{"id":17713,"date":"2021-11-09T19:00:00","date_gmt":"2021-11-09T11:00:00","guid":{"rendered":"https:\/\/www.comparehero.my\/blog\/uncategorized\/what-to-know-before-investing-in-cryptocurrency.html"},"modified":"2026-03-26T16:00:27","modified_gmt":"2026-03-26T08:00:27","slug":"what-to-know-before-investing-in-cryptocurrency","status":"publish","type":"post","link":"https:\/\/www.comparehero.my\/blog\/investments\/what-to-know-before-investing-in-cryptocurrency.html","title":{"rendered":"5 Things You Should Know Before Investing In Cryptocurrency"},"content":{"rendered":"\n

Despite the fact that a lot of people are still more comfortable with using traditional cash, crypto has certainly piqued the interest of many. <\/p> \n

In Malaysia, there still isn\u2019t much conversation on cryptocurrency, but with time, more and more people are interested to find out how it works. At this point you might be thinking of embarking on that crypto journey.<\/p> \n

But before you do, there are some things you should know so you can decide what\u2019s best. Here are 5 things to consider before investing in crypto.<\/p> \n

1. Start off small<\/h2> \n

Crypto can be super exciting, and if you\u2019re new to this, you\u2019re going to want to jump right in. It\u2019s great to get enough exposure, but it\u2019s also wise to take one step at a time. Before you start investing, know what the market is like and what type of crypto might be suitable for you.<\/p> \n

Once you\u2019ve figured these out, start investing in small amounts first. The last thing you want is to quickly lose a huge chunk of your hard-earned money. Take your time to know the market well enough before investing more.<\/p> \n

2. It\u2019s not recognised as legal tender in Malaysia<\/h2> \n

\"what-to-know-before-investing-in-cryptocurrency-01\"<\/p> \n

Before you start investing in cryptocurrency, take note that at this point in time, cryptocurrency is not considered to be legal tender. This doesn\u2019t mean that it\u2019s illegal or that you will get in trouble for investing in it. When we say that it isn\u2019t legal tender, it just means that it\u2019s not accepted as a form of currency in Malaysia for now.So, you can go ahead and accept payments in cryptocurrency from all over the world, but you just won\u2019t be able to use it to buy things the way you can with Ringgit Malaysia. <\/p> \n

Related<\/strong>: If Someone Pays You In Cryptocurrencies, Should You Accept it?<\/a><\/p> \n

Due to it not being legal tender, it\u2019s not regulated by Bank Negara Malaysia<\/a>. This simply means that it doesn\u2019t have the same kind of protection that is given to legal currencies in Malaysia. Any money in your bank account is protected and insured by PIDM, which stands for Perbadanan Insurans Deposit Malaysia. Unfortunately, cryptocurrencies do not have the same protection for the time being.<\/p> \n

3. You\u2019ll need to be mindful of scams<\/h2> \n

Speaking of protection (or a lack thereof), you should take extra precaution to ensure you don\u2019t fall prey to any crypto scams. Scams exist even in our daily cash transactions, but with crypto, it can be harder to identify them. There are Ponzi schemes<\/a>, NFT scams<\/a>, pump-and-dump schemes<\/a>, and many more.<\/p> \n

Before you invest, make sure the platform you\u2019re on is legitimate. If something is too good to be true, that should already be a huge red flag. Look out for giveaways, job offers or other deals that promise you the moon and the stars, but don\u2019t really have the credentials to back them.<\/p> \n

\"what-to-know-before-investing-in-cryptocurrency-02\"<\/p> \n

4. Diversify your portfolio <\/h2> \n

The fact is, cryptocurrencies are volatile, and it\u2019s very common to see the value of a crypto plummet within days and to see it rise again soon after. As an investor, your top goal is to get the best value from your investment by taking the least risks. <\/p> \n

One way to \u2018distribute\u2019 your risks would be to invest in more than one place. That way, even if one investment dropped in its value, there might be others in your wallet that have great returns. By diversifying your portfolio, you\u2019ll also eventually find out what type of crypto you enjoy investing in.<\/p> \n

5. Find the right place to store your crypto<\/h2> \n

Speaking of wallets, that\u2019s exactly where you\u2019ll need to store your crypto. There are mainly two types of wallets: hot wallets and cold wallets. The first refers to online wallets, while the second refers to offline ones which don\u2019t require an Internet connection. <\/p> \n

Some examples of hot wallets are:<\/p> \n