In recent years, the world of finance has witnessed a revolutionary change with the emergence of cryptocurrencies. Among the many digital assets available, Bitcoin, often referred to as the king of cryptocurrencies, has captured the imagination of investors worldwide. In this blog, we'll explore the ins and outs of Bitcoin and other cryptocurrencies in Singapore, from understanding what Bitcoin is to assessing its potential in the Lion City.
What is Bitcoin?
Bitcoin, often referred to as "digital gold," is a digital currency that was invented in 2008 by an anonymous person or group of people using the pseudonym Satoshi Nakamoto. This groundbreaking invention introduced the world to the first secure digital payment system. Bitcoin operates on a decentralized ledger called the blockchain, which records all transactions with unparalleled transparency and security.
Bitcoin's revolutionary approach eliminates the need for traditional financial intermediaries by facilitating trustless transactions. These transactions are made possible through a mining system known as proof-of-work (PoW). The PoW process ensures the security and integrity of the blockchain, making it resistant to fraud and manipulation.
The cryptocurrency's appeal extends beyond its innovative technology. Bitcoin is often compared to precious metals like gold due to its limited supply. There will never be more than 21 million Bitcoin in existence, creating a scarcity that underpins its value.
Interest in Bitcoin is growing, people are eager to learn how to buy Bitcoin and where to buy Bitcoin. The country's robust regulatory framework and accessible infrastructure make it an ideal place to enter the world of cryptocurrencies.
In essence, Bitcoin has emerged as the new form of money for the digital era. Its limited supply, decentralized nature, and groundbreaking technology have made it a symbol of financial innovation and independence. By understanding how to buy Bitcoin and where to buy Bitcoin in Singapore, individuals can embrace this transformative asset and participate in the future of finance.
What Determines the Value of Cryptocurrency?
The value of cryptocurrencies, including Bitcoin, is a dynamic interplay of several key factors. These elements collectively shape the price and determine the market sentiment around these digital assets.
Supply and Demand: Just like traditional assets, cryptocurrencies abide by the fundamental law of supply and demand. If more people wish to buy Bitcoin than are available for sale, the price surges. Conversely, an excess supply compared to demand can lead to a decrease in prices. The limited supply of Bitcoin, capped at 21 million coins, is one of the critical reasons behind its scarcity and value.
Market Sentiment: Cryptocurrency prices are remarkably sensitive to news, public sentiment, and social media trends. Positive news, such as adoption by a major company or government regulation favoring cryptocurrencies, will lead to people buying Bitcoin and propelling prices upwards. Conversely, negative news, like security breaches or regulatory crackdowns, can trigger declines. The 24/7 nature of the cryptocurrency market ensures that news travels quickly, leading to rapid price reactions.
Adoption and Use Cases: Widespread adoption for various use cases significantly boosts a cryptocurrency's value. Bitcoin, in particular, serves as a store of value, akin to digital gold, and a means of exchange. Its established use cases as a hedge against inflation and a borderless form of remittance contribute to its intrinsic value. The more people and businesses buy Bitcoin to incorporate into their financial activities, the more it reinforces its value as a medium of exchange and a store of wealth.
Technological Developments: Advancements in blockchain technology and network upgrades can substantially influence a cryptocurrency's value. Improvements in scalability, security, and efficiency can make a digital currency more attractive to users and investors. Technical innovations like the Lightning Network, which enhances Bitcoin's transaction speed and cost-effectiveness, can bolster its utility and, in turn, its value.
How to Buy Bitcoin & Cryptocurrencies in Singapore?
Step 1: Choose a Cryptocurrency Exchange
There are many cryptocurrency exchanges out there with their own offerings and specific features that make them stand out. Look no further than Coinhako for your Bitcoin buying needs — everything you need from an easy-to-use interface to secure storage can be found right here at your fingertips.
Step 2: Create an Account
Once you visit the Coinhako page, simply click on the “Sign up” button to begin the account creation process.
You will be prompted for general information like country, email and password and referral code (optional). Once done, click on “Sign up” and you’re one step closing to buying Bitcoin on Singapore’s leading crypto exchange.
Step 3: Complete the Know-Your-Customer (KYC) procedure
Because security is a priority at Coinhako, we require more information from our users before they can start trading. Singaporeans can opt to use their SingPass for KYC, to complete the Know-Your-Customer (KYC) procedure, while global users will need to upload verification documents.
Step 4: Choose your payment method
There are multiple ways to for payment on Coinhako: use bank transfer and PayNow to deposit funds, or pay directly using credit/debit cards and GrabPay. No matter which option you choose, most them are instant, so you can buy Bitcoin as soon as possible.
Step 5: Buy Bitcoin on Coinhako
On our website, go to the “Market” page page. To buy Bitcoin, click on “Trade” button, after which you can enter the amount. You will then have to verify that everything is correct before you can buy.
How to sell Bitcoin & Cryptocurrencies in Singapore
Step 1: On your Coinhako account, navigate to the “Superwallet” page. Select the currency you want to sell, then click on the “Trade” button. Select the option “Sell”.
Step 2: You will be shown the price, the amount of cry to sell and the corresponding SGD value. Enter the amount you wish to sell, then click on “Preview”.
Step 3: You will be asked to confirm your transaction. Once you have checked that all the information is correct, you can proceed to click on “Sell”.
How to Store Your Bitcoin & Cryptocurrencies Safely?
For beginners who have just bought their first Bitcoin or cryptocurrencies, ensuring the safety of their crypto is of paramount importance. There are two primary methods for safeguarding your digital wealth: hot wallets and cold wallets.
Hot Wallets: Hot wallets are digital wallets that are connected to the internet. They are convenient for daily transactions and quick access to your cryptocurrencies. Here's a simple breakdown of how to set up and use a hot wallet:
1. Download your chosen hot wallet app from your device's app store and install it. Alternatively, you can access web-based hot wallets by visiting the wallet provider's website.
2. Sign up and create an account within the wallet. This typically involves providing your email address, creating a secure password, and confirming your identity.
3. Secure your wallet by enabling two-factor authentication (2FA) for an extra layer of security. This will require you to enter a code sent to your mobile device whenever you log in.
Hot wallets are ideal for small to moderate amounts of cryptocurrency and are suitable for everyday use. However, they are connected to the internet, which means they may be susceptible to online threats and hacking attempts.
Cold Wallets: Cold wallets, on the other hand, are offline storage solutions designed for long-term and high-security storage. They come in various forms, including hardware wallets, paper wallets, and even physical tokens. Here's how to set up and use a cold wallet:
1. Purchase a reputable hardware wallet, such as Ledger Nano S, Ledger Nano X, or Trezor. These devices provide robust security for your cryptocurrencies.
2. When you receive your hardware wallet, follow the setup instructions provided in the package. You will typically set a PIN and create a recovery seed, a series of words that you must write down and keep in a safe place.
3. Use your hot wallet to transfer your cryptocurrencies to the cold wallet address provided by the hardware wallet manufacturer. This ensures your digital assets are stored securely offline.
4. Safeguard your hardware wallet in a secure location. It's a good practice to keep your recovery seed in a separate, equally secure place. This seed is essential for recovering your funds in case the hardware wallet is lost or damaged.
Cold wallets are the go-to option for long-term storage and safeguarding large amounts of cryptocurrencies. They are not connected to the internet, which significantly reduces the risk of cyberattacks.
Other Ways to Buy Bitcoin & Other Cryptocurrencies in Singapore
When it comes to purchasing Bitcoin and other cryptocurrencies in Singapore, there are several avenues beyond the traditional exchanges. These alternative methods cater to different preferences and needs.
Peer-to-Peer (P2P) Platforms: P2P platforms provide a marketplace for individuals to buy Bitcoin directly from one another. Users can select from a variety of payment methods, including bank transfers, PayPal, and even gift cards. It's essential to exercise caution and verify the seller's reputation before making a transaction to ensure a safe and secure purchase.
Cryptocurrency ATMs: Singapore has a growing network of cryptocurrency ATMs, making it easier for users to buy Bitcoin and other digital assets with cash. Simply locate a nearby Bitcoin ATM, follow the on-screen instructions, and you can acquire your desired cryptocurrency in no time. This method is ideal for those who prefer anonymity and want to purchase cryptocurrencies quickly.
Over-the-Counter (OTC) Brokers: For larger transactions or institutional investors, OTC brokers are a viable option. These brokers specialize in high-volume cryptocurrency trading and can provide a more personalized experience. They can assist with large purchases, negotiate prices, and offer additional services like custody solutions.
When considering these alternative methods, it's important to prioritize safety and security. Ensure that the platform or individual you're dealing with has a good reputation and employs appropriate security measures to protect your investments.
To further enhance your knowledge of how to buy Bitcoin in Singapore, it's a good idea to keep up with the latest developments in the cryptocurrency space. Staying informed about regulations and market trends will help you make more informed decisions when buying and investing in digital currencies.
Is It Legal to Buy Bitcoin & Other Cryptocurrencies in Singapore?
Yes, buying Bitcoin and other cryptocurrencies is entirely legal in Singapore. Cryptocurrency exchanges in Singapore are required to register with the Monetary Authority of Singapore (MAS) and comply with anti-money laundering (AML) and know-your-customer (KYC) regulations to prevent illicit activities.
This clear regulatory environment provides a secure and legal landscape for individuals and businesses looking to buy and use cryptocurrencies in Singapore. As a result, Singapore has become a hub for blockchain and cryptocurrency innovation, making it a favorable destination for those seeking to trade digital assets.
Other Frequently Asked Questions about Buying Bitcoin
Is it safe to buy Bitcoin online?
Buying Bitcoin from reputable exchanges is generally safe. However, you should exercise caution and follow security best practices to protect your investments.
How much Bitcoin should I buy?
The amount you buy is entirely up to you and your financial goals. You can start with a small amount and gradually increase as you become more comfortable with the technology and market.
Do I need to pay taxes on my Bitcoin purchases?
Tax regulations for Bitcoin vary by country. It's essential to understand your local tax laws and report your cryptocurrency holdings accordingly.
Can I buy a fraction of a Bitcoin?
Yes, you can buy a fraction of a Bitcoin. Bitcoin is divisible, and you can purchase as little as one Satoshi, which is the smallest unit of Bitcoin.
What is the difference between Bitcoin and other cryptocurrencies?
Bitcoin is the first and most well-known cryptocurrency, but there are thousands of others (altcoins) with different features and use cases. Research and choose cryptocurrencies that align with your goals.
How do I protect my Bitcoin from theft or loss?
Use strong, unique passwords, enable two-factor authentication, and store your private keys securely.
Can I use Bitcoin for online purchases?
Many online retailers and businesses accept Bitcoin as a form of payment. You can also use Bitcoin to purchase gift cards for various platforms and services.
What is the current price of Bitcoin?
The price of Bitcoin is highly volatile and changes constantly. You can check the current price on cryptocurrency tracking websites or your chosen exchange.
👉 See today's Bitcoin prices on Coinhako here
Disclaimer: All writers’ opinions are their own and do not constitute financial advice. As a company, we do our best to provide information that is accurate and valuable. The contents of this blog post are intended for educational purposes only. Individuals are advised to perform due diligence before purchasing any cryptocurrencies as these assets are subject to high volatility, and understand the risks associated with trading cryptocurrencies.