Dividend Magic

Saving and Investing towards Financial Independence in Malaysia

Luno

My Crypto Portfolio

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

Luno Malaysia Review

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

binance dividendmagic referral

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:

  1. 0.1962 BTC – RM11,285
  2. 3.1900 ETH – RM5,150
  3. 0.003866 BCH – RM4.23
  4. 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:

  1. 0.083395 BTC – RM3,742
  2. 1.200000 ETH – RM1,781
  3. 0.003866 BCH – RM4

Bitcoin Cloud Mining in Malaysia

By
Filed Under: Cryptocurrencies, Investment 38

Cryptocurrency in Malaysia

If you’ve heard of bitcoin, you would be privy to its meteoric rise in value.  If you could go back to 2010 and buy $1,000 worth, it would be worth an estimated $20 million right now.

I won’t be spending too much time explaining cryptocurrencies and Bitcoin here, an awesome guide has already been created by my friends Suraya from Ringgit Oh Ringgit and Aaron from Mr-Stingy.

Instead, I’d like to talk about something I’ve recently invested in – Cloud Mining! Also, we will not limit ourselves to only Bitcoin but other currencies out there as well.

Bitcoin Mining

So first thing’s first, what does mining these currencies entail?

From my understanding and to put it in layman’s terms…

Mining – like mining for gold. You do some work, and you hope to turn up something valuable. In this case, it’s bitcoins.

Mining computers and equipment everywhere in the world are taking in and recording Bitcoin transactions from around the world. They’re making sure that everybody has enough money to complete the transactions, and then they’re adding them to the list of all the bitcoin transactions that have ever happened.

Cloud Mining

Cloud Mining Malaysia

The main difference between traditional mining and cloud mining lies in who houses and maintains the mining hardware.

With traditional mining, you buy, set up and maintain the mining rigs. This requires extensive technical knowledge as well as adequate ventilation for cooling and will result in an increase in electricity costs.

On the other hand, with cloud mining, the mining rigs are housed and maintained in a facility owned by the mining company. The customer simply needs to register an account and purchase mining contracts or shares.

These mining contracts immediately start mining your cryptocurrency which is paid out to the user on a regular basis. The user does not have to concern him/herself with ordering, setting up or maintaining the mining hardware. Nor is the user required to fork out a substantial sum as initial mining investment. For as little as USD50, he/she can begin cloud mining.

A warning to everyone, cryptocurrencies in and of itself are extremely volatile and risky. Cloud mining adds to that risk because you’re placing your money with a company and trusting them to continue mining for the foreseeable future. As always, invest at your own risk!

My Investment

Just today, I’ve started venturing into cloud mining to test the waters. After some tedious research, I’ve decided to go with Genesis Mining. Why? Because they are the largest in the world.

I guess I like having a sort of safety net by investing in the biggest. 

Also, with Genesis, they have regular daily payouts and low maintenance fees.

From my research, I found mining alt coins like Dash (x11) to be more profitable. I intend to keep the currency and reinvest them into more raw MINING POWER! Eventually, exchanging them to all time reigning – Bitcoin. Why? Again, because they are the largest.

Bitcoin Cloud Mining Malaysia

Cloud Mining Malaysia
My Order – Use code promo code KT7r1S (3% off)

Cloud Mining Malaysia Pricing
Genesis Dash Pricing

Return on Investment (ROI)

I’m still waiting for the payout figures from Genesis. Updated figures will be published here for everyone that is interested.

I spent USD93.20 for that 15 MH/s of mining power. Initially, I wanted to go for the USD500 one for 100 MH/s but they’re limiting the amount to below USD100 per transaction.

Just a test run for now to familiarize myself with everything.

Risks

The main risk I’ve identified with Cloud Mining (as with everything else) is the price as well as the mining difficulty. It gets increasingly difficult to mine coins as the number of transactions goes up and more and more people get into mining.

My USD93.20 lasts for 2 years. At current rates, I expect a full ROI in a year (I’m being conservative). However, if the price of my coins drop below the threshold of which I’ll be able to make a profit, I’ll then be stuck with a 2-year mining contract making a loss.

Getting Started

Cloud Mining on Genesis

It was pretty straight forward for me, I headed over to Genesis, registered for an account. Proceeded to select my package and paid with my credit card.

If you’re using Genesis as well, please go ahead and key in the following code: KT7r1S which gives you a 3% discount on your purchase.

Storing my Coins

Because I’m mining alternative coins like Dash (x11) and Ethereum, I opted to store on a multi wallet. I use Exodus. Their UI is awesome by the way.

So after, transferring and storing my alt coins on Exodus, I’ll then move it to a more local (Malaysian friendly wallet) – Luno.

Enter my promo code: LNDVDMAGIC50.  You can still enter the code after signing up. Inside your account as shown in the picture below.

Luno Promo CodeLuno Promo Code

End.

I know this is a move away from my usual investments in shares. However, as it is an (very risky) investment nonetheless for me, I’ve decided to put up a post on it.

I’ll probably be spending about RM5 – RM10K if all goes well with my initial investment.

I’m prepared to lose this money at the time of writing. 

A big thank you to Suraya from Ringgit Oh Ringgit for showing me the ropes and answering my newbie questions.

Thank you for reading!

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