A Comprehensive Guide to Buying Bitcoin in the US, UK, and Singapore

In recent years, Bitcoin has attracted the interest of investors, techies, and the general public. However, buying Bitcoin may appear overwhelming and complicated for those unfamiliar with cryptocurrency. 

In this article, we will break down the process of buying Bitcoin in the United States, the United Kingdom, and Singapore. Given the dynamic nature of the cryptocurrency market, it is essential to keep abreast of the latest developments and make educated decisions. Now, let’s take a look at it.

Buying Bitcoin in the US

The United States represents about a quarter of the global Bitcoin trade. Many of the world’s leading cryptocurrency companies have headquarters in the United States, making it a hub for the cryptocurrency industry. The difficulty of using crypto in the USA stems from the fact that state laws might differ widely.  

In most cases, you’ll need to use a licensed exchange; a few states ban certain coins, while many others permit Bitcoin ATMs. It is legal to buy cryptocurrencies in the United States. Additionally, while the government has not considered Bitcoin a registered investment, tax consequences may be associated with their purchase, sale, exchange, mining, and staking.

Furthermore, no state has outrightly prohibited the use of cryptocurrencies. However, purchasing cryptocurrency can be more challenging in several places. These include New York, Rhode Island, Arizona, and Hawaii. Unlike most other states, Texas has its own set of crypto-specific regulations. 

The process of acquiring cryptocurrency and the exchange(s) you use will vary based on your location. Also, buying Bitcoin from a cryptocurrency exchange is the most cost-effective method in the United States of America. 

Finding the most affordable exchange will require looking at all their fees, including those associated with making deposits, withdrawals, and trades.

Steps to Buying Bitcoin in the US

• Select a Cryptocurrency Exchange
• Choose a Wallet
• Complete Verification
• Fund Your Account and Purchase Bitcoin

Select a Cryptocurrency Exchange

Choosing a cryptocurrency exchange is very important when you want to start buying cryptocurrency. The majority of people find buying cryptocurrency through an exchange to be the easiest and most cost-effective option. The first step is to sign up for a US-based cryptocurrency exchange. 

KuCoin and Binance are two examples of exchanges that are completely illegal in the United States. You can only access Binance through their US portal (Binance.us). Before committing to an exchange, you should verify that it complies with federal and state regulations.

Coinbase, Kraken, Gemini, Binance US, and Bitstamp are some platforms you can buy from. There are several ways you can fund an exchange account, including bank transfers, credit/debit cards, and even Apple Pay in some cases.   

Choose a Wallet

 You need a digital wallet to keep your Bitcoin safe and secure. Wallets come in various forms, from hardware to software to mobile wallets. You must do your homework and pick the option that best meets your requirements.

Because your wallet’s public address is associated with your owned digital assets, it also serves as proof of ownership.

Complete Verification 

Most Bitcoin exchanges will do some customer verification (known as Know Your Customer, or KYC, in the business). To do so, you must verify your identity by supplying some paperwork and personal details. 

This can be a current photo, a driver’s license or passport, evidence of domicile, and bank account information.

Fund Your Account and  Purchase Bitcoin

You can start using your exchange account once the company validates it. You can typically do this through the exchange’s acceptance of bank transfers, credit/debit cards, and other payment mechanisms. 

When you deposit funds into your cryptocurrency exchange account, you should be able to buy Bitcoin or another cryptocurrency at the market rate. 

Buying Bitcoin in The UK

Buying Bitcoin through a cryptocurrency exchange in the United Kingdom, like eToro, Coinbase, or CoinJar, is the most convenient way to invest in Bitcoin there. You can use a cryptocurrency exchange on your computer, tablet, or smartphone to purchase and sell Bitcoin and other cryptocurrencies. 

The Financial Conduct Authority (FCA) does not yet supervise cryptocurrencies but has published a list of crypto exchanges that have registered with it. eToro, Coinbase, and Uphold are just a few examples of some of the approved crypto exchanges.  

Additionally, The United Kingdom levies taxes on Bitcoin and other virtual currencies. UK citizens must pay Capital Gains Tax (CGT) on any profits made from Bitcoin (and other cryptocurrencies) in the same way as you have to pay  CGT on any profits made from assets like equities, according to HMRC.

Buying Bitcoin in Singapore

There are several cryptocurrency exchanges and marketplaces available to Singaporeans. Binance, Kraken, and Coinbase, three of the biggest online cryptocurrency exchanges in the world, are all legal in Singapore. 

In contrast to nations like Vietnam, which have an unfavorable view toward BTC and other digital currencies, purchasing cryptocurrency in Singapore is very simple because it is legal. You can buy cryptocurrencies by opening an account with a brokerage, app, or exchange like Binance. 

Other Ways to Buy Bitcoin in Singapore

In Singapore, you have several choices besides using a cryptocurrency exchange to purchase Bitcoin or another cryptocurrency. These include:

• Bitcoin ATMs
• Peer-to-Peer (P2P) Platforms
• Cryptocurrency Brokers

Bitcoin ATMs

There is an increasing number of Bitcoin ATMs in Singapore where you may purchase Bitcoin using cash, a debit, or a credit card. These machines are simple to operate and offer a quick and easy way to get Bitcoin. 

The Singapore dollar (SGD) is the FIAT currency that may be deposited and withdrawn from your private online wallet. Remember that this ease of use does not come cheap. Bitcoin transactions at these ATMs can cost anywhere from 4.1% to 6.9%.

Peer-to-Peer (P2P) Platforms

You can purchase Bitcoin from other users on peer-to-peer exchanges like LocalBitcoins and Paxful. It’s possible to execute a purchase using various payment options, such as wire transfers and cash, after browsing listings from sellers.

Cryptocurrency Brokers

Using brokerage services like CoinHako and Binance Brokerage, you can purchase cryptocurrencies at reasonable prices. They frequently provide one-on-one support for larger deals. Brokers will typically ask for identification before allowing you to start buying cryptocurrency. 

You’ll need to produce your Singpass, National Registration Identity Card, or another suitable form of identification. Additionally, some services require that you have an Xfers account. 

Furthermore, you will need a trading profile with a Singapore-based brokerage. You can trust that most brokerages have a safe and reliable in-house vault system or digital wallet that you can utilize.

Conclusion

In this guide, we have explored buying Bitcoin in the US, UK, and Singapore. Although buying Bitcoin is based on the same fundamental principles everywhere, every market has local considerations and factors.

 It would be best if you based your final decision to buy Bitcoin on how well it fits in with your financial objectives and level of risk tolerance.