How to Purchase Bitcoin in Singapore

If you're a Singaporean resident looking to buy Bitcoin, we provide you with a step-by-step guide to acquiring BTC using Singapore Dollars (SGD).

Cryptocurrencies are gaining increasing prominence in everyday life, and Singapore is no exception. With Bitcoin reaching an all-time high of approximately US$64,895 (S$86,480) on April 14, 2021, many individuals have taken notice, and you might be one of them. If you're interested in riding the cryptocurrency wave and gaining exposure to Bitcoin, read on.

The filing with the U.S. Securities and Exchange Commission (SEC) revealing Tesla's $1.5 billion Bitcoin purchase and DBS (SGX: D05) announcing its plan to establish a digital exchange have solidified the presence of cryptocurrencies and Bitcoin in the financial landscape.

In this guide, we'll walk you through the process of buying and trading Bitcoin in Singapore. Numerous trading platforms allow you to purchase it directly and accept SGD

Purchasing Bitcoin in Singapore

In Singapore, there are two primary methods to invest in cryptocurrencies. You can either go online and buy from a Bitcoin exchange or visit a local ATM to exchange SGD for Bitcoin. To buy or initiate trading, you'll need an exchange account, and it's advisable to follow secure storage practices.

Here are the steps to buy BTC as a Singaporean:

1. Compare Crypto Exchanges
2. Select a Bitcoin Exchange
3. Create an Account
4. Deposit SGD
5. Click on “Buy”
6. Enter the amount
7. Review the transaction
8. Click “Buy”
9. Commence Trading or Store it in a Crypto Wallet

You have the option to purchase as little as $100 worth of Bitcoin or even a smaller amount. You are not required to acquire the full 1 BTC; fractions are also available.

Where to Buy Cryptocurrencies in Singapore – Best Exchanges for Bitcoin in Singapore

The recommended platform for buying crypto in Singapore is Stormgain. They do not impose deposit fees or any additional charges. Below, you can find a list of the top exchanges for purchasing Bitcoins and other popular cryptocurrencies.

Exchange	Fees	Pro Account	Supported Cryptocurrencies	Deposit Fees
Stormgain	0.095% (BTC)	Yes	BTC + others	$0
Binance Singapore	0.1% spot trading fee; 0.5% Instant Buy/Sell fee	/	300+	Deposit with Xfers is free
Huobi Global	N/A	/	N/A	Varies
Coinbase	Variable percentage fee 1.49% – 3.99%	/	N/A	Varies (3.99% + 7% of transaction fee) or $25 for SWIFT transfers

Essential Considerations Before Making a Purchase

Is Cryptocurrency Investment Legal in Singapore?

Yes, buying cryptocurrencies in Singapore is entirely legal. However, it's crucial to note that Bitcoin and other cryptocurrencies are not regulated by the Monetary Authority of Singapore (MAS) and are not considered legal tender. This means there's no protection available in case of losses resulting from cryptocurrency investments.

MAS Regulation on Cryptocurrencies in Singapore

Cryptocurrency regulations in Singapore are still in their early stages. MAS categorizes cryptocurrencies as digital payment tokens (DPT) and introduces some regulations through the Payment Services Act 2019, primarily aimed at preventing money laundering and terrorism financing.

MAS does not oversee or safeguard cryptocurrency transactions, leaving investors unprotected. However, recent enhancements to the Payment Services Act require providers of cryptocurrency storage or exchange services to comply with MAS-set rules and regulations.

Why invest in Bitcoin?

Bitcoin and cryptocurrencies, in general, have garnered support for various reasons:

• Emerging Technology: Cryptocurrencies are in their early stages, attracting investors looking to capitalize on their growth.
• Limited Supply: Bitcoin has a capped supply of 21 million coins, leading to supply and demand dynamics.
• Decentralization: Cryptocurrencies eliminate central bank control, appealing to those seeking financial autonomy.
• Secure Technology: Blockchain, the technology behind cryptocurrencies, offers robust security compared to traditional payment systems.
• Speculative Gains: Bitcoin's price volatility provides opportunities for both long-term and day traders.
• Government Recognition: Increasing acknowledgment and acceptance of cryptocurrencies by governments boost their adoption.
• Capital Gains Tax: Depending on your country of residence, cryptocurrency capital gains tax may be lower due to regulatory differences.
• Store of Value: Some view Bitcoin as a digital version of gold, a store of value.

Is Bitcoin a Good Investment?

Bitcoin offers excellent liquidity, making it attractive for short-term profit-seekers. Its demand and speculative nature also make it a potentially strong long-term investment. Additional reasons include:

• Low Inflation Risk: Bitcoin is immune to inflation, unlike government-regulated currencies.
• High Liquidity: Bitcoin is one of the most liquid assets, thanks to numerous trading platforms and online brokers.
• Early Stage: Cryptocurrencies are still in their infancy, with potential for continued growth and evolution.

Cons of Investing in Bitcoin

However, there are downsides to investing in Bitcoin:

• High Volatility: Bitcoin's price is notoriously volatile, requiring constant market monitoring.
• Hacking Risks: Cryptocurrency exchanges can be vulnerable to cyberattacks, resulting in the loss of investors' assets.
• Lack of Regulation: The Bitcoin market is largely unregulated, leaving it susceptible to scams and fraud.
• Limited Acceptance: Bitcoin is not widely accepted as a form of payment by many companies.
• Security Risks: Private keys can be lost, and hard drives can fail, potentially leading to asset loss.

How to Purchase Bitcoin in Singapore

To buy Bitcoin in Singapore, you can follow these steps:

1. Compare Cryptocurrency Exchanges.

2. Choose a Bitcoin exchange that suits your preferences.

3. Create an account on the chosen exchange.

4. Deposit Singapore Dollars (SGD) into your exchange account.

5. Click on "Buy" and specify the amount of Bitcoin you wish to purchase.

6. Review the transaction details and confirm your purchase.

7. Begin trading or transfer your Bitcoin to a cryptocurrency wallet for safe storage.

Payment Methods for Buying Bitcoin in Singapore

Singapore residents have several payment methods for buying Bitcoin, including:

Credit Card

Some exchanges, like Stormgain, accept credit card payments for quick transactions.

Bank Account

Most cryptocurrency exchanges support bank transfers, which are nearly instant and often free. Payment services such as Xfers and PayNow are also supported.

Cash

You can find individuals willing to exchange cash for Bitcoin in-person, though this method typically incurs higher fees.

Crypto ATMs

Singapore has several Bitcoin ATMs that allow you to deposit cash in exchange for Bitcoin.

In conclusion, Bitcoin and cryptocurrencies offer investment opportunities in Singapore, but it's essential to be aware of the risks and the evolving regulatory landscape. Choose a reputable exchange, and consider your preferred payment method before diving into the world of cryptocurrencies.

Buying with PayPal in Singapore

To purchase Bitcoin using PayPal in Singapore, you'll need to utilize a trading platform like Stormgain that supports PayPal payments. After creating an account on such a platform, you can deposit funds via PayPal and proceed to buy BTC.

One potential issue with using PayPal is the risk of chargeback fraud. This occurs when someone buys Bitcoin using PayPal and then requests a chargeback, essentially allowing them to keep both their money and Bitcoin.

To mitigate this risk, you can consider using a peer-to-peer exchange like Paxful or a platform like Stormgain, both of which accept PayPal payments. However, note that these platforms are more suitable for trading rather than long-term holding.

Another alternative is to explore services like xCoins, which are designed specifically for facilitating PayPal to BTC transactions. Keep in mind that while xCoins offers this convenience, it may have some security concerns.

Peer-To-Peer (P2P) Exchanges

Another option for purchasing Bitcoin is to utilize a P2P cryptocurrency exchange, such as Binance P2P. These platforms enable individuals to engage in peer-to-peer buying and selling of cryptocurrencies.

Buying with Another Cryptocurrency

If you wish to buy BTC with another cryptocurrency, the easiest method is to use a cryptocurrency exchange that offers the desired trading pair. For instance, to buy Bitcoin with ADA, you'll need to find the BTC/ADA trading pair on the exchange. Once located, you can proceed with the purchase by following the steps outlined. Ensure that the exchange rate for the pair is reasonable.

Selecting a Bitcoin Trading Platform

When choosing a Bitcoin trading platform, consider factors such as regulation, security, low trading fees, reasonable transaction limits, support for your preferred currency, excellent customer support, and a good reputation.

How to Store Your Bitcoin

Bitcoin is stored in a digital wallet, which can be categorized as either cold wallets or hot wallets.

Cold Wallets

The safest place to store Bitcoin is in a cold wallet, which is a digital wallet kept offline. These wallets can be web-based or hardware-based (such as a USB stick). You can store Bitcoin on a mobile device, desktop computer, or hardware wallet and secure it with private keys.

Hot Wallets

Alternatively, you can use a hot wallet, which is typically provided by exchanges. Hot wallets are suitable for easy trading and withdrawals but are not as secure as cold wallets.

How to Sell Bitcoin in Singapore

To sell your Bitcoins in Singapore, you have several options. You can do so on a cryptocurrency exchange that offers the SGD/BTC trading pair, allowing you to easily convert your Bitcoins to Singapore Dollars when needed.

Another option for selling Bitcoin is to use a service like LocalBitcoins, a peer-to-peer platform that facilitates Bitcoin buying and selling using various payment methods.

Top Cryptocurrencies by Market Cap

Rank	Cryptocurrency	Price	Circulating Supply	Max. Supply	Market Cap
1	Bitcoin (BTC)	$34,114.18	18,741,143 BTC	21,000,000	$648,720,667,162
2	Ethereum (ETH)	$2,000.80	116,407,814 ETH	Unlimited and 18,000,000/year	$236,342,384,881
3	Tether (USDT)	$1.00	62,699,736,754 USDT	N/A	$62,755,733,312
4	Binance Coin (BNB)	$300.74	153,432,897 BNB	170,532,785 BNB	$47,298,075,068
5	Cardano (ADA)	$1.28	31,946,328,269 ADA	45 billion	$41,661,873,716
6	Dogecoin (DOGE)	$0.2369	130,143,355,580 DOGE	N/A	$31,324,106,547
7	XRP (XRP)	$0.6452	46,244,517,593 XRP	1 billion	$30,471,717,468
8	USD Coin (USDC)	$1.00	25,293,863,495 USDC	N/A	$25,303,987,692
9	Polkadot (DOT)	$16.30	954,345,815 DOT	N/A	$15,943,251,422
10	Uniswap (UNI)	$18.47	575,202,575 UNI	1.000.000.000 UNI	$10,621,963,744