Trading ETH to SGD
ETH to SGD pair includes the second most popular cryptocurrency and a fiat currency by Singapore, the country with relatively lax legislation for crypto. Also, the blockchain industry in Singapore is growing making the ETH to SGD attractive for traders.
ETH to SGD pair may move in a trending direction throughout the day with occasional price swings. Besides, ETH/SGD has attractive volatility as it may move up to 7 per cent in a given day. Throughout the month, ETH to SGD exchange rate may have short trendy moves following range-bound fluctuations. Also, the ETH to SGD has recorded fluctuations of more than 100 per cent in the past, so it may potentially bring high profits over a longer period.
What is Ethereum?
Ethereum was introduced in 2015 by a Russian-Canadian programmer Vitaly ‘Vitalik’ Buterin. It is an open-source platform that utilises blockchain technology to create and execute distributed applications (DApps). Users can create or join so-called ‘smart contracts’ directly without third parties, limiting the possibility for fraud.
Ethereum is commonly used as a name of the associated cryptocurrency but in fact, Ethereum is the system or network while Ether or ETH is the native currency. Users need to have Ether when they want to execute a certain transaction through the system.
Some interesting facts about the ETH
- The Ethereum project was successfully crowdfunded in the middle of 2014 when it raised more than $18 million (£14 million).
- At the end of 2015 Ethereum’s price was slightly below $1 (£0.8), by mid-January 2018, it reached its current peak of $1,432 (£1,132).
- Unlike some other cryptocurrencies, there is no maximum supply cap for Ether.
- Ether can be created through ‘mining’ – users receive a reward when they complete a mathematical task and verify transactions.
- The Ethereum Alliance (EEA) is an organisation developed to enhance the future usability of Ethereum.
- Most of the ICO (Initial Coin Offerings) are hosted on the Ethereum blockchain.
What affects Ethereum’s value?
The factors can be divided into two groups – the ETH related and those affecting the general cryptocurrency market.
Ethereum specific factors are
- The demand for ETH, which is not driven solely by trading activities;
- The Acceptance of the Ethereum system by more established financial institutions;
- The increased adoption of smart contracts hosted on the Ethereum platform and the inflow of new users will increase the demand for ETH;
- The degree of mining profitability;
- Improvements in the Ethereum system in the future.
General factors related to the crypto world:
- Changes in regulatory laws and regulations regarding the legality and usage of cryptocurrencies.
- Potential market manipulation by large participants or so-called crypto whales.
- Speculative trading – on June 22, 2017, a multi-million dollar market sell order crashed the ETH price from above $300 (£240) down to $0.10 (£0.08) in a couple of seconds. Although, the price did bounce back within minutes. One trader reportedly made over $1 million, thanks to an automatic buy order set at $0.10 through which he purchased over 3,000 ETH.
- The number of crypto channels where ETH is available for trading also affect its value.
- The number and strength of ETH competitors.
What is the Singaporean Dollar (SGD)?
The Singaporean Dollar (SGD) is the official currency in use in the city-state and island country the Republic of Singapore, since its introduction in 1967. The Monetary Authority of Singapore (MAS) has the responsibility to manage the exchange rate. Thus, it is worth paying attention to the news and announcements from MAS.
In addition, SGD is the currency of one of the wealthiest nations in the world since the country is ranked in the top 10 countries according to the GDP. Also, Singapore is positioned as a financial centre, so it is no surprise that its currency can be found among the top fifteen most traded currencies in the world and among the top five currencies in Asia. Being one of the most actively traded currencies might ensure that there is adequate demand for this currency.
What affects SGD’s value?
The Singaporean dollar is affected by factors associated with the economic activity and economic indicators of the Singaporean economy. Some of the crucial industries driving the economy of Singapore are the manufacturing, financial services industry, medical technology and clean energy. That means when trading ETH to SGD, aside from technical analysis, you may also consider events and announcements related to these industries, which can also influence the value of SGD.
The monetary easing announcements made by MAS might as well weaken the SGD. Furthermore, the negative performance of the domestic economy and/or economies interrelated with the Singapore economy may adversely affect the value of SGD. When trading Ethereum to Singaporean dollar, look for potential signals which will indicate appreciation of ETH and the appearance of events which will negatively affect the SGD in the same period.
Moreover, changes in the regulatory framework in other countries, which goes against the usage or trading of cryptocurrencies might potentially impact the Ethereum to SGD value.
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