The U.S. presidential election has officially concluded, and the United States is about to welcome its first crypto president! Following Trump’s election, the cryptocurrency market surged, with Bitcoin briefly surpassing $75,000, setting a historical high.
How to buy Bitcoin? How to open an account with an exchange? This article provides a step-by-step breakdown of all the steps to buying coins.
Want to start buying cryptocurrencies, but don’t know what to choose?
If you’re looking to take the first step and start purchasing cryptocurrencies but are unsure of which assets to select, apart from the commonly heard Bitcoin (BTC) and Ethereum (ETH), “Stablecoins” are also a recommended option for beginners.
What are Stablecoins?
Stablecoins are a type of cryptocurrency whose value is typically pegged to a stable asset, such as fiat currency or gold, to maintain price stability. “USD Stablecoins” are the most common category, linked to stable reserve assets like fiat currency (e.g., USD) or gold, allowing prices to remain relatively stable.
In some exchanges, purchasing other cryptocurrencies with stablecoins can offer better prices than using New Taiwan Dollars.
?️ Further Reading:
[Illustration] U.S. halts BUSD issuance! Two charts to understand what Stablecoins are?
Currently, among the well-known stablecoins in the cryptocurrency market, Tether USD (USDT) leads in trading volume, followed by USDC, issued by Circle and the exchange Coinbase.
In the crypto community, phrases like “buying U” and “how many U” refer to stablecoins.
Tether USD (USDT) is currently the largest stablecoin by market cap.
Why buy Stablecoins?
Due to their minimal price fluctuations, most people buy stablecoins mainly as a medium for exchanging between cryptocurrencies and digital assets, rather than as investment products.
While stablecoins offer limited opportunities to profit from price volatility, many exchanges provide services for staking stablecoins.
The concept of staking is somewhat akin to placing money in a fixed deposit to earn interest, representing a more conservative investment approach in the crypto space, yet it can still yield decent returns.
Therefore, for conservative investors looking to participate in the cryptocurrency market and test the waters without bearing the risks of crypto volatility, stablecoins are considered a suitable entry option.
?️ Further Reading:
Illustration: Stock dividends and interest in the crypto world! What is “staking”? Understand the mechanisms and risks at once.
4 Steps for Beginners to Buy Coins! A Step-by-Step Guide
Step 1: Choose an Exchange
For beginners new to cryptocurrencies, the first step to purchasing crypto is selecting a reliable domestic exchange.
Currently, some of the more common exchanges that comply with anti-money laundering regulations set by the Financial Supervisory Commission include MaiCoin, BitoPro, XREX, HOYA BIT, and Rybit. Users can choose an exchange based on their needs and preferences.
When choosing an exchange, consider the following factors:
– Security:
Ensure the exchange has robust security measures, including two-factor authentication and fund insurance. Also, check if the platform has trust or additional insurance for user funds and cryptocurrencies.
– Transaction Fees:
Each exchange’s transaction fees, deposit, and withdrawal fees, as well as coin prices, although not significantly different, may vary. Some exchanges also offer discounts on transaction fees when using their platform token.
– Supported Coins:
To avoid overwhelming beginners, some exchanges only offer a few basic coins. Most exchanges support basic coins like Bitcoin (BTC), Ethereum (ETH), and stablecoins. However, if considering future investment needs, also consider the exchange’s attitude towards listing smaller coins.
– User Experience:
Each exchange differs in its user interface, product services, and operation methods.
Step 2: Register an Account and Complete Identity Verification
After selecting an exchange and downloading it, the next step is to register an account and complete KYC identity verification.
In response to anti-money laundering regulations, Taiwanese regulators require exchanges to verify customer identities. Therefore, the registration process requires providing personal information and identity documents, including ID, date of birth, and residential address, and may require a photo of the applicant holding their ID.
Additionally, it’s important to note that during registration, a bank account must be linked to ensure the legality of the customer’s identity and help prevent money laundering and illegal activity financing. In the future, funds can only be transferred from this bank account to the exchange.
Step 3: Deposit Funds (Fiat Transfer)
After completing account registration and identity verification, and after a few days of exchange review, you can start buying and selling coins on the exchange.
First, select the wallet in the exchange, choose “New Taiwan Dollar” from the list of currencies, then select “Deposit” to receive a unique personal crypto wallet bank account. Funds can be transferred from the previously linked bank account via online banking (recommended) or an ATM to the wallet in the exchange.
Step 4: Buy Coins
Once the transfer is complete, you’ll receive a notification of the funds’ arrival in about 3-5 minutes. After confirming the New Taiwan Dollars are credited in the wallet, you can start purchasing stablecoins or Bitcoin.
On the exchange’s trading page, you can usually find commonly used trading pairs, such as USDT/TWD, BTC/USDT, etc.
These trading pairs indicate the desired purchase and payment currencies (selling is also the same pair). For example, USDT/TWD means you can buy and sell the stablecoin USDT with New Taiwan Dollars. To buy Bitcoin, you can choose USDT/BTC (with stablecoins in the wallet) or BTC/TWD.
Then proceed to the order page, select the cryptocurrency and amount you want to purchase, and place the order. Since coin prices often fluctuate, if you don’t buy at “market price” directly but manually enter an amount for a “limit buy,” you might need to wait a while to complete the order successfully.
As cryptocurrency assets increase, you can choose to keep them in your exchange account or transfer them to your cold wallet or other decentralized wallets to enhance security.
Learning to buy coins is the first step into the cryptocurrency market. Using the same process and methods, you can also try using different cryptocurrencies to buy other trading pairs later, reducing investment risk and participating in the market.
Finally, it’s also a reminder that investors should understand the associated risks and proceed with caution before investing.
Edited by: Gao Jingyuan