Bitcoin has recently reached new all-time highs, climbing to $76,179 in November 2024 amid market excitement. While some may view this as a peak, the truth is that opportunities in the crypto space are reserved for those who prepare early. Even if you're not ready to invest right now, understanding how to acquire your first Bitcoin and navigate the ecosystem can position you perfectly for future market movements.
Disclaimer: The following content is for informational purposes only and does not constitute financial or investment advice. Always conduct your own research and assess your risk tolerance before making any investment decisions.
If you're a conservative, long-term investor with limited risk tolerance but still curious about participating in the next Bitcoin bull cycle, this guide will walk you through everything you need to know—from risk awareness to actual purchase—without overwhelming jargon. You'll go from zero to informed beginner in no time.
Understanding the Risks of Bitcoin Investment
Before diving into how to buy Bitcoin, it's crucial to understand the risks involved. No investment is without volatility, and Bitcoin is no exception.
1. Price Volatility
Bitcoin is known for its dramatic price swings. While its scarcity model suggests long-term appreciation, short-term fluctuations driven by market sentiment, macroeconomic factors, or regulatory news can cause rapid spikes or crashes.
For traditional investors seeking inflation protection without extreme exposure, the best strategy is position sizing. Many financial institutions recommend allocating just 1% of total assets to Bitcoin. This small allocation allows participation in potential upside while limiting downside impact.
Could Bitcoin Go to Zero?
While highly unlikely, it's not impossible. Unlike stocks regulated by official bodies, cryptocurrencies operate in a decentralized environment with varying levels of oversight. However, Bitcoin—being the most established digital asset with a market cap exceeding hundreds of billions—carries minimal risk of total collapse.
That said, if the entire $2.4 trillion crypto market (spanning over 14,850 tokens) were to vanish overnight, Bitcoin would be at the epicenter. For most investors, such an event would signal far broader economic chaos—making Bitcoin less of a standalone risk and more a reflection of systemic instability.
👉 Discover how to start your crypto journey with confidence and clarity.
2. Custody Risk: How You Hold Bitcoin Matters
Unlike traditional stocks held securely in custodial accounts (like Taiwan’s centralized depository system), holding Bitcoin requires active management.
There are two primary ways to store Bitcoin:
✅ Custodial Wallets (Exchange-Based)
When you buy Bitcoin on a centralized exchange (CEX), your assets are stored in a custodial wallet—meaning the exchange holds your private keys. This is similar to keeping money in a bank.
However, history shows risks:
- Mt. Gox Hack (2014): Over 850,000 BTC stolen; exchange collapsed.
- FTX Collapse (2022): Customer funds were misused, leading to sudden bankruptcy.
These events highlight why long-term storage on exchanges isn’t ideal—even though they remain convenient for beginners.
Mitigation Strategy: Choose reputable, well-regulated exchanges. Avoid platforms offering unusually high yields with unclear backing. Consider spreading funds across multiple exchanges to reduce single-point failure risk.
✅ Non-Custodial Wallets (Self-Custody)
The crypto mantra "Not your keys, not your coins" emphasizes full ownership through self-custody wallets.
- Hot Wallets: Connected to the internet (e.g., mobile apps). Convenient but vulnerable to hacks.
- Cold Wallets: Offline devices (e.g., hardware wallets like USB drives). More secure, especially for long-term holdings.
Your private key is the only thing granting access to your funds. Lose it? Your assets are gone forever.
How to Buy Bitcoin: Two Main Paths
You don’t need technical expertise to get started. There are two accessible routes:
Option 1: Buy Bitcoin ETFs (Indirect Exposure)
If you already have a U.S. brokerage account (like Fidelity or Charles Schwab), purchasing a Bitcoin spot ETF is the easiest entry point.
These ETFs track Bitcoin’s price and trade like stocks. No need to manage wallets or private keys. Simply search for tickers like IBIT, FBTC, or ARKB, place an order, and you’re invested.
This method suits conservative investors who want exposure without diving into crypto-specific mechanics.
Option 2: Buy Actual Bitcoin (Direct Ownership)
Buying real Bitcoin gives you direct control. The process mirrors opening a stock account:
- Sign up on a crypto exchange
- Complete KYC verification
- Deposit local currency (e.g., TWD)
- Place a buy order
Once purchased, you can keep it on the exchange or transfer it to your own wallet.
👉 Start buying Bitcoin securely and efficiently today.
5 Essential Concepts Every Beginner Must Know
To navigate crypto confidently, familiarize yourself with these core ideas.
1. Choosing the Right Exchange
In Taiwan, popular exchanges include MAX, BitoPro, and XREX. Since there's no formal licensing framework yet, safety depends on reputation, transparency, and user experience.
Among them:
- XREX stands out for its clean UI/UX and commitment to community education.
- It’s the only local exchange publishing regular proof-of-reserves reports—enhancing trust.
- All three offer competitive trading fees and support TWD deposits.
Choose based on interface preference, security practices, and whether you value educational content.
2. What Is KYC?
KYC (Know Your Customer) is standard identity verification required when depositing or withdrawing fiat money.
Typical steps:
- Submit ID/passport
- Provide proof of address (for international platforms)
- Take a selfie or photo holding ID
Even peer-to-peer transactions aren’t fully anonymous—blockchain records are public and traceable.
3. Understanding Trading Pairs
A trading pair defines what you’re buying and how it’s priced.
Examples:
- BTC/TWD: Price of one Bitcoin in Taiwanese dollars
- BTC/USDT: Price of Bitcoin in stablecoins (useful if USD isn’t supported)
Also learn "coin-denominated pairs" like ETH/BTC—used when pricing altcoins against Bitcoin instead of fiat.
4. The Role of Stablecoins
USDT (Tether) is the most widely used stablecoin—pegged 1:1 to the U.S. dollar.
Why use it?
- Avoid volatility when moving funds between exchanges
- Enable seamless trading without touching fiat
- Serve as “digital dollars” in high-inflation economies
Despite concerns about Tether’s reserves, its dominance makes it integral to global crypto liquidity.
Fun fact: 1 "U" = 1 USDT ≈ $1 USD in trader slang.
5. Maker vs. Taker Fees
Exchanges charge different fees based on your trading behavior:
- Maker Orders (limit orders not immediately filled): Add liquidity → lower fee
- Taker Orders (market orders filled instantly): Remove liquidity → higher fee
Why? Exchanges reward users who improve market depth—the volume of buy/sell orders at various prices.
Greater depth means:
- Lower slippage on large trades
- Better price stability
- Higher trust and institutional interest
Blockchain Networks: Don’t Send to the Wrong Chain!
When withdrawing Bitcoin from an exchange to your personal wallet, ensure both addresses use the same blockchain network.
Example:
- Sending BTC from exchange wallet (B-1) to your cold wallet (B-2) must occur on the Bitcoin network
- Sending it to an Ethereum address (E-2) or via ERC-20 will result in permanent loss
Always double-check:
- Recipient address format
- Selected withdrawal network
Common mappings:
- BTC → Bitcoin blockchain
- ETH → Ethereum
- USDT → Available on multiple chains (ERC-20, TRC-20, etc.)
Frequently Asked Questions (FAQ)
Q1: Is now a bad time to buy Bitcoin because it's at an all-time high?
Not necessarily. Timing the market perfectly is nearly impossible. Instead of focusing on price peaks, consider dollar-cost averaging (DCA)—investing fixed amounts regularly—to reduce volatility risk over time.
Q2: Can I buy less than one Bitcoin?
Yes! Bitcoin is divisible up to eight decimal places (1 satoshi = 0.00000001 BTC). You can start with as little as $10 or equivalent in TWD.
Q3: Are hardware wallets worth it?
Absolutely—for significant holdings. Cold wallets like Ledger or Trezor protect against online threats and give you full control over your private keys.
Q4: What happens if I lose my private key?
Your funds are irretrievable. There’s no “forgot password” option in crypto. Always back up your seed phrase securely—offline and preferably on metal storage.
Q5: Is crypto legal in Taiwan?
Yes. Crypto trading and ownership are permitted. However, regulations around exchanges and taxation are still evolving.
Q6: How do I know an exchange is safe?
Look for:
- Proof-of-reserves audits
- Strong KYC procedures
- Longevity and reputation
- Transparent team and operations
Final Thoughts: Knowledge Is Your Greatest Asset
Bitcoin may seem complex at first, but today’s tools make entry easier than ever. Whether through ETFs or direct ownership, the path forward starts with education.
Remember: You won’t earn money beyond what you understand. By taking time now to learn the basics—from custody options to transaction mechanics—you position yourself to act wisely when opportunity knocks again.
The future of finance is unfolding. With preparation, awareness, and cautious optimism, you can be part of it.
👉 Take the next step toward financial innovation—securely and smartly.