With the era’s rapid technological advancements, cryptocurrency (also known as crypto) has become one of the most effective and popular ways to earn passive income.

Throughout the years, stories of people becoming overnight millionaires thanks to cryptocurrencies have gone viral, leaving many to want to hop on the train.

Crypto has become one of the largest-growing markets in Singapore, with more apps and wallets becoming accessible to the public. It has become one of the most desirable ways to invest.

Diving into cryptocurrency can seem daunting to the first-time investor. 

So in this article, we will look into how to buy crypto in Singapore and the common mistakes to avoid when getting started.

Is buying crypto legal in Singapore?

Buying cryptocurrency in Singapore is 100% legal. 

However, The Monetary Authority of Singapore (MAS) has stated that though it is legal in the region, certain restrictions exist.

One of the biggest limitations is that you cannot buy cryptocurrency through a bank or investment firm in Singapore. This is because MAS has restricted financial institutions from dealing with cryptocurrencies.

In Singapore, crypto is considered a legal asset but not a legal tender. It is considered a property. 

According to the Currency Act 1967, only notes and coins issued by MAS are considered legal tender.

Therefore, crypto cannot be used to make typical payments in Singapore. However, once coins are transferred to a wallet, it is possible to convert crypto into Singapore dollars.

What are the risks associated with buying crypto in Singapore?

MAS warns investors about some of the risks associated with buying crypto in Singapore: volatile prices and becoming a victim of theft or fraud. 

As cryptocurrencies are technology-based intangible legal assets, investors can become susceptible to hacking.

Owning crypto requires the use of a digital wallet. Unless you use a trustworthy wallet, you may become a victim of hacking. 

So these digital wallets need to be highly protected.

If you lose access to your wallet or wallet backups, you will lose all of your investments. It is best to always have a backup in case your device gets stolen. 

Types of Cryptocurrencies Available in Singapore

Bitcoin

The largest-growing cryptocurrency in Singapore is Bitcoin. It is no surprise why: Bitcoin was the first cryptocurrency to be created and hit the mainstream market.

It is the longest-surviving cryptocurrency, and its longevity and popularity have made it one of the most invested-in cryptocurrencies. 

Bitcoin has become the public’s number one choice for cryptocurrency in Singapore (and worldwide) due to its secure blockchain. 

Due to the number of blocks Bitcoin has, its network is considered one of the most secure and trustworthy.

Altcoins

There are other alternatives to Bitcoin, which are commonly known as altcoins. These include Ethereum, Binance Coins, Polkadot, Cardano, and Tether. 

Ethereum is a decentralized blockchain cryptocurrency that is community-run. 

Binance Coin, on the other hand, is a cryptocurrency from the Binance exchange platform.

Polkadot is a cryptocurrency that allows blockchains to perform transactions without the use of a third party. 

Cardano is a public, open-source, and decentralized cryptocurrency and is one of the largest in the market.

Meanwhile, Tether is an asset-backed cryptocurrency stablecoin. It is tied to real-world assets and aims to make 1 Tether (USDT) be equivalent to 1 USD.

How to Buy Cryptocurrency in Singapore

Before you can buy cryptocurrency in Singapore, there are a few things you need to make sure you have, such as

1. Personal IDs for verification (passport, driver’s license, etc.)
2. Payment methods, such as credit cards, debit cards, and fund transfers
3. Stable and secure Internet (do not use public, free wi-fi)
4. Smartphone for two-factor authentication
5. Cryptocurrency exchange account
6. Cryptocurrency wallet

After preparing the requirements, follow these steps to buy cryptocurrency in Singapore:

1. Find and join a cryptocurrency exchange platform.
2. With your selected payment method, purchase your chosen cryptocurrency from the exchange platform.
3. Store your cryptocurrency in a crypto wallet.
4. (Optional) Sell or trade cryptocurrency with other investors.

1. Find and join a cryptocurrency exchange platform

The first thing you need to do when buying cryptocurrency in Singapore is to find the perfect cryptocurrency exchange account for you. 

There are thousands on the Internet, but not every platform accepts investments in Singapore Dollars (SGD).

Different exchange platforms have different benefits, such as low fees, easy-to-navigate designs, and 24-hour customer service. 

To sign up for these exchange platforms, you need to provide a personal ID for verification.

2. Purchase your chosen cryptocurrency from the exchange platform

To purchase from these platforms, you need to have a secure payment method, such as credit or debit cards or fund transfers. 

Most platforms will require a smartphone for two-factor authentication, which keeps your account secure.

3. Store your cryptocurrency in a crypto wallet

After purchasing from your exchange account, you can store your money in a crypto wallet. There are two kinds of wallets: a “hot wallet” and a “cold wallet.” Their main differences are

• Hot wallet: stores your crypto in an online software and makes use of private keys to protect your assets
• Cold wallet (also known as hardware wallets): uses offline electronic devices to store your private keys.

Hot wallets are often free to use and can be accessed through browsers or apps. Cold wallets, on the other hand, are bought, as they are physical hardware that keeps your crypto.

4. Sell or trade your cryptocurrency (optional)

You can choose to store your money in your wallet and cash out when the value increases. Alternatively, you can sell or trade your crypto with other investors.

Payment Methods for Buying Crypto in Singapore

To purchase crypto in Singapore, you need to find an exchange platform, such as Crypto.Com, or an individual seller that will accept SGD as payment. 

If you are willing, you can also invest in other currencies, such as US Dollar (USD) or British Pound (GBP). 

You will need a stable and secure payment method to purchase your chosen crypto through an exchange platform. 

Some of the payment methods for buying crypto in Singapore are credit cards and debit cards, fund transfers, Apple Pay, Google Pay, and SWIFT payments.

The number of ways to pay makes purchasing crypto easy and secure.

Where to Buy Cryptocurrency in Singapore

As mentioned, the most popular places to buy cryptocurrency in Singapore are exchange platforms, such as Gemini Exchange or Zipmex. 

However, that is not the only way. Singapore also has BitCoin ATMs, which can be used to purchase cryptocurrency with cash.

Other methods of purchasing cryptocurrency are through individual sellers or meet-ups with other crypto investors.

Which app is best to buy cryptocurrency in Singapore?

One of the best cryptocurrency apps in Singapore is Crypto.Com. 

It was launched in 2015 and is a reputable Singapore-based exchange. The holding company operates in Singapore with an exemption from the MAS, making it highly accessible for people in Singapore to invest.

After selecting your chosen platform or method of purchasing crypto, you need to fund your account. Here, you can select which cryptocurrency you want to invest in, and it will immediately be stored in your account on the platform.

However, keeping it in your account is risky. There are chances the platform may shut down or you can get hacked. This is where the cryptocurrency wallet comes in.

Which platform is the best to buy cryptocurrency in Singapore?

The best platforms to buy cryptocurrency in Singapore are Crypto.Com, Capital.Com, and Binance.

Crypto.Com

Crypto.Com is a great choice for buying crypto in Singapore because the company is Singapore-based. It was even awarded by the Singaporean Infocomm Media Development Authority (IDMA).

The exchange platform is easy to use and accepts credit/debit cards, bank accounts, and other modes of payment. It is set up to be easy for beginners and expert trades.

It also protects the users’ data in accordance with the Singapore Personal Data Protection Act.

Capital.Com

Capital.Com allows users to trade with the largest markets via Contracts for Difference (CFD). With the use of AI, users will experience an enhanced trading journey.

It has an easy-to-use interface and utilizes a Buy/Sell model for users to generate income. They also accept a wide array of payments, such as debit/credit cards, wire transfers, and ApplePay.

Binance

Binance is known as not just one of the best exchange platforms in Singapore but the world.

Not only can users purchase the most popular cryptocurrencies here, but they also purchase its native token, the Binance Coin.

The app boasts a user-friendly interface and low trading fees, making it perfect for beginners.

Don’t want to use exchange platforms?

If you do not want to buy crypto through these exchange platforms, you can also seek out individual sellers online through peer-to-peer exchange sites such as LocalBitcoins.Com or Meetup.Com. You can also make use of Bitcoin ATMs, which allow you to purchase crypto with cash. 

Which crypto wallet is the best to use in Singapore?

As mentioned, there are two types of crypto wallets one may opt to use: hot wallets or cold wallets. 

Some of the best hot wallets to use in Singapore are Trust Wallet and Metamask. Meanwhile, some of the best cold wallets to use in Singapore are Terzor One and Ledger Nano S.

Trust Wallet

For hot wallets, one of the best to use is Trust Wallet. It is free and simple to use and offers maximum security and anonymity to keep your funds safe.

It offers two-factor authentication, making it secure.

Its only drawback is that it is only available on Android and iOS, meaning you need to download the app to use it.

Metamask

Another great hot wallet option is Metamask. Metamask can be accessed through the browser and does not require downloads to use it.

It is also compatible with Android and iOS.

This is perfect for those who invested in Ethereum tokens.

Trezor One

If you are opting for a cold wallet, the Trezor One is a great choice. It is small and compact, meaning you can take it anywhere.

All you need is a nine-digit pin and recovery seed, and it will keep your crypto safe and secure.

The Trezor One is available on Shopee, Lazada, and Amazon.

Ledger Nano S

Another cold wallet option to look into is the Ledger Nano S. Its Ledge Live features ensure that all of your crypto coins are kept safe and secure.

It contains a secured chip to keep your data private and even has a touchscreen for easy usage.

The Ledger Nano S is available on Shopee, Lazada, and Amazon.

For a brief rundown on your crypto wallet options in Singapore, check this out:

Hot Wallet	Benefits	Cold Wallet	Benefits
Trust Wallet	• Secure and keeps data private • Available on Android and iOS • Supports all main cryptocurrencies • Full control of security keys	Trezor One	• Secure and keeps data private • Can hold over 1,000 currencies • Small and portable • Requires pin and recovery seed
Metamask	• Open-source • Can be accessed through web browsers • Available on Android and iOS • Generates keys from single seed • Perfect for those investing in Ethereum tokens	Ledger Nano S	• Secure and keeps data private • Contains secured chip • Open-source • Touchscreen • Foldable

List of Approved Crypto Exchanges in Singapore

If you are still on the fence about which crypto exchange to use, here are some of the most popular ones that are approved in Singapore. 

• Crypto.Com
• Zipmex
• Kraken
• Gemini Exchange
• Luno
• Coinhako
• DBS Vickers
• Independent Reserve
• Binance
• Capital.Com
• FTX
• Coinbase
• Bitmex
• OKX
• Bitifinex
• Tokenize

Currently, the officially licensed crypto exchanges in Singapore are Coinhako, Luno, Independent Reserve, and DBS Vickers. 

However, there are many other crypto exchanges that can be utilized for your investment needs.

Gemini Exchange is another popular choice, as it has low fees, an easy-to-use interface, and accepts payments in SGD.

Common Mistakes to Avoid When Buying Crypto in Singapore

There are several things to watch out for before buying crypto in Singapore. Some people make common mistakes that put their precious dollars at risk. To make sure you are entering the world of crypto as securely as possible, try to avoid these common mistakes.

1. Not Doing Proper Research

A lot of people get into crypto because they were introduced to a currency through a friend or family. Some do not do further research on the network and coins they are investing in. Before investing, practice DYOR—do your own research.

Doing your due diligence before investing in crypto is the best way to avoid scams.

2. Only Investing in One Type of Coin

Though there is nothing wrong with investing in only one coin, it is best not to put all your eggs in one basket. If you invest in only one coin, the chances of losing money are higher. If the prices fall and do not go up again, the money you invested is higher than the money you have now.

To be safe, it is best to invest in three coins. Some of the most popular choices are Bitcoin, Ethereum, Cardano, and Ripple.

3. Investing in Too Many Coins

While it is good to diversify your crypto portfolio, it is also not a good idea to invest in as many coins as you can.

It can be tempting to do so due to the highly volatile market and the dozens of coins available, but this can lead to incredible losses if you invest in underperforming assets.

It is best to invest in coins after doing proper research on how they perform in different market conditions.

4. Investing While Thinking Short-Term

Some people only have one goal—to get rich quickly. However, crypto does not work like that.

Cryptocurrency is a highly volatile market due to how new it is. In a matter of hours, the worth of a coin can plummet and reach new peaks.

Because of this, it is better to think of crypto as a long-term investment. It is better to invest with a goal in mind, such as fostering a retirement fund.

5. Sending Coins to the Wrong Address

After purchasing from an exchange or individual seller, you will most likely be transferring them to the wallet. One vital thing to do is make sure you are sending your coins to the right address.

Each token has its own unique address. If you accidentally send Bitcoin to a Cardano address, you will be unable to retrieve it, as there are no ways to reverse a transaction in the world of crypto.

To be safe, send a small amount as a test sum. If you are able to receive it in your wallet, then you get the green light to send the rest to your wallet.

Ready to invest in cryptocurrency?

Cryptocurrency may seem intimidating, but once you get the hang of it, you will soon see your investments rise. The volatility of the market is one of the charming points of cryptocurrencies, and it can be your next step to financial security.

With these tips, you are ready to take the next step in the world of cryptocurrency. Remember to DYOR and find the perfect cryptocurrency exchange platform and wallet for you.

Always keep in mind your purpose in investing in cryptocurrency. Be careful and cautious with your coins.

And of course, diversify your crypto portfolio—but not to the point where you are sustaining major losses. Are you ready to invest in cryptocurrency?