So, you want to buy cryptocurrency in Singapore, but you don’t know where to begin. This guide has everything you need to know!

We’ll talk about the different ways to buy crypto in Singapore and how important it is to store your cryptocurrency in a trusted wallet. We’ll also show you some of the safest options.

However, be warned: not everything in the world of crypto is sunshine and rainbows. We’ll also take you through the possible risks of investing in cryptocurrency.

What is cryptocurrency?

Cryptocurrency is a type of digital currency that uses secured codes to keep transactions safe and to control how many new units are made. It’s like digital money that you can use to buy things online or in person.

One of the biggest differences between cryptocurrency and regular money is that cryptocurrency is not controlled by any government or financial institution. 

Instead, transactions are recorded on a blockchain, a type of electronic system where records are kept, which is stored throughout a network of computers around the world. Because of this, using cryptocurrency is faster and safer than using traditional money.

There are many different kinds of cryptocurrency, but Bitcoin, Ethereum, and Litecoin are some of the most well-known. 

What are the different types of cryptocurrency/coins?

Here are some examples of the most popular cryptocurrencies or coins:

1. Bitcoin (BTC)

Bitcoin is the first and best-known digital currency. It was made in 2009 and it’s known for being very volatile.

2. Ethereum (ETH)

Ethereum is a decentralized platform that lets developers use smart contracts. Ether is the cryptocurrency that runs the Ethereum platform and is the second largest cryptocurrency after Bitcoin.

3. Ripple (XRP)

Ripple is a digital currency and a payment protocol that is made to make international money transfers fast and cheap.

Ripple isn’t like Bitcoin and other decentralized cryptocurrencies because it is run by a private company that controls a central system.

4. Litecoin (LTC)

Litecoin is a peer-to-peer cryptocurrency. It has some similarities to Bitcoin, but it has some notable differences as well. 

Litecoin is cheaper than Bitcoin, and Litecoin also beats Bitcoin when it comes to transaction speed.

5. Dogecoin (DOGE)

Dogecoin is a digital currency that was made as a joke in 2013 based on the Shiba Inu dog meme. Even though it started out as a joke, Dogecoin has a strong following and is used for small purchases and online tips.

6. Cardano (ADA)

Cardano is a newer cryptocurrency that aims to fix some of the problems that earlier cryptocurrencies had with scalability and working with other cryptocurrencies. 

It’s known for putting a lot of effort into academic research and peer-reviewed development, which makes it very safe and reliable.

What is a crypto wallet?

A cryptocurrency wallet is like a digital piggy bank where you can store your digital coins or tokens. It’s a safe place to store your digital currencies until you need them. 

You keep your cryptocurrencies in a digital wallet, just like you keep your cash in a physical wallet or a bank account.

And just like you need to keep your physical wallet safe, you need to use strong passwords, authentication, and other security measures to keep your cryptocurrency wallet safe.

What are the types of crypto wallets?

There are two kinds of wallets for cryptocurrency: hard wallets and soft wallets.

Type	Description	Pros	Cons
Hard Wallet	It’s a small gadget that you can put in your pocket or on your desk. You can store your digital coins on it, and a secret code that only you know keeps them safe.	Since they are not connected to the Internet, they have a high amount of securityPrivate keys are kept in a safe place, so they are less likely to be stolen or hacked.Can hold a lot of different coins	Pricey compared to soft walletsCan actually be broken or lostAccessible but not as easily as soft wallets
Soft Wallet	A soft wallet is an application or software that you can download to your phone or computer. With an Internet connection, you may access your money from any location.	Often free or low costConvenient and easy to access from a computer or mobile deviceCan be used for day-to-day transactions	Generally less secure than hard wallets since they are connected to the InternetPrivate keys are stored online and can be susceptible to hacking or theft.Limited storage capacity for different cryptocurrencies

Which crypto wallet is the best in Singapore?

When it comes to picking a cryptocurrency wallet in Singapore, you have a lot of choices. Here are some of the most common wallets you might want to consider:

1. Ledger

Ledger might be something you want to look into if you want to keep your cryptocurrency safe. It’s a hard wallet that stores your crypto offline. This makes it one of the safest ways to protect your assets. 

Ledger works with a lot of different cryptocurrencies, and it has advanced security features like two-factor authentication to keep your money safe. 

2. Trezor

The best Bitcoin wallet in Singapore might be Trezor. It works like Ledger in that it keeps your digital assets offline, which makes it much harder for hackers to get to them. 

Also, Trezor doesn’t just work with one type of cryptocurrency; it works with several, giving you more options for your investments. With features like PIN protection and key encryption, you can feel good about the safety of your digital assets.

3. MyEtherWallet

MyEtherWallet is a great choice if you’re looking for a way to store and manage your Ethereum or ERC-20 tokens. 

It’s easy to use and has helpful features like easy backup and restore options. Many people trust MyEtherWallet because it works well and is easy to use.

The best wallet for you depends on what you like and what you need. To find the right wallet for you, think about how safe it is, how easy it is to use, and what kinds of cryptocurrencies you want to store.

How to Buy Bitcoin/Crypto in Singapore – Quick Guide

You can purchase cryptocurrency through various channels, such as online exchanges, Bitcoin ATMs, and face-to-face meetings. Binance, Coinhako, and Coinbase are some of the most reliable exchanges.

Here are the steps to buy crypto from different sources:

How to Buy Crypto Via Online Exchanges

1. Choose an online exchange site. Some examples are Coinbase and Coinhako.
2. Sign up for an account on the site by providing all details required. The usual details that will be asked of are your personal information and some proof of identification.
3. Link your bank account or credit/debit card to your account so you can add money to it.
4. Choose the type of coin you want to buy and the amount you want to spend.
5. Confirm the exchange and wait for the cryptocurrency to be sent to your account.

How to Buy Crypto Via Peer-to-Peer Markets

1. Join a peer-to-peer platform like LocalCoinSwap or Hodlnaut.
2. Find a seller who is ready to deal with you based on the price and method of payment you want.
3. Agree on the terms of the trade, and when you have sent the payment, be ready to receive the coin in your wallet.

How to Buy Crypto Via Bitcoin ATMs

1. Go to a Bitcoin ATM near you. I recommend you check Hong Lim Complex which has a couple of Bitcoin ATMs you can choose from including Coinut.
2. Put money in the machine and follow the directions on the screen to finish the transaction.
3. Wait until the cryptocurrency is in your wallet.

How to Buy Crpyto Via Person-to-Person Transactions

1. Find someone you can trust who will sell you crypto in person.
2. Talk about the price and how you will pay.
3. Meet the other person in a public place where you both feel safe.
4. Once the payment is received, you can finish the deal by paying for the cryptocurrency and receiving it in your wallet.

After making a cryptocurrency purchase, you should store your funds in a secure wallet, such as a Ledger, Trezor, or MyEtherWallet.

Different Payment Methods in Buying Crypto

There are different ways to pay for crypto. Bank transfers, credit/debit cards, PayPal, cash, wire transfers, and even using one coin to buy another are all ways to do this. 

• Bank transfer – sending money directly from your bank account to the exchange’s bank account
• Credit/debit card – buying cryptocurrency on an exchange with a credit or debit card
• Paypal – Some exchanges let you buy things with Paypal, which can be linked to your bank account or credit card.
• Cash – Some exchanges let you buy cryptocurrency with cash, either through an ATM or in person.
• Cryptocurrency – Some exchanges let you use one type of cryptocurrency to buy another.
• Wire transfer – similar to a bank transfer, but usually used for bigger purchases with higher fees

Where to Buy Crypto in Singapore

There are several ways to buy cryptocurrency in Singapore. Some of the most popular places are:

Where to Buy Crypto	What Is It	Examples
Online Exchanges	Websites or apps that let people buy, sell, and trade different types of cryptocurrency	BinanceCoinhakoCoinbase
Peer-to-Peer Markets	P2P markets let users buy and sell cryptocurrencies directly with each other, instead of going through an online exchange	LocalCoinSwap Hodlnaut Binance P2P
Bitcoin ATMs	Like ATMs, Bitcoin ATMs or BTMs are physical machines that let people buy or sell Bitcoin and other cryptocurrencies.	Bitcoin Exchange Singapore – Sunshine PlazaBitcoin Exchange Singapore – Hong Lim ComplexCoinhako – Tiong Bahru PlazaCoinut – Hong Lim Complex
Person-to-Person Transactions	You meet up with another person in person to buy or sell cryptocurrency.	Local crypto groups and forums Meetup events like Blockchain & Cryptocurrency Singapore and Ethereum Singapore MeetupSocial media platforms

Which is the best platform to buy cryptocurrency in Singapore?

With so many options, it can be difficult to select the best platform for purchasing cryptocurrency in Singapore. However, you need not worry; we have you covered. 

To aid you in your search, we have compiled a list of the three cryptocurrency sites in Singapore that we feel are the best overall.

1. Binance

Binance is a fantastic choice for anyone looking for a crypto trading platform in Singapore. It’s among the most visited cryptocurrency exchanges. 

Binance is a popular cryptocurrency exchange because of its wide selection of tokens and low fees. You can also trade on the go with their mobile app.

2. Coinhako

Coinhako is known for being simple and easy to use, which makes it a great choice for people who are just starting. It also has a mobile app, so you can trade cryptocurrency even when you’re out and about.

3. Coinbase

Coinbase is on the list of approved crypto exchanges in Singapore. It follows the local regulations set by the Monetary Authority of Singapore (MAS). With its mobile app, mobile trading has never been simpler. 

Whether you’re new to the crypto world or an experienced investor, Coinbase is a great choice because it gives you options for selling, staking, and more.

Benefits of Buying Crypto

Here are the pros of buying cryptocurrency:

Pro
1. DecentralizationFrom Pixabay	Crypto isn’t regulated by governments or banks. You can manage your money more independently. Cryptocurrencies are good if you want more money control and don’t want to use traditional financial systems.
2. AnonymityFrom Pixabay	Transactions with cryptocurrency are private, so you don’t have to worry about your money being tracked or watched. This can be helpful if you care about your privacy and don’t want other people to know about your finances.
3. Huge returnsFrom Pixabay	It’s possible to make a lot of money by investing in cryptocurrencies. Some of the first people to invest in Bitcoin and other cryptocurrencies made a lot of money, but remember that there are also risks.
4. SecurityFrom Pixabay	Cryptocurrencies protect your money from being stolen or hacked by using advanced cryptography to secure transactions. This makes them much safer than traditional ways of making payments.
5. Transparency From Pixabay	The blockchain is like a big book that keeps track of every cryptocurrency transaction. Everyone can look at this book, so it’s easy to make sure that everything is being done right.  It’s like having a referee watch over the game to make sure it’s fair. So, if you ever want to know what happened with a transaction, you can look it up on the blockchain.  This helps make sure that everything is clear and that there aren’t any secrets.
6. DiversificationFrom Pixabay	By investing in crypto, you can spread out your investments and have more ways to make money than just buying stocks and bonds.  This can make it less likely that you’ll lose all your money if one type of investment doesn’t do well. Cryptocurrency is a way to try something new and maybe make money in a different way.
7. Global AccessFrom Pixabay	Cryptocurrencies can be used to send money anywhere in the world quickly and without a middleman like a bank. This can help cut down on transaction fees and make buying things from other countries easier.
8. Accessibility	Cryptocurrencies can be bought and used by anyone with an Internet connection. This makes them a good investment choice for people who don’t have access to traditional financial services.
9. Potential for innovationFrom Pixabay	Blockchain technology, which is the foundation of cryptocurrencies, has the potential to change many industries. Putting money into cryptocurrency could help this new idea take off and bring even more benefits in the future.
10. Lower transaction fees	Transaction fees for cryptocurrencies are usually lower than those for traditional payment methods like credit cards and bank transfers. Because cryptocurrencies work on a peer-to-peer network, they don’t need middlemen like banks.
11. Fast and convenientFrom Pixabay	Cryptocurrency transactions are handled quickly and can be done at any time of day, without having to wait for banks to open or for someone else’s approval.

Risks of Buying Crypto

Here are some things that could go wrong if you buy cryptocurrencies:

Risks
1. VolatilityFrom Pixabay	Cryptocurrencies are known for being volatile, which means that their value can change quickly and in ways that are hard to predict. This could lead to big gains or losses, so it’s important to be ready for the ups and downs. A Forbes story from May 2021 says that cryptocurrency lost its value due to a large number of people selling their crypto. This caused a market loss of $200 billion in just 24 hours. Source
2. Security risks due to unreliable wallets and platformsFrom Pixabay	When it comes to cryptocurrencies, there is always a chance that security will be broken.  Hackers might be able to get into your exchange or wallet, which could cause you to lose all of your money. Make sure you take the right steps to keep your cryptocurrency safe and store it in a safe place. Your crypto can be secured if you choose reliable places to buy and methods to store your crypto. In January 2018, BBC News reported that Coincheck was the site where the most digital cash had ever been stolen. Source
3. Regulatory risksFrom Pixabay	In many countries, cryptocurrencies are not regulated, which means that the government doesn’t protect the people who buy them.  When it comes to cryptocurrencies, the laws aren’t always clear either. Make sure you know what the rules are in your area before you invest. Bloomberg reported in March 2021 that Singapore was going to control the cryptocurrency industry to protect against possible risks. Source I’ll explain more about the regulations imposed by Singapore in the next section.
4. Lack of transparency from anonymous tradesFrom Pixabay	Because transactions in cryptocurrency are anonymous, it can be hard to track down fraud. Before you invest in a certain coin, make sure to do your research and look for exchanges and wallets that you can trust. CBS News reported in September 2018 that the attorney general of New York said that crypto markets were not reliable, accountable, or safe. Source
5. Adoption risksFrom Pixabay	Cryptocurrencies are still pretty new, and most people don’t use them yet. If a coin doesn’t catch on and gets used by a lot of people, it may be hard to sell or use to buy things. In June 2021, Bitcoin and other cryptocurrencies lost a lot of value, which was a bad day for investors. Source
6. Tricky legal options for disagreementsFrom Pixabay	If cryptocurrency traders in Singapore can’t agree on something, they can go to court to settle the problem. But because cryptocurrency laws are still being made, there may not be a clear legal framework for the court to follow.  Because of this, it can be hard to settle disagreements about cryptocurrencies. It’s important to know the risks of trading cryptocurrencies and take steps to reduce the chances of getting into a fight.

Is buying crypto legal in Singapore?

It is legal to buy and sell cryptocurrencies in Singapore. 

However, the Monetary Authority of Singapore (MAS) has given companies that deal with cryptocurrencies some rules to follow.

Cryptocurrency exchanges and trading sites must register with the Monetary Authority of Singapore (MAS) and follow anti-money laundering (AML) and countering the financing of terrorism (CFT) rules.

The online exchange platforms Coinhako and Coinbase are following regulatory rules. You can practice crypto buying through these platforms.

Is Binance allowed in Singapore?

A large number of Singapore’s cryptocurrency traders uses Binance. You can still use it to buy and sell cryptocurrencies, even though it’s not based in Singapore.

However, the Singapore Monetary Authority (MAS) has issued a warning against using Binance due to the exchange’s lack of registration. This suggests that Binance’s Singaporean operations may be illegal.

Still, Binance is trying again to get permission to work in Singapore, even though it has had problems in other places. Before, they weren’t given a license because people thought they didn’t follow the rules to stop money laundering. 

But now, Binance has a new CEO in Singapore, and it is working with a law firm to make sure it follows the rules better. Binance wants to grow in Asia, and this shows that even though it’s having trouble with rules and regulations, it still wants to do that.

You can read more about it here.

Compliance with Securities Regulations 

As a Singaporean crypto trader, it’s important to follow securities regulations. Here are three of the most important regulations you should know:

1. The Securities and Futures Act (SFA)

This is a law about trading securities, which includes digital tokens like cryptocurrencies. 

It requires companies that make digital tokens to follow certain rules. For example, telling the public about the tokens and getting permission from the Monetary Authority of Singapore (MAS) before selling them to the public.

2. The Securities and Futures Regulations

Some of the important regulations to learn are Offers of Investments and Digital Token and Collective Investment Schemes.

These rules tell companies that give out digital tokens what they have to do, like give investors accurate information and look out for their best interests.

3. The Financial Action Task Force (FATF) Recommendations

Singapore is a part of the FATF, which makes global rules to stop people from laundering money and using it to fund terrorism. 

As a crypto trader, you have to follow these rules and report any transactions you think might be suspicious.

Taxation Rules

The taxation rules apply to people who buy or sell cryptocurrencies in Singapore.

• Cryptocurrencies are considered assets, so any money made from trading them is taxed.
• How much tax you pay depends on how long you’ve had the asset and where you live for tax purposes.
• If you keep your cryptocurrency for less than a year, any gains you make will be taxed at your marginal income tax rate.
• If you keep your cryptocurrency for more than a year, the first S$100,000 of gains you make will not be taxed.
• If you pay taxes in Singapore, you have to report your gains and losses in cryptocurrency on your income tax return.
• If you don’t pay taxes in Singapore, you only have to report your gains and losses in cryptocurrency if they come from Singaporean sources.
• It’s important to keep accurate records of your cryptocurrency transactions so that you can figure out your gains and losses correctly for tax purposes.

Mistakes to Avoid When Buying Crypto

Before you go ahead and rush into buying cryptocurrencies, here are some common mistakes beginners often do that you should avoid.

• Overcommitting and investing in more than you can lose

Cryptocurrencies are risky, and their values can sink in just a matter of minutes so don’t skip meals or miss paying rent just to buy more.

• Focusing only on the prices

It’s easy to get caught up in the hype about rising prices, but it’s important to think about other things, like trends and news around crypto.

• Not investing in high-quality crypto wallets

If you want to keep your cryptocurrency safe from theft or hacking, make sure to use trusted exchanges and safe wallets. I know that hard wallets like Trezor are pricey, but they’re definitely worth investing in.

• Skipping on learning about the tax rules

In Singapore, like any other investment, cryptocurrency is taxed. When you buy and sell cryptocurrency, you should know how it affects your taxes.

Reminders When Buying Crypto in Singapore

The Singapore Monetary Authority (MAS) said that investing in cryptocurrencies can be very risky and unpredictable. This means that the value of cryptocurrencies can change quickly and a lot, which can cause investors to lose a lot of money.

As a new crypto trader in Singapore, it’s important to know the risks of investing in cryptocurrencies and to take steps to protect yourself. 

Here are some parting words I’ll leave for you before you venture into buying crypto:

• Spend time daily to research and learn. Before buying any cryptocurrency, it’s important to do your own research and understand the risks and possible rewards.

• Be aware of any scams or fraudulent schemes. There are a lot of criminals taking advantage of beginners in crypto trading, so report any suspicious behavior to the authorities. 

• Always keep an eye on your investments. Keep track of all the cryptocurrency transactions you make and keep an eye on your investments. Do this regularly to avoid losing money or missing out on opportunities.

You can read more tips on the MAS website.

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