How to buy crypto in Singapore 2022

Updated: Sep 5

Getting started on the right foot when buying crypto is essential because mistakes can be costly. This guide will walk you through how to buy crypto and which exchanges are available for Singaporeans.

 

Key Takeaways

  • While several crypto exchanges retracted their services to Singaporeans due to Singapore's regulations, there are still some that allow you to buy and sell your cryptocurrencies.

  • There are several factors to consider before choosing your first crypto exchange, depending on your investment style.

  • Most popular exchanges are not decentralized and require users to submit identifying documentation to ensure users comply with regulatory rules and laws.

  • Most people are unaware that they are putting their cryptocurrency at risk by leaving it on the exchange.


Introduction

Crypto is a hot topic in Singapore right now. If you've been following the news lately, you've probably heard of Bitcoin and Ethereum. While Singapore has plans to become a Global Crypto Hub, new people have trouble entering the crypto space due to regulations and restrictions.


Getting started on the right foot when buying crypto is essential because mistakes can be costly. This guide will walk you through how to buy crypto and which exchanges are available for Singaporeans.

How to buy crypto in Singapore 2022

How to Buy Cryptocurrencies Safely

Buying cryptocurrencies can be intimidating at first, but it is easy once you conduct your research and choose the best option suited to your investment style. There are only four steps to purchasing your first cryptocurrency.


Step 1: Selecting a Cryptocurrency Exchange

Cryptocurrency exchanges offer a comprehensive range of functions and many cryptocurrencies to trade. You should compare factors such as fees, security, payment methods, and customer support between all the exchanges.


Fees: There are payment fees, trading fees, and withdrawal fees. Trading fees are calculated based on the volume of trades made, so you should expect to pay more for higher volumes. Look for exchanges with fees that suits your investment plan.


Payment methods: Ways users can buy their cryptocurrencies. Some cryptocurrency exchanges have more payment methods. Look for exchanges that have the most convenient payment method for you.


Security: The security of your funds depends on whether the exchange has insurance and how it protects its customers' private keys. Look for exchanges that have been audited by third parties and have good reviews from other users.


Customer support: Customer support is essential if something goes wrong while using an exchange, mainly because technical issues may arise when trading cryptocurrencies. Look for exchanges that provide 24/7 customer support through phone calls or live chats during business hours.


Step 2: Setting Up Account

Currently, most popular exchanges are not decentralized and require users to submit identifying documentation, known as KYC (Know Your Customer), to ensure users comply with regulatory rules and laws.


You may need to prepare documents such as an identification card or passport, proof of address, and a selfie to prove your appearance matches the documents you submit.

Step 3: Funding and Buying

After verifying, you must ensure that you have funds in your account. You can fund your crypto account by linking your bank account, authorizing a wire transfer, or even paying with a debit or credit card. Depending on the exchange and your funding method, you may have to wait a few days before using the money you deposit to buy cryptocurrency.


With funds inside your account and the coin, you have in mind to buy, head over to the spot trade tab and place your first order.


Step 4: Safe Storage

Most exchanges allow you to leave your investment in your account, which is the most convenient option for most beginners. Most people, however, are unaware they are putting their cryptocurrency at risk; the exchange might become insolvent or get hacked. Transferring your cryptocurrency to your wallet ensures that the private key to your funds is only accessible to you.

"In the event of a bankruptcy, the crypto assets we hold in custody on behalf of our customers could be subject to bankruptcy proceedings, and such customers could be treated as our general unsecured creditors" - Coinbase.

Various types of cryptocurrency wallets are available, each with varying levels of security and features. It is always recommended to get a hardware wallet, which is usually more secure than software wallets because they're physical and offline.


List of Places to Buy Crypto for Singaporeans

Due to Singapore's regulations, popular exchanges such as Binance, OKX, and Huobi do not extend their services to Singaporeans. Here is the list of regulated platforms to you can buy your crypto in Singapore.


Crypto.com

Crypto.com logo









Crypto.com trading fees range from 0.01% to 0.4%, depending on your monthly trading volume, and they support more than 250 cryptocurrencies. They have withdrawal fees varying depending on the cryptocurrency. Check out their withdrawal fees schedule here.


With a user-friendly UI (User-Interface), 24/7 live customer support chat, and additional features such as staking and buying NFTs, Crypto.com is an excellent platform to start. However, the trading fee discounts can be confusing to navigate, and netizens commented that there is a high hidden spread. You should use Crypto.com if you are interested in CRO's NFTs and trade the large varieties of Crypto.com's supported tokens.


Kraken

Kraken logo








Kraken's trading fees and withdrawal fees are structured similarly to Crypto.com. Their trading fees range from 0% to 0.2%, with only 56 listed cryptocurrencies compared to Crypto.com's 250 supported cryptocurrencies. Check out their withdrawal fees schedule here.


Kraken has 24/7 live customer support chat and phone support. They provide staking and more sophisticated features such as margin trading. The only drawback would be the complex UI might be confusing for beginners. You should use Kraken if you can navigate the complex UI to enjoy lower trading fees.


Coinhako

Coinhako logo








Coinhako trading fees are 1.00% per transaction, with over 20 available cryptocurrencies to trade. Coinhako has a withdrawal fee of $2, but because of Singapore's regulations, there are some cryptocurrencies you are not permitted to send to another wallet or withdraw from your own.


Their UI is designed to be beginner friendly, but their customer support is lacking as they only provide email support which might take over 1 - 3 business days for them to reply. You should use Coinhako if you are not looking to buy a large amount and want a small exposure to crypto.


XanPool

XanPool logo




All the platforms above support payment or deposit via credit card, Xfer, or bank transfer. However, the card payment service provider charges a 3% processing fee per transaction, Xfer charges 0.55%, and bank transfer generally takes around 1 - 3 days for the exchange to process.


XanPool allows Singaporean to buy Cryptocurrencies using Paynow, and the process takes less than 5 minutes with transaction fees of 1.5% and no spreads. Our UI is simple and straightforward to cater to all users and provides 24/7 live chat support.


XanPool does not hold any of its users' funds, meaning the cryptos would be directly deposited into your wallet. You should use XanPool if you want a quick and easy method to buy and transfer crypto into your wallet.


iToken




iToken is a DeFi crypto wallet with features enabling users to conveniently access various DeFi services and dApps. New investors who do not wish to create an account on Centralized Exchanges can easily create their own private wallets with the help of iToken. With the option to create a multi-sig wallet, investors can pool funds with their peers.


After creating a wallet, users can utilize XanPool, available in the app, to on-ramp their fiat. The fees are the same as buying from XanPool directly, with a transaction fee of 1.5% and no spreads.


Furthermore, iToken supports cross-chain swaps and has integrated 27 blockchains to date, with up 200 tokens available for users to swap. The swapping fees are 0.5%, and the gas fee might vary depending on the token or blockchain you are swapping.


iToken has a multitude of features. New users can seek assistance with navigation from their Telegram and Discord groups. You should use iToken if you want to dip your toes into DeFi and easily create your wallet with inbuilt DEX features. Download iToken here.


Keeping your Funds in CEX or Moving Them to Your Wallet?

Although the platforms mentioned above are regulated, there is no telling when the securities might succumb to the advancement of sophisticated hacks. Companies and firms declaring bankruptcy, such as 3AC and Celcius, and the latest rumor about KuCoin insolvency, have spread fears amongst the crypto communities. It would be wise to invest in a hardware wallet and store your cryptos in it due to the uncertainty of the recent contagion.