Let’s say you want to get started with cryptocurrencies – maybe you’d want to speculate on cryptocurrencies like Bitcoin and Ethereum but you have no idea where and how to buy them.
This walkthrough will show you how you can buy cryptocurrencies with Crypto.com (among many options which may be covered in future posts) and see if it’s the right fit for your needs.
The crypto.com app is an all-in-one platform where you can buy, sell and pay with crypto. There are more than 7 fiat and 55 cryptocurrencies supported on the platform.
Buying crypto with your credit card
The simplest way, but not necessarily the cheapest way, to buy crypto is using your credit card. Head over to the app and select the cryptocurrency you’d like to buy.
The first option, Credit Card, will allow you to use your credit cards to purchase crypto. However, there might be a 3.5% fee charged to your card when you do so using this method. Furthermore, your credit card company might further levy foreign transaction costs on top of your transactions – I got this when I used a Citibank credit card.
An ongoing promotion currently waives the 3.5% credit card fees so you can just pay the purchase price that you’re currently seeing on the app.
Note that the quoted price on Crypto.com might not be the true market price of the cryptocurrency – as they might have added a small % spread to the real market price and quoted you a slightly higher price. You can check the aggregated market price on Coinmarketcap or other exchanges.
Because cryptocurrencies are decentralized, there is no one single market price (as it depends on which exchange or market is quoting it). However, arbitragers can take advantage of price differences to even out the prices across exchanges.
Buying crypto with your crypto wallet
The second option is buying with existing cryptocurrencies held in your crypto wallet – so you can see this like an exchange between two cryptocurrencies.
For example, if you’d like to buy BTC and you hold CRO tokens in your wallet from the MCO card cashback, you can sell the CRO tokens for BTC, subject to minimum trading limits.
This is an easy way to swap between cryptocurrencies in the wallet, although there are some disadvantages like the above method – you might be quoted a bad price between the two cryptocurrencies, or the exchange between the two cryptocurrencies would incur a spread or slippage, which is pocketed by the exchange as fees.
Buying crypto with your fiat wallet (Xfers)
The third option is to buy crypto with your connected fiat (i.e. government money like SGD) wallet. For Singaporeans, the only available way is through a Xfers linked wallet, and you’d need to undergo KYC before setting up an account with them.
Once you have an Xfers digital wallet set up, you can deposit funds into Xfers from your bank account to begin using this digital wallet.
Then, on the Crypto.com app, you can link your crypto.com account with Xfers and you will see your available SGD balance in Xfers which can be spent on cryptocurrencies in Crypto.com or other linked applications.
Which method is the best to buy crypto?
In normal circumstances, the Xfers method is the cheapest and will give you the most value from your fiat currencies because there isn’t a lot of overhead costs like credit card fees, processing fees that reduce the amount of crypto you’re getting.
With the ongoing waiver of credit card fees, that might be an alternative funding method you can consider, but you’d need to be wary of hidden bank charges (depending on your bank).
For those already using the MCO Visa Card which I talked about before, then you can exchange the cashback denominated in CRO for other cryptocurrencies – but a minimum of 140 CRO (~$32) is required to exchange.
Personally, this is one of the better options to buy cryptocurrencies, without the high credit card fees you see on other platforms such as Coinbase or Moonpay.
Note: Cryptocurrencies is a highly speculative endeavor with a high risk of 100% loss of funds.