Feeling hungry and irritated by the swirls in the stomach, you may be a little upset when you discover an empty self inside the refrigerator. You talk to yourself: It’s time to upload an entire pack to satisfy your biological lust from the market. Likewise, a crypto exchange is a place to go if you want to invest in a cryptocurrency.
But investing in cryptos is more complicated than going to a food market. Questions are circling your mind before buying a digital asset: How should I choose among exchanges in Singapore? What are the differences between one another?
Here are the answers you may find out about the best crypto exchanges in Singapore.
What is a Cryptocurrency Exchange?
Like a stock exchange, a cryptocurrency exchange is a marketplace where you can buy and sell cryptocurrencies like Bitcoin, Ethereum, or USDT. You will need a crypto exchange account to place buy and sell orders. Find out more on the best stocks to invest in Singapore
Besides trade activities, some exchanges provide more sophisticated businesses like margin accounts and futures trades. Others go further by offering crypto loans and staking services.
Types of Cryptocurrency exchanges
Centralized crypto exchanges
As the name implies, the exchange has an organization managing all trade activities like cryptocurrency conversions, e.g., fiat money for cryptos or vice versa. The management also monitors and administrates daily trade activities. The centralized crypto exchanges take up most of the exchanges in the industry.
Decentralized crypto exchanges
A typical crypto exchange distributes the responsibilities and duties to members, like certifying transactions and maintaining the system, so the operations remain transparent, and clients’ information stays private.
Apart from anonymity, a decentralized exchange faces several challenges. One is system efficiency. The operating systems of decentralized cryptocurrency exchanges are hard to operate as the systems are not professionally developed.
Global crypto exchanges
Most global exchanges use centralized systems to increase efficiency, make markets more liquid and make deals accessible for investors. Businesswise, they must comply with local laws, undergo legal procedures, and, therefore, emphasize investors’ security more. Learn more about bitcoin scams.
Cryptocurrency Exchange Regulation in Singapore
The Monetary Authority of Singapore (MAS) does not encourage promotions of DPTs or service providers in public. DPT service providers including banks, crypto exchanges, or lending platforms, should not promote their services in an open space.
The MAS views crypto assets as hazardous and unsuitable for the general public. Active promotions by the service providers may mislead the public to speculate without careful consideration about their risk acceptance levels. The forbidden promotion activities cover online, physical advertisements, and automated teller machines in public areas.
The MAS does not also regulate cryptocurrencies and related derivatives, except for those listed on exchanges licensed and, therefore, does not protect investors from losses due to trading these types of investment tools, hacking, and misappropriation of crypto accounts, bankruptcy, and problems related to funds withdrawals from the DPT service providers.
Pros and Cons of Investing in Cryptos
With the advanced blockchain technology, all transaction details, e.g., personal profiles, are in encryption mode so investors can conceal their identities in trades. Because of privacy and identity security, more people are using cryptocurrencies to pay for goods and services.
The blockchain-technology system is an open ledger where the public can see all transaction details, and also the information encrypted is not erasable and amendable. They are a convenient place for record-keeping and information sharing.
3. Decentralized Finance
Cryptocurrency is not a government-issue-and-control currency like fiat money. The supply and demand of cryptos are subject to market. The government cannot monitor and increase or decrease conventional money flows and interest rates. The market force dictates.
Crypto markets in Singapore or elsewhere are fluid as cumbersome procedures are few. Blockchain technology links up the worldwide crypto markets in one place and accelerates the processes, making the markets more liquid.
5. Quick gains
Crypto is a highly volatile investment tool. It is reflective of the recent ups and downs in the market. Day traders may like the asset’s fluctuating nature as they can take advantage of opportunities and profit by using the strategy of “ buy low, sell high.”
Cryptos, using blockchain technology, is secure and untraceable digital tokens favored by their users and investors. Besides investing, people use it to shop and make legal and vital records due to its irreversible nature.
Crypto investing may not suit everyone. Its value fluctuates as a cryptocurrency’s price can ride up or down to double-digit percentages in one day.
Even stablecoins are not exempt from massive deviations away from startup value.
2. Legal scrutiny
2 issues prompt worldwide governments to inspect the crypto industry. First, the recent market crashes led to more losses by small investors and drew the public’s attention to regulating the industry. Second, cases related to crypto frauds and hacking are on the rise. People are demanding more regulations on digital coins.
3. High production costs
A new bitcoin requires massive resources like electricity and time to produce. High production costs lead some governments like China to ban the production and crypto-related trades. It also raises environmentalists’ concern about resource extravagance.
4. Risk of coin loss
You may have heard that some cryptocurrencies require keys to store in wallets. If you lose a key to a wallet or the computer breaks down, you may lose the digital assets forever. No other alternatives are available.
5. Short history
Crypto has a short history of fewer than 2 decades. New issues like technology, regulation, and investment rules constantly revolve around the market. It is still a long way off before it becomes a primary steam investment tool.
An attitude about digital currencies is still prevalent in society. Besides fraud and security, the crypto industry has difficulty persuading the general public and governments to accept them due to price volatility and promotion restrictions.
What to Consider in Choosing a Crypto Exchange
Here are the factors you should consider in choosing a crypto exchange.
It is mandatory for an exchange with a physical presence in a country. You can access its website address to do all investing. You risk losing legal protection if you use an exchange not registered with the Singapore government. Moreover, you will find it difficult to reclaim the loss from companies overseas. It is wise to maximize the protection by choosing a local-licensed exchange.
Like other financial institutions, you entrust an exchange by putting valuables into its hands. You should research the company’s credentials though it may not a 100% safe for your assets.
You can do 2 things to protect your assets. First, you set up a “cold storage” offline wallet to shield your cryptocurrencies from hackers. The second is a multi-verification password when you can reduce the loss by the enhanced security measure.
Ease of use
Beginner users may feel intimidated by a complex trading system and give up investing in cryptos. Some exchanges offer a beginner and an advanced option to cater to investors’ needs.
High liquidity in a crypto exchange aids in stabilizing the market in pricing. If many orders, transactions, and buyers or sellers are available, an exchange may be more fluid. Investors have easy access to desired prices than in less liquid markets. High-liquid exchanges are preferable to investors.
Fees are the highest cost to investors. They reduce profits and even incur losses. Many exchanges offer native tokens besides other currencies and minimize trading costs if you invest in native cryptocurrencies. You should consider the coin’s liquidity and appreciation potential except for trading costs so you can profit from investing.
An effective system can better match orders in a short time so you can buy or sell at a price you specify. An efficient system can make a market more liquid during a market turmoil, and investors can better navigate cryptocurrency prices.
Crypto exchange support
You must admit that customer support can back up your investing job when needed. 24/7 online or phone assistance is more than necessary for beginners or advanced investors. And looking into a company’s service quality is the first step you should take before being their customer.
Some exchanges take insurance protection for clients’ assets and bolster the public’s confidence in a company. As it isn’t a mandatory policy, you should spend time and effort studying what an insurance policy covers regarding hacks or theft of clients’ assets.
Aside from cryptocurrencies, many exchanges offer crypto-related derivatives, e.g., futures and options. Like stock derivatives, they allow clients to buy or sell crypto at a specified price and timeframe. Some exchanges offer crypto loan services.
Restrictions on deposits and withdrawals
Exchanges may impose limits on minimum and maximum amounts a client can deposit or withdraw within a period for operational reasons. You should check with the exchange you intend to do business with as it may affect your investing plans.
Best Crypto Exchanges in Singapore
Here are the features for the 5 crypto exchanges.
Established in Hong Kong in 2016, Crypto.com supports many cryptocurrencies and services. The exchange claims 10 million customers worldwide and has operations in 90 countries. Its comprehensive products and service range suits beginners and advanced traders and users.
- Crypto.com is a crypto-exchange-support-SGD and other 8 currencies. It supports over 100 cryptocurrencies and provides trading, crypto staking, digital wallets, and NFTs services.
- It offers crypto futures and sophisticated order types.
- The exchange offers discounts on significant purchases of its native currency: crypto.com coin(CRO)
- Account verification time is 1 week.
- An applicant should be of age 18 or above and provides proof of identity and address.
- Applicants can use MyInfo to apply for an account opening.
- No account opening fee and SGD for the minimum investment
- Crypto.com use security measures to strengthen customers’ confidence: 2FA authentication, cold wallet storage, hardware keys, and insurance coverage.
Founded in the UK and a member of the Digital Currency Group, Luno is one of the top 5 crypto exchanges listed by Forbes for a customer satisfaction survey and serves 10 million clients in 40 countries worldwide.
- Luno exchange supports SGD deposits free of charge.
- It creates an education portal-LunoDiscover to interested investors for free.
- The user-friendly system offers beginner investors easy access to trades.
- A dollar-cost-average program is available for regular investors.
- Applicants aged 18 or above can apply with proof of identity and address.
- Local and foreign nationals can apply.
- 2 funding methods are available: bank transfer and StraitsX.
- 6 cryptocurrencies are available to investors.
- The minimum investment amount is SGD1, and account verification takes 1 day.
- Luno uses 2FA authentication to secure clients’ assets.
- The exchange blocks sending transactions to suspicious addresses and requires authorization for first-time investing with more than USD10,000. Luno even demands your approval to change your email and phone number.
- You can disable sending cryptocurrencies in your Luno wallet until you authorize it again.
3. Gemini Exchange
Gemini, founded in New York, the US, in 2014, offers a wide range of services and storage of crypto assets. The exchange is the first institution to launch crypto futures in the Chicago Board Exchange in 2017.
- Gemini supports SGD and other 8 currencies for transactions.
- The exchange offers more than 60 cryptocurrencies for trade.
- Free access to education material on the portal: GeminiPedia is available.
- One-day verification for new accounts
- To apply, you are 18 of age and provide proof of identity and residence. You can use MyInfo to apply.
- The minimum investment amount is SGD1.
- The transaction fee is in the Singapore dollar(SGD)
- The Gemini Earn program allows clients to earn interest on account balances.
- 3 funding options are available: Bank transfers, Credit/Debit cards, and cryptocurrency transfers.
- Gemini enhances clients’ asset safety by adopting the 2FA authentication, the “cold wallet,” insurance against clients’ assets, and hardware security keys.
Founded in San Francisco, the US, in 2011, Kraken offers both Kraken for the general investors and Kraken Pro for active traders. Advanced traders like Kraken Pro’s sophisticated investment tools, staking programs, and security system for clients’ asset protection.
- Kraken offers more than 50 cryptocurrencies for trade.
- Clients can choose USD and 6 other currencies, not including SGD.
- Investors can earn interest on fiat and crypto balances by staking.
- Kraken offers a margin of 5X leverage service and a futures trading service.
- 2FA authentication is available to secure clients’ assets.
- Education materials are accessible to beginners.
- Aged 18 at least, applicants should provide proof of identity and residence.
- 2 funding methods are available: bank and cryptocurrency transfers.
- A minimum investment amount: SGD14
- One-day account verification
- Kraken offers cold wallet service and hardware security keys but not asset protection insurance.
- All-round customer service support ready for investment and technical assistance.
Established in Singapore in 2018, Zipmex aims to serve institutional and retail investors in South East Asia. The crypto exchange offers the Zipmex Earn program – an interest-bearing program to account holders with Zipmex.
The program provides 2 accounts: The ZipUp account credit daily interests to asset holders. Another ZipLock account offers higher fixed-term and stable rates to account holders. Both accounts have a commitment period of 45 days. Zipmex establishes a program of the membership tiers to its native tokens: ZMT, to earn interest based on fixed terms.
- Zipmex offers more than 40 crypto coins for trades.
- The account verification takes one day.
- The minimum investment amount is SGD1.
- Education materials were available online for understanding the industry.
- 24/7 customer support
- Zipmex offers fiat money support in Singapore and US dollars.
- You should be a person aged 18 or above and provide proof of identity and residence.
- 2 funding methods are available: bank and cryptocurrency transfers.
Founded in Singapore in 2014, Coinhako offers simple and easy cryptocurrency trades. The exchange uses straightforward fee structures focusing on the crypto trading business.
- Coinhako has operations in Singapore and Vietnam.
- Clients can use Singapore dollars and Vietnam Dongs to invest.
- More than 20 cryptocurrencies are available on the platform.
- The exchange provides a “Refer and Join” program for a discount of 20% off trading fees.
Established in the US in 2012, Coinbase offers clients more than 180 digital assets. It has operations in more than 100 countries worldwide. It has assets of more than USD21.30 billion and revenue of USD7.84 for 2021.
- Coinbase accepts more than 20 fiat currencies, including SGD, for investing.
- 2FA authentication is available.
- Coinbase carries crime insurance to protect clients against hacks and theft.
8. Independent Reserve
Founded in Australia in 2013, Independent Reserve is one of 2 licensed crypto exchanges by the Monetary Authority of Singapore(MAS). The exchange has operations across New Zealand and Singapore, besides Australia. Here are the highlights.
- The exchange supports 27 cryptocurrencies.
- The AutoTrade program allows investors to use dollar-cost of averaging to buy cryptocurrencies.
- Currencies of Australia, New Zealand, Singapore, and the US are available as deposit currencies.
Headquartered in the Bahamas in 2019, FTX has more than USD10 billion daily trading volume for 2021. Like other cryptocurrency exchanges, FTX offers a wide range of crypto trading services. Here are the main features.
- FTX provides over 280 crypto assets to its clients.
- 10 fiat currencies, including SGD, are available to investors.
- The exchange requires 2FA authentication to protect clients.
- Applicant should go through the “Know the Client” step for account opening.
Headquartered in Seychelles in 2017, Kucoin offers more than 590 cryptocurrencies to investors. The exchange suffered a loss of USD150 million from hacks in September 2020. The company claimed the loss has insurance covered.
- KuCoin supports 50 fiat currencies for deposits.
- Multiple deposit methods are available, including cryptocurrency, Paypal, Wire, Credit/Debit card and SEPA
- The exchange offers discounts on trades of its native currency – KuCoin Tokens(KCS).
- The KCS distributes daily interest of up 30%.
- KuCoin uses 2FA authentication for client security
The Best Crypto Exchanges’ Fee Structures in Singapore
The following are the fee structures from the best exchanges in Singapore.
|Crypto Exchanges||Trading fees||Deposit fees||Withdrawal fees|
|Crypto.com||-0.40% for USD25,000 or blow |
-0.35% for USD25,001 to 50,000
-rates vary for USD50,000 or above
|-Free for bank account transfers, Xfers, and cryptocurrencies |
-3.5% of transfer value
|-No support for bank account transfer |
-rates vary for cryptocurrencies.
|LUNO crypto exchange||0,75% for all trades||Free for bank account transfers||SGD2 for each bank transfer|
|Gemini exchange||-0.25%(maker rate) for activeTrader orders(advanced user interface) |
-Min. SGD1.5 for mobile or web orders
|-Free for bank account transfers and cryptocurrency transfers |
-3.49% of transfer value
-Apple Pay and Google Pay supported
|-Free and unlimited withdrawals for bank account transfers |
-Free for the first 10 cryptocurrency withdrawals
-Rates vary depending on cryptocurrencies
|Kraken||-0.26% for Kraken Pro(advanced user interface: UI) |
-0.90% for the use of stablecoins
1.5% f others
-3.75% + EURO0.25 + 1.5% for credit or debit card
-0.5% + 1.5% for ACH online banking
|Free for bank account and cryptocurrency transfers||-USD4 for bank account transfers |
-Rates vary for cryptocurrency transfers
|Zipmex||Up to 0.2% for activeTrader orders(advanced UI)||-0.3% for SGD |
-USD25 for each US dollar transaction
-Free cryptocurrency transfers
|-0.3% for SGD(min. SGD10) |
-USD25 for USD(min. USD30)
|Coinhako||A flat fee of 0.6% for all transactions||-Free for bank account transfers |
-0.55% for Xfers
|-SGD2/VNDT20,000 per transaction|
|Coinbase||A fee of 0.05%-0.6% depending on trade value||USD10 or equivalent for other currencies||A flat fee of 1% for all transactions|
|Independent Reserve SG Pte Limited||0.02% for all trades||-Fees vary depending on deposit and fiat currency methods |
-No charge for cryptocurrencies
|Fees vary depending on withdrawal currencies and methods|
Buying Cryptocurrencies in Singapore
The best cryptocurrency exchange in Singapore
Singapore hosts many local and international crypto exchanges as a regional financial hub. As a crypto beginner, you may lose yourself in choosing an exchange suitable for your needs.
As a beginner investor, you would like their user-friendly platform and abundant educational materials available online, though the crypto exchange’s fee structure is a bit more complicated than others. The easy-to-use system can be appealing to beginners trying to take a try on cryptocurrency.
The transaction medium consists of 9 currencies, including SGD, an option welcome by new investors.
Gemini uses multi-level security measures to enhance clients’ assets, for example, 2FA authentication, cold wallet, and hardware keys. An insurance policy is in place to protect clients from hacks and theft of assets.
The cryptocurrency exchange trading fees are the lowest among 5 exchanges and payable, without incurring additional exchange charges, in the medium of Singapore dollars- transaction fees. Moreover, you can withdraw your money without limit and free of charge.
Where to buy
Besides crypto exchanges online, you can buy cryptocurrencies on automatic teller machines(ATM) and the bank DBS.
How to buy
First, you should open an account with a crypto exchange you will deal with. Nowadays, the process is more straightforward and speedy than before. Get ready for personal documents and upload them to the exchange through the mobile app or website. Typical account verification takes 1 day to 1 week, depending on exchanges. After funding your account, you can start trading.
More to Read
What is Proof-of-Stake(POS)?
Proof-of-Stake is the process of validating and creating a new cryptocurrency. Randomly chosen crypto owners are responsible for validating new cryptos. They are staked crypto owners approving the dataset in a blockchain. Upon validation, a new blockchain representing a new cryptocurrency comes to the world.
What is Proof-of-Work(POW)?
An earlier way of creating crypto, proof-of-work, also called crypto mining, is using computer equipment and energy resources like electricity to create a new cryptocurrency, e.g., the Bitcoin. Unlike validating a digital coin, POW defines a winner as being able to solve a complicated mathematical problem among many competitors and who can claim a digital currency like bitcoin.
What is a Cryptocurrency Wallet?
Like a typical wallet, a cryptocurrency wallet is an application holding password keys instead of cash, house keys, or credit cards. You will use the keys to access a database about your cryptocurrencies. Besides, you can use the wallet to shop, send and receive currencies. Different wallets have different features and functions besides storing cryptocurrencies. Learn more on the best crypto wallet in Singapore.
A hot wallet is a crypto wallet connected to the internet and cryptocurrency network. They store public and private keys to a database recording cryptocurrencies. Besides storage, a hot wallet can send and receive cryptocurrencies. A drawback for the wallet is that it is an online wallet and is more subject to hackers and theft.
Cold storage is an offline wallet used to store cryptocurrencies. They are away from online platforms to reduce the risks of being hacked and stolen. Besides, companies use the cold storage method to store data like videos, audio recordings, and documents. Crypto investors should use cold storage to keep their currencies offline when not using cryptocurrencies on the platform.
To Sum Up
Crypto exchanges have different features and functions for various investors. A beginner should choose a crypto exchange respecting customer support, user-friendly system and interface, product variety, low charges, security, and transaction flexibility apart from interest rates.
- Investors should look for solid institutional support besides interest rates.
- Exchange’s native cryptos offer higher interest and more attractive incentive programs.
- Security measures like 2FA authentication, cold storage, crime insurance, and hardware security keys are necessary to safeguard clients’ assets.
- Beginner investors should choose user-friendly systems and comprehensive customer support to start
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