You might have heard of friends investing in cryptocurrencies and made or lost money from it. Or you might be an investor yourself. But how many people actually have a good understanding of the technology and are aware of the risks involved? Join Sharda and her guests Ho Chang Jun (Web3 writer/ content creator) and CityJo Dharmik in this episode of SG Now as they discussed the risks and opportunities of cryptocurrencies.
Articles detailing individuals losing life savings to cryptocurrency investments were aplenty, and this prompted Sharda to question if investments in cryptocurrencies were more risky compared to other forms of investments. Chang Jun explained that cryptocurrencies could be viewed as technology stocks. As with all stocks, those with good fundamentals tended to do well. However, in terms of the price risks, investing in cryptocurrencies was likened to investing in technological start-ups. They would be in their early stages of development and likewise would be riskier investments. To mitigate the risks, he advised potential investors to read the cryptocurrency white paper to better understand the technology that they would be investing in.
As to whether retail investors were aware of the risks, Chang Jun again alluded to the need for potential investors to perform their due diligence before investing. “If you are just investing without knowing what you are investing in, I wouldn’t call that investing; I call it gambling,” said Chang Jun. His advice – “If you don’t understand it, maybe it is best to just skip it.” Dharmik echoed the same sentiments.
Regarding Singapore’s stand on cryptocurrency, Chang Jun believed that the government was open to innovation in the technology to improve future productivity. However, the speculative aspect of the token was not desirable.
Chang Jun also introduced his Youtube channel, Fish Market Academy, where he shared about DeFi (decentralised finance) applications and how individuals could earn money through it. He also shared that one way for Singapore to take advantage of the opportunities that Web3 has to offer was to facilitate Web3 companies setting up shop in Singapore.
Chang Jun believed that this would be the best time to do research and make well-thought-out investments in cryptocurrencies.
Keen to invest in cryptocurrencies? Watch the episode to better acquaint yourself with the risks and opportunities before diving into it.