"Use The Dollar-Cost Averaging Method" — M'sians Share Helpful Tips For Crypto Newbies
Investment decisions are important, but they don't have to be hard.
Published for Luno, 05 Jan 2023, 10:05 AM
Are you thinking of diversifying your investment portfolio by investing in cryptocurrency?
First and foremost, that's great. When it comes to investment, it's always a good idea to diversify your portfolio.
But, with so many types of investments (crypto being one of the most recent ones), it can be hard to keep track of everything. In fact, crypto is entirely different from other forms of investment — it has tonnes of technical terms and different coins that you have to take note of.
All of these can be confusing, but with proper research and reading, you'll realise that investing in crypto is not that hard after all.
If you are new to the crypto game or unsure about whether to invest in it, fret not; we got several Malaysians who are crypto investors or follow the news closely to share their tips and advice:
Note: Some names have been changed to protect the privacy of individuals.
1. "Invest in the future, not the present or past"
"A good risk-reward investment (win big, lose small) is typically an investment in assets that will be huge in the future, but are not invested in today.
"Nobody can predict the future accurately and know exactly which tech or products will become huge 10 to 20 years from now. Blockchain and cryptocurrency are one of them.
"Blockchain and cryptocurrency tech is still not widely adopted at the moment, but if you only start investing in them once they become huge 10 to 20 years later, it would be too late as the price probably will appreciate a lot by then."
- Ronn, 37
2. "Make sure to educate yourself on how crypto works before you start investing"
"This will help you understand the different types of coins, their features and uses, and the technology behind them.
"And once you're familiar with everything crypto, diversify your portfolio by investing in different cryptocurrencies. This way, you won't be putting all your eggs in one basket, mitigating the risks."
- Haikal, 37
3. "Be mindful of the platforms that you invest with"
"There are a bunch of different platforms, and many of them are not regulated. This means the money you worked hard to invest could very easily disappear if the platform decides to close in Malaysia.
"Choose ones that are regulated by the Securities Commission (SC), our country's capital market regulator."
- Bernard, 24
4. "Do your research about what currencies you want to invest in"
"Basically, look for coins that promise longevity and value in the long term.
"Also, the amount you set into crypto should match your risk appetite. Whatever amount you invest should be something you are comfortable with and not based on what others practise."
- Hilman S., 29
5. "My personal advice would be to use the dollar-cost averaging (DCA) method"
"DCA is especially useful if you don't keep up with current market trends, macro economy updates, consumer price index meetings, etc. Just invest the same amount on the same day every month consistently.
"This advice is particularly for investors who believe in long-term investment and have no time to take profits in between."
- Shannon, 27
6. "Always remember to take profit. The most common strategy for risk management is to always take the capital out, especially for coins that you want to hold long term."
"For example, if you invested RM5,000 several months ago on coin X and the value doubles to RM10,000 today, it's always a good idea to take out your RM5,000 capital and ride the rest.
"If the coin continues to go up, you will continue to make money. But if one day the coin goes to zero, you lose nothing because you have cashed out your capital."
- Zhiyuan, 35
7. "Always be vigilant about your passwords and keys"
"Write them down physically on a piece of paper. Never ever share them with anyone.
"Today, scammers are abundant and you must be careful about any unfamiliar links, apps, or downloads. So keep your security information very safe."
- Hilda, 29
We hope the tips and advice shared were helpful! But of course, it's still important that you do your research and where necessary, consult a crypto professional.
If you're looking for a highly recommended platform to begin your crypto journey, look no further than Luno, a platform that teaches Malaysians about crypto and provides them with a safe and secure way to invest in it
SC recognises Luno as a market operator for cryptocurrency. This means that you can rest assured that the crypto exchange company meets the requirements and follows all guidelines that have been set by SC.
What sets Luno apart from the rest is that when you invest with them, you can expect three things — security, compliance, and transparency. Luno wants to make investing in crypto simple for everyone, but they also always ensure that all investments made are kept safe and secure, comply with all regulations and requirements, and that all crypto stored are regularly verified by independent auditors.
The best part? Luno is a great platform for crypto beginners, providing basic lessons, advice, and more to those who sign up with them. In fact, you can start investing from as low as RM1.
Luno currently offers the following approved cryptocurrencies that can be purchased in ringgit: Bitcoin, Ethereum, Bitcoin Cash, XRP, Litecoin, Chainlink, Uniswap, Cardano, and Solana.
However, many Malaysians are less than aware of crypto, and Luno wants to help.
They recently initiated Move with Luno, a campaign to help Malaysians better understand the emerging digital asset class, as well as empower them to get started on investing.
According to Luno, roughly 80% of Malaysians converse in Bahasa Malaysia — and Luno is making it their mission to deliver crypto news and information in the national language across the country, visiting states such as Kedah, Johor, Pahang, and Negeri Sembilan, among others.
Besides that, Luno also engaged their brand ambassadors, Pandelela Rinong and Zaquan Adha, to share their personal financial journeys.
Overall, these steps help Malaysians develop a stronger understanding of cryptocurrency, and most importantly, dispel common misconceptions about cryptocurrency.
But that's not all Luno is doing. They also recently launched Mamak Table Talkers, an interactive game that can be played by scanning a QR code that has been placed on tables at mamaks nationwide.
The mamaks include Ali Maju, Syed Bistro, Ali's Corner, Asri Rosmerah, and more in the Klang Valley, Penang, and Johor.
All you need to do is head over to these places with your friends, family, or even colleagues and scan the QR code, which will lead to a simple quiz about crypto. This will spark conversations about the topic, thus, increasing awareness and by word-of-mouth!
Or, if you prefer to play the game from the comfort of your own home, it can be accessed here too.
