As one of the top economies in the world, Singapore is buzzing with a lot of action in the money markets. This is no different with cryptocurrencies which is already taking the world by storm.
Cryptocurrency Dominating Investment in Singapore
Cryptography is the platform responsible for cryptocurrencies where it involves the trading and transferring of digital money. Singapore, being one of the most digitized economies in the world has a very vibrant market and community of investors in this market. This wave has traveled the world over and if you are in Singapore and seeking to invest in cryptocurrencies, then here are some information that might help.
Essential information about cryptocurrencies
First and foremost, you should identify which cryptocurrency you want to trade. You can choose one or more currencies as there are currently thousands in the market across the world. Take note that beginners are often advised to use those that are established like Bitcoin (BTC) or Ethereum (ETH).
Take note that most (not all) cryptocurrencies usually run on Blockchain Technology. This is one platform where data is not processed in a central location. Data is distributed which are unique and never replicated. With this, it ensures that the cryptocurrency units can never be reproduced but they could be tracked and traced. If implemented successfully, cryptocurrencies could well be the currency of the future. In fact, there are already places like restaurants and retail stores that have started accepting cryptocurrencies.
Kickstart your cryptocurrency investment with the following
As mentioned, there are thousands of digital currencies in the world. If you are a beginner, start with those that are renowned like those listed below:
- Bitcoin – The original and most popular. It has already been accepted in certain businesses
- Ethereum – This is used in the Ethereum blockchain that runs on the Ether name
- Ripple – One of the digital payment technologies that use its own XRP currency.
- Dash – An acronym for Digital Cash known for its low transaction fees
- Litecoin – Similar to Bitcoin as it was modeled after the original cryptocurrency
Major cryptocurrency trading platforms in Singapore
Singapore, like other economies, provides you with the same 2 methods to obtain cryptocurrency. You can either buy it from an exchange (sometimes called a trading platform) or you can mine your own coins. Below are some of the known exchanges available in Singapore.
- Coinbase – This exchange supports BTC and ETH among others. In Singapore, the users can buy digital assets but they are not allowed to sell them
- CoinHako – Comes with 1% transaction fee and supports Bitcoin Cash besides BTC and ETH
- Indacoin – One of the top exchanges which support many cryptocurrencies including BTC, ETH, NEO, VeChain, Qtum and all.
- LocalBitcoins – A common name which does not have any transaction fee for buying but 1% for selling. Supports Bitcoin and allows traders to connect directly
- Coinmama – This exchange supports BTC, ETH, Ethereum Classic, Bitcoin Cash and Litecoin, among others. The commission is about 6% and another 5% if you use a card.
- FYB-SG – Singapore based exchange that supports BTC with a very low transaction fee at only 0.6% for every trade
What happens next?
You must first set up an account with any of the exchanges (not only limited to those mentioned). Once your account is set up, then you are ready to trade. Take note that you must emphasize security. Most exchanges will require you to go through the 2FA or Two-Factor Authentication process which is the current buzzword in security. This is where you are actually using the money to buy currency. In Singapore, you can pay for the purchase either by:
- Debit or Credit Card
- Bank transfer
Look at the fees that are charged for the transactions when you buy the currency. Find the most value for money and decide. Do not be over gullible and take the cheapest as it might not be the most reliable. From here, you can then start trading by buying or selling the cryptocurrency you have chosen. The exchange is like the market for you to trade. Then, you need to consider your wallet. This is like your portfolio that keeps everything about your trade.
Crucial information about trading cryptocurrencies in Singapore
Here is some very good advice when you trade cryptocurrencies in Singapore.
- Currency exchange – Some exchanges do not accept SGD or Singapore Dollars. That means there will be a conversion of the currency rate. Check the rate before you decide
- Trading – This is very much like trading forex or share
- Volatility – Like any other money market, this market is very volatile. The risk is high.
- Regulation – In Singapore, cryptocurrencies are not as regulated as some other economies. To date, there are still no efforts to regulate this in Singapore. That means the risk becomes a lot higher
- Leverage – Leverage trading in cryptocurrencies is a bad idea. Do not invest using the money you do not have to hope that you might earn it
Monumental movement of cryptocurrency mining
You would probably have heard of this by now. Mining your own cryptocurrency is one of the strongest waves in the global market. China has one of the largest community of miners while many other economies are following suit. In Singapore, mining cryptocurrencies are very common and the Ethereum is the most popular currency here which is being mined. This is one exercise that requires some big investment before you start. Basically, you need specialized computers with very powerful Graphical Processing Units (GPUs). These machines are known as rigs. There are specialized computers that are designed for this which makes it very easy for beginners to start. You will have to leave the machine running 24/7 which might get you about SGD350 monthly. Apart from that, you might need the following:
- Space – This refers to the physical space or a large room which runs like a data farm.
- Overheads – You will need to pay for rental and utility bills to maintain the machines
- Software – When you buy the mining rig, they usually come with the specialized software pre-installed
- Air-Conditioning – Since your machine will run 24/7, you need a good cooling system to avoid overheating
- UPS – This is to ensure that your rig will continue to run even if there is a short-circuit or outages
- Connection – As cryptocurrency runs on the internet, your machine must be online 24/7