Buy Bitcoin Singapore REPACK
Launched in early 2009 by an anonymous creator who goes by the pseudonym of Satoshi Nakamoto, Bitcoin is the largest cryptocurrency measured by market capitalisation. Only approximately 21 million bitcoins will ever be created, which explains its scarcity and high price. As of current records, almost 90% of all bitcoins have already been mined.
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The bitcoin mining process rewards miners with a portion of bitcoin upon successful verification of a block. This process adapts over time. When Bitcoin was first launched, the reward was 50 bitcoins. As of 2022, miners only get 6.25 bitcoins for every new block mined. While this might not seem like much, the value comes up to around US$191,300 as the Bitcoin price was US$30,614 (as at30th Jan 2022) The reward will continue to halve every four years until the final bitcoin has been mined. Once all bitcoins have been mined, it is likely that miners will be incentivised to process transactions with fees.
There are two ways to invest in cryptocurrencies in Singapore. You can go online and buy from a bitcoin exchange or head to a local ATM where you can exchange SGD for Bitcoin. To buy or start trading, you need an exchange account, though safer storage practices are recommended.
When it comes to cryptocurrencies, bitcoin is the granddaddy of them all. Bitcoin is a digital currency that was created in January 2009 by Satoshi Nakamoto. It is the longest surviving cryptocurrency and has the largest market capitalization.
While bitcoin is in a category of its own, all other coins are known as Altcoins (alternative coin). The most popular altcoin being Ethereum, which serves as a platform for decentralized apps (dApps) and smart contracts.
The best place to store bitcoin is in a cold wallet, called the digital wallet. Digital wallets are web-based or hardware-based (like a USB stick). You can store bitcoin on a mobile device, desktop computer, hardware wallet and keep it safe with private keys.
Especially after a filing with the U.S. Securities and Exchange Commission (SEC) revealed that Tesla bought US$1.5 billion worth of Bitcoin, and announced that it expects to begin accepting bitcoins as a form of payment for its products in the near future.
The risks of buying bitcoin are largely related to its volatile price. While the price of bitcoin has been on a steady increase over the past few years, it is still prone to large swings. This can make it difficult to predict what your return on investment will be, and whether or not you should buy bitcoin at all.
Another risk to consider is the possibility of fraud. While there are many legitimate businesses that accept bitcoin, there are also a number of scams out there. Be sure to do your research before investing any money in bitcoin.
The income tax rate in Singapore is 17%. Therefore, if your business or profession involves trading bitcoin for profit, you will be taxed at 17%. Basically, with cryptocurrencies, there is a gray area between what is trading and what is investment (for capital gains).
I purchased my first bitcoin earlier this year after having followed this phenomenon and blockchain technologies closely over the last couple of years. I won't discuss the merits of the crypto currency here (perhaps in another post), but will try to put forth a couple of options for the average Singaporean fella to get his hands on bitcoin.
There are essentially two ways you can buy bitcoin in Singapore. You can go online to one of the many bitcoin exchanges or head down to a local ATM where you can exchange your Singapore dollars for bitcoin in an instant.
Coinbase is one of the most popular bitcoin exchanges in the world. Based in the US, it is a government regulated exchange that supports buyers from Singapore. You have the option to purchase bitcoins with your credit or debit cards as well as thru an xfers virtual wallet account. The best thing about the xfers wallet is that you can easily fund it via a local transfer with your Singapore bank account. Once you've registered for your Coinbase account and setup your xfers wallet, buying is relatively straightforward but this is not the cheapest way to buy Bitcoin.
Also the price you pay for a bitcoin on Coinbase tends to be higher than other exchanges like Gemini, Bitfinex and GDAX (owned by Coinbase) as there is a spread of between 25 to 100 basis points (0.25% to 1%) applied on the price from the underlying exchange (GDAX) where Coinbase buys its bitcoin from when you make a purchase.
You can always use the local bitcoin ATM to get your bitcoins. This may come as a surprise but Singapore has had a bitcoin ATM since 2014. Having relocated a couple of times since it was originally set up in Chinatown, this first of its kind ATM in Asia can now be found in Tiong Bahru Plaza.
Founded by Changpeng Zhao in 2017, Binance International has since grown to become the largest cryptocurrency exchange platform in the world. The platform has over 500 cryptocurrencies to choose from, including bitcoin (BTC), Ethereum (ETH) and even the famous meme coin, dogecoin (DOGE).
It was developed in 2012 and has been fully licensed and regulated. It supports all the states in the U.S except Hawaii. Coinbase initially supports only bitcoin trading before adding other cryptos in the decentralized form.
Kraken is another exchange or broker where you can buy bitcoin in Singapore. Here you can buy or sell bitcoin and other cryptos using different fiat currencies, including the popular US dollar. Kraken exchange was founded by Payward Inc in 2011 and began trading operations in 2013.
The CEO and the co-founder Jesse Powel manages the exchange, and it lists popular cryptos like Bitcoin and Ethereum. The best part is that the fees are low, and the platform suits both beginners and professional bitcoin investors.
While in Spot buying, all the bitcoin users trade with each other with their agreed set price- the spot market. The buyer and seller in the spot market agree on the price to buy and sell respectively before making transfers.
There are other exchanges that Singaporeans can register with to buy bitcoin, as discussed in this guide. Their registration processes are similar, and almost all of them will require you to verify your detail by uploading your ID.
The bank will allow accredited clients with at least $246,000 in investable assets to buy, sell, and trade a few cryptocurrencies, including bitcoin. Crypto traders must invest at least $500. The trading facility will be available on the DBS digibank app.
Since being granted approval by the Monetary Authority of Singapore to operate a crypto exchange, DBS Vickers, the brokerage entity of DBS bank that runs the exchange, has seen a steady increase in trading activity. Transaction volumes doubled between Apr. 2022, and June 2022, with bitcoin volume seeing a four-fold increase.
Gold is the most stable asset class known to man. Gold has kept its purchasing power for thousands of years and is resistant to inflation. If you buy gold with bitcoins, you are more diversified and less exposed to the volatility and fluctuations of bitcoin. BullionStar offers you the option to efficiently trade in and out of bitcoin and gold with our BSP Program and No Spread Gold Bars.
**Brokerage services by Cash App Investing LLC, member FINRA/SIPC.See our BrokerCheck. Investing involves risk; you may lose money. Bitcoin trading is offered by Block, Inc. Cash App Investing does not trade bitcoin and Cash App is not a member of FINRA or SIPC. For additional information, see the Bitcoin and Cash App Investing disclosures.
The Authority has stopped short of regulating the currency itself, as it does not consider bitcoin to be a security or legal tender, and will not monitor bitcoin intermediaries. It has urged consumers to be cautious when transacting with bitcoins.
Aside from these issues, hacking concerns have also loomed large over the currency, especially after Mt Gox, the leading bitcoin exchange in Japan, filed for bankruptcy in February. Mt Gox claimed that hackers stole over US$400 million worth of bitcoin, and is currently defending a class-action lawsuit in the U.S.
Yet despite hacking and economic concerns, circulation of the currency has increased dramatically. The total value of bitcoins in circulation has reached almost US$8 billion today, up 16-fold from just US$490 million a year ago. Whether the currency gains widespread acceptance in the long run remains to be seen, but businesses and authorities are certainly taking notice. 041b061a72