Cryptocurrency in Singapore – Guide to Trading & Mining Bitcoin, Ethereum & Others
Cryptocurrency is big in Singapore right now. The promise of making money has lured many Singaporeans, from university students to professional traders, to invest in or mine cryptocurrency.
Cryptocurrency is basically digital currency which can be traded and transferred thanks to cryptography. The creation of new units can also be controlled, otherwise the currency would quickly become worthless. The most famous of the cryptocurrencies is Bitcoin but it isn’t the only one.
- Major cryptocurrencies you should know about
- Cryptocurrency trading platforms in Singapore
- What to know about cryptocurrency trading in Singapore
- Cryptocurrency mining in Singapore
- Where to find cryptocurrency news and resources
Major cryptocurrencies you should know about
Before jumping onto the cryptocurrency bandwagon, you will need to select one or more currencies to trade. There are over a thousand cryptocurrencies, but as a beginning trader you will probably want to stick with the more established ones.
Most cryptocurrencies use blockchain technology, which allows data to be distributed but not replicated or copied. This is important to ensure that units of the cryptocurrency can be traced but not reproduced. And just in case you think this is just for hardcore investors, there’s even a cryptocurrency cafe where you can pay for your coffee with virtual currency.
Here is a cryptocurrency list of the essentials you should know about.
- Bitcoin – The most well-known of all the cryptocurrencies, Bitcoin is now accepted as payment by quite a few businesses worldwide.
- Ethereum – Ether is the cryptocurrency that’s used in the Ethereum blockchain.
- Litecoin – This cryptocurrency was modelled after Bitcoin and is very similar.
- Ripple – Ripple is a digital payment technology that also has its own cryptocurrency, called XRP.
- Dash – Short for Digital Cash, Dash’s low transaction fees and high speed have contributd to its popularity.
- ASKfm – The social media network’s new cryptocurrency, ASKT, made the news recently when a promotional stunt caused the death of a man on Mount Everest.
Cryptocurrency trading platforms in Singapore
There are two ways to get your hands on cryptocurrency—by buying it on an exchange or trading platform, or by mining it.
There are many trading platforms now in Singapore that enable you to buy and sell cryptocurrencies.
Things to note
Bitcoin, Ethereum, Litecoin
Buy/sell – 1.49%
Credit/debit card buys – 3.99%
Singapore customers can purchase digital assets but cannot sell them on Coinbase.
Bitcoin, Ethereum, Bitcoin Cash
Buy/sell – 1%
Bitcoin, Ethereum, Dash
Sell – 1%
Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Stellar, Cardano, IOTA, TRON, NEO, Monero, Tether, Dash, NEM, VeChain, Binance Coin, Ethereum Classic, Ontology, Qtum
Buy/sell bitcoin– 3%
Buy – free
Sell – 1%
Merchant invoicing – 0.5%
Links buyers and sellers directly
Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Cardano, Qtum, Ethereum Classic
Additional 5% for credit/debit card transactions
0.6% per trade
After setting up your account, you are ready to start buying your cryptocurrency of choice.
There are usually several ways to pay for your cryptocurrency depending on the platform, including bank transfer, debit or credit card and PayPal. Be sure to check the fees applicable to each of these payment methods to work out what would be cheapest for you. Credit cards and debit card transactions often attract an extra fee.
You can execute trades simply by buying and selling your cryptocurrency of choice on the platform. You can also view and manage your wallet or portfolio on the platform. Most platforms will charge you a commission when you buy, sell or both.
One thing to look out for is currency exchange fees. If you are using a platform that does not accept Singapore Dollars, your currency will have to be converted, which might attract currency conversion and/or transaction fees that will eat into your profit margin.
What to know about cryptocurrency trading in Singapore
Once you are signed up to a platform, buying and selling cryptocurrency is no less complicated than buying and selling stocks or forex.
But before you start, there are a few things you should know about cryptocurrency trading.
Cryptocurrency markets are very volatilite
Crytocurrency is possibly one of the most volatile assets you could invest in. Because the value of cryptocurrency isn’t based on fundamentals (like the value of a company in the case of stocks), it is very hard to figure out whether you’re getting a “good deal”. Thus, investor sentiments tend to fluctuate wildly.
Lack of regulation increases volatility
Cryptocurrencies are at present unregulated in Singapore and most of the world. The MAS has stated that it has no plans to regulate cryptocurrencies. One downside of this lack of regulation is greater market volatility and the potential for manipulation of the market. It is also discourages big institutional investors, which in turn can contribute to greater market volatility.
Using leverage is a bad idea
Many professional traders use leverage in their trades. That means they are using credit—in other words, money they don’t have, to execute trades, in hopes that they will be able to earn more than they’ve borrowed on the trade. Needless to say, the risk is great, as a losing trade will mean you’re losing money you don’t have.
In the world of cryptocurrency, margin trading on some platforms enables you to use leverage to trade cryptocurrency by buying with credit extended by your broker. But given the enormous volatility and unpredictability of the market, we strongly discourage you from doing so.
Cryptocurrency mining in Singapore
Other than buying your cryptocurrency on an exchange or from a seller, there is another way to obtain digital currencies—by mining them. That’s another way of saying you are extracting the cryptocurrency units from a blockchain system.
Mining has the potential to be rewarding if you select cryptocurrencies that have not yet skyrocketed to popularity. If demand for the cryptocurrency later rises, you can then sell at a tidy profit. The most popular cryptocurrency amongst miners in Singapore is Ethereum.
Mining rigs in Singapore
Mining cryptocurrencies requires quite a big upfront investment. You won’t be donning a hard hat and getting into a physical mine. But you need specialised electronic equipment, including a powerful GPU (which typically costs thousands of dollars), and the space to store it.
For entry-level cryptocurrency miners, the easiest and least frustrating way to get set up is to purchase a ready-made cryptocurrency rig. There are some suppliers in Singapore that can provide you with everything you need and set up both the software and hardware for you.
Note that mining rigs generate a lot of heat and noise, which you might not want to deal with at home. For this reason, some miners choose to rent space in data centres.
According to a news report, miners leaving their rigs running 24/7 reported earnings of about $400 a month. However, it is unknown how much was spent on electricity or data centre rental.
Mining rigs are common enough these days that you can even buy them at Sim Lim Square. Nonetheless, here are some places where you can get your set-up.
37 Lorong 23 Geylang #02-05 Yu Li Industrial Building Singapore 388371
Mining rigs for Bitcoin Gold, Ethereum, Ethereum Classic, Zcash and Zencash:
GTX 1070 Ti – $6,399 to $8,099
P104-100 – $8,999 to $9,349
RX 570 – $5,499 to $6,699
RX 580 – $5,599 to $7,299
5 Ang Mo Kio Industrial Park 2A, Singapore 567760
Mining rigs for Ethereum:
AMD RX 570/580 GPU Mining Rig – $6,000
AMD RX 470 Mining Rig – $12,000
NVIDIA 1080 GPU Mining Rig – $14,000
19 Niven Road Singapore 228366
3 x AMD 580 SGCoinMart.com Mining Rig – $4,500
What else do you need to mine cryptocurrency?
Other than a mining rig, you will need the following to get started:
- Mining software – Before buying a ready-made mining rig, make sure it comes with the mining software you need.
- Space – This could be a spare room, your living room, or rented space in a data centre. Remember that mining rigs generate lots of heat and electricity.
- Cooling system – If your mining rig is generating too much heat and the cooling system that comes with it is insufficient, you’ll need to find a way to cool it down, whether by turning on the air conditioning or finding a way to better ventilate the space.
- A reliable internet connection.
- A reliable power supply.
Is it worthwhile to mine cryptocurrency in Singapore?
Other than the cost of purchasing and maintaining your mining rig, there are two other costs that could affect your profitability: space and electricity.
In order to maximise profitability, you are probably going to want to run your mining rig around the clock. This means that you will need a dedicated space to house your rig, preferably somewhere it won’t disturb the members of your household. If you live in a small flat or apartment with no spare rooms, this could be a problem. And even if you do have a spare room, note that you might be able to make more money renting it out than using it to house a mining rig.
The second cost is electricity. Some university students have been known to mine in their dorm rooms, where it is the university that foots the electricity bill. Be aware that electricity in Singapore is relatively expensive, which will eat into your earnings. That’s why some miners choose to rent space in mining farms in countries where electricity and land are cheaper.
For many individuals in Singapore, mining isn’t worth it, as you need to buy a lot of hardware and the process will also consume a ton of electricity. What is more, given Singapore’s hot and humid climate and the lack of space, the sacrifice of space and the costs of cooling your equipment might not be worth the earnings.
Where to find cryptocurrency news and resources
If your interest has been piqued and you’ve decided that cryptocurrency trading and mining is something you’d like to get into, it’s time to start reading up on cryptocurrency news.
Here are some useful sources of information to get you up to speed.
- Crypto Currency News
- Bitcoin News
- Bitcointalk Forum
- Cyptocurrency news and discussion Subreddit
- CryptoMarkets Subreddit
- CryptoCurrencies Subreddit
- Subreddits for your cryptocurrency of choice
Do you invest in cryptocurrency? Share your tips and tricks in the comments!