The days when Bitcoin was a goldmine have dissipated together with our mask-free pasts, but you might still be thinking of trying your hand at this whole cryptocurrency thing.
After all, the government says we have to keep upgrading ourselves, right?
If you’re thinking of trading cryptocurrencies, you will need to open an Xfers account to hold your crypto assets. In this guide, you’ll find out what Xfers is, how it works, and how to set up an account.
What is Xfers?
Xfers is a platform that lets businesses send and accept payments and track cashflow. The company is regulated by the Monetary Authority of Singapore.
Er, okay, so what’s this got to do with cryptocurrencies?
Well, one of Xfer’s features is Xfers Wallet, a digital assets wallet that lets you exchange SGD for cryptocurrencies when you link it with a cryptocurrency exchange.
Using a digital assets payment infrastructure called straitsX, you can buy, deposit and hold cryptocurrencies in your Xfers Wallet.
Individuals can sign up for an account to be able to buy and store cryptocurrencies via Xfers Wallet.
Do I need an Xfers account?
Most crypto exchanges in Singapore will require you to open and link your Xfers account. Otherwise, you can’t start using it.
Xfers Wallet is to cryptocurrency what Central Depository or CDP accounts are to local stocks. Both are prerequisites in order to start trading. (The exception is if you are using a stock broker that holds the shares on your behalf in a custodian account.)
Just like how Singapore stocks are held in your CDP account when you buy them, when trading on a crypto exchange, your crypto assets are stored in your Xfers Wallet.
However, if you are just buying a crypto derivative product through your investment brokerage, there is no need to set up an Xfers Wallet since you’re not buying the actual cryptocurrencies.
One such example of such a product would be Saxo Markets’ crypto ETPs (exchange traded products), which track the performance of cryptocurrencies.
How to open an Xfers account
Singapore residents with a local phone number can sign up for an Xfers account.
You first need to register for an Xfers account on their website. Keep your phone on standby as you will be sent a One-Time Password. You will then be asked to verify your email address.
Your account will be approved in 24 hours to 5 business days.
Once that’s done, you can log into your account and access your dashboard to view your digital wallet.
How to deposit funds into Xfers
Once your account has been opened, you can deposit SGD into your Xfers account.
To do so, click on [My Account] and add your bank account details.
Once your bank account is successfully linked, you can make an SGD deposit from your bank account by clicking [Digital Goods Wallet > Deposit]. Your deposit destination should be [Digital Goods Wallet].
You then proceed with the transfer like you would with internet banking — select your bank account and enter the amount.
Your final step will be to to log into your bank’s internet banking account or mobile app and transfer funds to Xfers using FAST. If this is the first time you’re transferring money to your Xfers account, you will need to first add Xfers as a payee and fill in their bank details, which can be found in Xfers’ deposit instructions.
Once you have made the FAST transfer, you go to the Xfers page on your browser and click the “I’ve transferred” button.
You should see the money appear in your Xfers account within a few minutes.
How to withdraw funds from Xfers
Click on [Digital Goods Wallet > Withdraw].
Select your Digital Goods Wallet as the wallet you wish to withdraw from, and then select the bank account you wish to transfer the money to.
Enter the amount you wish to withdraw and then finish the transaction.
The minimum withdrawal amount is $10. Funds are usually received within one day, but depending on your bank you might have to wait up to three working day.
Is Xfers safe?
Xfers is licensed by the Monetary Authority of Singapore (MAS) to provide e-money issuance services under the Payment Services Act, which regulates payment service providers and protects their customers.
This includes safeguards that ensure that the company is liable for your money. So, yes, the platform is safe to use.
The part that is less “safe” is the act of cryptocurrency trading itself, which has got nothing to do with Xfers.
Cryptocurrency trading is considered highly risky and MAS will not protect you from any losses you incur on the crypto market. So, know what you’re getting into before you start!
What if I don’t want to go through all this hassle?
Most crypto exchanges will require you to open an Xfers account separately if you want to trade cryptocurrencies.
There is one exception though — the crypto exchange Gemini. Their platform is integrated with Xfers, so you don’t need to take the extra step of opening an Xfers account.
However, an Xfers-integrated platform isn’t necessarily better as there might be tradeoffs such as higher fees or limited cryptocurrencies.
Final note on crypto trading
Not to be a nag, but before closing, here’s yet another gentle reminder to be careful when trading crypto or crypto derivative products.
Cryptocurrencies are extremely volatile, and crypto exchanges aren’t well-regulated, leaving investors vulnerable to security risks.
If you’ve made up your mind to explore the world of crypto trading, read our newbie’s guide to buying cryptocurrency and check out the best crypto exchanges in Singapore so you know what you’re getting into first.
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