Bitcoin Beginner's Guide: From Purchase to Secure Trading, Everything You Need to Know!

With the continued rise of cryptocurrency, Bitcoin has become the first entry point for many into the world of digital assets. However, for beginners, understanding Bitcoin’s operation, purchasing methods, and how to securely store it can be confusing.

This article will introduce the basic knowledge of Bitcoin, the purchasing process, and explore how to effectively protect your Bitcoin, helping you get started quickly.

What is Bitcoin? Why Should You Invest?

Before learning how to buy Bitcoin, it’s important to understand its nature and potential. Bitcoin has not only changed the way financial transactions are conducted but has also created a whole new type of asset.

Core Value of Bitcoin: From Payment Tool to Store of Value

Bitcoin is a digital asset created by an anonymous person known as "Satoshi Nakamoto" in 2009, and it operates on blockchain technology to record and verify transactions. Blockchain technology is essentially a decentralized, distributed ledger system that ensures transactions are public, transparent, and immutable, without the need for traditional intermediaries like banks.

One of Bitcoin’s core features is its decentralization, meaning it is not controlled by any single institution, freeing it from central banks’ control over traditional currency supply. Additionally, Bitcoin’s total supply is capped at 21 million coins, which gives it anti-inflation characteristics and long-term value support in the market.

Originally positioned as a payment tool, Bitcoin has gradually become a focal point for investors and is now more often used as a hedge asset and store of value.

Why Most People Invest in Bitcoin

Market Dominance and Potential for Appreciation

Despite thousands of cryptocurrencies in the market, Bitcoin remains the dominant player, holding more than 50% of the market capitalization for an extended period. As the first decentralized currency, Bitcoin enjoys a strong brand effect and a large user base, which gives it a high level of trust among investors.

Bitcoin’s price is highly volatile, offering both opportunities for quick profits and risks. However, over the long-term, Bitcoin’s price has shown a significant upward trend over the past decade, and some experts view it as a "digital gold" asset used to hedge against economic instability or fiat currency depreciation.

Decentralization and Global Advantages

Bitcoin’s decentralization and cross-border nature enable rapid international transactions without the intervention of banks or governments. This is especially important for those living in regions with economic instability or foreign exchange controls. Furthermore, more and more businesses are accepting Bitcoin as payment, which further expands its use cases and value.

How to Buy Bitcoin? Complete Buying Process

Buying Bitcoin may seem complex, but by following these simple steps, you can easily get started.

1. Choose a Trading Platform: How to Find a Secure and Reliable Exchange

Before buying Bitcoin, selecting a suitable and secure exchange is crucial. Here are important factors to consider when choosing an exchange for beginners:

1. Legality and Compliance: Ensure the exchange is regulated in its jurisdiction and complies with Anti-Money Laundering (AML) laws. In Taiwan, it is safer to choose exchanges that are reviewed by the Financial Supervisory Commission (FSC), are members of local VASP associations, and have established trust systems with local banks.
2. Information Security Measures: Choose exchanges with strict security protocols, such as multi-factor authentication (MFA), ISO 27001 certification, and regular penetration testing to prevent hacker attacks.
3. User-Friendliness: Select platforms with simple interfaces, support for local fiat deposits and withdrawals, and small deposit options to help beginners enter the market with low barriers. For example, ZONE Wallet offers NTD transactions and small purchase options.
4. Customer Support: Efficient and responsive customer service is crucial for users who may encounter issues. This is especially important for beginners.

Once you’ve selected a suitable exchange, you can proceed to the Bitcoin purchase phase.

Further Reading: Is ZONE Wallet a Scam? Debunking Blockchain Scam Myths and the Five Key Evaluations for Choosing Exchange

2. Purchase Process: From Registration to Completing the Transaction

Whether choosing a local or international exchange, the basic process for buying Bitcoin is generally the same. Here are the key steps:

1. Register and Verify
2. Register an account on your selected exchange and complete identity verification (KYC). Typically, you will need to upload identification documents and set up a strong password and two-factor authentication to secure your account.
3. Deposit Funds
4. After completing identity verification, deposit funds into your exchange account. Common deposit methods include bank transfer or credit card payment, so be mindful of handling fees and exchange rate differences.
5. Place Order to Buy
   • Instant Purchase: Buy Bitcoin immediately at the current market price, which is suitable for users who need to acquire Bitcoin quickly.
   • Limit Order: Set a target price, and the system will automatically execute the transaction when the market price reaches the specified value, ideal for investors who want to buy at a lower price.
6. Confirm Transaction Completion
7. After the transaction is successful, confirm that you’ve received Bitcoin and check the transaction history on the exchange or use a blockchain explorer to verify the transaction details to ensure everything is correct.

Further Reading: ZONE Wallet Account Opening Guide: Download, Register, and Link Your Bank Account with Ease

How to Safely Store Bitcoin?

After purchasing Bitcoin, secure storage is key to avoiding asset loss. Beginners can consider two main types of digital wallets: cold wallets and hot wallets. Below is a simple comparison of the two primary storage options.

Cold Wallet: High Security Offline Storage

Cold wallets (such as hardware wallets or paper wallets) are not connected to the internet, and the private keys are stored in offline devices, greatly reducing the risk of hacking. These wallets are suitable for long-term storage of larger amounts of funds but require the purchase of hardware devices and slightly more complex operations.

Hot Wallet: Convenient Online Storage

Hot wallets are software wallets connected to the internet and can be operated via mobile, computer, or apps, allowing users to check and trade cryptocurrencies anytime. Choosing a legitimate, compliant platform with strict security measures can significantly enhance security and better protect users' assets. These wallets are suitable for daily small transactions and flexible use.

Storage Security Tips:

• Choose a reputable and legally licensed hot wallet provider, and confirm that they offer asset protection measures.
• Regularly back up your private keys or recovery phrases and store them in a safe location to prevent losing access to your assets.
• Regularly check the condition of cold wallet devices to ensure they are functioning properly.

How to Buy Bitcoin? Common Buying Channels

Local Exchanges

These provide more localized services, such as supporting NTD deposits and withdrawals, and offering a Chinese-language interface to reduce the complexity of language and exchange rate conversions.

For example, ZONE Wallet is a local exchange designed for the Taiwanese market, with a user-friendly interface, NTD transactions, and small investment features, especially helpful for beginners.

Note: Choose exchanges that are reviewed by the Financial Supervisory Commission and comply with Anti-Money Laundering laws.

No matter which method you choose, the key is to find the solution that suits you and start your cryptocurrency journey.

Frequently Asked Questions

What Should Beginners Pay Attention to When Buying Bitcoin?

• Avoid Impulsive Trading: Set clear investment goals and control the proportion of funds, and do not blindly follow market trends due to price fluctuations.
• Check Exchange Fees: Including transaction fees, withdrawal fees, and exchange rate differences. Choose a platform with lower overall costs.
• Enhance Account Security: Enable two-factor authentication, set a strong password, and change it regularly to reduce the risk of theft.
• Double-Check Wallet Address: Always verify the wallet address before making a transaction to avoid asset loss due to address errors.

How to Track Bitcoin Transaction Progress?

You can track the progress of your transaction in the following ways:

• Platform Transaction Page: After logging into the platform, go to the transaction page to check the status of your transaction. This method is easier and quicker for beginners.
• Blockchain Explorer: Use the transaction ID to query details through a blockchain explorer.

‍