Singapore is one of the most crypto-friendly nations. It has a very simple regime of taxation for crypto and NFTs.
With the current dip in the NFT markets, the situation is somewhat similar to 2018. A carefully bought NFT now could make you rich just like it did the anonymous NFT collector named the “DC Investor”.
Further, regulators like the Monetary Authority of Singapore is one of the most capable regulators unlike others who are too much stringent.
Table of Contents
Step 1: Understanding NFTs
Before embarking on purchasing NFTs, it’s crucial to grasp what they are. NFTs are digital assets that represent real-world objects like art, music, game items, and videos. They are bought and sold online, frequently with cryptocurrency, and they are generally encoded with the same underlying software as many cryptos.
It is critical to understand that NFTs are valued based on rarity. Any free NFT is likely to have zero to little value in the future.
However, for popular collections, any NFT bought now during the market dip, could become highly valuable.
Step 2: Setting Up a Digital Wallet
To buy NFTs, you’ll need a digital wallet that can store NFTs and cryptocurrencies. There are several wallets to choose from, such as MetaMask, Trust Wallet, and Coinbase Wallet.
Setting up a wallet usually involves installing a browser extension or a mobile app, creating an account, and securely storing your private keys or seed phrase.
Several NFT stores like CYAN’s NFT marketplace allows you to buy directly from your wallet without any registration.
Step 3: Purchasing Cryptocurrency
Most NFTs are purchased with Ethereum (ETH), although other cryptocurrencies can also be used depending on the marketplace. You can buy Ethereum through cryptocurrency exchanges available in Singapore, like Binance SG, Coinhako, or Gemini.
After purchasing, you’ll transfer the ETH to your digital wallet.
Step 4: Choosing an NFT Marketplace
Buying NFTs on CYAN is a simple 2 step process. We have made it super simple to buy NFTs on our website. You just need to connect wallet and approve the transaction.
- Connecting Wallet: No account creation needed; users can connect their wallets directly via the “Connect Wallet” option, supporting MetaMask, Wallet Connect, Unstoppable Domains, Rainbow, and Rabbit.
- Buying Process:
- Wallet connection not required for browsing the Shop page.
- Over 107 Ethereum and 10 Polygon collections available for browsing in grid or list view.
- Filters help select desired traits and pricing. Selecting an NFT opens financing terms for down payment and loan duration, with an option for automatic repayments.
- Automatic Repayments deduct funds from either the user’s wallet or a Cyan Wallet, where NFTs on loan are held.
- A Cyan Wallet is created upon the first purchase or loan, where purchased NFTs are stored until the loan is repaid.
CYAN also features easy NFT Loans (a.k.a. Buy Now, Pay Later) that help you pay for your purchases in multiple transactions and also allows users to sell the NFTs in just 1 click if they do not want the loan repayments anymore.
Step 5: Buying an NFT
Once you’ve found an NFT you’re interested in, the buying process can vary from one marketplace to another. Generally, you can buy an NFT at a fixed price or participate in an auction. To complete the purchase, you’ll connect your digital wallet to the marketplace, authorize the transaction, and pay for the NFT along with any associated transaction fees.
Meet The “DC Investor” who Amassed a Fortune of $11.8 Million from NFTs
DC Investor is an anonymous NFT collector who started collecting NFTs in 2017 and as of 2024, his NFTs are worth $11.8 Million. His first NFT purchase was CryptoPunk #2702.
He was actively featured on the Cointelegraph Magazine on Feb 15, 2024.
How Monetary Authority of Singapore(MAS) Helps NFT Buyers
Anyone would rarely mention the benefits of having a regulator in crypto and NFT markets. However, unlike other regulators, the MAS is helpful.
NFT profits are calculated as a part of income tax in Singapore. This means you do not need to prepare complex audit reports. Also, MAS does not engage in witch-hunt of NFT marketplaces ensuring that you can buy without the fear of your fav marketplace shutting down.
Conclusion: Embracing NFTs in Singapore
As Singapore continues to emerge as a hub for fintech and blockchain innovation, the interest in NFTs is expected to grow. Regulatory heat is almost non-existent. Crypto income is taxed just as a part of income.
NFTs can be a great way of generating wealth like the anonymous NFT collector named DC Investor. Now, that the NFT markets have been recovering, its a great time to buy.
However, like any investment, it’s crucial to conduct thorough research and understand the risks involved in buying NFTs.