How to Buy Bitcoin in Singapore? How About Coinbase and Coinhako?
Choosing a good cryptocurrency exchange to get Bitcoin can be complicated and confusing for those who are new. The big question is always on how to buy Bitcoin in Singapore if I have no clue where to start? There are several considerations when it comes to choosing a right Bitcoin exchange. Many of us have heard about Coinhako and Coinbase Singapore. Both of them comply with all applicable laws and regulations in each jurisdiction in which it operates. However, there are other options to go for too. Read on and find out.
How to Buy Bitcoin in Singapore?
When choosing a reliable and legit Bitcoin exchange, one has to consider the fees, exchange rates, and whether there is an option to buy Bitcoin with credit or debit cards. Most importantly, you need to know if the support is responsive especially most exchanges are relatively new since Bitcoin is still relatively young.
All Bitcoin exchanges share certain core functionality, but their reliability and effectiveness as trading networks can vary significantly when you look into their security and fees.
Let’s take a look at some of the most popular exchanges today, to see how they compare.
How About Buying Bitcoin with Coinbase and Coinhako?
My personal favorites are Coinbase and Coinhako. You can read their full reviews on Coinbase Review: Find out If Coinbase a Safe Bitcoin Exchange and Coinbase Review: Find out If Coinbase a Safe Bitcoin Exchange.
Both Coinbase and Coinhako are suitable for beginners as they are really easy to navigate around as they have great User-Interface (UI) and they offer excellent security and it is easy to deposit SGD to the platforms to buy Bitcoin.
As for Coinbase, there are two free Bitcoin wallets available, namely normal insured wallet and multisig vault wallet for advanced users. With multisig vault, you are in total control of your private keys.
Of both exchanges, I prefer Coinbase because there is a BTC-USD conversion calculator and a BTC price chart that updates every minute, including your total USD (grows or decreases as BTC price grows or decreases).
As for Coinbase, the margin of their selling and buying price is larger as compared to Coinbase. If you spend enough time to research the Bitcoin market price in real time, Coinhako has a relatively larger margin. Since their transaction fee is one of the lowest in the market (only 0.9%), they try to make their profit from this margin. Hence, don’t be surprised if you see a gap of SGD50 between the selling and buying prices.
When comparing and researching for Bitcoin exchanges, be very careful how you research the current market price. Most exchanges have a different buy and sell price. They make their margin on the gap. There is a bit more involved to arbitrage profitably. Bitcoin prices vary on different exchanges based both on trading behavior and on how easy or difficult it is to move fiat currency and bitcoin in and out of the exchange.
If you really want to get your Bitcoin here in Singapore, go for both of them.
You could buy and sell between these two exchanges to exploit variations in price and also their trading limit. For example, Coinhako has a higher trading limit (SGD 12,000 per day), whilst Coinbase has a very low trading limit (SGD 3,000 per week). If there is an emergency where you need money urgently, you could send your BTC from Coinbase to Coinhako and encash them into your bank. Normally, Coinhako has a higher selling price where you can make a relatively more profit as compared to selling your BTC at Coinbase.
How to Store Bitcoin safely?
After all, it is not safe to leave your coins on any cryptocurrency exchange. You’re leaving your money in someone else’s wallet. In the end, you’re giving the responsibility to a third party.
If you are long enough in the world of cryptocurrency, you might have heard about the incident of Mt.Gox hack. They were handling more than 70% of all the Bitcoin transactions worldwide. In February 2014, Mt. Gox suspended trading, closed its website and exchange service. Worst of all, they filed for bankruptcy protection from creditors. They allegedly lost $350 million in Bitcoin (7444,400 BTC).
Hence, if you own a lot of Bitcoin with cryptocurrency exchanges, you are better off investing in a hardware wallet such as Ledger Nano S or Trezor. You can read the full article here – How to Store Bitcoin? What’s the Safest Bitcoin Wallet?