Lavida Coin – 3 Things You Must Research Before Investing
Artikel ini juga tersedia dalam Bahasa Melayu
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Recently, Datuk Seri Vida launched her own cryptocurrency called Lavida Coin. She claims to have been involved in crypto investment for two years, with highly profitable results.
Before you rush to acquire the Lavida Coin cryptocurrency, it is wise to first study the key aspects surrounding cryptocurrency and the technology behind it.
Bitcoin, one of the most popular cryptocurrencies, reached a peak of USD 19,800 per bitcoin in December 2017. That was an increase of over 17,000% compared to its 2013 price. However, since that all-time high, it has dropped to USD 6,700 per bitcoin at the time of writing. That is a decline of over 66%.
Cryptocurrency is a digital currency originally designed as a medium of exchange, much like paper money. However, unlike paper money that you can see and hold, cryptocurrency exists only in the digital world!
It uses cryptography (encryption) to secure and verify every transaction, as well as to control the creation of new cryptocurrency units. In other words, the number of cryptocurrency units is limited and cannot be altered because it is protected by cryptography.
Blockchain is a combination of "blocks" linked together through cryptography. Each block contains a "cryptographic hash" of the previous block, transaction data, and a "timestamp".
With the blockchain design, data within each blockchain is also immutable. It is regarded as an excellent technology for recording transactions between two parties because it is permanent and easy to verify.
We believe that before getting involved in any type of investment or financial product such as Lavida Coin, everyone should study these 3 key aspects:
For Muslims, the first thing to examine before starting any investment is the religious ruling (hukum) of the financial product. A financial product must be free from elements of riba (usury), gharar (uncertainty), and maisir (gambling).
There is no issue with stock investment because we are well aware that every 6 months, the Securities Commission Malaysia releases a list of Shariah-compliant and non-Shariah-compliant stocks. Our responsibility as Muslim investors is to only hold Shariah-compliant stocks.
Furthermore, Bursa Malaysia has introduced Bursa Malaysia-i, the world''s first Shariah-compliant trading platform. Here, investors can choose to invest solely in Shariah-compliant stocks traded on both the Main Market and ACE Market through an "Islamic Participating Organisation (Islamic PO)". For your information, Malacca Securities is one of the Islamic POs. Open your Islamic MPlus CDS account here.
Unlike stocks, there is no specific fatwa issued by any authority in Malaysia to determine the halal or haram status of cryptocurrency. Therefore, we believe that until there is a clear ruling on this currency, particularly Lavida Coin, it is best to stay away for now.
Before starting any investment, we must ensure that the investment or financial product is legitimate and lawful. This is to protect ourselves from fraud and to be covered by the law should anything go wrong.
In Malaysia, we have the Securities Commission that monitors company activities and trading activities on Bursa Malaysia. Every transaction or activity by listed companies on Bursa Malaysia must comply with established regulations.
Unlike stocks, cryptocurrency has no regulatory body overseeing it, and you are not protected by the law. If you wish to purchase cryptocurrency, make sure you conduct extremely thorough research first. This is to ensure that the scheme you are participating in is a genuine cryptocurrency exchange and not a scam or MLM using the cryptocurrency name.
There is no free money in this world. Every investment comes with risk. We are well aware that stocks are a high-risk investment. The same applies to cryptocurrency. It is also a high-risk investment where you can achieve multi-fold returns.
In any high-risk investment, make sure you only invest your surplus money and are prepared to lose it should you incur losses.
If cryptocurrency proves to be the currency of the future, it is entirely possible for its value to increase every year due to high demand. However, if cryptocurrency turns out to be nothing more than a digital illusion and is no longer relevant, be prepared to lose all the money you have invested!
We are not against cryptocurrency; in fact, we greatly admire the technology behind it, especially Blockchain. However, as wise investors, it is prudent to adopt a cautious approach. Ensure there are clear guidelines before starting any investment. At this time, we do not see the need to invest in Lavida Coin as its status remains questionable.
If you are a stock investor or trader, it is better to focus on improving the skills you already have rather than getting caught up in schemes with uncertain returns. As the Malay proverb goes, "What you chase you don''t get, what you carry falls away..."
Cryptocurrency is a digital currency that uses blockchain technology. Unlike stocks that represent ownership in an actual company, cryptocurrency is not necessarily backed by physical assets or a business.
Key risks include the lack of clear regulation, potential for scams, extreme price volatility, and the possibility of losing your entire investment if the project fails or turns out to be illegitimate.
Check the project''s whitepaper, the founding team, the technology used, the regulatory status with authorities such as the Securities Commission Malaysia, and whether the coin has genuine utility.
Yes, the Securities Commission Malaysia regulates digital asset exchange platforms. Only registered and approved platforms are legally permitted to operate. Investors must ensure they use a licensed platform.
As a wise investor, it is important to conduct thorough research before investing in any asset, including cryptocurrency and stocks.
Please register a CDS account through Mahersaham to start investing in stocks on Bursa Malaysia, which is more regulated.
Get the free Stock Basics Ebook to learn the fundamentals of safe and regulated stock investment.
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