How to Buy Crypto in Singapore: The 2022 Guide
In Singapore, Bitcoin has been one of the fastest-growing cryptocurrencies. This is primarily due to the fact that it was the first to introduce the general public to cryptocurrency. Since its inception, Bitcoin has become the go-to money for Bitcoin mining and retail investors because it has been the most valuable currency in market capitalization.
If you’re interested in learning how to buy crypto in Singapore, keep reading because, at the conclusion of this article, you’ll be able to buy crypto assets in Singapore like a pro. The best cryptocurrency exchanges in Singapore provide the best services for crypto investors.
Hence, while evaluating the exchanges, we ensured that we considered all factors and tried and tested the exchanges before giving a full review of the same.
Is it Legal to Buy Cryptocurrencies in Singapore?
It is legal to possess and trade Bitcoin as well as other cryptocurrencies in Singapore. However, Bitcoin and other virtual currencies are not legal tender. That is, in Singapore, the crypto market is still largely unregulated.
This is because the International Commercial Court of Singapore established a precedent in 2019 when it decided that Bitcoin had features of intangible property that can be held in trust or custody. In Singapore, the Payment Services Act (PS Act) is a significant part of legislation governing cryptocurrency regulation.
The Monetary Authority of Singapore (MAS) permits buying Bitcoin and cryptocurrency in Singapore. There are, however, some limitations in place. According to the Monetary Authority of Singapore (MAS), financial institutions are not permitted to engage in cryptocurrency; This implies you won’t be able to buy Bitcoin or other cryptocurrencies in Singapore through a bank or investment firm.
Furthermore, the Monetary Authority of Singapore (MAS) has warned investors about the dangers of investing in cryptocurrencies. Price volatility (Bitcoin’s price is majorly based on speculation), as well as the risk of fraud or theft, are all factors to consider.
Despite these cautions, there is still a lot of interest in Bitcoin and other cryptocurrencies in Singapore. The amount of Bitcoin and cryptocurrency exchanges that have opened in the country demonstrates this. If you’re considering purchasing Bitcoin or other cryptocurrencies in Singapore, be sure you’re aware of the risks involved.
How to Buy Bitcoin and other Cryptocurrencies in Singapore
There are a few things you should do before plunging in too deep. You must first prepare your personal identification documents for verification, as well as have a secure Internet connection, which can be a direct Ethernet, Fiber, Optic, or WiFi connection.
You’ll probably need a phone to enable two-factor authentication, as well as valid ways to deposit money like a bank account, debit card, credit card, PayPal, and so forth. When you sign up for a crypto account, most exchanges are generalist; therefore, follow these steps:
Select a Cryptocurrency Exchange
There are numerous cryptocurrency exchanges available; each has its own set of offers and unique features.
Create a Cryptocurrency Exchange Account
Follow these procedures to open an account with one of the best crypto exchanges in Singapore. Go to the “Get Started” section of the cryptocurrency exchange home page.
To start with, you will be asked to provide basic information like your nationality, email, password, and optional referral code. Once you finish these steps, click “Create My Account” to open a cryptocurrency exchange account.
Make a deposit to your crypto wallet
After creating an account, you need to fund your cryptocurrency wallet with Singapore dollars (SGD). This can be done with a bank transfer, debit card, or credit card. Others may even permit peer-to-peer (P2P) transactions.
You Are Now Eligible to Perform Cryptocurrency Transactions
You’ll be able to buy Bitcoin and other cryptocurrencies once you’ve placed funds into your account. Some platforms enable you to buy Bitcoin and other cryptocurrencies directly using SGD, but most require you to first purchase Tethered USD (USDT).
Look up "Bitcoin" or other "Cryptocurrencies" in the search engine
Alternatively, type “BTC” (or other cryptocurrency symbols) into the search bar, and from that, decide the cryptocurrencies you wish to purchase.
To begin Purchasing, Click the "Buy" Button
You may even need a specified price for the platform to buy at that price automatically. Once you decide on the purchase price, decide on the payment method. Finally, review your order and click the purchase button.
You have the Option of Leaving Your Bitcoins or Other Cryptocurrencies on the Exchange
You can transfer your cryptocurrencies to a secured personal cryptocurrency wallet like Exodus or Ledger if you want extra security.
There are a few different cryptocurrency exchanges to choose from in Singapore, so make sure to compare rates and fees before deciding. Before making a purchase, always compare the prices of different exchanges. Rates can vary considerably. Simply enter the amount of Bitcoin or cryptocurrency you want to buy and confirm the transaction when you are ready to buy. The Bitcoin or cryptocurrency will be deposited to your account, where you may then use it to trade it for other cryptocurrencies or just HODL for future transactions.
After your purchase you can typically keep your coins or tokens in an exchange wallet (hot or online wallet) or transfer it to an external wallet – a cold wallet.
What Do You Need to Start Buying Cryptocurrency?
- A digital wallet: This is where you’ll keep your cryptocurrencies. Wallets come in various designs, so pick one that best suits your needs. Typically, when you buy on crypto exchanges, you will already have designated wallets.
- A place for buying Bitcoin and other cryptocurrencies: You can buy Bitcoins and other cryptocurrencies from a cryptocurrency exchange, decentralized exchanges (DEXs) or individual sellers.
- Keep track of your cryptocurrency: You will need to track your investment to see how well it is doing. You can do this in various ways, including using a monitoring app or keeping a spreadsheet.
- An eagerness to learn: You will need to be willing to learn about how cryptocurrency works because it can be difficult and complicated.
- Patience: As with most other assets, patience is required when investing in cryptocurrency. Volatility is often high so make sure you only invest what you can / are willing to lose.
Cryptocurrency Exchanges in Singapore for Buying Bitcoin and Other Cryptocurrencies
The most common and accessible way to trade cryptocurrencies in Singapore is through a cryptocurrency exchange.
Coinbase is one of the most popular cryptocurrency exchanges. Its simple interface makes buying and trading cryptocurrency straight-forward, and its fees are reasonable, even though they are higher than on most other centralized exchanges. Coinbase supports over 140 cryptocurrencies, making it a perfect choice for those who want to diversify their portfolio.
There are always cryptocurrency exchange trading fees associated with cryptocurrency transactions on Coinbase. Whether you buy or sell, you will always be charged 1.49%. If you purchase through their ” Coinbase Pro” version, the fee percentage decreases.
Coinbase is a great choice for anyone wishing to invest in cryptocurrencies. Its user-friendly design and extensive list of supported coins make it an excellent alternative for novice and expert investors. The Monetary Authority of Singapore (MAS) regulates Coinbase. This requires it to follow stringent anti-money laundering (AML) and know-your-customer (KYC) regulations.
Even if you’re new to digital money, Crypto.com makes buying Bitcoin and cryptocurrencies simple. All you have to do is sign up for an account and deposit funds in your cryptocurrency wallet. After that, you can begin purchasing and selling cryptocurrencies. So, if you’re looking for a cryptocurrency exchange with the most straightforward interface, Crypto.com is an excellent place to start.
Crypto.com provides its users with several benefits. One of the most appealing features of Crypto.com is its low trading fees. It charges only 0.1% for every trade, making it one of the most cost-effective exchanges available.
Crypto.com supports the widest selection of cryptocurrencies, making it an excellent choice for people who want to invest in various cryptocurrencies or multiple digital assets.
FTX is a crypto exchange that trades a wide range of digital assets, including Bitcoin, Ethereum, Bitcoin Cash, Litecoin, and many others. Margin and derivatives trading is also available on the exchange. FTX is one of the few exchanges that charge market makers no fees.
The payment services statute mandates that Bitcoin exchanges charge a 0.1% cryptocurrency exchange trading fee on all trades. FTX charges a flat cost of 0.075% and rebates makers 0.025%. Market makers benefit from a trading fee of -0.025%, making FTX one of the most appealing exchanges. Hence, fees are lower than the standard rate.
FTX isn’t the most user-friendly app, but it’s ideal for short-term traders such as scalpers and swing traders. If you just have sufficient experience with intraday trading or day trading and want to diversify your portfolio to include stocks, FTX is the way to go.
Coinhako is a popular crypto exchange in Singapore. It has a lot of features and perks that make it a good option for anyone who wants to sell and buy Bitcoin in Singapore.
Very low trading fees are one of the greatest advantages of using Coinhako. The exchange charges only 0.1% for every transaction, a fraction of what most other exchanges charge. These relatively low fees make it an excellent alternative for people who trade regularly or in large volumes.
Coinhako is an excellent option to explore if you’re looking for a cryptocurrency exchange in Singapore. It’s a perfect choice for people wishing to buy or trade cryptocurrencies because of its low fees, vast range of supported digital assets, and user-friendly platform.
Users can buy, sell, and trade digital assets on Independent Reserve, including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. The platform also includes a merchant gateway and several payment services, including AUD deposits and withdrawals.
Independent Reserve offers several benefits that make it an appealing option for people interested in trading digital assets. For instance, the platform has some of the industry’s lowest trading fees. Independent Reserve also adheres to the Payment Services Act, which means it is subject to Anti-Money Laundering (AML) and counter-terrorism funding requirements.
Independent Reserve is a great option for anyone seeking a secure and simple way to trade digital assets. The exchange has several features and advantages that make it appealing to both professional traders and people who are new to the Bitcoin market.
Gemini is a cryptocurrency exchange and custodian that lets users buy, sell, and store digital assets. It was founded in 2014 by brothers Cameron and Tyler Winklevoss.
For Bitcoin trading, Gemini charges a 0.25% taker fee and a 0.15% maker fee. When compared to other cryptocurrency exchanges, these costs are quite low. Gemini levies withdrawal fees and deposit fees in addition to trading costs. Bank transfers have no transaction fee or deposit fees, whereas credit/debit card deposits have a 3.49% transaction fee. For bank transfers, withdrawals are free and vary based on the cryptocurrency being withdrawn.
Gemini may be the best alternative for you if you’re looking for the best crypto exchange in Singapore with a wide range of coins and features.
Other Ways to Buy Bitcoin and Other Cryptocurrencies in Singapore
Aside from purchasing cryptocurrencies such as Bitcoin via a cryptocurrency exchange or DEXs, you have several options in Singapore that are frequently available.
Using Bitcoin ATMs is one alternative option. You can always get Bitcoins from a local Bitcoin ATM in Singapore. It may surprise you to learn that Singapore has had a Bitcoin ATM since 2014. You can use cash to buy Bitcoin and other cryptocurrencies from these ATMs. The procedure is usually simple and quick, and you can buy Bitcoin instantly.
A peer-to-peer exchange, such as LocalBitcoins, is another alternative. You can connect with other Bitcoin users in Singapore on these platforms and buy or sell Bitcoin directly between users. The advantage of using such an exchange is that you may often receive a higher price for your Bitcoin than you would on a more standard centralized or even decentralized exchange.
PayPal now has its own service that allows you to buy Bitcoin directly with your PayPal account. To do so, go to the cryptocurrency section of your account, select the cryptocurrency you want to buy (in this case, Bitcoin (BTC)), and click “Buy.” However, at this stage, the selection of digital assets available for purchase is quite limited with only BTC and ETH.
If you have funds in your PayPal account, you may easily use it as a payment method on exchanges like Crypto.com and choose SGD as your fiat currency.
Bitcoin ETFs are a way to buy Bitcoin
If you live in Singapore and are still unsure how to buy Bitcoin, consider investing indirectly in Bitcoin ETFs rather than going through controlled exchanges. However, you will be required to pay a management charge to fund managers, which can range from 0.95% to 3%.
When you want to diversify your portfolio, investing in Bitcoin ETFs are an excellent option, but the process can be more complicated. Furthermore, you do not directly own any Bitcoin – or other underlying assets in the relevant ETF – but only benefit indirectly through price appreciation.
How to Store Your Cryptocurrency Securely
There are several ways to keep your cryptocurrency safe, the first of which is to use hot wallets effectively, followed by our preferred storage mechanism: cold or offline wallets. You need a secure digital wallet to store your digital assets safely.
Below are some of the most popular cryptocurrency wallets to store your Bitcoins and other virtual currencies:
Store your Bitcoin or Cryptos in a Hot Wallet
Any exchange wallet having a direct Internet connection is referred to as a hot wallet. This means you’ll effectively be using the wallets offered directly on the exchange in question, or ones you can sign up for independently, but they’ll be accessed via an Internet browser or a desktop application that needs an Internet connection to function.
Remember that most exchanges will deny you access to your private keys, which poses a security risk. Create a private hot wallet with full access to your private keys and passphrase to provide the utmost security while using a hot wallet.
You should also enable two-factor authentication and biometric authentication for your account’s highest level of protection if allowed by the platform you’ve chosen. The main benefit of a hot wallet is that it allows you to transact swiftly and cheaply because you can keep your cryptocurrencies on the exchange, presuming they support and have their own native crypto wallets for the relevant coin or token.
Hot wallets, on the other hand, will always be at risk because they have a constant Internet connection that can be hacked. This is where the use of cold wallets comes into play.
Store your BTC or Crypto in a cold wallet
Cold wallets are by far the most secure method of storing your cryptocurrencies. These devices are usually in the form of a USB drive or a hard drive, and they connect to your computer or laptop via the USB connector o Bluetooth.
The basic reason cold wallet devices are much safer is that once you detach them from your device, they are no longer connected to the Internet and thus are difficult to hack remotely.
Although most hot wallets are available for free download, hardware wallets are one of the most expensive alternatives available, as some of them include on-screen displays, touch capabilities, and other important features that set them apart from the competition.
Let’s say you wish to sell or trade your cryptocurrencies from your cold storage device. In that scenario, you’ll have to move them back onto the exchange wallet, which may entail additional fees you weren’t expecting.
This means that cold storage devices are better suited to investors who buy cryptocurrencies and retain them for a long time, a technique known as HODL. Hot wallets, on the other hand, are more convenient for day traders.
In Singapore, buying Bitcoin and other cryptos is legal as long as it is purchased via reputable exchanges. Always maintain an additional cryptocurrency wallet on hand to store your investments or to keep your valuables safe over time.
Fortunately, there are a number of trustworthy platforms where you may buy bitcoin and other cryptocurrencies. It is totally up to you to choose a crypto exchange to buy bitcoin in Singapore.
Our extensive analysis of the Singaporean Crypto Space doesn’t stop here. If you are an ADA fan, you can also check out our Guide on how to buy ADA in Singapore with all the best options for buying this promising digital asset.
Most frequent questions and answers
The DBS Digital Exchange (DDEx), which launched in December 2020, only permits institutional and accredited investors to buy and sell Bitcoin and other cryptocurrencies on its platform.
Cryptocurrency exchanges and trading are allowed in Singapore, and the city-state has taken a more welcoming stance on the subject than some of its neighbouring rivals. Even though digital payment tokens (DPT) are not yet declared legal tender under Singapore’s cryptocurrency legislation, the tax authority recognizes Bitcoins as “goods”. It charges Goods and Services Tax (Singapore’s version of VAT).
The Monetary Authority of Singapore (MAS) has taken a neutral stance on cryptocurrency growth. While it would not seek to control virtual currencies, it would regulate DPT if they were classed as “securities” in 2017. MAS made public cautions about the risks of investing in cryptocurrencies in 2020, despite taking a balanced stance to date.
ATMs for Bitcoin allow users to buy Bitcoin in Singapore with cash or a debit card. The name ATM, on the other hand, is a little deceptive. These ATMs are not the same as bank ATMs, which allow clients to manage their funds. They are tools that let users buy – and sometimes sell – bitcoin without having to create an account.
In Singapore, the buying of cryptocurrency does not result in a taxable event. However, the intention at the time of purchase would be taken into account for determining the tax treatment of gains/losses from subsequent cryptocurrency sales.
Central governments or financial institutions do not oversee Bitcoin transactions by their very nature due to their decentralized character. This makes it an excellent choice for anyone who requires additional privacy.
It’s critical to understand the risks of leaving your crypto on exchanges versus utilizing a wallet. You’ll also need to understand how public and private keys work if you wish to use a wallet. Transactions are irreversible. A transaction can’t be cancelled or reversed after it’s been published to the network.
Before sending a Bitcoin payment, double-check the recipient address. There is hardly any institution that will return any funds that were sent to an incorrect address.
The launch of a new cryptocurrency on exchanges is known as an initial coin offering (ICO). Initial coin offers (ICOs) are popular and in demand, because they provide crypto investors and traders the lowest possible pricing for a new currency, fresh ideas and DeFi concepts, and a possibly higher profit margin as time goes on.
Initial coin offerings, on the other hand, are frequently plagued with ‘rug pull’ scams. These younger coins are unproven, have lower hash rates, and can be used completely anonymously.
Skrumble.com provides all its content for informational purposes only, and this should not be taken as financial advice to buy, trade or sell cryptocurrency or use any specific exchange. Please do not use this website as investment advice, financial advice or legal advice, and each individual’s needs may vary from that of the author. This post includes affiliate links with our partners who may compensate us.