Complete Guide to Cryptocurrency Buying: A Beginner's Roadmap for Taiwanese Investors

Cryptocurrency investment has become a focus for many in recent years, especially mainstream assets like Bitcoin. Many novice investors want to position themselves at relatively low points but face a common question: Where exactly should I buy? How do I start trading? This article will provide a comprehensive breakdown of the cryptocurrency purchasing process, trading methods, and a comparison of different platforms.

The Five Major Steps to Buying Cryptocurrency

All virtual currency transactions follow a similar basic process, although platforms differ in trading conditions, available coins, fees, and more. The core steps are:

Step 1: Choose the right trading platform
Different exchanges are designed for different investment needs. You need to determine whether you want to hold spot assets long-term or engage in short-term derivatives trading.

Step 2: Complete platform registration and identity verification
Most exchanges require KYC (Know Your Customer) verification. This involves submitting ID documents, proof of address, etc., which is standard for compliant platforms.

Step 3: Deposit funds into your trading account
Funding can be done in two ways: using fiat currency (such as NTD or USD) to directly purchase cryptocurrencies, or transferring existing crypto assets. Common deposit methods include bank transfer, online banking, credit card, etc.

Step 4: Place orders or make purchases
After funding, you can place buy orders for cryptocurrencies on the platform. Advanced traders can also try leverage trading, futures contracts, and other complex products.

Step 5: Withdraw funds or manage assets
Once your goal is achieved, you can choose to convert assets into stablecoins for safekeeping or withdraw fiat currency back to your bank account.

Introduction to Cryptocurrency Trading Platforms in Taiwan

Taiwan’s local crypto trading options are relatively limited but offer convenient NTD deposit channels. Main platforms include:

Maicoin (MAX Exchange)
Founded in 2018, it is one of Taiwan’s larger digital asset trading platforms. Supports NTD deposits (online banking, ATM, convenience store payments), with a maker fee of 0.05% and taker fee of 0.15%. Advantages include easy deposits; disadvantages are higher trading costs and limited coin support.

ACE
Also established in 2018, supports NTD deposits and withdrawals, with maker fee of 0.05% and taker fee of 0.10%.

BitoPro
Founded in 2018, known for user-friendly interface, with maker fee of 0.1% and taker fee of 0.2%.

The International Cryptocurrency Trading Ecosystem

Compared to local platforms, international exchanges generally offer lower fees, a wider range of coins, and better liquidity, but require trading in USD or USDT and other international currencies.

Major international exchanges include:

Centralized Spot Trading Platforms
These are the mainstream choice for crypto trading. They operate centrally, similar to traditional stock brokers, with user assets stored in their databases. Advantages include deep liquidity, ease of use; disadvantages include platform hacking risks and relatively lower privacy protection.

Decentralized Trading Platforms
Decentralized exchanges (like Uniswap, PancakeSwap) operate via smart contracts, requiring no trust in third parties. Transactions are fully transparent and do not require KYC. Drawbacks are weaker liquidity, longer transaction times, and higher operational complexity.

Spot vs Derivatives Trading in Cryptocurrency

Spot Trading Features

Spot trading involves directly buying and holding cryptocurrencies. Investors need wallets to store assets, suitable for medium- to long-term investment.

Advantages:

• Actual asset ownership
• No leverage risk
• Suitable for long-term allocation

Disadvantages:

• Larger initial capital required
• Only buy long, cannot short
• Need to manage wallets yourself

Derivatives Trading Features

Derivatives include futures contracts, options, leveraged tokens, etc. Investors do not need to hold the actual assets but trade based on price movements.

Advantages:

• Bidirectional trading (long or short)
• Use leverage to amplify gains
• Low account opening barriers
• High trading flexibility

Disadvantages:

• High risk due to leverage
• Risk of forced liquidation
• Requires professional knowledge

Comparing Three Ways to Purchase Cryptocurrency

Method 1: Buying spot on centralized exchanges

Process: Use the platform as an intermediary, place limit or market orders. The simplest way is to buy USDT stablecoin with fiat, then exchange for Bitcoin or other coins.

Suitable for: Beginners, long-term holders

Method 2: Peer-to-peer trading on decentralized exchanges

Process: Transactions occur directly on the blockchain without intermediaries. Users need to prepare self-custody wallets and keep their private keys safe.

Suitable for: Investors valuing privacy and security, large-volume traders

Method 3: Using derivatives platforms for long or short positions

Process: Trade via margin on the platform, leveraging the platform as an intermediary. Investors can choose to buy (long) or sell (short) based on market judgment.

Suitable for: Experienced traders, short-term traders, hedgers

Recommendations for Choosing a Trading Method

Clarify your investment goals:

Scenario 1: I am a complete beginner and want to hold safely
Buying spot on a centralized exchange is the best choice. Choose a reputable platform with good security records, and follow a simple buy-sell process to acquire assets. Taiwanese investors can start with local platforms and consider international ones after gaining experience.

Scenario 2: I prioritize privacy and asset security
Decentralized exchanges are suitable. Although more complex, assets are fully controlled by you, with no reliance on platform custody.

Scenario 3: I have trading experience and want to speculate or hedge
Derivatives platforms offer flexible bidirectional trading and leverage options. Traders can quickly enter and exit based on market judgment but must understand the risks thoroughly.

Common Misconceptions in Cryptocurrency Trading

Misconception 1: Higher leverage is better

Leverage amplifies gains but also losses. High leverage trading can lead to forced liquidation or even margin calls. Industry advice suggests beginners keep leverage between 2-10x and set stop-loss orders.

Misconception 2: Ignoring market risks

Cryptocurrencies are highly volatile. Bitcoin prices can fluctuate dramatically in short periods. Before investing, assess your risk tolerance and avoid investing more than you can afford to lose.

Misconception 3: Impulsive trading without a plan

Successful trading requires a clear strategy. Very short-term trading suits high-frequency swings; short- to medium-term trading should follow preset profit and loss targets; long-term trading should be based on long-term value judgments of Bitcoin.

Three-Step Entry Guide

Step 1: Choose the right platform

• Beginners: select local or reputable international platforms, avoid small risky ones
• Advanced: choose spot or derivatives platforms based on needs

Step 2: Complete registration and verification
Prepare ID documents and proof of address, complete KYC verification (usually takes 1-2 business days).

Step 3: Start with small amounts
Begin with small trades to familiarize yourself with platform operations and market conditions. If the platform offers demo accounts, use them to practice trading strategies.

Important Tips

✓ Always choose platforms with proper regulatory licenses
✓ Safeguard your account passwords and verification codes, enable two-factor authentication
✓ If not necessary, avoid storing large assets on exchanges long-term; consider transferring to self-custody wallets
✓ Set stop-loss and take-profit for each trade to control individual risk
✓ Do not chase prices or panic sell; follow your plan and execute accordingly

The cryptocurrency market is full of opportunities, but risks are very real. Through a scientific process, proper risk management, and continuous learning, novice investors can gradually build their trading skills. Starting small, accumulating experience through practice, is the right approach to entering this market.