Why Learn How To Buy Bitcoin in Singapore in 2023?
Cryptocurrencies like Bitcoin and Ethereum area unit whole digital currencies that would be used as on-line versions of payments for merchandise and services. Transactions through cryptocurrencies are terribly secure and can’t be simply closed down by governments.
What makes cryptocurrencies therefore secure and clear is as a result of the small print of the transactions area unit created public. Although everybody will see that somebody sent, maybe SGD$10 price of Bitcoin in the Singaporean exchange to somebody else-the identities of the vendor and recipient still stay anonymous.
Majority of the general public see buying Bitcoin as a way of transferring cash round the world cheaply, unanimously and securely. Because of the increase of E-transfer choices and also the whole economy slowly turning into a virtual base, cryptocurrency transactions go along with terribly low fees compared to different payment strategies like wire or bank transfers.
Some individuals use cryptocurrency for purchasing items on-line anonymously whereas others trade tokens on the volatile market with the hopes of winning massive money. There is however a risk concerned as there is a similar change of gaining or losing cash by investing in Bitcoin.
A stimulating part of cryptocurrencies is that they are not supported by fiat currency and their values are virtually entirely supported by investor’s speculation. As such, Bitcoin is an exciting new field to get into.
The characteristics of Bitcoin and other cryptocurrencies is the decentralized element. To buy bitcoin is to record all transactions across the world and to be stored on the blockchain, which is a public ledger that is found on all of the computers within the network. All ledgers are synchronized with no master ledger.
The verification and updating process for all Bitcoin transactions are referred to as mining. This process is independent, with miners being selected randomly across the world to verify transactions over a given period of time.
Once this verification is complete, the information of the transaction is incorporated into a block, which then links to the blockchain. Miners will receive Bitcoin as a reward for the verification process.
Choosing a Cryptocurrency Exchange
The first step to buying crypto in Singapore is to select a cryptocurrency exchange. This is where it gets tricky as there are hundreds of different platforms to buy crypto in Singapore The types of cryptocurrency exchanges are broken down into three different types
Brokers offer the simplest way to purchase Bitcoin by allowing you a way to purchase Bitcoin using fiat currency such as SGD or USD. These brokers offer beginner friendly platforms by using familiar payment methods such as bank transfer, credit card or debit card. One main downside of brokers is that their fees would be higher than other options to purchase bitcoin. Coinbase and Coinhako are two of the best cryptocurrency brokers you could opt for
Cryptocurrency trading platforms.
Trading platforms are one of the ways to purchase Bitcoin using other cryptocurrencies. Exchanges such as Binance and Kraken tend to offer lower fees than other brokers and provide access to Singaporean to a wide variety of Coins. However, this way of trading is not suitable for beginners as you are required to already own another cryptocurrency to use this type of exchange.
Peer-to-peer (P2P) exchanges
Peer-to-peer exchanges remove the middlemen when buying Bitcoin and allow users to trade directly with one another. A seller will have the freedom to specify the price they want to sell their Bitcoin for and their accepted payment methods much like Shopee or Lazada. This method also allows you to trade with increased privacy but you may want to settle for a price that is higher than the market exchange rate. LocalBitcoins and Paxful are great examples of peer-to-peer exchanges.
Buy Bitcoin Using Singaporean Exchanges
After you have selected your chosen platform, you will then just have to submit an order for your chosen coin. For novices, the most convenient way is to actually use Bitcoin Brokers first. The advantage of easy to use methods will definitely outweigh the higher fees from a Bitcoin Broker.
Whichever platform you have chosen to get started with, an account is required to be registered with the exchange first. There is a level of regulatory requirements that you are subject to depending on the exchange. Levels of private information required would include your full name, contact information and proof of ID before being allowed to trade.
After verifying your account, you will get started by selecting how much BTC you want to buy and how to buy Bitcoin in Singapore? You can either use bank transfer, debit card or credit card,etc and review the fees and total cost of the transaction before finalising your purchase of bitcoins.
Exact steps would depend on the payment method and type of platform you so follow below for how to pay for cryptocurrencies.
How to choose the right Bitcoin exchange to buy BTC in Singapore
With so many platforms to choose for, selecting the best exchange that suits your needs would be rather challenging to buy BTC in Singapore. You should take into account the below factors when comparing exchanges in Singapore
Where the exchange is based and how it is regulated: Although the regulatory environment in Singapore based on digital currencies are becoming clearer as time goes on, this could not be the case for some oversea-based exchanges.
You should do some research on the regulatory requirements on some of the exchanges that apply in those countries. This could help you decide if you are dealing with a reputable platform.
Security: You should look at the security features that the platform offers. Do they have SSL website encryption or PGP encrypted emails? When you log in to your account are you prompted with 2-factor authentication? Does the exchange have its services insured or a cold wallet storage somewhere to prevent theft? These are many factors you should consider
Fees: You should navigate to the fees section of each exchange which are usually very transparently displayed for you and decide how much your transactions are going to cost you. Do note that some higher fees for some exchanges means that they provide a faster and more premium service so it is up to you to balance out your requirements between cost-savings and efficiency.
Transaction Limits: Some exchanges impose transaction limits on how much you can deposit or withdraw BTC from your account and this would vary depending on how verified your account is or how much volume you are trading over a certain amount of time. Does the exchange restrict how much you can withdraw from your account in one transaction or within a 24-hour period?
Supported digital currencies: Since Bitcoin is the largest cryptocurrency in the world, Bitcoin can be bought and sold on most crypto exchanges, however if you are looking to trade Bitcoin for other cryptos and vice versa, check out what other coins the platform is offering
Customer support: This is important as you will be able to quickly get in touch with the exchange’s representatives if you ever face a problem with a transaction. Check what contact methods are available by prioritising a telephone call or online chat which should be the fastest ways to contact for support
Reputation: Research the exchange’s name or Bitcoin forums to find out what other user’s experiences are on this platform.
How can I pay for my Bitcoin?
In Singapore, there are many different ways you can buy Bitcoin with each having its own pros and cons.
Buy Bitcoin in Singapore with Cash
If you would prefer to use cash to buy Bitcoin, you can look for a peer-to-peer exchange to find a seller who accepts cash to purchase bitcoins. You could also choose to buy and sell Bitcoin by loading a prepaid credit card with cash and subsequentl;y use it to buy Bitcoin on a platform which accepts prepaid cards, such as Bitit.
Buy Bitcoin in Singapore with Bitcoin ATM
A Bitcoin ATM could also be used by depositing cash into the ATM which can then be converted into Bitcoin. You could opt for using a crypto broker that accepts cash deposits such as Coinbase. Lastly you can select an exchange that allows you to deposit funds into your account by way of wire bank transfer such as Western Union or MoneyGram and buy Bitcoin using cash.
Buy Bitcoin with a credit card or debit card
There are many exchanges in Singapore that allow you to buy Bitcoin using a credit card or debit card. These types of platforms like Coinbase and Coinmama allow you to make quick, easy to use and convenient purchases.
Credit card or debit card transactions however would tend to have higher fees when you buy digital currency and some banks do not even allow customers from buying crypto with plastic. Credit card is generally more widely used than debit card but some platforms still allow you to purchase digital currency with debit card.
Buy Bitcoin with Paypal
If you prefer to buy Bitcoin using Paypal, you are in luck as it is definitely a way to purchase cryptocurrency, however there are not a lot of platforms that accept Paypal.
The biggest advantage of buying Bitcoin with Paypal is that it is easy to use. However you may need to look around for the right platform as although some exchanges would accept Paypal, they might not accept SGD so you need to be aware of the fees that apply. VirWox and Paxful are two of the platforms which accept PayPal.
Buy Bitcoin with your bank account
In Singapore, another way to buy Bitcoin will be to choose a platform that accepts bank transfer deposits such as Coinbase, Coinhako and Luno.
Depositing funds using a bank account does not attract any fees but it does take a bit of time until the funds are cleared into your exchange account.
Things to consider before making a bank account transfer is to take into account any transaction limits that might apply. Take not of any fees that are charged by the cryptocurrency exchange or broker and also how long it will take for funds to arrive.
Buy Bitcoin with another crypto
If you wish to trade another crypto for Bitcoin, you would need to find something called trading pairs such as BTC/ETH or BTC/DASH. What this means is that you can either trade ethereum for Bitcoin (BTC/ETH) or Dash for Bitcoin (BTC/DASH) Bitcoin is listed on a huge range of trading pairs on many crypto exchanges so this should not be hard to find.
You will however need to search for exchanges that provide the trading pair you are looking for.
Buy Bitcoin anonymously
If you are looking to purchase Bitcoin anonymously in Singapore, most exchanges will require you to verify your identity first so you might be limiting your choices in this regard. However there are a few ways to buy and sell Bitcoin anonymously.
Peer-to-peer platforms like LocalBitcoins will allow you to trade directly with a Bitcoin seller under an anonymous alias or using a Bitcoin ATM to anonymously deposit cash and have it converted to BTC and subsequently transfer it to your Bitcoin Wallet.
Another way is to purchase Bitcoin with a prepaid credit card or cash, or even bank transfer via a platform that does not require a lot of ID- but as mentioned previously it could be hard to find such platforms. Finally you could trade Altcoins for Bitcoin on an exchange that does not require proof of ID.
Pros and Cons When You Purchase from a Singaporean Exchange
There are a lot of options when you are choosing to purchase through Singaporean exchange, either using overseas exchanges or crypto exchanges locally in Singapore. There are both pros and cons when you are buying from a Singaporean Bitcoin exchange as shown below.
- Singapore based exchanges are regulated and have to comply with the Monetary Authority of Singapore (MAS) regulations as well as reporting obligations
- You are able to trade for Bitcoin using SGD
- Singapore-based exchanges would support local payment methods such as bank transfer and credit card transactions
- Local customer support is easier to access and would not have to take into account any time zone differences
- In Singapore, you will get better consumer protection if your funds go missing due to theft or hacks.
- Due to the regulations set in place for such local exchanges, you will get reduced anonymity due to how much personal details and proof of ID that you need to provide to get yourself verified.
- The registration process is longer (some up to a few days) than exchanges that do not require ID verification
- Some international platforms such as Binance and Coinmama based overseas would offer much better liquidity due to their trading volumes.
Other Ways to Buy Bitcoin
Other than using crypto trading platforms there is actually another way to get crypto in Singapore without actually buying it. First off, you are able to charge Bitcoin for goods and services. A request of payment in Bitcoin instead of SGD is actually very valid, although this would be hard to get a buyer to actually do so.
Second way – which is actually not recommended during these times – is for mining Bitcoin due to the enormous resources and time required for Bitcoin Mining to actually be profitable. A last way to get Bitcoin is to earn free Bitcoin through a handful but time-consuming way through online games and Bitcoin faucets. These usually include watching ads and playing puzzle games and getting rewarded with Bitcoin.
Buying Bitcoin OTC
If you are an experienced trader looking to trade a large volume of cryptocurrencies, for example SGD$50,000 or more you may want to reconsider performing this transaction through a traditional exchange.
This is because not only will you be exposed to slippage, which substantially increases the cost of your trade, but you will also be subject to risks of hacking and theft associated with traditional cryptocurrency exchanges.
To resolve this issue and mitigate such risks, Over-The-Counter (OTC) brokers could potentially offer better prices with increased transaction limits and a faster processing time for large-volume traders.
Frequently Asked Questions
Q: Can I attempt to buy an amount which is less than 1 Bitcoin?
Yes. Every single BTC is divisible to 0.00000001 BTC, so it is possible to buy a small fraction of a coin with its value apportioned appropriately.
Q: Can I store my Bitcoin on an exchange?
While some exchanges do offer storage services for your cryptocurrencies, it is generally not recommended as they are a popular target for hackers and you lose control of your private keys. As such the best way to store your coins are on a secure, private wallet – which some exchanges offer as well.
Q: What is the fastest way to purchase BTC?
The quickest most efficient way to buy BTC is probably through a Bitcoin ATM. If there is a Bitcoin ATM nearby, you just need to deposit cash and have it converted to BTC. IF not Bitcoin ATM is available, using a service that does not require any ID verification would be the next fastest option.
Q: What determines the price of BTC?
Bitcoin’s price is determined by supply and demand of traditional economics. There is a limited supply of BTC in the market and new coins are generated at a predictable rate but several factors do exist to influence demand such as ease of use, acceptance of businesses to accept Bitcoin, regulations, increased regulation and market competition.
With over 10 years of experience working as a financial analyst, Eric is highly aware of the potential of cryptocurrency, particularly Bitcoin, and the impact it will bring towards the global economy. He is committed to share everything he knows about crypto here at Crypto Digest News.