In recent times, especially with the covid19 pandemic, cryptocurrency trade has been a centre of attraction. Bitcoin, in particular, has caught the interest of several investors and buzzed the financial market. As a digital currency, it has gained popularity during a time when most governments recommend digital payments.
Are you in a country where this currency is continuing to boom? Most enthusiastic Singaporeans now see investing in this crypto which is still favoured by non-interference from the government viable. Have you thought about investing in Bitcoin recently? If so, let’s discuss some hassle-free ways to figure it out.
1. Choosing a Storage
One of the greatest determinants of your success will be how you store the Bitcoins you have. That’s why it’s important to think about what type of wallet you want to choose.
There are multiple options that you can consider, and each has its limitations. The most common ones are; – hardware, desktop, mobile, paper, and web wallets. Most crypto experts recommend using the hardware wallets as they’re the most secure and hard to hack.
2. Where to Purchase Bitcoins
Of course, you can’t invest in what’s not available. You need to buy the coins to trade them. There are several options of doing so in Singapore, depending on the one you select. These include:
• Cryptocurrency exchanges. You can use the numerous exchanges that are available with some popular ones being Coinbase, Binance, and CoinHako.
• Bitcoin ATMs. There are over nine of these in Singapore where you can deposit cash that can be converted into BTC. If you need money to start this trade, lenders like Fortune Credit can help you.
• Peer-to-peer sellers who accept cash or any preferred payment in exchange for Bitcoin.
• You can also use money transfer services like Western Union or MoneyGram that facilitates the purchase of the cryptos.
Most traders prefer buying BTC from exchanges, and Singaporean users can opt for home-based or global platforms. The advantages of Singapore-based platforms include; – the ability to buy with SGD, support of local payment methods like direct bank transfers, better consumer protection if you lose funds, and access to close customer support.
3. How to Choose a Bitcoin Exchange
Several platforms available can make decision-making challenging. There are vital factors to consider in ascertaining their suitability. This is significant to your overall Bitcoin investment success. Below are the key factors:
• Geo-location and regulation. Find out where it is based and if it complies with the regulatory requirements of the country if any. Also, it should be applicable in Singapore.
• Fees. Check the fees charged and know the cost of a transaction. Some include trading fees, transaction fees, and deposit/withdrawal fees.
• Security. What security does the platform offer? Has it ever been related to any unethical activity or even hacking?
• Reputation. What do other users say? How are their reviews about the exchange?
• Transaction limits. Does the platform have minimum and maximum purchase limits? What is the restriction on the amount you can withdraw within a day or in a transaction?
• Reliable customer support. Can you easily and quickly contact the support team when you have a problem?
Whichever exchange you choose whether country-based or international, ensure you compare the alternatives based on the above elements before settling on which to use.
4. Things to Know Before Buying Bitcoin
It’s unwise to invest in shares without proper knowledge. Understanding the below facts about Bitcoin before buying:
• It’s not anonymous. Your public address and transaction records are visible to all. Privacy-focused coins like Monero can offer anonymity.
• BTC transactions can’t be cancelled. Double-check details before payment since after submitting, you can’t undo it.
• It’s volatile. Its value is prone to fluctuations as it can rise and fall sharply within a short period. It’s also highly unpredictable.
• Security is crucial. Knowing the variation in public and private keys plus the significance of safely storing it is essential to safeguarding your Bitcoin for a better investment.
Additionally, there are other alternatives to BTC, so there can be high competition even if Bitcoin is by far the most popular.
5. What Moves the Bitcoin Price
As there is a lot of uncertainty surrounding this volatile crypto, knowing how the prices change is instrumental in how you invest in it. Factors like Bitcoin supply, the BTC market cap (the market value and how precious it’s perceived), bad press, key events (like regulation changes or macroeconomic breaches), and its integration into new payment systems can affect its price.
6. Bitcoin Trading Strategies
To steer your Bitcoin investment forward, learn about the four strategies to consider using.
• Day trading. This involves taking a stand on short-term opportunities in light with developing news and closing the trade when the day ends.
• Swing trading. Appropriate if you wish to capitalize on opportunities from market momentum; know trends when they form, and hold onto them until the course is finished.
• Automated trading. For passive traders, you can automate the business process to respond to variable market situations on your behalf.
• Scalping. You can put regular, intraday trades on slight price movements.
7. Understanding Investment Strategies
Your success could be influenced by how you exploit the various investment strategies. You can buy and hold “holding on for dear life” with the belief that there will be long-term prosperity.
You can also do long positions on Bitcoin by buying it and selling at the end of a price rally and may include leverage trading or relying on the coin’s volatility for high profit if the market favours you.
Lastly, short positions on Bitcoin can also be ideal. This involves betting the Bitcoin’s value decreasing; you sell it a certain price, then try and buy it again at a lower one.
8. Managing Your Investment
Now that you have an idea of how to proceed, it’s vital to manage your investment and explore all the possible ways to earn from Bitcoin.
Find out more on which options will be most appropriate. Is it day trading, trading online, lending Bitcoin, accepting them as payment, or any other? Seeing your future with BTC as a digital currency depends on how you carry out the investment plan and manage it. Singapore will offer you the best crypto trade region; it’s you to play the cards well.
9. Diversify Your Portfolio
Having Bitcoin is like owning one commuter bus on the road; if something terrible like an accident occurs, you lose everything. Bitcoin is popular worldwide yes, but to progress well, try and venture in the other cryptos available too. Diversification is excellent after you’ve invested in Bitcoin; it will reduce risks that result from putting all resources in one basket.
10. Don’t Invest Blindly
Some people enter the crypto industry for the sake of it or because others are doing well. Know why you want to invest in Bitcoin first before you can figure out the whole process. Never stop learning about the trade, market trends and situations to discern if you’re fairing properly or not.
Above all, be cautious to only invest in what you can bear losing and whenever you lose, accept and move ahead instead of trying to compensate by putting in more money.
The Bottom Line
The Bitcoin business is a den of opportunities for the interested ones and those up to the task. Regardless of your experience, you can succeed in it. But, before that, it’s prudent to pause and think about the way forward. Indeed, you can figure out the investment in a no-fuss or trouble-free way if you consider the above discussion.