Cryptocurrencies are getting famous in Malaysia during lockdown!

The popularity of cryptocurrencies in Malaysia swells during lockdown

Many traditional investment strategies have become unworkable as the pandemic has sent stock indices spiraling downwards and limited the upward mobility of most fiat currencies. In April, two of Malaysia's government-approved crypto exchanges both experienced growth in local trading volumes ranging between 30% and 40%, a dramatic surge propelled by people's desire to find a safe haven in which to store value.

A time for traders to diversify

Many Malaysian traders have sought to diversify their portfolio and invest in cryptos for the first time, with Malaysia's crypto exchanges also witnessing a rise in new users signing up during the lockdown. The recent popularity boom of cryptocurrencies is not a phenomenon unique to Malaysia, given that the boom is a product of the effects of the pandemic that have been felt worldwide.

While the failure of mainstream markets has inherently made cryptos more attractive, there are also practical reasons for traders turning to cryptos during the pandemic. The new provision of weekend trading options means that cryptocurrency traders have access to markets all week, proof of digital assets' rising relevance. In the past, bitcoin traders had to wait until Monday's open to react to weekend news and adjust their position, but the availability and ease of Sunday trading gives more flexibility than ever - flexibility that is vital in a pandemic.

The possibility of weekend crypto trading is not the only practical factor driving traders towards cryptos. As demonstrated by the increase in new user registrations at Malaysian crypto exchanges, people have found themselves with more time to focus on new pursuits during the lockdown. Given the digital nature of crypto trading, getting to grips with currencies like bitcoin is a challenge well-suited to lockdown.

Reprint from Malaysia Sun, all copyright reserved by the original author.