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Best Platforms To Buy Cryptocurrencies in Singapore

Cryptocurrencies are all the rage. The value of Bitcoin, for example, has skyrocketed nearly 5,000% since 2017.

So do cryptocurrencies make good investments? We’ll tell you what they are, whether it’s a good idea to buy them, and which platform you should buy these coins from.

What are cryptocurrencies?

Cryptocurrencies are digital currencies you can buy goods and services with, or trade. The first cryptocurrency, Bitcoin, was created in 2009.

Most cryptocurrencies are created on the blockchain, which means that every transaction is recorded. They are built on a network that is decentralised — they can be sent from person to person without any intermediaries like a bank or credit card company.

Why buy cryptocurrencies

Here are a few reasons why you should buy cryptocurrencies:

1. Transparency

Without having to trade through intermediaries, cryptocurrencies cannot be controlled and manipulated by governments and banks.

Every transaction is also entered on a public ledger, which can prevent fraud.

2. Diversified portfolio

As more people come to know about cryptocurrencies, investors are turning to it as a new asset class besides their usual stocks, bonds, and funds.

3. Low transaction fees

Unlike international payments, which may charge a 3.5% to over 10% fee and take several days to process, cryptocurrencies transaction fees could be as low as 0.5%.

Best platforms to buy cryptocurrencies in Singapore

Currently, to trade a specific type of cryptocurrency, you need to buy and sell it using other cryptocurrencies or fiat money on an exchange.

Here are some popular cryptocurrencies exchanges:

Fees to watch out for

Deposit Fees

You can start trading by putting money into a wallet linked to the cryptocurrency exchange. This can be done through bank transfers, credit or debit card deposits, or PayPal transfers.

While it’s often free to transfer money directly from your bank account, credit or debit card transactions may charge a 2% to 5% fee. PayPal deposits usually charge a fee of 2.5% or more.

Trading Fees

Here are the most common trading fees:

  1. Flat fee: Some exchanges charge a fee for trades below a certain amount. Others charge a fee for large trades.
  2. Percentage fee: The fee is calculated as a percentage of the total trade. It can be reduced if the user trades using the platform’s utility token. The more the user trades, the lower the fee.

The best way to find out how much of a cryptocurrency you are getting for your dollar is to compare the price of that trade with other exchanges. Use sites like CoinGecko to help you compare the market rates.

Withdrawal fees

After buying your cryptocurrencies, you can leave it and your leftover fiat money in the exchange’s wallet. However, it can be risky as exchanges have been hacked before, or they have suddenly frozen people’s accounts. Some users prefer to transfer their cryptocurrencies to a third-party wallet, although this incurs additional withdrawal fees.

Some platforms like Gemini offer a limited number of free withdrawals each month, but most charge a withdrawal fee.

Conclusion

Cryptocurrencies may not be used widely today and their prices are still relatively volatile compared to traditional cash, but the technology backing these digital currencies is improving, and more people are using them in areas such as finance and gaming today. The long-term growth of cryptocurrency is bright. It might be worth putting some money behind it today.

Originally published at https://plannerbee.co on January 26, 2022.

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Personal finance, tailored for Asia

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Planner Bee

Planner Bee

Automating financial management through smarter technology.

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