Getting your money into the crypto world is no easy feat. Makes you feel like a circus act jumping through all those KYC hoops.

While a credit card offers easier and faster access into your very first Bitcoin, you probably should be using a bank account if you are intending to put anything more than USD 10k inside.

Right now some mainstream options include:

  1. Credit Card
  2. Xfers (includes SGD and FAST transfers)
  3. Wire Transfer directly to Crypto Exchange’s bank of choice

Xfers seems to be the most popular method at the moment, with easy set up and minimal fees, and they even allow deposits in SGD.

However! There is that SGD 30k limit to deal with (read: AML precautions).

Wire transfers for Gemini or Binance both work at the moment. And here’s why bank accounts are a better choice.

Get the nitty gritty sorted before parting with your money

Like most things new, you would probably need some time to figure shit out. It’s best you do it BEFORE you get your money in. Once your funds are inside, you’re probably not going to be that incentivized to find out the nitty gritty operational details until it’s too late (yeahhh don’t kid yourself).

You can invest a larger sum

If you’re killing it out there and have more than SGD 30k to blow into crypto, you’re much better off doing a wire transfer than capping yourself with the Xfers limit. Yes obviously you will incur some FX conversion and admin fees, but hey, aren’t you rich enough to invest that much in the first place?

Not everyone can be a baller like my man Mikey

You ensure you are not borrowing on your credit card

Well this is pretty damn self explanatory. Don’t really need to get into details unless you’re the type who don’t pay off your credit card debt. In which case you really shouldn’t be even looking to invest in such a big sum in the first place.

Get a better exchange rate

If you’re naturalized in SGD, you can and should do your USDSGD conversion at say at a specialized FX broker, or even at a preferential bank rate, before you actually wire it over to the Crypto Exchange’s bank. This will ensure you get a better rate than your credit card or the board rate they charge you at Xfers (well how else do you suppose they make their money?)

It’s a return ticket into the fiat world

This is the last and most important reason for using a bank (yup I actually save the good stuff for those who actually read till the end).

It lets your remitting bank know that they are acting as a gateway for funds into the crypto world.

After you make your millions and want to cash back out to the fiat world, this acts as a proof-of-entry so that the chances you get plagued by AML issues are much lower. Which might otherwise prevent or delay you from getting your hands on your return funds, which are through totally legit means.

Here’s a bonus 6th reason – after jumping through all these banking inefficiencies you’ll actually begin to appreciate Bitcoin better. Trust me, it’s only going to be a matter of time before money transfers take seconds instead of days at a fraction of the cost.

P.S. Nothing in this post is to be considered legal or financial advice. All of the writing here is meant for information and entertainment purposes, so DYOR and make decisions based on your own beliefs.

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