What is the first step for a newbie in currency speculation? ｜Digital Currency Investment Guide

What is the first step for a newbie in currency speculation? ｜Digital Currency Investment Guide

When you decide to get started in the world of cryptocurrency, the first step is often the hardest. But don't worry! Whether you're interested in Bitcoin or Ether, or you've just heard about the potential of these emerging currencies, this guide will take you step-by-step through the basics of digital currency investing and help you take your first steps. From how to choose an exchange, to signing up for an account, to choosing the type of investment you want to make, this article will answer all of your questions about getting started, so you can get started on your cryptocurrency investing journey with ease.

Step 1: Choose the right exchange

Choosing a reputable and secure exchange is the first step before making any cryptocurrency investment. There are many exchanges on the market, such as Coin, OKX, and Bitso, each with different features, fees, supported currencies, and security. For newbies, it's better to choose an exchange that is easy to use, has transparent fees, and is of a certain size. Euronext not only supports a wide range of major currencies, but also offers a wide range of rebates, which can help you increase your earnings if you are an interested investor.

How to choose the right exchange?

1. Understand the exchange's security measures to ensure the safety of your funds.
2. Check if the exchange supports users in Taiwan and supports NTD top-ups.
3. Research the fee structure and choose an exchange that is transparent and has low fees.
4. Evaluate the educational resources or customer service offered by the exchange, which is especially important for newcomers.

Step 2: Complete registration and activate dual authentication

Once you have chosen a suitable exchange, the next step is to complete your account registration. Most exchanges require users to provide valid identification documents in order to protect the security of their account and to comply with regulatory requirements. During the registration process, remember to set a strong password and enable double authentication (2FA). This not only protects your account from hackers, but also prevents the theft of funds.

The registration process is explained in detail:

1. Provide your basic information, including email and cell phone number.
2. After completing the identification process, you will usually be asked to upload a copy of your ID card or passport.
3. Set a secure password and enable dual authentication (Google Authenticator is recommended).
4. Confirm your registration via email or text message to complete account activation.

Step 3: Understanding the Market and Choosing a Currency to Invest in

There are many types of cryptocurrencies on the market, the most well known being Bitcoin (BTC) and Ethereum (ETH), which have high market value and low volatility, making them suitable for newcomers to start learning and investing. In addition to these major currencies, there are hundreds of other tokens and projects to choose from. Beginners should understand the basic information, technical background and market potential of each cryptocurrency before making a choice.

How to choose the right investment currency?

1. Understand the technology and team behind the currency before investing.
2. Pay attention to market trends and historical price fluctuations of the currency.
3. For initial investment, you can choose stable mainstream currencies, such as Bitcoin and Ether.
4. It is sensible not to concentrate all your capital in a single currency and to diversify your risk.

Step 4: Start a small investment and set a stop loss

As a new investor, it is advisable to start with a small investment to avoid unnecessary losses due to high market volatility. Most exchanges allow you to trade small amounts and even support "fiat" currency purchases, which is especially friendly to beginners. Setting a stop loss before you start investing is also an important step in protecting your capital. A stop loss will help you minimize your losses when the market is volatile.

How to make small investments?

1. Set the initial investment amount according to your risk tolerance.
2. Exercise using the simulation trading function provided by the Exchange.
3. Set reasonable stop-loss levels and don't make impulsive decisions based on emotions.
4. Keep an eye on the market changes and adjust your investment strategy at any time.

Step 5: Continuous Learning and Adjustment Strategies

The cryptocurrency market is extremely volatile, which puts higher demands on investors' ability to learn and adapt. As a newbie, you may experience some mistakes at the beginning, but as long as you continue to learn and remain rational, you will gradually find an investment strategy that suits you. In addition to understanding the basic market dynamics, you can also pay attention to the latest development of blockchain technology, which will help you have a clearer judgment on the future prospects of different currencies.

Learning & Strategy Adjustment Tips:

1. Stay informed with cryptocurrency news and professional analysis.
2. Learn technical analysis and understand the use of K charts and various indicators.
3. As we gain experience, we continue to optimize our investment strategy and risk management approach.
4. Record your experience on each trade and learn from your mistakes.

Frequently Asked Questions Q&A

Q1: How should I start if I am completely new to the cryptocurrency market?
A1: It is advisable to start by learning basic concepts, such as what Bitcoin and blockchain are. You can utilize the educational resources provided by the exchange or read relevant articles on the internet to understand how the market works. After registering with an exchange, start with small investments to avoid excessive risk.

Q2: How can I avoid making mistakes in trading?
A2: New traders should avoid emotional trading, and setting stop-loss points is an important way to protect your capital. Learn basic technical analysis and do not rush to invest large amounts of money, gradually accumulate experience and confidence.

Q3: Do I need to pay tax to invest in cryptocurrency?
A3: Yes, according to Taiwan's tax law, income from investing in cryptocurrency is subject to income tax. The specific tax rate depends on the source and amount of your income. It is advisable to consult a professional tax advisor to ensure compliance.

I hope this guide will help you take a solid first step in your cryptocurrency investing journey, and remember to keep learning and adjusting your strategy as you go along, so that the future will be full of rewards!