How do I use bitcoin in Singapore?
Charles Cryptocurrency is big in Singapore right now. The promise of making money has lured many Singaporeans, from university students to professional traders, to invest in or mine cryptocurrency.
Cryptocurrency is basically digital currency that can be traded and transferred thanks to cryptography. The creation of new units can also be controlled, otherwise, the currency would quickly become worthless. The most famous of the cryptocurrencies is Bitcoin but it isn’t the only one.
What to know about cryptocurrency trading in Singapore
Once you are signed up to a platform, buying and selling cryptocurrency is no less complicated than buying and selling stocks or forex.
But before you start, there are a few things you should know about cryptocurrency trading.
Visit here to exchange cryptocurrency, zcash to paypal
Cryptocurrency markets are very volatilite
Cryptocurrency is possibly one of the most volatile assets you could invest in. Because the value of cryptocurrency isn’t based on fundamentals (like the value of a company in the case of stocks), it is very hard to figure out whether you’re getting a “good deal”. Thus, investor sentiments tend to fluctuate wildly.
Lack of regulation increases volatility
Cryptocurrencies are at present unregulated in Singapore and most of the world. The MAS has stated that it has no plans to regulate cryptocurrencies. One downside of this lack of regulation is greater market volatility and the potential for manipulation of the market. It is also discouraging big institutional investors, which in turn can contribute to greater market volatility.
Using leverage is a bad idea
Many professional traders use leverage in their trades. That means they are using credit—in other words, money they don’t have, to execute trades, in hopes that they will be able to earn more than they’ve borrowed on the trade. Needless to say, the risk is great, as a losing trade will mean you’re losing the money you don’t have.
In the world of cryptocurrency, margin trading on some platforms enables you to use leverage to trade cryptocurrency by buying with credit extended by your broker. But given the enormous volatility and unpredictability of the market, we strongly discourage you from doing so.