Buying Bitcoin & Cryptocurrencies in Singapore
So you want to get your hands on some Bitcoin but have no clue where to start. I can see why that is. At this moment, it is a complicated process just to convert fiat to bitcoin. However, several companies are paving the way for easier and cheaper bitcoin purchases.
P.S. This article doesn't address Binary Options such as IQoption which do not allow you to directly purchase the asset.
As of today, there are 3 ways to purchase Bitcoin.
Coinbase is definitely the easiest and most convenient way to purchase Bitcoin, Litecoin, Ethereum and Bitcoin Cash at the moment. With an easy-to-use interface and mobile app, you can buy and sell bitcoin directly from your computer or mobile phone.
However, with that convenience comes relatively high fees.
- Credit Card Payment - 3.99% fee on the total transaction
- Xfers.io - 1.49% of total transaction. (Currently suspended)
Also the price you pay for a bitcoin on Coinbase tends to be higher than other exchanges like Gemini, Bitfinex and GDAX (owned by Coinbase) as there is a spread of between 25 to 100 basis points (0.25% to 1%) applied on the price
To begin, simply register at Coinbase.com (Get SGD13 worth of Bitcoin)
Gemini is a federally regulated bitcoin exchanges founded by the Winklevoss twins (famous for their role they played in Facebook's early history).
In order to use Gemini you will have to fund your account via an international money transfer. Today, this can be done quite cheaply through internet banking.
Fees are also extremely competitive at 0.25% on every trade, much lower than purchasing through Coinbase.
To begin, simply register at gemini.com
3. Bitcoin ATM
You would be surprised to know that Singapore has had Bitcoin ATMs since 2014. Set up by a company known as Bitcoin exchange, the Bitcoin ATM has relocated a couple of times and is now located at @Worklor and @Tiong Bahru Plaza.
It works like an ATM machine. You can deposit physical cash into this ATM and buy bitcoin pretty much instantly. It takes cash and sends you bit coin to your crypto currency wallet.
They charge a commission of 3.5% for all transactions. That may not be the best deal but it’s cheaper, faster and easier than Coinbase.
Numoney is a new start up in Singapore that offers crypto enthusiast an avenue to purchase their coins Over-The-Counter (OTC). This means that you can get your coins immediately.
Store location: 87 Compassvale Bow (Just beside Buangkok MRT)
Here is how you purchase Cryptocurrency through Numoney:
- Book an appointment with them before heading down to their office
- Make your way to the store
- Bring CASH
- Bring IC (For KYC purposes)
- Make payment and wait for the transaction status
- Done! You will have your cryptocurrency in your wallet
Numoney currently offers the following coins:
- Bitcoin Cash
- Ethereum Classic
The best part of it all? Numoney's pricings are extremely competitive. Check their latest rates on their website! https://numoney.store
Purchasing Alt-Coins (Neo, Ripple and Icon)
If you would like to purchase other Cryptocurrencies such as Neo and Ripple, the best way to proceed is to use either the Bitcoin or Ethereum purchased as an intermediary in exchanges such as Binance or Bittrex.
Here are some exchanges that offer a wide selection of Alt-Coins.
Before we end, I would like to emphasize the importance of securely storing your Cryptoassets. Exchanges offer an online wallet for you to store your precious bitcoin. There is a certain appeal in storing coins on bittrex and poloniex. They can store crypto coins and let us use them instantly. However, this is one of the worst ways out there.
Who knows the exchange will not run away with your money, who knows it wouldn't be hacked and all the database will be gone, who knows it would not be bankrupt.
We all have heard what happened with Mt. Gox.
"In 2014, Mt.Gox was handling over 70% of all bitcoin transactions worldwide, as the largest bitcoin intermediary and the world's leading bitcoin exchange. In February 2014, Mt. Gox suspended trading, closed its website and exchange service, and filed for bankruptcy protection from creditors. In April 2014, the company began liquidation proceedings. Mt. Gox announced that approximately 850,000 bitcoins belonging to customers and the company were missing and likely stolen, an amount valued at more than $450 million at the time. In April 2015, Tokyo security company WizSec concluded that "most or all of the missing bitcoins were stolen straight out of the Mt. Gox hot wallet over time, beginning in late 2011."
So where do we store our money if not on exchanges?
A wallet, especially made for storing crypto coins, specifically a Hardware Wallet. Here are some of the most secure hardware wallets on the market.