How to Buy Bitcoin on an Exchange - BTC Purchase Steps in Detail

How to Buy Bitcoin on an Exchange - BTC Purchase Steps in Detail

As one of the most iconic cryptocurrencies, Bitcoin has attracted a large number of investors amidst the growing popularity of digital currencies. If you are new to Bitcoin or unsure how to buy Bitcoin on an exchange, this article will explain in detail the entire process from registering an account to completing a transaction. This article will focus on the needs of Taiwanese users, and will provide easy-to-follow step-by-step instructions to help you quickly master the skills of buying Bitcoin and easily enter the world of cryptocurrency.

1. choose the appropriate exchange

Choosing a reliable cryptocurrency exchange is the first step before you start buying Bitcoin. There are many exchanges in the market, such as Binance, FTX, OKX, Huobi, etc. that provide Bitcoin trading services. For Taiwanese users, the following points should be taken into consideration when choosing an exchange: whether it has a Chinese language interface, whether it offers Taiwan currency pairs, the security of the platform, and the service fee.

For example, Euronext supports multiple cryptocurrency pairs, has an interface designed specifically for Taiwanese users, supports Taiwan Dollar top-ups, and has reasonable trading fees. After choosing a suitable exchange, you need to register an account.

2. Register and complete authentication

After choosing an exchange, registering your account is the first step in buying Bitcoin. Most exchanges require you to provide basic personal information and authenticate your identity to comply with anti-money laundering regulations. This step usually involves providing proof of your identity (e.g. ID, passport, etc.) and a selfie.

The registration process usually requires you to set a strong password and enable two-step verification (2FA) to increase the security of your account. This will help protect your account from hackers and keep your money safe.

3. Rechargeable coins or other legal tender

After completing your account registration and identity verification, you can start to top up your funds. For Taiwan users, the most common way to top up is to use Taiwan Dollars. Many exchanges offer bank transfers or third-party payment platforms (e.g. LINE Pay, EasyCard, etc. in Taiwan) for top-ups.

For example, at Euronext, you can choose the Taiwan Dollar bank transfer method. This is usually less expensive and faster. Be sure to check that the name of your bank account matches the name registered with the exchange during the top-up process to avoid a failed top-up.

4. Understanding the market price of Bitcoin and choosing how to buy it

Once you have funds in your account, you can access the marketplace to buy Bitcoin. Most exchanges offer a variety of buying methods, including market orders and limit orders. A market order is a purchase of Bitcoin at the current market price, and is the simplest way to buy Bitcoin for beginners. A limit order is to buy or sell Bitcoin at a price you set, which allows you to trade when the market price is more favorable, but you need to wait for the other party to accept your price.

For most newcomers, it is advisable to buy Bitcoin at the market price first, as this will allow you to complete the transaction in the shortest possible time and without having to be concerned about excessive market fluctuations.

5. Complete the Bitcoin purchase and deposit it into your wallet.

Once you have selected your purchase method and filled in the number of Bitcoins you wish to purchase, the system will automatically calculate the total amount and prompt you to confirm the transaction. After confirming the transaction, you can complete the purchase of Bitcoins. After the transaction is completed, the Bitcoins will be deposited into your exchange wallet.

It is important to note that storing Bitcoin in an exchange wallet carries some risk, as exchanges may be subject to hacking or other security issues. To keep your funds safe, it is recommended to transfer your Bitcoins to a private wallet, which will better protect your assets.

6. Withdrawing Bitcoin to a private wallet

If you decide to store your Bitcoins in your own private wallet, you will need to withdraw them. Most exchanges offer a simple withdrawal process that requires you to provide your Bitcoin wallet address and confirm the amount to be withdrawn. After confirming, the exchange will send your Bitcoins to the specified wallet address.

This process usually takes some time and the speed of coin withdrawals varies depending on how congested the blockchain network is. Remember to check that the wallet address is correct when making a coin withdrawal so that funds are not sent to the wrong address and cannot be retrieved.

7. Understanding Bitcoin Transaction Fees

During the process of buying Bitcoin, exchanges will charge certain fees. These fees vary depending on the exchange and the type of transaction, and are usually slightly higher for market orders than for limit orders. The fees are usually a percentage of the transaction amount, and some exchanges offer discounts based on the volume of transactions.

For example, Euronext's trading fee is usually 0.1%, and if you are a VIP user, the fee can be further reduced. Understanding and choosing the right trading method can help you minimize unnecessary fees.

8 Security and Risk Control

In cryptocurrency trading, security is of paramount importance. In addition to turning on two-step verification, consider using a hardware wallet to store your Bitcoins. Hard wallets (e.g. Ledger, Trezor) are physical devices that can store cryptocurrencies offline, greatly reducing the risk of being hacked.

Before investing in Bitcoin, it is important to have a good understanding of the volatility of the market. The cryptocurrency market is characterized by high price volatility, so it is important to keep a close eye on the market and exercise good risk control after purchasing Bitcoin.

9. Frequently Asked Questions and Answers

Q1: Why can't my transaction be completed immediately?
A1：If you choose a limit order, you need to wait for other users to agree to your price so that the transaction can be completed. Market orders are usually completed instantly because they are based on the current market price.

Q2: How should I choose how much Bitcoin to buy?
A2: The amount you buy should be based on your investment budget. For beginners, it is recommended to start with a small amount and gradually learn the market dynamics before considering increasing your investment.

Q3: How can I reduce transaction fees?
A3: Choosing limit order trading and participating in different levels of VIP programs according to the preferential policies provided by the Exchange can effectively reduce trading fees.

Conclusion

Buying Bitcoin is not as difficult as you might think, and with the right steps and the right exchange, you can easily enter the cryptocurrency market. Remember to keep your account secure after purchasing Bitcoin and understand the risks associated with market fluctuations. As you learn and gain experience, you'll realize that Bitcoin is a worthwhile investment option for the long term. I hope this article has helped you get started on your Bitcoin investment journey!