The U.S. presidential election has officially concluded, and the United States is set to welcome its first “crypto president”! Following Trump’s election, the cryptocurrency market surged, with Bitcoin briefly surpassing $75,000, marking a historic high.
How to buy Bitcoin? How to open an account on an exchange? This article breaks down all the steps to buy cryptocurrency.
Want to start buying cryptocurrencies? How to choose what to buy?
Are you looking to take the first step into buying cryptocurrencies but unsure of which assets to choose?
In addition to the well-known Bitcoin (BTC) and Ethereum (ETH), “Stablecoins” are also an option for beginners.
What is a Stablecoin?
A Stablecoin is a type of cryptocurrency whose value is typically tied to a stable asset, such as fiat currency or gold, to maintain its value stability. “USD Stablecoin” is the most common category, linked to stable reserve assets like fiat currency (such as the U.S. dollar) or gold, allowing its price to remain relatively stable.
On some exchanges, using Stablecoins to buy other cryptocurrencies can yield better prices than using New Taiwan Dollars.
?️ Further Reading:
【Infographic】U.S. Calls to Halt BUSD Issuance! Understand What a Stablecoin Is with Two Charts.
Currently, among the well-known Stablecoins in the cryptocurrency market are Tether USD (USDT), the top in trading volume, and USDC, issued by Circle and exchange Coinbase.
When crypto enthusiasts talk about “buying U” or “how many U,” they are referring to Stablecoins.
Tether USD (USDT) is currently the largest Stablecoin by market capitalization.
Why buy Stablecoins?
Due to their minimal price fluctuations, most people buy Stablecoins mainly as a medium for cryptocurrency transactions and digital asset conversions rather than as an investment product.
Although it’s more challenging to profit from price fluctuations with Stablecoins, many exchanges offer staking services for them.
The concept of staking is somewhat similar to earning interest on a fixed deposit, representing a more conservative investment approach in the crypto space, yet it can still yield decent returns.
Therefore, for conservative investors who want to participate in the cryptocurrency market and test the waters but are wary of the risks associated with cryptocurrency volatility, Stablecoins can be a more suitable entry option.
?️ Further Reading:
Infographic｜Crypto World Stock Dividends and Earnings! What is “Staking”? Understand the Mechanism and Risks at Once.
4 Steps for Beginners to Buy Cryptocurrency! A Step-by-Step Guide
Step 1: Choose an Exchange
For beginners new to cryptocurrency, the first step in buying cryptocurrencies is to choose a reliable domestic exchange.
Currently, some commonly seen exchanges on the market that have passed the Financial Supervisory Commission’s Anti-Money Laundering Compliance Declaration include MaiCoin, BitoPro, XREX, HOYA BIT, and Rybit. Users can select an exchange based on their needs and preferences.
When choosing an exchange, the following factors can be considered:
– Security:
Ensure the exchange has good security measures, including two-factor authentication and fund insurance. It is also important to check whether the platform has trust or additional insurance for the preservation of user funds and cryptocurrencies.
– Transaction Fees:
Each exchange has different fees for transactions, deposits, and withdrawals. Although the price differences may not be significant, they can vary. Some exchanges also offer their platform tokens, which can provide discounts on transaction fees.
– Supported Cryptocurrencies:
Some exchanges, to avoid overwhelming beginners, offer only a few basic cryptocurrencies. While most exchanges support basic cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Stablecoins, if considering future investment needs, one might consider the exchange’s stance on listing smaller coins.
– User Experience:
Each exchange has different user interfaces, product services, and operation methods.
Step 2: Register an Account and Complete Real-Name Verification
After selecting an exchange and downloading it, the next step is to register an account and complete KYC real-name verification.
In response to the implementation of anti-money laundering laws, Taiwan’s regulatory authorities require exchanges to verify customer identities. Therefore, the registration process requires providing personal information and identification documents, including an ID card, date of birth, residential address, and other basic information, and even taking a photo of oneself holding the ID.
Additionally, special attention is needed to bind a bank account during registration to ensure the legality of the customer’s identity and help prevent money laundering and illegal activity financing. In the future, money can only be transferred from this bank account to the exchange.
Step 3: Deposit Funds (Fiat Transfer)
After completing account registration and real-name verification, and after a few days of exchange review, you can start buying and selling cryptocurrencies on the exchange.
First, go to the wallet on the exchange and select “New Taiwan Dollar” from the list of cryptocurrencies. Then choose “Deposit” to receive a unique personal encrypted wallet bank account. You can transfer funds from the previously bound bank account via online banking (recommended) or an ATM to the exchange’s wallet.
Step 4: Buy Cryptocurrency
After completing the transfer, you will receive a notification of the funds being credited within about 3-5 minutes. Once you confirm that the wallet has received New Taiwan Dollars, you can start buying Stablecoins or Bitcoin.
On the exchange’s trading page, you can usually find trading pairs commonly used by most users, such as USDT/TWD, BTC/USDT, etc.
These trading pairs indicate the cryptocurrency you wish to buy and the expected payment method (selling is also in the same trading pair). For example, USDT/TWD means you can buy and sell the Stablecoin USDT with New Taiwan Dollars, and if you want to buy Bitcoin, you can choose USDT/BTC (the wallet needs to have Stablecoins) or BTC/TWD.
Then move to the order page, choose the cryptocurrency you want to buy and the purchase amount, and you can place an order directly. As cryptocurrency prices often fluctuate, if you’re not buying at the “market price” directly but manually entering the amount for “limit buy,” you may need to wait a while to complete the order.
As cryptocurrency assets increase, you can choose to keep them in the exchange account or transfer them to your cold wallet or other decentralized wallets to enhance security.
Learning to buy cryptocurrency is the first step into the cryptocurrency market. With the same process and methods, you can also try buying other trading pairs with different cryptocurrencies to reduce investment risks and participate in the market.
Lastly, it is advised to understand the associated risks and act cautiously before investing.
Reviewed and Edited by: Gao Jingyuan
