax rates follow normal income tax bands, from 0% on the first RM5,000 to 30% on income above RM100,000.

You are responsible for declaring cryptocurrency income. Exchanges do not automatically report your profits to LHDN, though this may change in future. You must include cryptocurrency gains when filing your tax return.

Keep detailed records of all transactions: purchase dates and prices, sale dates and prices, fees paid, and any transfers between platforms or wallets. If LHDN queries your tax return, you need to prove your profits and losses.

Inheritance considerations: If you own cryptocurrency, make sure someone knows how to access it if something happens to you. Write down your account access details and 2FA backup codes, seal them in an envelope, and keep them somewhere secure that your family can access. Without this information, your cryptocurrency could be lost forever.

Common Questions From First-Time Buyers

How much should I invest? Only money you can afford to lose completely. Cryptocurrency is one of the riskiest investments available. If losing this money would affect your ability to pay rent, buy food, or handle emergencies, do not invest it. Financial advisors typically suggest no more than 5% to 10% of your investment portfolio should be in high-risk assets like cryptocurrency.

Should I buy Bitcoin or Ethereum? For absolute beginners, Bitcoin is the simpler choice. It is the oldest, most established cryptocurrency with the clearest purpose: digital money. Ethereum is more complex, powering applications and smart contracts. Start with Bitcoin to learn how cryptocurrency works, then research others if you want to diversify.

When is the best time to buy? Nobody knows. People who claim to predict cryptocurrency prices are guessing. Some people use “dollar-cost averaging”—buying a small amount regularly (say RM100 every month) regardless of price. This reduces the risk of buying everything at a market peak. Others wait for significant price drops, though timing this is nearly impossible.

What if the price crashes after I buy? This happens frequently with cryptocurrency. Bitcoin has crashed 50% or more multiple times in its history, then recovered to new highs, then crashed again. If you cannot emotionally handle watching your investment drop 30% in a week, cryptocurrency is not suitable for you. Only invest money you can afford to leave untouched for several years.

Should I keep my cryptocurrency on the exchange? For small amounts (under RM10,000), keeping it on a licensed exchange is perfectly fine. The platforms are regulated and follow strict security standards. For larger amounts or long-term holdings (several years), research moving to a hardware wallet, a physical device that stores your cryptocurrency offline where no hacker can reach it. This requires learning about private keys and wallet security.

Can I use cryptocurrency to pay for things in Malaysia? No. This means you cannot use them as an official form of payment like the ringgit, which is the only currency merchants are required to accept.

What happens if the exchange shuts down? Licensed exchanges must keep customer funds in segregated accounts, meaning your money is separate from company funds. If an exchange fails, you should be able to recover your funds, though the process might take time. This protection does not exist with unlicensed exchanges, which is why using SC-approved platforms is crucial.

Are there age restrictions? Yes. You must be 18 years old to open a cryptocurrency trading account in Malaysia. This is enforced during identity verification.

Warning Signs Of Cryptocurrency Scams

Malaysia has seen numerous cryptocurrency scams, often targeting people new to investing. Watch for these red flags:

Guaranteed returns. If anyone promises you will definitely make money, or guarantees a specific return, it is a scam. All cryptocurrency investment involves risk. Nobody can promise profits.

Pressure to invest quickly. Scammers create urgency, claiming you will miss out if you do not invest immediately. Legitimate investments will still be there tomorrow. Never invest under pressure.

Recruitment schemes. If the “investment” involves recruiting friends and family, earning commissions on their investments, it is likely a pyramid scheme. Real cryptocurrency exchanges make money from trading fees, not recruitment.

Platforms not on the SC list. If someone promotes a cryptocurrency platform locally that is not one of the six mentioned in this guide, it is either operating illegally or is a scam. Check the SC website before investing anywhere.

Social media messages from strangers. If someone you do not know messages you on Instagram, Facebook, or WhatsApp about cryptocurrency investment opportunities, block them. This is always a scam.

Investment “seminars” or “workshops”. Scammers run events promoting specific platforms or schemes. They create excitement and pressure people to invest on the spot. Legitimate cryptocurrency exchanges do not need high-pressure sales events.

Requests to download unknown apps. Scammers create fake trading apps that look legitimate but are designed to steal your money. Only download apps from official App Stores and verify they are from the real exchange.

Too-good-to-be-true profits. If someone shows you screenshots of massive profits or claims they turned RM1,000 into RM100,000 in weeks, be very suspicious. Screenshots are easily faked. Real cryptocurrency profits are possible but rare and unpredictable.

If you encounter a scam, report it to:

Bank Negara Malaysia (if it involves unauthorised payment services): bnm.gov.my

Securities Commission Malaysia (if it involves unauthorised investment schemes): sc.com.my

Royal Malaysian Police Commercial Crime Investigation Department: 03-2115 9999

The Reality Of Cryptocurrency Investing 

Let’s be honest about what cryptocurrency investing actually looks like for most people.

You will probably not get rich. The stories you hear about people turning RM1,000 into millions happened to very few people who bought Bitcoin in 2010 and held through massive volatility. Most people who invest in cryptocurrency today will see moderate gains at best, and many will lose money.

Prices are emotionally difficult to watch. Cryptocurrency can drop 10% in a day on no news at all. If you check prices constantly, you will drive yourself mad. Successful cryptocurrency investors typically buy, then ignore the price for months or years.

You are competing against professionals. The cryptocurrency market is full of professional traders with sophisticated software, massive budgets, and years of experience. As a beginner putting in RM1,000, you are playing against them.

Scams are everywhere. For every legitimate cryptocurrency opportunity, there are ten scams. You must be constantly vigilant.

Regulation is still developing. Malaysia’s cryptocurrency regulation is better than many countries, but it is still evolving. Rules could change. Taxes could change. What is allowed today might be different in two years.

It is genuinely risky. You could lose everything you invest. This is not an exaggeration. Cryptocurrencies have gone to zero. Even major cryptocurrencies can lose 80% of their value.

So why do people still invest? Some believe cryptocurrency represents the future of money and want to be part of that future. Some enjoy the technology and learning about blockchain. Some see it as a small part of a diversified investment portfolio, accepting the risk for potential high returns. Some simply find it interesting.

Whatever your reason, go in with eyes open. This is not a savings account. This is not a safe investment. This is speculative, volatile, and risky.

Final Advice: Start Small, Stay Safe, Stay Legal

If you have read this far and still want to try cryptocurrency investing, here is how to do it sensibly:

Start with an amount you are completely comfortable losing. For most people, this means RM100 to RM500 for your first purchase. Treat it as an educational experience.

Use only SC-approved exchanges. Luno for complete beginners, KDX if you want more coin options, HATA if you want lowest fees. Never use platforms not on the SC’s approved list.

Enable two-factor authentication immediately. This is not optional. This is essential.

Do not tell people how much cryptocurrency you own. This makes you a target for scams and theft.

Do not invest more because the price is rising. This is when most people lose money—they see prices climbing and fear missing out, so they invest more right before a crash.

Do not panic sell when prices drop. Cryptocurrency is volatile. If you cannot handle volatility, do not invest.

Never keep cryptocurrency on an online exchange indefinitely if you have large gains. Exchanges can be vulnerable to hacks or insolvency, putting your assets at risk. Consider taking some profits by selling a portion and moving the ringgit to safer investments. Alternatively, you can transfer your crypto to more secure custody options such as hardware wallets or trusted third-party custodians to better protect your holdings.

Research thoroughly before buying anything beyond Bitcoin and Ethereum. The fact that a cryptocurrency is SC-approved does not mean it is a good investment. Understand what you are buying.

Keep records of all transactions for tax purposes. You will thank yourself later.

Remember that cryptocurrency is not essential for most Malaysians. It’s perfectly fine to decide it’s not for you after reading this guide. Traditional investments like unit trusts, ASB, and EPF remain suitable for many. At the same time, a growing number of investors include cryptocurrency in their portfolios, recognising its unique risks and potential rewards.

If you do invest, good luck. Stay safe, stay legal, and never invest more than you can afford to lose.

DISCLAIMER: This article is for educational purposes only and does not constitute financial advice. Cryptocurrency trading involves significant risk of loss. The value of digital assets can fluctuate dramatically and you may lose all of your investment. Always conduct your own research and consider consulting qualified financial advisors before making investment decisions. Only invest money you can afford to lose completely.

Need more financial guidance? Follow us on our official WhatsApp channel for the latest money tips and updates.

This guide was last updated in October 2025. Cryptocurrency regulations and exchange features change frequently—always verify current information on the SC’s official website before making investment decisions.

• TAGS:
• Cryptocurrency
• How-To