Introduction
The cryptocurrency market experienced dramatic highs and lows in 2020. Amid the COVID-19 pandemic and global economic downturn, Bitcoin plunged to around $3,000 in Q1. By late 2020 through early 2021, it surged dramatically, surpassing $40,000 at its peak. This volatility has attracted newcomers eager to enter the crypto trading world.
This guide will walk you through:
- Understanding Cryptocurrencies
- Deposits/Withdrawals: Converting Fiat to Crypto
- Storing Cryptocurrencies Securely
- Choosing a Crypto Exchange
- Transferring Crypto: Deposits & Withdrawals
Understanding Cryptocurrencies: Know What You’re Buying
Before diving in, familiarize yourself with these key concepts:
Pro Tip: Bookmark Zombit’s Knowledge Base for deeper dives.
Deposits/Withdrawals: Fiat ↔ Crypto Conversions
In crypto jargon:
- Depositing = Buying crypto with fiat (e.g., USD/TWD).
- Withdrawing = Selling crypto for fiat.
Methods to Deposit/Withdraw
- Crypto Exchanges: Platforms like MAX, ACE, or Binance allow fiat deposits via bank transfers.
👉 Top Crypto Exchanges in Taiwan - OTC (Over-The-Counter): Peer-to-peer trades (higher risk, better rates).
Note: Avoid OTC unless you trust the seller (e.g., verified platforms like ZomFast).
Storing Cryptocurrencies: Wallet Options
Where to keep your crypto? Three main choices:
- Hardware Wallets (Cold Storage): Safest for long-term holdings (e.g., Ledger).
- Hot Wallets: Convenient for frequent trades (e.g., MetaMask).
- Exchange Wallets: Easy access but less secure (e.g., Binance, Coinbase).
Recommendation:
- Store trading funds in exchanges/hot wallets.
- Secure large holdings in cold wallets.
How to Choose a Crypto Exchange
Stick to reputable platforms with strong security and liquidity. Avoid obscure exchanges!
Top Picks for Beginners
Binance: Industry leader with deep liquidity and low fees.
- Key Feature: 500+ tradable coins and intuitive UI.
- Pionex: Ideal for automated trading (e.g., grid bots).
Transferring Crypto: Deposits & Withdrawals
How to "Send" Crypto:
- Get the Recipient’s Wallet Address (like a bank account number).
- Specify the correct blockchain network (e.g., ERC-20 for Ethereum).
- Confirm fees and complete the transfer.
Example:
*Alice: "Send me 10 USDT via ERC-20."
Bob: Shares ERC-20 address, receives funds in minutes.*
Critical Reminder: Double-check the coin type, address, and network to avoid losses.
Next Steps: Become a Crypto Investor Today
Action Plan:
- Learn crypto basics.
- Buy crypto via a trusted exchange.
- Practice transferring small amounts.
Ready for the next level? Dive into Spot Trading Basics in our next guide!
FAQ
Q: How much should I invest in crypto as a beginner?
A: Start with disposable income (e.g., 5–10% of savings) to mitigate risk.
Q: Is storing crypto on exchanges safe?
A: For active trading, yes. For long-term holdings, use cold storage.
Q: What’s the cheapest way to transfer crypto?
A: Networks like TRC-20 (Tron) offer lower fees than ERC-20.