In the world of cryptocurrencies, how to choose and operate an exchange-traded cryptocurrency may be a challenge for newcomers. This article will explain in detail how to buy cryptocurrencies on exchanges from scratch, and provide a simple and practical guide to the characteristics of the Taiwan market, so that you can easily enter this emerging market.
Understanding the Options of Cryptocurrency Exchanges
Before you start trading cryptocurrencies, you first need to choose an exchange that suits your needs. There are many exchanges to choose from, some of which are global platforms such as Binance, Coinbase, etc., while others are local platforms targeting the Taiwan market, such as OKX, Coinbase Taiwan, etc. When choosing an exchange, you can consider the following factors:
- safetyThis is the most important consideration, choose an exchange that has a good security track record and has a two-step verification (2FA).
- Handling Fee: Each exchange has a different fee structure, which usually includes a trading fee, a withdrawal fee, and so on.
- Supported Currencies: Confirm that the exchange supports the currency you want to trade.
- user-friendliness of the interface: Especially for novices, choosing an exchange with an easy-to-use, intuitive interface can effectively minimize the learning curve.
Account Opening and Authentication
After choosing an exchange, the next step is to register and open a trading account. Most exchanges require users to provide some basic personal information, which includes email address, phone number, etc. When registering, be sure to ensure that the information is authentic and choose a strong password to protect your account. When registering, it is important to make sure that the information is true and that you choose a strong password to protect your account.
Most exchanges also require identity verification (KYC) in order to comply with international anti-money laundering regulations. This usually involves uploading a government-issued document, such as an ID or passport, and performing facial recognition or other forms of identity verification. Once this step is completed, you will be able to fund and trade.
Funds on deposit in French currency
After opening an account on an exchange and passing authentication, you can deposit Taiwan Dollars (TWD) or other fiat currencies into your exchange account in preparation for purchasing cryptocurrency. Most exchanges offer a variety of deposit methods, including:
- Bank Transfer: This is one of the most common ways to deposit money, and transfers through banks in Taiwan may have a small handling fee.
- Credit/Debit CardsSome exchanges support the direct purchase of cryptocurrencies using a credit or debit card, but this usually comes with a higher handling fee.
- Third party payments: For example, using payment tools such as Line Pay and Taiwan's Street Pay, it is also easy to deposit fiat currency on the exchange.
After depositing fiat currency, there may be a delay in depositing depending on the policies of different exchanges, which may take up to one to two business days.
Convert fiat currency to cryptocurrency
Once your exchange account has been funded with fiat currency, the next step is to convert the fiat currency into the cryptocurrency you want to buy. Most exchanges offer the ability to buy and sell instantly, so here are the simple steps to follow:
- Select Pair: On the exchange screen, select the currency pair you want to trade. For example, if you want to exchange Taiwan Dollars (TWD) for Bitcoin (BTC), you need to select the "TWD/BTC" pair.
- Input Amount: After selecting a trading pair, you can enter the amount you wish to purchase. Note that some exchanges may have a minimum trade size.
- Select market price or limit order: Most exchanges offer two types of orders -Market Price Listrespond in singinglimit orderMarket orders are trades that are executed immediately at the current market price. A market order is a trade that is executed immediately at the current market price; a limit order is a trade that you set a price for and the system automatically executes it when the market price reaches the price you set.
After confirming the purchase amount and transaction type, click "Buy" to complete the transaction. At this point, your cryptocurrency will appear in your exchange account.
Withdrawal and storage of cryptocurrency
After completing your purchase, your cryptocurrency will be stored in a hot wallet on the exchange. Such wallets are convenient for quick transactions, but are relatively insecure. Therefore, for long term cryptocurrency holdings, it is recommended that you transfer your cryptocurrencies to a personally controlled cold wallet, as this will greatly increase security.
Cold wallets such as hardware wallets (e.g. Ledger, Trezor) or paper wallets are a way to keep your cryptocurrency offline. Your cryptocurrency is protected even if there is a security issue with the exchange.
Understanding Exchange Fees and Rebates
Each exchange has a different fee structure, which usually includes a trading fee, a withdrawal fee and possibly a fiat currency deposit fee. Understanding the exchange fees will help you make informed choices when trading.
Some exchanges also offer rebate programs, such as platforms like Ouyi (OKX), where you can enjoy a certain percentage of trading rebates by using a specific promotional code or registering through a referral link. These rebates are usually settled on a monthly basis and will be directly reflected in your account, which can effectively reduce trading costs for users who trade frequently.
Risk Management and Investment Strategy
The cryptocurrency market is extremely volatile and investors should have a clear risk management strategy in place before trading. For example, setting a stop-loss point and diversifying investments can effectively reduce the risk of large fluctuations in a single currency. For novice traders, they should not be greedy for short-term profits and should operate with a long-term investment mindset.
Trivia
Whether you are a newcomer to the cryptocurrency market or an experienced investor, it is important to understand how to buy coins on an exchange, choose the right trading platform and manage your risk. As long as you follow a step-by-step process, you will be able to make your first cryptocurrency purchase. The world of cryptocurrency is full of unlimited opportunities and challenges, and we hope that every investor will be able to walk a steady and long-term path on this path.
English 
Chinese