A Beginner's Guide: Investing Bitcoin In Vietnam

Investing in Bitcoin in Vietnam is a simple process. There are several trusted online cryptocurrency exchanges operating in Vietnam, including BitcoinVN, VBTC, Binance, Coinmama, Kraken, Paxful, LocalBitcoins, OKCoin, Changelly, and Bittrex. These platforms allow users to buy, sell, and trade Bitcoin and other cryptocurrencies. To get started, users need to register with an exchange, complete a Know Your Customer (KYC) process, deposit funds, and then buy the desired cryptocurrency. It is important to note that users should withdraw their Bitcoin to a secure personal wallet for optimal security.

Exchanges: Binance, BitcoinVN, VBTC, and more

There are several exchanges available for buying and selling Bitcoin in Vietnam, each with its own unique features, security measures, and payment methods. Here is an overview of some of the most popular options:

Binance

Binance is one of the world's largest and most popular cryptocurrency exchanges, offering a wide range of cryptocurrencies, low trading fees, and advanced trading features. It is available in Vietnam and accepts users and payments from 192 countries. Binance provides two-factor authentication and offers both multi-signature wallets and cold storage options for added security. The platform also supports various payment methods, including credit and debit cards, bank transfers, and more.

BitcoinVN

BitcoinVN is Vietnam's first cryptocurrency exchange and is considered the most popular option in the country, with 76,000 users. It offers an easy way to buy and sell Bitcoin and other digital assets in Vietnam. BitcoinVN provides multiple payment options, including bank transfers and cash. As of July 2024, information about its security features was not available.

VBTC

VBTC is a Vietnamese Bitcoin-only exchange founded in 2014, facilitating BTC/VND trading. It is a member of the global BlinkTrade network, which includes reputable exchanges from several countries. VBTC claims that Bitcoins are stored in a multi-signature cold storage wallet, away from the servers of the exchange, providing an extra layer of security. The exchange offers maker and taker fees of 0% and 0.25%, respectively.

In addition to the above, there are other exchanges available in Vietnam, such as Coinmama, Kraken, Paxful, LocalBitcoins, OKCoin, Changelly, and Bittrex. Each of these platforms has its own unique features, supported payment methods, and security measures. It is important to research and choose an exchange that aligns with your specific needs and requirements.

Payment methods: bank transfer, card, cash

When it comes to investing in Bitcoin in Vietnam, there are several payment methods you can use, including bank transfers, cards, and cash. Here is a detailed guide on how to use these payment methods to invest in Bitcoin:

Bank Transfer

To use a bank transfer to invest in Bitcoin in Vietnam, you can use a peer-to-peer exchange like BitcoinVN, which allows users to buy, sell, or swap between various assets, including Bitcoin (BTC), Ethereum (ETH), and Vietnamese Dong (VND). First, you will need to sign up for an account on the platform and complete any necessary verification processes. Then, you can initiate a bank transfer from your Vietnamese bank account to the exchange's account. Once the funds are deposited into your exchange account, you can use them to purchase Bitcoin.

Card

Using a credit or debit card to buy Bitcoin in Vietnam is another option. Some cryptocurrency exchanges may accept card payments directly, allowing you to purchase Bitcoin instantly. Make sure to check the supported payment methods and card types (Visa, Mastercard, etc.) with the exchange you choose. As with bank transfers, you will need to create an account and verify your identity before making any purchases.

Cash

For those who prefer anonymity or want to avoid bank involvement, investing in Bitcoin with cash is an option. You can attend local Bitcoin meetups and events, such as the Vietnam Bitcoin Cash and Crypto Meetup in Ho Chi Minh City, where you can connect with other crypto enthusiasts and find opportunities to buy or trade Bitcoin directly with cash. These events provide a great platform to learn, network, and explore the potential of Bitcoin Cash as a global electronic cash system.

Security: use a non-custodial wallet

When investing in Bitcoin in Vietnam, it is important to prioritise security by using a non-custodial wallet. Non-custodial wallets are a type of crypto wallet where the user has exclusive access to their private keys and, therefore, complete control over their assets. This is in contrast to custodial wallets, where a third party controls your private keys.

Non-custodial wallets are often regarded as more secure because they give users the freedom to be their own bankers. However, this freedom comes with more responsibility. If you forget your password on a custodial wallet, it can be easily reset. But if you lose your hardware wallet or private key associated with a non-custodial wallet, you may lose access to your funds permanently.

There are several types of non-custodial wallets available, including software and hardware wallets. Software wallets store and encrypt private keys on a computer hard drive, while hardware wallets resemble USB thumb drives and are only online when connected to a computer or mobile device. This makes non-custodial hardware wallets virtually impossible for hackers to penetrate.

Some of the most popular non-custodial wallets include the BitPay Wallet, Trust Wallet, Electrum, Exodus, MetaMask, and Ledger Nano X and Nano S. These wallets offer features such as multi-signature support, hardware wallet integration, and compatibility with multiple blockchains and digital assets.

It is important to note that non-custodial wallets require more technical knowledge to use compared to custodial wallets. Additionally, they may not be suitable for those who cannot handle the sole responsibility of storing and safeguarding their private keys.

Verification: Know Your Customer (KYC) process

The Know Your Customer (KYC) process is a mandatory verification procedure that involves identifying and verifying the identity of clients when opening an account and periodically over time. This process helps to ensure that the person applying for an account is who they say they are and reduces the risk of illegal activities such as money laundering and tax evasion.

In Vietnam, the KYC process is a legal requirement for almost all exchanges. To complete the KYC process, you will need to provide a form of photo identification, such as a passport, national identity card, or driver's license. Your verification will then be approved, usually instantly or within 1-2 days.

Some platforms, such as Paxful, a leading peer-to-peer Bitcoin marketplace, have KYC-verified sellers, providing an extra layer of security for buyers.

It is important to note that the KYC process may differ slightly depending on the exchange you choose, and it is recommended to use a private and secure internet connection during this process.

Additionally, while it is possible to buy Bitcoin anonymously in Vietnam using P2P exchanges, these options are generally less user-friendly and more suitable for advanced users.

Anonymity: use P2P exchanges like Paxful

If you want to invest in Bitcoin in Vietnam while maintaining anonymity, you can use peer-to-peer (P2P) exchanges such as Paxful. P2P exchanges allow you to buy and sell cryptocurrencies directly with other users, providing more flexibility and privacy compared to traditional centralised exchanges.

One of the key advantages of P2P exchanges is that they support a wide range of payment methods beyond traditional bank transfers and credit/debit cards. For example, Paxful allows users to pay with cash, online wallets, gift cards, and various other options. This makes P2P exchanges ideal for those who want to remain anonymous or have limited access to traditional financial services.

When using a P2P exchange like Paxful, you can shop around for the best rates and interact directly with the seller. The exchange acts as an escrow service, holding the cryptocurrency in a secure third-party account until the seller receives payment. This helps to ensure the safety of the transaction for both the buyer and the seller.

It's important to note that P2P exchanges may have a steeper learning curve compared to traditional exchanges, and they may not offer the same level of speed and convenience. Additionally, while P2P exchanges do not charge fees for buying or selling, there may be escrow fees involved, and the rates set by sellers are typically higher than the market rate.

In Vietnam, Paxful is a viable option for anonymous Bitcoin trading, as it is available worldwide, including in the US. However, it's always a good idea to research multiple P2P exchanges, compare their features, and choose the one that best suits your needs. Other popular P2P exchanges include LocalBitcoins, KuCoin, and Binance P2P.

Frequently asked questions