Advancement in technology has led to the development of paperless and bankless currency known as cryptocurrency. Cryptocurrency is a digital or virtual currency whose encryption strategies are used to regulate the generation of units of currency and verify the transfer of funds. Besides, it uses cryptography to secure and verify transactions, and it operates independently of the central bank.
In recent years, Singapore has developed a robust economy with a friendly investment climate, enthusiastic environment, and a high level of education and welfare. With these advantages, Singapore has legalized cryptocurrencies exchange and trading to encourage investment of more companies that work with bitcoins.
In 2014, Singapore was one of the first countries to begin regulating cryptocurrencies trade by treating bitcoins as “goods.” This meant that cryptocurrencies trade was subjected to taxing under the Goods and Services Tax Act. In November last year, the central bank of Singapore developed a regulatory framework that aims at protecting cryptocurrency against counter terrorism financing and strength cybersecurity.
Is Singapore A Breeding Ground Of Cryptocurrency?
Singapore is well known for its tremendous support for crypto-related technology and financial technology innovations. Travel agencies such as singapore-visa.net will help you get your travel documents without too much struggle. What’s even more interesting, Singapore is making it easy for foreign investors to shift base and set up shop within the city state.
According to research, over 630 companies in Singapore have embraced cryptocurrency trading. Furthermore, the island country came up with “Token Day” to celebrate ten years of cryptocurrency and more so to show the world the potential of cryptocurrency trading.
The Monetary Authority of Singapore (MAS) aims at developing a payment services bill (PSB), which will require crypto payment service providers to have a license for their operations. This is intending to regulate the industry more friendly and competitive to new crypto investors.
Cryptocurrency requires a solid foundation on blockchain technology which Singapore has heavily invested. Lately, the Singaporean government has been more than will in encouraging more people to embrace cryptocurrency due to its volatility.
According to studies, adoption of cryptocurrency in Singapore will lower the unemployment rate by 50 percent. Moreover, with many countries yet to legalize crypto, Singapore is expected to reap substantial economic benefits from cryptocurrency trade.
What You Need to Know About Cryptocurrency Trading
Cryptocurrency trading is the buying and selling of cryptocurrencies to make profits; hence, the rates fall or rise, and its tools, terminologies, and methods of analysis are similar to those of the forex market.
Here are some steps to help you begin cryptocurrency trading;
· Study and understand terms used in cryptocurrency.
· Select a cryptocurrency platform the register on different cryptocurrency trades or with forex brokers.
· Familiarize yourself with the terminal and the cryptocurrency terms and conditions of trade.
· Establish your strategy for trading cryptocurrency to avoid instances of extreme losses.
· Analyze and select your cryptocurrencies for trading.
· Regarding your analysis, hunt for entry points into the market then calculate and set the maximum loss allowed to open a single operation.
· Wait for the appropriate moment to trade.