How to Invest in Cryptocurrency Singapore Guide 2023
The rapid development in the blockchain industry has given rise to a new and extremely popular investment sector, i.e., cryptocurrencies. The past year has been particularly happening for the entire cryptocurrency market.
Bitcoin, the largest (by market-capitalization) and the most famous crypto-token so far, surged more than 160% to reach its all-time high on November 9, 2021. Other popular cryptocurrencies, such as Ethereum, Solana, Cardano and Avalanche, also witnessed a major hike in price during the same period.
Similarly, the industry is seeing a massive expansion and acceptance in several fields at a very rapid rate. Singapore is among the leading countries in terms of crypto adoption. With about 93% of the total population having some knowledge about the technology and another 9.40% (one of the highest worldwide) owning crypto assets, Singapore has been ranked as the number one crypto-friendly country by Coincub.
However, despite all this expansion and hype, blockchain and cryptocurrencies are still nuanced concepts to a vast majority. Investing in crypto assets does not work as in the case of other, already established asset classes, such as stocks, precious metals and bonds. The crypto market has its own exchanges and trading platforms, which work slightly differently than the traditional marketplaces.
To help Singaporeans who are new to the crypto world, our experts tested different crypto exchanges to compile a list of the top options for you. We also considered several alternative methods on how to invest in cryptocurrency Singapore. All the listed options are convenient with respect to reliability and accessibility, so you don’t have to worry about anything.
Centralised cryptocurrency exchanges, or simply crypto exchanges, are the most common form of buying, selling, and trading digital assets. These exchanges are owned and controlled by a central authority. This entity is responsible for all decision-making taking place on the platform and weighing different factors, such as trading fees, payment methods, and verification procedures.
You can easily buy or sell any available crypto coin against different fiat currencies, like Singapore Dollar. Some exchanges even offer alternative earning options, including staking and future trading. However, these platforms typically charge a relatively high trading fee and have a limited number of accepted crypto tokens.
All centralised crypto exchanges have to meet the regulatory requirements and follow the restrictions set by the Monetary Authority of Singapore (MAS). Most of these regulations require users to verify their identity before they can proceed with any transaction.
Currently, a number of centralised cryptocurrency exchanges are functioning in Singapore. Following are some of our top picks considering security, low fee structure, available options, and user experience.
Launched in 2014 by Tyler and Cameron Winklevoss, Gemini is one of the top crypto trading platforms for Singaporean citizens. With its easy-to-use interface and low fee structure, Gemini is an excellent option for anyone new to the space and has a small investment budget.
The platform allows you to trade over 40 cryptocurrencies. These include most of the popular options, such as Bitcoin, Ethereum, Litecoin, Bitcoin Cash, ZCash, Dogecoin, AAVE, and more. The list may seem short at the moment, but you should expect it to grow longer with time.
Moreover, users are not limited to buying crypto with Singapore Dollars only. You can also trade tokens against six other fiat currencies, including US Dollar, Hong Kong Dollar, and Australian Dollar.
Another great thing about the platform is the Gemini Earn feature. This feature provides users with a number of advanced trading and earning options. Users can use multiple professional trading tools, stake their crypto funds to earn interest, and even store their assets in cold storage.
As far as the fee structure goes, the exact trading cost varies from token to token and also depends on the total trading amount. However, you can expect to pay anywhere between 0% to 0.35%. Similarly, the deposit and withdrawal fees also depend on the payment method.
Kraken is one of the oldest trading platforms in the industry. Unlike Gemini, which is ideal for beginners, Kraken is suitable for professional traders who prefer advanced trading options. The platform is focused on user security, using several security layers to protect your funds.
You can buy and sell a little more than 80 cryptocurrencies on this platform. The list is long enough to include almost all popular big-cap projects, such as XRP, BTC, and ADA, and some lesser-known small caps, as well. However, if you want to trade newer and high volatile tokens, the exchange might not be right for you.
The platform supports seven government-regulated currencies, including Singapore Dollar, US Dollar, and Canadian Dollar. However, the fee varies for each of them. Apart from the spot trading on over 160 different pairs, which include crypto/fiat and crypto/crypto swap pairs, the exchange also allows leverage and margin trading options on several cryptocurrencies.
Kraken charges a trading fee ranging from 0% to 0.2% for spot trading, depending on the total monthly trading volume. The fees for futures are much lower, i.e., 0% to 0.05%. You can fund your account using multiple methods, such as online bank transfers and debit/credit cards.
If you prefer to have a lot of options at your disposal and diversify your portfolio into several crypto tokens, you will be glad to know that our next pick, KuCoin, has a massive library of more than 400 different accepted cryptocurrencies. Apart from big names, such as Bitcoin and Ethereum, you can find a lot of projects, like Solana, Cardano, XRP, etc.
Moreover, the number of accepted fiat options is also more than most of its competitors. Apart from SGD, users can fund their accounts using USD, EUR, GBD, CAD, AUD, and CNY. However, their availability depends on your local laws.
KuCoin also happens to take user security very seriously. The platform uses multi-layer encryption technology and a multi-factor authentication system. Moreover, all funds are stored in micro-withdrawal wallets, decreasing the chances of online hacks.
Apart from the traditional spot trading with fiat, you can also trade a range of crypto/crypto pairs which are absolutely free. Keep in mind that the buy-sell price difference (spread) is the fee. The platform also supports future trading and allows traders to use a dedicated future trading account. On top of that, you can also earn interest on your holding by staking and lending your assets.
Coinbase is one of the world’s leading crypto exchanges with the second largest trading volume. The platform is famous for its clean interface, a good range of investment options and supporting multiple payment methods.
Coinbase users can buy, sell, and trade 90+ crypto coins. One great thing about this trading exchange is that it allows users to spend these tokens anywhere in the world using the Coinbase Card. Unfortunately, this service is available only in North America as of now, so Singapore users will have to wait a little more to be able to use it.
Another great feature that is super helpful for beginners is Coinbase’s dollar cost average tool. Instead of manually placing orders each week or month, users can simply set up a schedule, and all the orders will be executed on their own after the set duration.
However, Coinbase faces a lot of criticism for its expensive fee structure. With trading fees ranging from 0.04% to 0.5% and debit/credit card deposits costing 3.99% fees, Coinbase is definitely one of the most expensive options in the market.
Launched recently in 2019 by Sam Bankman-Fried, FTX has already found its way to becoming one of the most popular crypto exchange platforms today. Credit for its success partly goes to FTX’s extraordinary marketing campaign. But it is also due to the extensive range of trading options it offers along with an incredibly low fee.
First of all, if you are a spot trader, much of your requirements will be satisfied with the list of 240+ accepted cryptocurrencies. But if you are a professional trader who prefers futures, you have also got that option on several pairs. These traders enjoy several leveraged tokens and crypto options. And if that is not enough for you, margin trading is also available here with a leverage limit of 3x.
FTX is one of the very few crypto exchanges that also support stock tokens. These tokens are backed by the actual stocks of the companies. Currently, you can trade stock tokens of Tesla, Amazon, Alibaba, Zoom, and a few more. Unfortunately, this trading option is not available to users in Singapore yet.
When it comes to trading fees, a trade at FTX can cost you 0% to 0.07%. However, if you own FTT tokens, the maximum fee charged is as low as 0.015%, which is probably the lowest in the market. To our surprise, deposits and withdrawals using a bank account are free, as long as the amount is lower than S$6,720.
Crypto.com is a Singapore-based platform and one of the world’s leading crypto exchanges. It is suitable for beginners and professional traders alike. There are a number of advanced trading tools available, yet the smartly-designed interface does not get confusing even for a new user.
Apart from Bitcoin trading, the crypto exchange supports more than 250 cryptocurrencies, including Ethereum, Cardano, XRP, Bitcoin Cash, Solana, and many more. You can trade these tokens against up to 20 different fiat currency options.
Though the cryptocurrency exchange does not allow you to trade/swap any crypto/crypto pair, you can easily do that using Crypto.com’s DeFi Wallet. Using it will not only give you access to crypto/crypto trading but also increase your exposure from 250 crypto tokens to almost 600 tokens.
On top of trading, you can also earn some interest by staking and lending your crypto assets. Moreover, this platform also works for those who are interested in NFT trading, as it has a dedicated NFT marketplace.
Generally speaking, the maker and taker fee is 0.4% for level one users and 0.35% for level two users. If you hold CRO tokens, you will enjoy a 10% fee reduction, making it 0.36% and 0.315% for level one and level two users, respectively.
You can fund your account using several payment methods, including credit/debit cards, bank accounts, Crypto.com Pay, and ERC-20-compatible wallets. However, you must know that transactions made using credit/debit cards incur a fee of 3.5%.
Coinhako is another Singapore-based cryptocurrency exchange popular among the locals for accessibility. You can enjoy seamless bank transfers. The platform also supports Visa and Mastercard payment providers, hence accessible to the majority of the people. And if you want the transfer to complete in a few seconds, you can use Xfers.
The cryptocurrency exchange accepts almost 40 cryptocurrencies which you can trade against Singapore Dollar, US Dollar, and Vietnamese Dong. The choice is limited, but the ease of use and the straightforward interface makes it ideal specifically to less-experienced traders.
The platform even provides a series of bonus points and discount offers for logging in daily to attract more users. These promos are compatible with many cryptocurrencies, including Cardano, XRP, and Dogecoin.
When it comes to fees, Coinhako is by far the most expensive trading platform on this list. The site charges a flat 1% trading fee, regardless of the trading amount. If you deposit funds using a debit card, it will cost you a 3% fee and 0.55% fees for Xfers transactions.
Although centralised crypto market platforms are the most popular method to buy or sell Bitcoin and other crypto tokens, you can use several other alternate methods. The first of these is decentralised exchanges (DEXs).
Unlike centralised cryptocurrency exchanges, a decentralised cryptocurrency exchange does not have an owner or central controlling body. Being created on blockchain ecosystems, each DEX is governed by the users themselves. All the decisions regarding updates and changes in policy can only proceed after community voting.
As these marketplaces are built on blockchain, users can enjoy quick transactions and much lower fees than centralised exchanges. On top of that, these exchanges are also much more secure and immune to online hacks.
On the one hand, DEXs allow you to trade several thousand tokens with multiple crypto/crypto pairs. Still, unlike platforms like Kraken and KuCoin, you are very limited regarding trading options.
PancakeSwap and Uniswap are two of the most popular DEXs.
Another popular method to invest in Bitcoin is Bitcoin ATMs in Singapore. These ATMs allow you to buy and sell Bitcoin directly using fiat money (Singapore Dollars). The transactions are instant, as you’d expect from an ATM.
However, with a higher level of convenience comes a higher fee. Transactions conducted through Bitcoin ATMs charge much more than other investment options, such as Gemini or FTX. A single transfer can cost you anywhere from 4.1% to 6.9%. Moreover, they usually have a higher minimum transaction limit.
As far as locating these Bitcoin ATMs goes, you can easily find them using tools like Coin ATM Radar.
Another less popular but effective way to buy Bitcoin in Singapore is by purchasing it directly from another holder. For this purpose, you can use crypto P2P platforms where many buyers and sellers can be found. If you do it independently, always trade with people you trust and know personally.
If you are not comfortable buying Bitcoin and other cryptos using cryptocurrency exchanges on your own, you can invest in Bitcoin Exchange-Traded Funds (ETFs). They work exactly like traditional stock ETFs in traditional funds. You can also purchase these ETFs via a broker. There are two types of Bitcoin ETFs:
- Physical Bitcoin ETFs
- Futures Bitcoin ETFs
PayPal, the largest online transfer service, now allows users to buy Bitcoin directly through their application. To buy Bitcoin directly via PayPal, simply navigate the cryptocurrency section, select the crypto you want to invest in, and click “Buy”.
How to Store Cryptocurrency Assets in Singapore?
Your digital assets kept on the crypto marketplaces are not entirely safe. These platforms are vulnerable to hacks and online thefts. There have been multiple incidents in the past when the entire cryptocurrency exchange got hacked, and users ended up losing assets worth millions of dollars.
To make sure that your crypto holdings are safe, it is advised to transfer them to a cryptocurrency wallet. There are two general types of crypto wallets, discussed in the next sections.
Online or hot wallets are the crypto wallets connected to the internet. These wallets are usually free and can be connected to any cryptocurrency exchange. Online wallets are available as mobile applications, browser extensions, and desktop software.
However, you must note that hot wallets are not entirely secure. Since they are always connected to the internet, they can be breached by hackers. Popular choices for online wallets are Metamask, Trust Wallet, Atomic Wallet, etc.
Hard or cold wallets are the most secure way to keep your crypto holdings. They come in the shape of small hard disk storage and can be connected to your laptop or cellphone to carry out transfers. As a hard cryptocurrency wallet is disconnected from the online world, it is completely safe against any online breach. However, your crypto will be lost forever if you lose or damage the device. Hard wallets are a better option for those who intend to hold their funds for a long time.
What does MAS Say about Cryptocurrency?
Cryptocurrency is not considered a legal tender by the government of Singapore. However, after launching the Payment Service Act in 2019, the Monetary Authority of Singapore officially regulated cryptocurrency and decentralised payment tokens (DPTs).
According to these regulations, service providers dealing with cryptocurrency must follow federal laws to discourage money laundering and terrorism financing acts. In 2021, Payment Service Bill announced by the Monetary Authority of Singapore requires any firm dealing with cryptocurrencies to be licensed and abide by a broader set of regulations. It should also be noted that the government regards the crypto market as highly risky, and no official protections for crypto investors are offered as of now.
Determining the best way to invest in cryptocurrency in Singapore depends on multiple factors. When making the decision, consider the accessibility, flexibility, costs and functionality of the method. You should also check the history of the service provider to make sure they are reliable and trustworthy. Moreover, always choose legitimate service providers that are regulated and licensed by an official body.
Our extensive analysis of the Singaporean Crypto Space doesn’t stop here. You can also check out our Guide on the top crypto companies in Singapore to find out who are the big players of this new fintech world in Singapore.
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.