Entering the world of cryptocurrency can feel overwhelming, especially when you're just starting out. From choosing the right platform to understanding how transactions work, there are many questions new investors face. This guide breaks down nine frequently asked questions to help you confidently navigate your first steps into buying digital assets like Bitcoin and Ethereum.
Whether you're curious about exchanges, wallets, or how pricing works across platforms, we’ve got you covered — with clear explanations and practical tips that align with today’s crypto landscape.
What Is a Centralized Cryptocurrency Exchange?
In the early days of Bitcoin, acquiring it was limited to two methods: mining or conducting over-the-counter (OTC) trades with someone willing to send you coins directly. You could generate a wallet on sites like bitcoin.org or use third-party services, then share your public address to receive funds. While this method emphasized decentralization, it lacked convenience — especially when exchanging fiat currency like USD or TWD with strangers.
Today, centralized cryptocurrency exchanges have made buying digital assets faster and more accessible than ever. Platforms like Binance, Coinbase, and OKX allow users to deposit fiat money and purchase crypto instantly — no technical setup required.
These exchanges operate as custodial platforms, meaning they manage users' funds on their behalf. While this reduces full control over private keys, it greatly simplifies the user experience, making them ideal for beginners.
👉 Discover how easy it is to start your crypto journey today.
FAQ: Top 9 Questions About Buying Cryptocurrency
Q1: Should I Use a Local TWD Exchange or an International One?
Many Taiwanese investors maintain accounts on both local and global exchanges. Local platforms such as Max or BitoPro support direct TWD deposits via bank transfer, making initial purchases straightforward. However, they often lack advanced trading features and deep liquidity.
International exchanges like OKX or Binance offer broader asset selection, lower fees, and more sophisticated tools — but don’t accept TWD directly. As a workaround, most users buy USDT (a stablecoin pegged to the US dollar) on a local exchange, then transfer it to an international platform for trading.
This two-step process balances ease of access with powerful functionality.
Q2: What Is Order Book Matching?
Most major exchanges use an order book system — similar to traditional stock markets — where buyers and sellers place orders that get matched automatically. When you "place an order" (maker), you add liquidity; when you "fill an order" (taker), you remove it. The exchange earns a small fee per trade, typically between 0.05% and 0.2%.
To reduce costs, consider purchasing the platform’s native token — such as BNB or OKB — which often grants discounts on trading fees.
Q3: What Does “Custodial” Mean in Crypto?
When you create an account on a centralized exchange, you're given deposit addresses for various blockchains. However, you don’t control the private keys behind those addresses. This means your funds are held in custody by the exchange.
While convenient for trading, this setup limits your ability to interact directly with decentralized applications (dApps). In contrast, self-custody wallets (like MetaMask or Trust Wallet) give you full control — a key difference between exchanges and personal wallets.
👉 Learn how secure and simple crypto trading can be with the right platform.
Q4: What Are Trading Pairs?
Unlike stocks priced in your local currency, cryptocurrencies trade in pairs — for example, BTC/USDT or ETH/BTC. The first coin is what you're buying/selling; the second is the pricing unit.
For beginners, stick with crypto/USDT pairs. Since USDT mirrors the US dollar, BTC/USDT tells you how many dollars one Bitcoin costs. This standardization helps avoid confusion across global markets.
Q5: What Is KYC?
Know Your Customer (KYC) is a mandatory identity verification process required by regulators worldwide. To comply with anti-money laundering (AML) laws, exchanges ask for government-issued ID, proof of address (e.g., utility bill), or a photo holding your ID.
If privacy is a concern, add a watermark like “For Exchange Registration Only” before uploading documents.
Q6: What Does “Instant Settlement” Mean?
Crypto trades settle instantly — unlike stock markets with T+2 clearing periods. This means you must fund your account before placing any buy orders. There’s no borrowing or margin unless explicitly enabled through lending features.
Always ensure your wallet has sufficient balance in the correct asset (e.g., USDT) before trading.
Q7: Are Cryptocurrency Gains Taxed?
As of now, Taiwan does not have specific capital gains tax laws for crypto holdings. You won’t be taxed simply for holding Bitcoin or other digital assets. However, proposed regulations may change this in the future — stay informed as policy evolves.
Globally, tax treatment varies by country, so always consult local guidelines if you're trading across borders.
Q8: Do Prices Differ Across Exchanges?
Yes — slight price differences can exist between exchanges due to regional demand, liquidity levels, or withdrawal delays. In the past, these gaps were significant enough for arbitrage opportunities.
Nowadays, high liquidity on major platforms minimizes discrepancies. For most users, price variance is negligible — especially on large exchanges with strong trading volume.
👉 See real-time pricing and deep liquidity in action — start exploring now.
Q9: What Is a Decentralized Exchange (DEX)?
Built on blockchains like Ethereum or Solana, decentralized exchanges (DEXs) let users trade directly from their wallets using smart contracts. No KYC, no account creation — just connect your wallet and swap tokens.
Popular DEXs include Uniswap and PancakeSwap. While they offer greater privacy and control, they require familiarity with gas fees, slippage settings, and wallet management — making them better suited for experienced users.
For newcomers, starting with a centralized exchange offers a smoother onboarding experience.
Final Thoughts: Start Smart, Stay Informed
Buying cryptocurrency doesn’t have to be complicated. By understanding core concepts like custodial vs. non-custodial storage, trading pairs, and settlement mechanics, you’ll make smarter decisions from day one.
Remember: security matters. Never share your private keys. Use strong passwords and two-factor authentication (2FA). And while centralized exchanges provide convenience, consider moving long-term holdings to a self-managed wallet for maximum control.
Whether you're investing in Bitcoin as digital gold or exploring altcoins for growth potential, knowledge is your best asset.
Frequently Asked Questions (FAQ)
Q: Do I need to complete KYC to buy crypto?
A: On most major centralized exchanges, yes. KYC is required for compliance with global financial regulations. However, decentralized exchanges (DEXs) allow trading without identity verification.
Q: Can I buy crypto with TWD directly?
A: Yes — through local exchanges like Max or BitoPro. These platforms support TWD bank transfers and are great for converting fiat into stablecoins like USDT.
Q: Is it safe to leave crypto on an exchange?
A: For small amounts and active traders, it's generally acceptable. But for long-term storage, move funds to a self-custody wallet to reduce counterparty risk.
Q: What’s the easiest way for beginners to start?
A: Begin with a reputable centralized exchange. Buy USDT with TWD locally, transfer it internationally if needed, and trade using USDT pairs.
Q: How do I know I’m paying a fair price?
A: Check the global average price on sites like CoinGecko or CoinMarketCap. On liquid exchanges, prices closely track this benchmark.
Q: Can I lose money even if the market goes up?
A: Yes — poor timing, high fees, or network delays can impact returns. Always review transaction details before confirming any trade.
By combining education with practical tools, anyone can enter the crypto space safely and confidently. Stay curious, stay cautious — and keep learning as the ecosystem evolves.