Bitcoin in Vietnam is a hot topic these days. Despite opposition from the banks and government, there’s still a thriving cryptocurrency market with lots of promise.
Bitcoin is growing in value all the time, which makes it an ideal opportunity for investors to make money. At the time of writing, a single Bitcoin is worth 338 million Vietnamese Dong (if you want to trade Bitcoin VND is accepted on many platforms).
In 2017, 7,000 new Bitcoin mining rigs were set up in Vietnam, and 5,000 of these came in after November. This suggests a huge amount of activity in Vietnam’s Bitcoin economy.
Because of the strong stance the banks have taken against cryptocurrency in Vietnam, it’s important to get to know the rules first, but buying and selling Bitcoin in the country can be highly rewarding.
Things to Know Before You Get Started
Bitcoin is becoming heavily regulated in many parts of the world, and Vietnam has recently taken some steps in this direction. As of 2018, it is illegal to use Bitcoin to pay for things in the country.
Anyone breaking this law is liable to face a large fine and maybe even imprisonment. This means it’s very important to be careful and understand the law when dealing with Bitcoin in Vietnam —but it doesn’t mean that it’s illegal to invest in Bitcoin in Vietnam.
The law doesn’t prohibit investing in Bitcoin — just don’t use it to buy products and services in Vietnam. Also, new legislation as part of a wider economic upheaval will attempt to tax Bitcoin assets in the country, so make sure you pay what you owe.
Support for Bitcoin in Vietnam
While the government might be against Bitcoin, the good news for investors is that there’s still a large community of Bitcoin enthusiasts in Vietnam. There are four Bitcoin ATMs in the country, all located in Ho Chi Minh City.
There are also plenty of online resources where Bitcoin fans can interact and share ideas. These include a number of Facebook groups, and forums like the Vietnam branch of Bitcointalk. There are also several platforms so if you want to buy Bitcoin online Vietnam is well prepared.
Some shops in the country also accept payments in Bitcoin, although it’s worth noting that this is now illegal and it’s unclear how the new laws will deal with these businesses. Remember, if you wish to purchase in Bitcoin Vietnam may not be the best place to do this.
However, if you’re careful and responsible and wish to invest in Bitcoin Vietnam is perfectly fine.
Vietnam’s recent laws focus on Bitcoin, although they probably apply to all other cryptocurrencies too, so exercise caution.
While Bitcoin is the most well-known and valuable cryptocurrency, there are many others that are worthy of investment. These include Ether (ETH), Ripple (XRP), and Litecoin (LTC).
These are good choices because they’re fairly stable and reliable, and likely to grow in value. There are also many other, less well-known cryptocurrencies which might not be such a good choice, because they’re more likely to fail and lose value.
How to Buy Bitcoin in Vietnam
There are two main methods for those who wish to purchase Bitcoin in Vietnam, and the one you use will depend on your preferences and reasons for buying. If you want to buy Bitcoin online VND is accepted in some places but not all.
The two options are to buy as a CFD, or to buy directly from an exchange. Each has its own pros and cons, which will be covered in the next section.
Buying Bitcoin as a CFD in Vietnam
CFD stands for ‘contracts for difference’, and it’s a way of trading that is traditionally used for stock market exchanges. It’s a good method for beginners because of its safety and simplicity.
Why choose the CFD method?
When you buy Bitcoin as a CFD you can trade on leverage. This means you don’t have to put down the full amount of the trade when you buy, just a fraction of it. The benefit of this is that you can share your money over multiple trades.
You’re exposed to the liquidity of two markets. In simple terms, this means that it’s much easier to sell your coins and leave a market (it can happen straight away). With other methods you may have to wait a while for somebody else to buy your Bitcoin.
There’s a lot of regulation, and powerful organisations exist to enforce the rules with CFD trading. This means your risk of being scammed is lower than with other methods, and if something goes wrong you’ll get better help and support.
Finally, you can expect lower fees and more flexibility with payment methods.
Using eToro to buy Bitcoin
eToro is one of the best platforms out there when it comes to buying Bitcoin as a CFD. That’s because it’s very user-friendly, supports a wide range of payment methods, and has low fees.
This guide will explain how best to buy Bitcoin from eToro. It’s supported in Vietnam, as well as most countries in the world.
Step One – Join eToro by going onto the website and clicking the button marked ‘Join Now’, as shown here:
This will lead to a screen that looks like the one below. Here you must enter your name, along with a username and a password.
Step Two – get ready to trade. After signing up you’ll need to add funds to your account so you can buy Bitcoins. To do this, click the button marked ‘Deposit Funds’ in the bottom left corner of the homepage, which looks like this:
Thi1s will take you to a payment screen, where you can enter the amount of money you wish to deposit along with your chosen method of payment. One of the great things about eToro is the range of payment options. These include credit card, PayPal, and many others. Fill in your billing details.
eToro only works with a small number of currencies, and for those who wish to invest in Bitcoin VND isn’t one of them, but it’s easy to use another currency and work out the amount using a calculator or conversion tool.
For deposits over 2000 euros, you may be asked to provide identification.
Step Three – buy some Bitcoin from one of the markets. In the sidebar on the left hand side of the screen there is a ‘Trade Markets’ option. Click this to access the range of markets you can use. The best one for buying Bitcoin is the ‘crypto’ market. Click this one.
On the next screen, find Bitcoin and click the number marked ‘B’ at the end of the same row. This will take you to a screen where you can buy.
Almost there! On this interface, you simply need to enter the amount of Bitcoin you wish to purchase. You can also set a ‘stop loss’ amount and a ‘take profit’ amount to make the process more automated and easier.
Hit the ‘Open Trade’ button to finish the process. Congratulations! You just bought some Bitcoin as a CFD.
The downside to buying Bitcoin as a CFD is that you don’t actually own the assets. When you buy from an exchange or from another person, you’ll actually be the owner of the coins you pay for.
When buying from an exchange, there are many options available to you in Vietnam. There are Vietnam-specific platforms like VBTC, and plenty of international exchanges like Coinbase and Localbitcoins.
To get started in this process, one of the main things you’ll need is a cryptocurrency wallet.
Digital wallets don’t actually hold your coins. Instead, they’re home to two unique security keys (public and private) which you can use to access your coins and carry out transactions like buying and selling.
These come in many shapes and sizes, and the type you get will depend on how concerned you are about things like convenience and security.
Here are some of the main types of crypto wallet:
Online wallets — these are the kind you get when you sign up for an exchange. They’re based online, which means they can be vulnerable to hackers. On the plus side, they’re easy to access and manage.
Mobile wallets —these are stored on your phone, usually as an app. This makes them very convenient as you can access them from almost anywhere, and use them to make purchases in places like cafes and shops. However, they’re only as safe as your phone is.
Software wallets —these are stored on your computer, but offline. They’re sometimes called desktop wallets, and are safer than online versions because they’re tougher for hackers to access. The downside is that they aren’t as convenient.
Hardware and paper wallets —these are the least convenient types of wallet because they’re stored offline, away from the computer. Hardware wallets are kept on things like removable disk drives, and paper wallets are security keys printed onto paper. These are, however, extremely safe if you look after them properly.
Once you’re familiar with crypto wallets and how they work, you can begin the process of buying from an exchange. Fortunately this is quick and easy. The two main ways are to buy from a centralised exchange like Coinbase, or directly from another person on an exchange like Localbitcoins.
The second option has lower fees, but it’s important to make sure you’re trading with a trustworthy person.
Buying Bitcoin in Vietnam with Localbitcoins
Localbitcoins is a great way to trade Bitcoin in Vietnam because it’s user friendly and affordable. It works by connecting buyers and sellers of Bitcoin, and you can buy using the platform or by meeting in real life to pay in cash. It also uses Vietnamese Dong; whereas with many platforms if you want to purchase Bitcoin VND is not an option.
Step One – sign up to Localbitcoins by visiting the website and entering your name, email address, and a password.
Step Two – find a seller. Localbitcoins has a great search interface, where you can look for sellers based on their country, region, preferred payment method, and how much you wish to buy. Payment methods are always set by the seller.
You can select currency, and for buying Bitcoin VND is accepted on Localbitcoins.
The search results will show all the users who match your criteria along with some information. This is important because it shows how trustworthy they are — this will help you avoid scams.
The % number next to each user’s name shows their feedback score, so aim for users with the highest scores here. The number next to this one shows their number of completed trades. Again, higher is better.
The colour next to their name shows how quickly they usually reply. Green means less than five minutes, yellow means less than 30 minutes, and grey means more than 30 minutes. This is probably less important than the first two numbers, but worth checking if you want to urgently complete the trade.
Step Three – find a user who looks reliable and safe, and buy some Bitcoin! First check how much they’re selling the Bitcoin for (the number in green in the price/BTC column). Then, click ‘Buy’ to finish the trade.
Review the final terms and the seller’s profile, and then when you’re ready click ‘Send Trade Request’ to be taken to a payment screen.
Now you’ve finished the trade and successfully purchased Bitcoins from another person. There is a small transaction fee in order to pay the Bitcoin miners, but otherwise no costs.