Cryptocurrencies and blockchain use has exploded in the last few years. Let’s say that we are now getting into the era of cryptocurrency. If you are looking forward to getting into the crypto world, there is one coin that you cannot afford to ignore: Bitcoin (BTC).
Bitcoin was the first cryptocurrency to get unveiled in 2009, and the price has shot from less than one dollar when it was released to about USD61,000 in March 2021. But the price is volatile, and it keeps moving up and down. For example, it sank to USD32,000 in July 2021 after hitting USD61,000 in March. For savvy crypto investors, the times of dips are the best to invest and then wait for the price to climb to take huge profits. So, if you are looking forward to buying and investing in this crypto coin in Singapore, keep reading as we demonstrate how you can do it.
Buy Bitcoins from the Exchanges
Like stocks and bonds, Bitcoins are traded in the exchanges. Here, you can access and buy the listed coins. To do this, you will require a crypto exchange account, which allows you to purchase, sell and make transfers. Remember that you will also require an appropriate crypto wallet to store your coins because it is never a good idea to store all of them in exchange. Most exchanges are the first target for hackers, and you can always reduce the risk of loss in the event of a hack by keeping most of your coins in your crypto wallet.
Note that the crypto exchanges are not the same. Here are some attributes that you might want to consider when selecting an exchange:
The coins available for purchase and trading.
Whether the exchange accepts fiat currencies. If the exchange only accepts cryptos, then it means you might need to start elsewhere to be able to use them. So, you might want to consider the one that supports fiat currency because you will be able to make direct purchases.
The supported method of funding. For example, do you want to fund the account via a credit card or bank transfer?
Tools available for users: For example, “does the exchange allow lending?”
What about the transaction fees?
Some of the top exchanges today include Gemini, Binance, CoinHako, FTX, and Coinbase.
Go for Peer-to-Peer Exchanges
Instead of purchasing BTC from the exchanges, it is also possible to buy from another person who has them. This method is known as peer-to-peer (P2P) buying. Indeed, it is supported by some exchanges, such as Huobi and Binance.
Using peer-to-peer platforms, sellers post their coins at specific prices for clients to see and buy. Once the payment is made, the seller releases the crypto coins to the buyer. It can be an excellent way to keep the cost of buying BTC low.
Use BTC Derivatives
If your goal is to build exposure to Bitcoin, it is also possible. You can focus on investing in Bitcoin-based derivatives like contracts for difference (CFDs) and futures. For example, if you trade stocks on the market, it might be a good idea to check for BTC CFDs. This gives you the opportunity to tap into the volatility and the building growth momentum without owning the BTC.
NOTE: Derivatives are leveraged products, which imply that they can carry a high level of risk. Again, not all brokerages offer them.
Buy from Bitcoin ATM Machines
Bitcoin ATMs work like bank ATMs. All that you need to do is feed the machine with your cash and the coins you want will be sent to your crypto wallet. It is that simple. However, using ATMs is more expensive compared to the exchanges. For example, BTC ATMs in Singapore charge $10 plus a transaction fee of 4.5%. Again, there are limitations on the minimum and maximum amounts that you can use. You might also be able to buy other altcoins from ATMs. You can find Bitcoin ATMs at Funan Mall, The Arcade, and Plaza Singapura.
Go for Stocks of Companies that Deal with Bitcoin
If you are unsure of where to get started with your crypto journey, it can be a good idea to focus on what you know best. For example, a person who prefers trading stocks might want to look at stocks of firms that deal with Bitcoin instead of buying the cryptos directly. For example, you might want to buy Coinbase stock, a NASDAQ listed firm. Other firms of interest include Riot Blockchain, Tesla, and SilverGate Capital. Crypto ETFs might also be an excellent pick.The crypto space is opening up faster than expected, and anyone can join it. This post has highlighted some of the best ways to acquire Bitcoin.
Note that investment in cryptocurrency involves high risk and volatility. Lendela does not encourage anyone to take up a loan for this type of investment.