Getting Started In Crypto Assets
There are basically 3 paths to crypto trading:
— use an ATM to convert fiat to Bitcoin, and then swap BTC for ETH or whatever token (10% fee)
— use an Over The Counter (OTC) provider to convert fiat to BTC, ETH or some other popular crypto currencies (6–8% fee)
— create an account on a cryptocurrency exchange and use debit card, credit card or wire service to convert to crypto (~1% fee)
All of the above are legal in Singapore. If you’re looking to gift someone some BTC or perhaps just hold a small amount, you can consider the BTC ATM services at Raffles Arcade and Sim Lim Square. The fee is high, but it’s quick and convenient.
The OTC providers charge lower fees, but typically serve individuals who have SGD 25k or more to invest. One needs to meet the following criteria: (a) net personal assets exceeds $2 million in value, or (b) income in the preceding 12 months is not less than $300,000. MAS regards such individuals as ‘accredited investors’ whether they know anything about finance, crypto or whatever.
If you’re going to purchase over the counter, I suggest using a boutique firm such as QCP Capital which operates as an OTC broker in Singapore. They are currently not regulated by MAS, so are perhaps more flexible. The nice thing about such a service is that they run alerts on Telegram for their clients. Another OTC I recommend is Cumberland (a unit of DRW). Cumberland is somewhat opaque, but they are one of the companies that serves crypto whales. Cumberland can distribute large transactions across several exchanges to limit their affect on market volatility.
Setting up your own account on a cryptocurrency exchange is the most straightforward approach for trading crypto suited to ordinary investors. My favorite exchange is Coinbase in USA, but here is a list of the exchanges operating in Singapore. Note that these have links to local banks, so you can move funds from your current account using a debit card or wire. Here is what to look for: (a) high daily limits on moving fiat, (b) limit trading to fix your crypto buy/sell price, and fees charged.
A good Singapore local exchange to start with is CoinHako. For a fresh signup, they allow up to SGD 20,000 fiat to be moved in and out daily. I don’t think they support limit trades — all trades are at the market rate. Their fee is 1%, which is kind of high. After getting that in place, I would try setting up a Gemini Active Trader account. That is probably the closest service to CoinBase Pro. It allows limit trades to be set, so you can time your buy/sell orders according to price. The fee is .35% (a third of CoinHako).
In a subsequent post, I will describe what’s next, including how to keep your crypto safe.
