NOTICE
A change is come. My portfolio updates will from May 2021 be updated in a different page.
My portfolio on Luno can be found hERE.
My portfolio on Binance can be found hERE.
Why Bitcoin?
I’ve been monitoring cryptocurrencies, especially Bitcoin on and off for a few years now and I have my reasons for investing in it.
My first venture into cryptocurrency was back in December 2018. I invested USD 288 (or approximately RM1,256) back then.
In my review of Luno in August 2020, my portfolio stood at RM3,808.
Cryptocurrency investment has been one of my biggest regrets. I regret not having put more money here. Of course, hindsight is always 20-20 but nonetheless, it is one of many regrets for me.
Bitcoin as a Store of Value
Firstly, I see bitcoin as digital gold. As we transition to a digital economy, bitcoin will eventually challenge gold as a global store of value.
Like gold, bitcoin is limited in its supply. Bitcoin is limited to only 21 million. Forever. Not only is bitcoin scarce and durable like gold, but bitcoin also improves upon many of physical gold’s characteristics. Bitcoin is divisible, verifiable, portable, and transferable.
If bitcoin were to take just a 10% share of the physical gold market, we could see its value increase 5X to $1 trillion.
With the continuous printing of money, bitcoin has been viewed as an asset similar to gold in the modern world as a hedge against inflation. A good article on this can be read hERE.
Bitcoin’s Potential
My next reason for investing in bitcoin is its sheer potential upside. There are many theories and thoughts on bitcoin’s adoption as a currency. Or even as a global settlement network for banks as businesses.
We’ve already seen PayPal recently move in that direction. Payment systems like Square Inc have bought into bitcoin. The potential is there. Unlike gold, gold has already plateaued whereas bitcoin’s potential is still vast.
I’ll be looking closely at Bitcoin and Ethereum especially moving forward. Although volatile in nature, with bigger upside potential, I’ll prefer buying Bitcoin to Gold when it comes to hedging.
Taxes on Bitcoin and Cryptocurrencies
In Malaysia, you’ll pay no taxes in general for investing in and holding Bitcoins and other cryptos long term. Like stocks, we don’t incur capital gains taxes as a Malaysian when the value of Bitcoins goes up.
However, if you’re a frequent trader, you will be liable to be taxed as a business. Of course, at the end of the day, it is best to check with LHDN.
My Crypto Portfolio Update
April 2021
April update 🚀
Gross investment: RM10,273
Market value: RM72,058
Capital gain: +601.43%
So I’ve sold RM20,050 worth of Bitcoins last month and transferred it out. Profit has already been locked in. As such, I’ll be reducing an equivalent amount in gross investment, bringing the new number to RM10,273 instead of the previous RM13,808. With these new figures, we can see quite clearly that I’ve made 7X my capital investing in cryptocurrency.
The RM20K I transferred out will be invested in crypto on another platform. I will be looking to try staking my coins in the near future.
If you are looking to use Luno, make use of the following code – LNDVDMAGIC50 , you will get RM50 worth of Bitcoin when you buy RM500 or more.
Crypto has and always will be extremely volatile. Remember to always DYODD. Onwards and upwards!
Where I Store My Bitcoins
Luno Malaysia
As mentioned in my earlier posts, I’ve moved all of my crypto holdings to Luno. I used Exodus as a wallet and exchange prior to Luno.
Luno works well for me as it not only lets me store my coins but is an exchange as well. Being a Malaysian and with Luno being given the nod by our own Securities Commission to operate in Malaysia, I’m going with them.
If you are looking to move to Luno as well, make use of the following code – LNDVDMAGIC50 , you will get RM50 worth of Bitcoin when you buy RM500 or more. That’s an instant 10% return on your investment.
My review on Luno can be found hERE.
The full promo rules can be accessed hERE.
Please go through them carefully to meet the criteria for that RM50.
It is important to note that I view cryptocurrencies as a form of investment. I don’t intend to use my Bitcoins in Malaysia to purchase goods and services. I do however am keeping tabs on developments in that sector as it will have an impact on prices.
As with all things internet, I urge you to set up 2FA authentication. Especially if you’re planning a significant investment into cryptocurrencies.
Binance
I have also in May 2021, moved a small position of my crypto portfolio to Binance. The main objective is to try out the exciting world of DeFi and earn returns via savings and staking my coins.
The article on my move to Binance can be found hERE.
Final Thoughts.
I’ll be moving more of my cash into Luno and increasing the size of my crypto portfolio in the future when the price is right. At least that’s the plan right now.
Just as how I prefer to purchase a mother share over warrants and how I prefer to buy shares of the main company over its subsidiaries, I’ll be focusing more on Bitcoins compared to other coins.
As always, Facebook, Instagram, and now YouTube! Follow, keep up to date.
Previous Updates
March 2021
March update 🚀
Gross investment: RM13,808
Market value: RM78,330
Capital gain: +467.28%
Oh what regret to have sold at the RM200,000 range earlier in February. I’ve got about RM20,000 just sitting in Luno right now. =(
February 2021
February update 🚀
Gross investment: RM13,808
Market value: RM63,492
Capital gain: +359.82%
Sold 0.1 Bitcoin when it was at the RM200K range. Will be looking for an opportunity to head back in the future.
January 2021
Gross Investment: RM13,808
Market Value: RM48,754
Capital Gain/Loss: +253.08%
December 2020
RM111,907 per Bitcoin. I actually made a short term trade, selling at RM79K and buying again at RM77K. A little profit there to add to my crypto portfolio.
Gross Investment: RM13,808
Market Value: RM34,424
Capital Gain/Loss: +149.30%
Of course, a little remorse and regret at not having put a little more money in. But, seeing as it is within my target of 1-10% of my investment portfolio, I’m grateful.
November 2020
So! All time high. What now?
Got another 50% in a month. Bitcoin has reached its previous historical peak. So moving forward, depending on how the market moves, I will react accordingly to either sell or continue to HODL!
Gross Investment: RM13,808
Market Value: RM25,420
Capital Gain/Loss: +84.10%
October 2020
With the increase in Bitcoin prices recently, I’m excited to update this.
During the month of October, in line with my investment goal of having cryptocurrency make up about 1-5% of my portfolio, I added RM10,000 to Bitcoin and Ethereum. This resulted in an increase in my gross investment from RM3,808 to RM13,808.
Gross Investment: RM13,808
Market Value: RM18,088
Capital Gain/Loss: +30.99%
Bitcoin’s price today is at RM57,490 per bitcoin.
My total crypto portfolio value in Luno is RM18,088.
Comprising of:
- 0.1962 BTC – RM11,285
- 3.1900 ETH – RM5,150
- 0.003866 BCH – RM4.23
- Cash – RM1,648
September 2020
I’ll calculate my gross investment as RM3,808. It’s a rough estimate as this includes mining and unfortunately, I did not keep track of those properly back when I started in 2019.
Gross Investment: RM3,808
Market Value: RM5,528
Capital Gain/Loss: 45%
Bitcoin’s price today is at RM44,876 per bitcoin.
My total crypto portfolio stands at RM5,528.
It comprises of:
- 0.083395 BTC – RM3,742
- 1.200000 ETH – RM1,781
- 0.003866 BCH – RM4
