My goal is to prove that $x\in y$ iff $\{x\}\subseteq y$.
Here's my sketch of a proof:
We have $x\in y$, and by definition $A\subseteq B := \forall a$ ($a\in A \implies a \in B$). We may infer $\forall$$z$ ($z = x$ $\implies$ $x \in y$) and $\forall$z ($z = x$ $\iff$ $z \in {x}$), then $\forall$$z$ ($z \in \{ x\}$ $\implies$ $z \in y$). And i stopped here.
I'm pretty sure that there is a simpler way of writing this proof (and by simpler, i mean doing this demonstration without invoking first order logic formalizations of set theoretic definitions)
Your proof looks fine to me for the forward direction! If you want a proof in words instead of logical symbols:
For the backward direction: