Bitcoin is by far and away the most popular cryptocurrency in the world, with some experts estimating that over 100 million people worldwide currently own a share of it.
Increasingly, more everyday investors are considering including this form of digital currency within their portfolio. And it’s not just from markets like the USA, UK or Australia, but also Asian countries like Singapore, which they are interested in.
Many people are drawn to Bitcoin instead of other cryptos like Ethereum or Binance because of its growth potential. However, there are significant risks you should be aware of if you do not know where to start.
Therefore, if you are based in Singapore or plan to invest there, it is important to understand how the system works and how best to keep your money safe. The country has strict rules around finance, which require using regulated platforms and following certain steps.
This seven-step guide will show you how to do just that.
How to Invest in Bitcoin in Singapore
In addition to what we’ve written below, you might want to check out this article from the website Financial News on How to Invest in Bitcoin in Singapore: A Beginner’s Guide.
Step 1: Learn the Basics of Bitcoin
Before you commit any money, it is worth taking the time to learn more about what Bitcoin is and how it actually works.
Essentially, Bitcoin is a digital currency that operates on blockchain technology. However, what sets it apart from traditional money is that it is not controlled by a central bank.
One thing you should definitely be aware of is that the price of Bitcoin moves quickly and sometimes unpredictably. While this means you can potentially make lucrative profits, there is a real possibility that you can also face losses.
Therefore, the more you understand the risks of Bitcoin investment, the better prepared you will be to make one.
Step 2: Choose a MAS Regulated Platform
In Singapore, the Monetary Authority of Singapore (MAS) oversees all financial services within the country. As a result, if you want to invest safely, it is vital to use a MAS-regulated platform. Such platforms follow local rules and have to meet strict regulatory standards.
When searching for a suitable cryptocurrency exchange to use in Singapore, look for names that are licensed by MAS. Doing this is the best way to certify that your money is held carefully and is less likely to succumb to a scam.
Step 3: Compare the Best Crypto Exchanges in Singapore
When evaluating where to buy Bitcoin from, you’ll soon realise that all exchanges are different. Indeed, some are designed to be very beginner-friendly and easy to navigate, while others offer more advanced tools and detailed charts that are more suitable for experienced traders.
Fees also vary between them, too. So, it is worth checking what each platform charges for buying, selling, and withdrawing funds. In addition, it is essential to use an exchange that offers good security and strong measures to protect your money and data.
Another thing to consider is how good the platform’s customer support is, as this can make a big difference if you ever run into a problem.
Overall, by taking the time to compare the best crypto exchanges in Singapore, you should eventually find a platform that best suits your needs and ensures your first Bitcoin purchase is safe and straightforward.
Step 4: Create and Secure Your Account
Once you have chosen a platform, you will need to sign up for it. When doing this, most exchanges will ask for your ID to verify your account. This is part of Singapore’s cryptocurrency regulations, and while it may feel like an extra effort, it does help to protect both you and the exchange from an act of fraud.
After you have signed up, make sure you take steps to secure your account. The best way to do this is to use a strong password and turn on two-factor authentication, which adds an extra layer of protection that is extremely difficult to compromise.
Step 5: Set Up a Digital Wallet
All Bitcoin must be stored in a digital wallet, which is a bit like a personal vault for your crypto. So, it is important to set one up if you do intend to trade.
Some exchanges offer built-in wallets. However, many investors choose to set up a separate option to provide them with added safety. These can either be hot wallets or cold wallets. The former are conveniently connected to the internet and easy to use, but not as secure as the latter, which are stored offline.
If you plan to hold Bitcoin long term, a cold wallet is often the smartest choice for secure Bitcoin storage. That said, some investors choose to operate both.
Step 6: Buy Your First Bitcoin
Now comes the exciting part. Buying Bitcoin. You’ll need to fund your account to do so. But once you have, you simply need to decide how much you want to invest.
Many beginners prefer to start small until they have learned the process. Indeed, on most platforms, you can do this by buying a fraction of a Bitcoin.
Once you make the purchase, you must then transfer your Bitcoin into your digital wallet (if you decide not to keep it on the exchange).
Step 7: Think About Long-Term Strategy
Buying Bitcoin is one thing. But knowing what you will do with it is entirely different. Some investors choose to buy and hold as a long-term investment, while others trade more actively in the pursuit of a quicker profit.
While there is no single right way to trade Bitcoin, having a plan definitely helps. That is why if you are a beginner, it is a good idea to start with small steps and focus on learning until you get a greater understanding of what is involved. At this point, you can adjust your approach.
