UPDATE: Gemini Exchange is my current preferred exchange to buy-and-hold crypto!
In my previous article (Link), I outlined the different crypto exchanges which Singaporean investors could choose for different investment purposes. The recommendation I gave for buy-and-hold investors is to use Binance.sg as it allows direct purchase with SGD and a relatively low fee of 0.6%.
However, I have re-evaluated my options and decided that Gemini Exchange might be an overall better choice than Binance.sg, let me explain.
Gemini Exchange is not subject to the Xfers 30k annual purchase limit
I’ve discovered recently that although Gemini uses Xfers as the backend SGD onramp gateway, it does not share the 30k SGD annual limit with the likes of Binance.sg.
This is a game-changer! Previously, once the 30k limit was reached, Singaporean crypto investors had resort to roundabout ways to buy more, which are either more time-consuming or costs more in transaction fees. Now that Gemini Exchange allows uncapped purchase of crypto with SGD directly, it really benefits local crypto investors tremendously.
I have personally verified this piece of information by transferring an additional amount of SGD to my Gemini account on top of the maxed-out Xfer limit, I received the funds within 10 minutes.
The convenience of buying crypto with SGD directly cannot be overstated. The hassle of converting SGD to USD to stablecoins is a significant obstacle for newer crypto investors and if it could be avoided, it should.
Some other reasons why I prefer Gemini Exchange
- Gemini’s Active Trader offers a 0.25% maker fee, which is much cheaper than Binance.sg’s 0.6%.
- Gemini offers interest for their Gemini Earn accounts, you can currently earn a yield of 1.49% for BTC and 2.05% for ETH.
- Gemini offers more than 40 types of crypto tokens.
- Gemini offers 10x free withdrawals a month.
Gemini Exchange is under less regulatory scrutiny than Binance.sg
As many of you might have read, MAS has ordered Binance.com to stop providing payment services in Singapore and to cease soliciting business from Singapore residents, the article was published on 3/9/21.
Please note that this is different from Binance.sg, the local arm of the parent company Binance.com. However, it demonstrates that Binance.com is evidently on the radar of regulators all around the world.
Although Binance.sg is a separate entity from Binance.com, it still makes sense to diversify your holdings partially (or entirely) to Gemini Exchange, a more law-abiding crypto exchange that is less likely to suffer regulatory-related operational halts in the current climate.
What is the SGD/USD exchange rate like on Gemini Exchange
Forex rates are very important to me, because it’s a flat percentage cost that becomes more and more significant as trading volume increases. So how much more are we paying on Gemini if we buy crypto with SGD, as compared to buying it with USD?
Let’s examine Gemini Exchange’s BTC/USD and BTC/SGD rates and compare them to the SGD/USD spot rate.
CASE 1: Buying BTC with SGD and USD:
Gemini BTC/USD rate: 50799.34
Gemini BTC/SGD rate: 68106.53
Derived SGD/USD rate: 68106.53/50799.34 = 1.34069
Spot SGD/USD rate: (1.34034+1.34056)/2 = 1.34045
Gemini’s exchange rate is higher by: (1.34069–1.34045)/1.34045 = 0.018%
CASE 2: Buying ETH with SGD and USD:
Gemini ETH/USD rate: 3958.67
Gemini ETH/SGD rate: 5309.88
Derived SGD/USD rate: 5309.88/3958.67 = 1.34133
Spot SGD/USD rate: (1.34034+1.34056)/2 = 1.34045
Gemini’s exchange rate is higher by: (1.34133–1.34045)/1.34045 = 0.066%
As you can see, the Gemini SGD trading pairs cost <0.1% more than the USD trading pairs.
Closing thoughts
If you buy crypto directly with SGD on Gemini, you’d pay roughly ~0.1% more than its USD counterparts. In my opinion, this is an extremely reasonable price to pay for the convenience of buying crypto directly with SGD.
Going forward, this will be my default and preferred method to buy crypto as a Singaporean crypto investor, until I find something more cost-effective or convenient. So if you’re a buy-and-hold style crypto investor, hopefully you’d find this option useful.
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