Getting Started with Cryptocurrency Trading – A Practical Beginner's Guide for Korean Investors

There is an increasing number of Korean investors entering the world of digital assets. From major cryptocurrencies like Bitcoin($BTC) and Ethereum($ETH) to various altcoins, new investment opportunities are continuously emerging. However, for beginners, complex terminology, numerous exchanges, and security concerns can be barriers to entry.

This guide is prepared for those just starting to trade cryptocurrencies. It is designed to help you select a trustworthy large exchange, set up your account step-by-step, and safely execute your first trade.

Contents of this guide:

• Essential preparations and basic concepts before trading
• Installing exchange apps and accessing accounts
• Funding procedures and practical tips
• How to make your first spot(Spot) trade
• Practical advice for Korean users
• Common questions for beginners

By following this guide, you can be ready to start trading within just 30 minutes.

Essential preparations and basic concepts before starting

Before entering cryptocurrency trading, you need to grasp some fundamentals.

Necessary preparations

First, identity verification(KYC) is required. If the exchange complies with regulations, you must complete identity verification, which increases your deposit and withdrawal limits and allows full access to all services.

Second, a smartphone or computer is needed. Both web and mobile app versions are supported, so choose your preferred method. For real-time notifications and quick trading, using the mobile app is recommended.

Third, a stable internet connection. Disconnections during trading can cause losses, so a reliable network environment is essential.

Fourth, trading funds. It’s wise to start with a small amount to gain experience.

Understanding basic terms

• Cryptocurrency: Digital assets based on blockchain technology (e.g., Bitcoin, Ethereum)
• Exchange: An online platform to buy and sell cryptocurrencies
• Wallet: A digital space to store cryptocurrencies
• Spot trading: Buying and selling cryptocurrencies immediately at current market prices
• Futures trading: Contracting at a future specified price, a high-risk trading method
• Stablecoin: Cryptocurrency pegged to fiat currencies like USD (e.g., USDT, BUSD) - less volatile, often used as a trading base currency

Installing exchange apps and accessing accounts

Installing the mobile app

Step 1: Open your smartphone’s app store(App Store or Google Play Store).

Step 2: Search for the exchange name.

Step 3: Carefully verify that the developer is official before tapping install. (Beware of fake apps!)

Step 4: After installation, open the app and log in with your existing account information.

Accessing via website

Step 1: Open a web browser(Chrome, Safari, etc.).

Step 2: Enter the official website URL of the exchange accurately.

Step 3: Click the “Login” button at the top right.

When logging in, you must complete the two-factor authentication(2FA) process. This is an essential security measure to protect your account.

Funding your exchange account

To trade cryptocurrencies, you first need to deposit funds. Common methods used by Korean users include:

Transferring cryptocurrencies from other exchanges(most common)

First, check your deposit address on a large exchange. In the app or website’s “Wallet” menu, select “Spot Wallet” or “Deposit.” Choose the cryptocurrency you want to deposit, such as Ripple($XRP) or Tron($TRX), which are recommended for their fast transfer speeds and low fees.

Network selection is crucial! The network used for sending must match the network of the receiving exchange. (e.g., XRP uses XRP network, TRX uses TRC20 network)

Copy the wallet address and memo/tag(if needed) accurately from the screen. Some coins require both address and memo/tag input.

Next, log into your domestic exchange, select the cryptocurrency to withdraw, and go to “Withdraw.” Paste the copied address and memo/tag precisely, and double-check that the network matches. Enter the withdrawal amount and submit your request.

Once the withdrawal from the domestic exchange is completed, you can check the deposit in the “Spot Wallet” of the large exchange. It may take some time depending on network conditions.

P2P trading method

Buying cryptocurrencies directly from individuals using the exchange platform by paying in Korean Won(KRW), mainly for USDT, BTC, ETH(. This method allows direct use of fiat currency but requires careful selection of trustworthy sellers.

Starting your first cryptocurrency trade: spot)Spot( trading

After funding is complete, you can begin trading in earnest. For beginners, the safest method is spot trading. Spot trading involves immediately buying or selling cryptocurrencies at current market prices.

Understanding the trading screen

The “Trade” - “Spot” screen on the app or website consists of several sections.

The trading pair selection area shows the current pair you are trading)e.g., BTC/USDT(. Click to change to another pair.

The price chart visually displays past and current price movements of the selected pair. You can utilize various timeframes and technical analysis tools.

The order book)Order Book( lists all buy and sell orders currently in the market, helping you gauge demand and supply.

Trade history shows recent completed trades.

The order input area is where you submit buy or sell orders. You set order type, price, quantity, etc.

Your orders section shows your submitted or filled orders.

Understanding order types

Limit order is when you set your desired buy or sell price. The trade executes only if the market reaches that price. It’s used to trade at a more favorable price than the current market. For example, if BTC is at 40,000 USDT and you want to buy at 39,000 USDT, set a limit order at 39,000 USDT.

Market order executes immediately at the best available current market price. It’s the fastest way to trade but can result in different prices during high volatility. Use it when you want to quickly open or close a position.

Example: Making your first trade — buying Bitcoin with USDT

Step 1: Navigate to “Trade” or “Exchange” at the bottom of the app or website.

Step 2: Select “Spot” at the top.

Step 3: Click the trading pair at the top left, search for “BTC/USDT,” and select it.

Step 4: Ensure the “Buy” tab is selected in the order input area.

Step 5: Choose “Market” order type — the easiest for beginners.

Step 6: Enter the amount of USDT or BTC you want to buy, e.g., 100 USDT to buy BTC.

Step 7: Click “Buy BTC” to submit the order.

Step 8: The order will execute immediately, and the purchased $BTC will appear in your spot wallet.

Congratulations! You have successfully completed your first cryptocurrency trade.

Practical tips for Korean users

Using the mobile app

The exchange app supports most functions of the website and can send push notifications for important market info or account activities in real-time. Using widgets to monitor favorite coin prices directly on the home screen is also convenient.

Utilizing educational resources

The exchange’s academy or education center is a treasure trove. It offers extensive educational content on blockchain basics, types of cryptocurrencies, technical analysis, investment strategies, and security tips. Consistent learning builds a solid foundation for successful investing.

Dollar-cost averaging (DCA) strategy)

To reduce market volatility concerns, consider investing small amounts regularly rather than a large sum at once, using a dollar-cost averaging(DCA) approach.

Enhancing security settings

Regularly verify that essential security measures like two-factor authentication(2FA) and anti-phishing codes are properly enabled. These are vital to protect your account from hacking.

Participating in communities

Joining official exchange communities or Korean crypto communities to share information and learn from other investors is beneficial. However, always be cautious of unverified information or investment advice.

Frequently Asked Questions

Can I buy cryptocurrencies directly with KRW(KRW$BTC ?

Most global exchanges do not support direct KRW deposits. Korean users mainly buy cryptocurrencies on domestic exchanges and transfer them to overseas exchanges or purchase via P2P platforms using fiat currency.

Should I start with spot or futures trading?

Beginners are strongly advised to start with less volatile, lower-risk spot trading. Futures trading can offer high returns through leverage but also carries significant risk of loss. Get comfortable with spot trading first before considering futures.

How to verify if an app is official?

Always search for the app in the official app store)App Store or Google Play Store(, verify the developer’s official company name, and install. Also, confirm download links from the official website.

How to reduce trading fees?

Using the exchange’s native token)e.g., BNB( to pay for fees can provide discounts. Policies vary by exchange, so check accordingly.

Good resources for beginners?

The exchange’s academy or learning center offers extensive free educational materials suitable for all levels. Official blogs, YouTube channels, and customer support are also valuable sources.

Conclusion

Starting cryptocurrency trading is not difficult if you have the right information and follow step-by-step guides. This article aims to help you confidently go from account creation, app installation, funding, to your first spot trade.

Trustworthy exchanges offer top-tier security, ample liquidity, diverse trading products, and rich educational resources to strongly support your crypto journey.

Based on what you’ve learned here, invest carefully, keep learning steadily, and always prioritize security to achieve good results in the crypto market.

Start now and embark on a safe and successful cryptocurrency trading journey!

Disclaimer: This article is for informational and educational purposes only and should not be considered financial advice. The cryptocurrency market is highly volatile and involves risk of loss. Always conduct thorough research, consider your financial situation and risk tolerance, and consult a financial professional if needed. Past performance does not guarantee future results.