Bitcoin has positioned itself as the leading cryptocurrency in the market today. Since its conception in the early 2000s, the price of Bitcoin has been on a steady incline, with a few bumps along the way. In recent years, there has been an influx of investors looking to cash in on the Bitcoin craze.
The Singaporean government allows its citizens to own and trade Bitcoin and other cryptocurrencies, such as Ethereum and Litecoin. There are, however, no regulations regarding the use of cryptocurrencies. Because of this, there is no legal protection available to investors if they experience losses due to fraud or theft.
Despite this, many Singaporeans are still interested in investing in Bitcoin because of its potential for high returns. In a 2021 survey, Statista found that Bitcoin was the top choice among Singapore’s cryptocurrency investors, with over 44% reported owning it.
The price of Bitcoin soared in 2017 from around SG$1,400 to about SG$27,000. Although Bitcoin has dipped during recent market movements, it’s still up by more than 200% since the beginning of 2019. This has caused Singaporeans to view it as a viable investment option. Currently, Bitcoin’s value is equivalent to around SG$40,000 or US$30,000.
As more people look to invest in Bitcoin, the demand for it increases. This is why many Bitcoin exchanges have popped up and why the price of Bitcoin continues to rise. If you’re wondering how to buy crypto in Singapore, particularly Bitcoin, this article will show you how to do it.
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Ways To Buy Bitcoin in Singapore
Cryptocurrency Exchange
A cryptocurrency exchange is an online platform where you can buy, sell, and trade cryptocurrency. There are plenty of available cryptocurrency exchanges in Singapore that allow you to purchase and trade Bitcoin. However, you have to check a potential platform’s security, fees, and other features. Make sure that its services work with your investing goals and needs.
Bitcoin ATM
You can find Bitcoin ATMs all over Singapore. These machines will allow you to insert cash in exchange for Bitcoin.
The process is simple and easy, and you can find a machine near you with just a quick search online. Once you find a machine, all you need to do is follow the instructions on the screen.
Typically, you will need to scan your wallet QR code, insert cash, and then confirm the transaction. The Bitcoin will then be deposited into your wallet.
Peer-to-Peer (P2P)
There are also P2P cryptocurrency exchanges that allow you to buy Bitcoin in Singapore without having to go through a centralized exchange. These P2P exchanges connect buyers and sellers directly and allow them to trade directly with each other.
One popular P2P platform is LocalBitcoins, which is available in almost every country, including Singapore. Another popular option is Paxful, which also has a large number of sellers in Singapore.
P2P exchanges have the advantage of being more private and often have lower fees than traditional exchanges. However, they can also be riskier because you are dealing with an individual seller rather than a reputable exchange.
PayPal
PayPal also allows its users to purchase Bitcoins. However, there are certain disadvantages associated with using this method.
For one, PayPal charges a higher fee for each transaction. Secondly, users have to link their bank account or credit card to their PayPal account to purchase Bitcoins. Lastly, PayPal transactions can take up to four days to be completed, so take this into consideration when planning to buy Bitcoin for an urgent trade.
Why Buy Bitcoin in Singapore?
Bitcoin is a viable investment for Singaporeans looking for an alternative to traditional investment options. This is because Bitcoin is a decentralized digital currency that offers many benefits over other investment options, including lower fees, transparency, and autonomy.
Payment Methods For Buying Bitcoin in Singapore
Most Bitcoin or cryptocurrency exchanges in Singapore accept the following payment methods:
- Credit/debit card
- Paypal
- Bank transfer (wire transfer)
The most popular payment method is credit/debit card, as it is the quickest and easiest way to make a purchase. However, many exchanges also accept bank transfers, which can take a few days to process.
How To Buy Bitcoin In Singapore – Step By Step
It’s not too late to learn how to invest in cryptocurrency in Singapore and reap Bitcoin’s benefits. Here’s a guide on how to buy this cryptocurrency in the city-state:
1. Choose a Bitcoin Exchange Platform
Before looking for a Bitcoin exchange platform, you should prepare your identification documents. Most apps require an image of your valid IDs, such as your passport and driver’s license, to verify your identity.
Afterward, you should consider these factors when looking for a Bitcoin exchange platform:
Security
When choosing a Bitcoin exchange platform, the first thing you need to check is security. Make sure the platform hasn’t been hacked in the past and has measures in place to prevent theft, such as two-factor authentication (2FA), hardware wallet support, and multi-signature wallets.
By using two-factor authentication, you are the only person who can access your account. It adds a layer of security beyond just a password and username by requiring something only you have access to, such as your phone. It typically uses your mobile number to send you a text message or an app notification with a one-time code that you will need to enter before logging in.
In the case of Singapore, there are many Bitcoin exchanges available, and most of them offer 2FA.
Hardware wallet support is also important because it allows you to store your Bitcoins offline on a physical piece of hardware, making them much harder to hack. Moreover, multi-signature wallets are another secure option because they require more than one person to sign off on a transaction, making it much harder for someone to steal your coins.
Note that cryptocurrency investments in Singapore aren’t protected by the government yet. But, the good news is that there are a few exchanges that offer insurance.
Fees
Transaction fees on cryptocurrency exchanges vary significantly across different platforms. Some require a flat fee upfront, while others take a percentage from your trades. Make sure to know the different costs charged by an exchange and consider them before choosing a platform.
These are the typical fees in cryptocurrency exchanges:
- Trading fees: These are fees charged by an exchange for each buy/sell order that you make.
- Deposit fees: Some exchanges don’t allow you to deposit fiat currency (e.g., USD, SGD) directly into their platform. Instead, they may require you first to purchase a cryptocurrency like Bitcoin (BTC) or Ethereum (ETH) from another exchange that does, then transfer your BTC/ETH to the platform you want to use. These exchanges will usually charge a deposit fee for this service.
- Withdrawal fees: When you want to withdraw your cryptocurrencies or fiat currency back into your bank account, the exchange will also charge a withdrawal fee.
- Network fees: When you make a transaction on the blockchain (e.g., buying BTC or ETH), you’ll need to pay a “network fee,” which goes to the miners that process and validate your transaction. The network fee is usually a very small amount but can be higher when the network is congested (e.g., during a BTC bull run).
Cash In/Out Methods
Although cryptocurrencies are considered investments, you still want them to be liquid enough in case you want to use the profit you earned from them. To do that, you will have to find a cryptocurrency exchange platform that offers cash in/out methods that fit your needs.
The most common ones are:
- Bank transfer
- Credit/Debit Card
- PayPal
- Cash Deposit
- Wire Transfer
Each method has its own advantages and disadvantages that you should take into account before deciding which one to use. For example, bank transfers are usually the slowest option, but they are also the most secure. On the other hand, credit/debit card transactions are much faster, but they are also less private.
Available Coins
Today, there are more than 1,500 cryptocurrencies in existence, with new ones being created all the time. Not all exchanges offer all these coins, so it’s essential to know which ones you want to trade before signing up for an account.
Most exchanges in Singapore offer Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH). In addition, some exchanges also allow you to trade Ripple (XRP), Monero (XMR), and Dash.
2. Sign Up and Fund Your Account
After researching and choosing where to buy Bitcoin in Singapore, you should sign up on the platform that best suits your needs. First, create an account using your email address. Remember to prepare your identification documents and enable 2-factor authentication (2FA) to add an extra layer of security to your account.
Once you have registered, you will need to fund your account with Singapore Dollars (SGD). The most common way to do this is by linking your bank account to the exchange and making a local transfer. As mentioned, you can also consider other cash-in methods, such as credit and debit cards, PayPal, and cash deposits.
3. Place Your Order
After setting up your account, you can start buying Bitcoin. Most exchanges have a buy/sell page where you can enter the amount of Bitcoin you’d like to buy in your local currency. This will usually be displayed as a ‘market price’ or ‘spot price.’
You’ll also need to specify the amount of Bitcoin you want to buy. Some exchanges will let you buy a fraction of a Bitcoin. For example, you might be able to buy 0.1 BTC or 0.001 BTC as a start. You can then work your way up and grow your funds by trading.
Where to Buy Bitcoin in Singapore
Gemini Exchange
This exchange platform is excellent for both first-time and knowledgeable traders. One of its security features is the employment of the 2FA. Gemini has its own digitally-insured hot wallet, which gives its users more confidence with the platform. If you are planning to buy Bitcoin or other cryptocurrencies in Singapore, then Gemini would be a great choice.
Coins available: 90+
Minimum investment: SG$1
Key Features:
- Web and Mobile Apps: You can check your investments anytime, anywhere.
- Gemini Earn: This feature lets you earn interest on your crypto assets.
- Minimal Fees: Deposit and withdrawal services are free, so you won’t have to worry about losing money over transactions.
Fees:
- Trading Fees:
- 0.25% (Maker), 0.35% (Taker) on ActiveTrader
- Minimum of SG$1.50 on mobile/web orders
- Deposit Fees:
- Bank transfers and cryptocurrencies are free of charge
- Card transactions cost 3.49% of the total purchase amount
- Withdrawal Fees: Bank transfer is free with unlimited withdrawals. Cryptocurrencies have ten free withdrawals per month, and charges may apply for succeeding withdrawals.
How to Open an Account: Visit Gemini’s website, click Get Started, and fill out the form to create an account. You’ll have to verify your account through email, set up 2FA, and verify your identity through SingPass. Once these steps are finished, add a payment method with the options to connect your bank account or debit card.
Coinmama
Coinmama makes buying and selling crypto straightforward. This crypto exchange is user-friendly, which is what attracts some traders to use this platform. It also has an accommodating support team. However, other enthusiasts may opt for other trading sites or apps due to its costly fees and limited coins.
Coins available: 10+
Minimum investment: SG$41 or US$30 to buy cryptocurrency
Key Features:
- User-Friendly: Buying and selling crypto assets is made easy, especially for novices.
- Higher Spending Limits: Spending limits are significantly higher than other trading platforms.
- Fast and Secure Verification: Verifying your account is speedy and safe.
Fees:
- Trading Fees: 3.90% on both buy and sell orders
- Deposit Fees:
- Bank transfers are free of charge
- Card transactions cost 5% of the total purchase amount
- Withdrawal Fees: Bank transfers are free of charge
How to Open an Account: Create your account on Coinmama’s sign-up page and confirm your account via email. Then, start the verification process wherein personal details such as your address, phone number, gender, and date of birth are required. This platform also has a range of payment options to fund your account.
Luno
Luno is one of the most popular crypto trading platforms. This exchange brings crypto enthusiasts together because of its low fees and highly-demanded cryptocurrencies. Luno encourages users to trade their assets instead of just storing them.
Coins available: 8
Minimum investment: SG$1
Key Features:
- Low Fees: SG$ deposits are free.
- User-Friendly UI: Beginners can easily navigate Luno’s interface.
- Secure Storage: The platform offers “deep-freeze” storage for customer funds.
Fees:
- Trading Fees: 0.75% on both buy and sell orders
- Deposit Fees: Bank transfers are free of charge
- Withdrawal Fees: Bank transfers have an SG$2 fee
How to Open an Account: Visit Luno’s sign-up page and create an account by providing your email address and password. Alternatively, you can just use your social account. Verify your account via email and phone number, add a payment method to your account, and start trading.
Crypto.com
Crypto.com was the first fintech company to gain Singapore’s Data Protection Trust Mark (DPTM). The certification proves the platform’s commitment to sound data protection practices. Crypto.com is one of the most user-friendly platforms for buying Bitcoin. The company was founded by veteran entrepreneurs who have a strong belief in the potential of blockchain technology. They are also backed by some of the world’s leading investors, such as Sequoia Capital, Andreessen Horowitz, and Khosla Ventures.
Coins available: 100+
Minimum investment: SG$1.35
Key Features:
-
- Multiple Currencies: Users can transact in SGD and over 20 fiat currencies.
- Trading Fee Discounts: You can enjoy discounts on trades when using Crypto.com’s cryptocurrency, CRO.
- Staking: Users can earn as much as 14.5% p.a. when staking cryptocurrency assets
Fees:
- Trading Fees:
- 0.40% for trades below SG$34,000
- 0.35% for trades of SG$34,000 and above
- Varying rates for trades above SG$68,000
- Deposit Fees:
- Bank transfers are free of charge
- 3.50% of order value + trading fee charges for card transfers
- Withdrawal Fees:
- Bank transfers are not supported
- Varying costs for cryptocurrencies withdrawal
Coinbase
Coinbase is one of the most popular cryptocurrency exchanges, with over 25 million users globally. Based in San Francisco, Coinbase allows users to buy and sell cryptocurrencies, including Bitcoin. The US company began operations in Singapore in November 2016 and currently serves as one of the country’s premier cryptocurrency trading platforms. The platform allows users to buy Bitcoin with a credit or debit card or through a bank transfer. The company also offers a Bitcoin wallet service.
Coins available: 100+
Minimum investment: SG$2
Key Features:
- Beginner-Friendly Interface: Users can easily navigate the mobile and web apps.
- Learning Reinforcement: Coinbase offers crypto rewards when users learn about different cryptocurrencies.
- Multiple Cryptocurrencies: The platform offers Bitcoin and over 100 other coins.
Fees:
-
- Trading Fees: 0.5-4.5% depending on transaction type
- Deposit Fees:
-
- 1.49% for bank transfers and USD wallets
- 3.99% for debit/credit card transactions
- Withdrawal Fees: 1% fee to convert and withdraw crypto to cash along with standard network fees
Kraken
Kraken was founded in 2011 by Jesse Powell, who is now the CEO. The company has been through several rounds of funding and is now one of the most well-known exchanges in operation. Kraken allows users to buy and sell Bitcoin in Singapore, as well as trade between different cryptocurrencies. The company also has a “dark pool” exchange, allowing large traders to place orders without revealing their identities.
The exchange is also one of the few that lets users trade in multiple currencies, including US dollars, Euros, British Pounds, Japanese Yen, Canadian dollars, and Singaporean dollars. Read all about Kraken exchange in Kraken Comprehensive Review 2022.
Coins available: 50+
Minimum investment: SG$14
Key Features:
- Staking: Users can enjoy rewards for staking cryptocurrency assets and fiat funds.
- Education: The platform offers access to learning resources for traders and investors.
- Advanced Trading Platform: Kraken’s mobile and web app provides comprehensive tools to help traders.
Fees:
- Trading Fees:
- 1.5% of order value for instant buy
- 3.75% of order value + SG$0.37 + instant buy fee for debit/credit card transactions
- 0.50% of order value + instant buy fee for ACH online banking
- Deposit Fees:
- Free for bank transfers and cryptocurrencies
- Card transfers unavailable
- Withdrawal Fees:
- ~SG$6 for bank transfers
- Varying costs for withdrawals to cryptocurrencies
Frequently Asked Questions
What is a cryptocurrency exchange?
A cryptocurrency exchange is a digital marketplace where traders can buy and sell cryptocurrencies. Some exchanges only offer certain types of trading (e.g., spot or derivative trading), while some are more comprehensive and also offer fiat currencies, margin trading, and other products.
What is the difference between a crypto exchange and a wallet?
A cryptocurrency exchange is a platform where you can buy, sell or trade cryptocurrencies for other digital assets or traditional currencies. On the other hand, a wallet is a software program that stores your public and private keys and interacts with the blockchain so that users can send and receive digital currency and monitor their balances.
Is Bitcoin legal in Singapore?
Yes, it’s legal to own and trade Bitcoin in Singapore. There are no specific laws regulating Bitcoin in Singapore, but the country has favorable conditions for the cryptocurrency.
How does Bitcoin’s value grow?
The price of Bitcoin is set by demand and supply. When more people buy Bitcoin than sell it, the price goes up. The reverse happens when there are more sellers than buyers.
Can Bitcoin become a mainstream tender?
Bitcoin has the potential to become a mainstream tender; however, it is not without its challenges. The current infrastructure is not equipped to handle large-scale usage, and there are concerns over security. For now, Bitcoin remains a niche payment system used mostly by tech-savvy individuals and businesses.
Noah is a Canadian copywriter with interest in technology, AI, VR, and clean-tech. When he’s not working, you’ll likely find him playing sports or reading.