Thinking of buying your first Bitcoin?
New to the world of Bitcoin and cryptocurrencies? You’ve come to the right place! Find out all you need to know about buying bitcoin in Singapore, including where and how to make your very first trade.
📚 In this guide, we’ll be covering these key topics:
- Is Bitcoin legal in Singapore?
- Bitcoin 101 - What is Bitcoin ?
- What Can I Do With Bitcoin in Singapore?
- How to Buy Bitcoin in Singapore?
- Do I Need to Be Rich to Buy Bitcoin?
Is it legal to buy bitcoin in Singapore?
Before you start exploring various ways to buy bitcoin, you might be wondering - is it legal to buy Bitcoin in Singapore?
Good news! While Bitcoin is not regarded as legal tender in Singapore, cryptocurrency exchanges and trading is legal in Singapore.
Regulations about Bitcoin in Singapore
Local regulators have adopted a relatively innovative approach to cryptocurrency trading, and have implemented forward-looking frameworks to govern the previously unregulated crypto space.
Payment Services Act
The Payment Services Act, which kicked into force on 28 January this year, is an omnibus framework instituted by the local financial regulators for the regulation of payment systems and payment service providers in Singapore. The act aims to mitigate risks associated with money laundering and terrorism financing.
Businesses that fall under the purview of the Payment Service Act will include account issuance, domestic money transfers, cross-border money transfers, merchant acquisition, e-money issuance, digital payment tokens, and money changing.
Under this act, cryptocurrencies such as Bitcoin are classified as “digital payment tokens,” which are defined as:
“Any digital representation of value that is expressed as a unit, not denominated in any currency or pegged to any currency, intended to be a medium of exchange accepted by the public as payment and can be transferred, stored or traded electronically.”
Exchanges and platforms like Coinhako, that facilitate the trading of digital payment tokens are classified as Digital Payment Token Service Providers, formally defined as:
“Digital Payment Token (DPT) service providers can be described as companies or persons who provide either exchange services for DPTs or platforms where these crypto assets can be sold within Singapore.”
While the Payment Services Act does not mandate any safeguarding practices for Digital Payment Token providers, local regulators will continue to monitor trends and review guidelines as and where required.
👉 Buy Bitcoin in SGD now
How is Coinhako aligning itself with local guidelines?
Coinhako has robust AML-CFT measures to ensure a safe and accountable platform for all, including automated Know-Your-Client processes, and verification via MyInfo to streamline the process for our home market in Singapore.
For more info about the Payment Services Act in Singapore, click HERE.
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Bitcoin 101 - What is Bitcoin and How to Buy Bitcoin in Singapore
Before you buy your first Bitcoin, you probably want to know what it is, and why there’s been so much hype about it.
Who created Bitcoin?
Known as the godfather of all cryptocurrencies, Bitcoin made its debut in 2009 and is the first cryptocurrency in the world.
Bitcoin’s pseudonymous creator, Satoshi Nakamoto, released a whitepaper which explained Bitcoin — a new peer-to-peer electronic payment system that would enable secure and verifiable transactions without intermediaries (such as banks).
How Does Bitcoin work?
Bitcoin transactions are recorded on a distributed, public ledger known as the blockchain.
The blockchain allows bitcoin transactions to be recorded and verified. As blockchain promotes transparency, it is not controlled by a single or centralised organisation.
Perhaps you might be wondering —how does a blockchain ensure that transactions are verifiable and secure?
All confirmed transactions recorded on the blockchain are immutable , which means these records cannot be altered or tampered with.By virtue of being built on peer-to-peer networks, blockchains are less vulnerable to hackers since there is no central point of storage. Instead, the blockchain operates on a decentralised, peer-to-peer network of interconnected devices, also known as nodes.
A node represents one unit in the blockchain network, and each node owns a copy of the recorded transactions on the blockchain.
Every time someone initiates a bitcoin transaction, they will need the help of nodes to verify the transaction. Nodes help to verify that the user has sufficient spendable balance to send to their recipient.
For example, if you want to pay someone 0.005 BTC for a pair of Nike shoes, the network of nodes will help confirm that you actually have that spendable balance of 0.05 BTC to send out to the recipient.
For example, if you want to pay someone 0.005 BTC for a pair of Nike shoes, the network of nodes will help confirm that you actually have that spendable balance of 0.05 BTC to send out to the recipient.
👉 View BTC/SGD Price Charts Now
Why Does Bitcoin Have Value?
Only 21 million bitcoin will ever be produced. This helps to control the scarcity of the digital currency, ensuring that there is a finite supply. Bitcoin’s controlled supply also helps it hedge against inflation, since the network cannot simply decide to produce more bitcoin at will.
Bitcoin can be broken down into smaller units. The divisibility of bitcoin into decimal points allow it to be used as a form of payment for goods and services, and reflect value in fiat currencies like USD and SGD. People can also own a fraction of bitcoin.
What is the Bitcoin Price Today? 👉 Click HERE
What Can You Use Bitcoin For?
Bitcoin is referred to by some people as “digital gold” - you can use bitcoin as a store or value, to pay for goods and services or make cross-border payments, which will allow you to save on transaction fees.
For more information about, what you can do with bitcoin, read our next article 👉
What Can I Do After Buying Bitcoin in Singapore?
🍕 Here’s an interesting bitcoin byte!
The first-ever Bitcoin transaction involved a programmer from Florida who paid 10,000 bitcoin for two large pizzas from Papa John’s - just imagine how much those pizzas would be worth today!
What is Bitcoin Pizza Day ? Read about it HERE 👉
3. What Can I Do With Bitcoin in Singapore?
You’ve got your hands on some bitcoin. What’s next?
Bitcoin As A Store of Value
After buying your bitcoin, you may not want to actively trade it. There’s always the option of “HODL” - ing, which simply means to hold onto a digital currency until its value appreciates instead of selling it. HODLing can be especially mentally challenging in times of extreme price volatility - where one might be tempted to sell out of fear.
To HODL onto your crypto, you will need a wallet to store it. There are various types of cryptocurrency wallets available in the market. If you're a user on Coinhako, you can store your crypto safely and securely with Coinhako. Otherwise, you may transfer it to your personal, non-custodial wallet using the Send function on the platform.
Pay for Goods and Services With Bitcoin
Yes, you can actually use your digital currency to purchase goods and services! Bitcoin may have yet to achieve wide adoption by merchants in Singapore, but the things you can do with it include having brunch at a cafe or paying for a cab ride.
Bitcoin has come a long way and is no longer just a novel virtual currency. As we progress into a stage of greater crypto adoption, Bitcoin and other cryptocurrencies can now be used to pay for online purchases. In 2021, Paypal will support the use of virtual currencies like bitcoin as payment to over 26 million sellers on its platform.
Use Bitcoin for Cross-Border Payments
With bitcoin, you can bid costly cross-border wire transfers goodbye. Due to its relatively low transaction fees, bitcoin is very useful for facilitating cross-border payments as they are not only cost-friendly, but secure and verifiable as well.
Where and How Can You Buy Bitcoin in Singapore?
There are a plethora of ways to obtain crypto in Singapore. The first step often involves signing up with an exchange or platform to buy bitcoin from. As with any financial asset, it is always wise to conduct a round of research before deciding on which platforms serve your interests best.
Get started with Coinhako, the easiest way to buy bitcoin and other digital assets in Asia!
Follow these easy steps to purchase your first bitcoin:
👨🏻💻 Step 1: Setting up an account to buy crypto
Crypto can be bought fairly easily online with a cryptocurrency exchange, and does not necessarily require in-depth trading or technological knowledge! Coinhako’s user interface makes it extremely beginner friendly
Once you have selected an exchange, you will need to sign up, create and verify your account before you start trading.
👉 Buy Bitcoin on Coinhako now
✅ Step 2: Verify Your Account
To create a safer and more accountable landscape for crypto traders, most exchanges and platforms that serve will require users to complete account verification. Depending on the platform you use, verification will be required before you can take actions on the platform - some platforms require you to verify before trading, and others before you make a deposit or withdrawal.
Did You Know? 🚀 Unverified users missed out on the crypto bull run in 2017. Find out why HERE.
You should prepare an identification document, such as your NRIC (for Singaporeans), or passport. You may require additional documents as proof that you are residing in Singapore (Proof of Address) - these documents include utility bills or bank statements.
Haven’t gotten verified? Start HERE 👉
💰Step 3: Funding Your Coinhako Account With Multi-Payment Options like Direct SGD deposits + Card Payments
Funding your Coinhako account is really simple, especially with the various payment options offered on our platform. They include the following:
- Direct Bank Transfers -
- USDT/USDC Deposits
- Card Payments
- Xfers Direct Charge
Once you have funds in your wallet, you’ll be ready to trade!
**Risk Warning: Just like all financial assets, crypto is exposed to risks and you should not engage in crypto trading if you are risk averse.
Where Do I Get Started if I’m a Crypto Beginner?
Crypto might seem intimidating if you’re completely unfamiliar with it. Because we understand the struggle behind trying to figure out complex interfaces, we designed our platform to be as beginner-friendly as possible.
We also know that beginners may not want to put a substantial amount of money into something they don’t entirely understand.
Which brings us to the next segment...
Do I Need to be Rich To Buy Bitcoin?
One bitcoin today is worth around $15K USD. Does that mean you have to be loaded to get started on crypto?
What we’re about to tell you will debunk the myth that crypto trading is reserved for the super-rich. In fact, one of the fundamental pillars of cryptocurrencies is financial inclusion!
Coinhako offers users a wallet-friendly minimum trading amount , which allows you to try out different cryptocurrencies without incurring a high risk.
As our CEO and co-founder, Yusho Liu once said:
“The beauty of digital assets is that you can cut it up into fractions and buy it up in decimals."
In other words, you can buy a “bit” of Bitcoin because the digital asset can be broken down into decimal points.
Just like how the dollar can be broken down into a quarter, penny, fifty-cents, twenty cents and so on (depending on where you live), Bitcoin can be divided up to 8 decimal places. Thismeans that you can buy bitcoin in smaller denominations. For example, if the price of bitcoin today is $16K, a buy order of $100 SGD buy would get you 0.0046 BTC.
What is the smallest unit of Bitcoin?
Named after Bitcoin’s pseudonymous creator, Satoshi Nakamoto, Satoshis are the smallest units on the bitcoin blockchain, representing one hundred millionths of a bitcoin (0.00000001).
There are other units of bitcoin, such as millibitcoins (0.001 BTC) and microbitcoins ( 0.000001BTC.)
Millibitcoins, represented by the symbol mBTC, were introduced in 2011, when the price of Bitcoin breached $10 USD.
Microbitcoins can also be referred to as bits, and are represented by the symbol μBTC.