Taiwan Bitcoin Investment Process
Two common processes are provided: the simpler "entry purchase + exchange" and "experience on-chain after purchase". Both methods can be used to purchase Bitcoin at 7-11 payment or online banking transfer remittance. The difference lies in the purchase Where to put your Bitcoins?
Bitcoin Investment-Simple Version for Beginners:
7-11 convenience store or remittance to buy coins – exchange financial management – withdraw the money you earn and exchange it for Taiwan dollars
The first step to investing in Bitcoin, besides doing your homework, is to buy the currency!
If it is your first time to buy coins, and considering security issues, you should never buy coins from strangers on the Internet, do not trust strangers who recommend profitable cryptocurrency investment platforms, and do not download apps from unknown sources.
Taiwan has legal channels for purchasing Bitcoin and mainstream cryptocurrencies. You can invest in Bitcoin openly without trusting hearsay.
Procedure for purchasing Bitcoin in Taiwan:
Register and open an account on the exchange or purchasing agency platform (fill in the basic information + prepare an identity document to verify that it is yourself)
Place an order to buy Bitcoin (or other major cryptocurrencies)
Bank transfer or pay at convenience stores such as 7-11
Once the payment is complete, the Bitcoins will appear on your account
If you want to go to an exchange to manage money or trade, transfer cryptocurrencies to your exchange account.
Step-by-step tutorial on buying coins:
7-11/FamilyMart buys Bitcoin? Tutorial on buying coins in convenience stores in Taiwan
Step-by-step tutorial on transferring money:
How to transfer cryptocurrency on the blockchain? | Step-by-step tutorial on virtual currency transfer
What can you do after buying Bitcoin?
Do nothing and wait for it to rise in the future <br> For long-term holdings, it is recommended to put it in your own wallet, which is safer, and you are not afraid of the platform going bankrupt. If you are small and lazy, you can just put it in the platform, but you should pay close attention to whether there are any suspicious signs. For example, some people began to report that they could not withdraw coins, or the team broke out about self-stealing and other incidents.
Are cold wallets the safest? What to do if the crypto wallet company fails? Let’s talk about non-custodial walletsUse Bitcoin to invest in other cryptocurrencies with greater potential <br>Using Bitcoin to buy coins needs to be done at a cryptocurrency exchange. First, you need to register an exchange account. Second, you need to have a general understanding of the buying and selling process. The cryptocurrency buying and selling process follows Stock trading is very similar, except that the underlying becomes cryptocurrency, the trading venue becomes a cryptocurrency exchange, and the delivery becomes timely delivery.
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Explanation of important concepts: Not all cryptocurrencies fluctuate greatly, rising and falling all the time. There is a type of cryptocurrency called a stablecoin, whose price is anchored to the US dollar. The largest stablecoin USDT and the second largest stablecoin USDC both have prices that remain at the same level for a long time. 1 US dollar stablecoin, using cryptocurrency to buy other cryptocurrencies. Compared with buying with Bitcoin, stablecoins are more commonly used to buy other cryptocurrencies. After all, stablecoins have stable prices and are more suitable as a trading medium.
What is USDT? How to buy USDT safely? Six types of fraud techniques and risk analysis
Participate in the financial management activities provided by the exchange to earn a little extra interest <br>If you don’t want to invest in other currencies, but you don’t want to just leave it idle, and hope to earn a little extra interest while holding and waiting for the price to rise, you can use crypto The financial services usually provided by currency exchanges can be most simply divided into current and fixed-term. Like bank deposits, fixed-term interest rates are usually higher but there will be interest losses if canceled early, while current interest rates are lower but can be withdrawn at any time.
Exchange platforms sometimes have additional rewards. For example, in the picture, current deposits have a higher return rate than regular deposits because of the platform rewards.
A better choice for passive income than U.S. bonds and fixed deposits! High daily interest rate annualized fixed income, introduction to cryptocurrency deposits and lending
This method is aimed at lazy novices. It is relatively simple and does not require complicated on-chain operations. The most important thing is to choose a trustworthy platform. Never use a platform with unknown origins and lack of public information. You must also avoid phishing and only use the official website. Go there and don't use links from strangers.
2024 Cryptocurrency Exchange Recommendations, Which is the Safest for Virtual Currency Trading?
Bitcoin Investment-Advanced On-Chain Operation Version:
Buy coins at 7-11 convenience store or remittance – go to a self-hosted cryptocurrency wallet – participate in on-chain DeFi and make money – withdraw the money you earn and exchange it for Taiwan dollars
This method is slightly more advanced. The part of buying coins is the same. The difference is that after buying, you transfer it to your own wallet and put it on the blockchain to participate in more on-chain ecology and earn DeFi (decentralized finance)-related benefits.
Q: Why should we participate in the on-chain ecosystem?
A: On-chain operations are more difficult, but there are more opportunities. Many small coins with skyrocketing potential have not yet been listed on exchanges, and by the time they are available for purchase on exchanges, they are often the last wave.
Conceptually: On-chain is more in line with the decentralization and self-hosting characteristics of blockchain
Opportunities: There are more critical hits and high-yield opportunities on the chain
Operationally: The difficulty and risk on the chain are higher, and you need to master more knowledge about blockchain and cryptocurrency.
On-chain operation process of Bitcoin investment:
Buy coins using the method mentioned in the previous paragraph
Create your own cryptocurrency wallet and back up your private keys
Transfer cryptocurrency to your own wallet
Find the DeFi projects you are interested in and participate in the interaction
What is a cryptocurrency wallet? Introduction to operating principles
Where is the safest place to put coins? Exchanges vs. Cryptocurrency Wallets | Security Comparison
What can you do with cryptocurrencies after they are transferred to the chain? Several common uses:
Using coins to buy and sell other currencies on a decentralized exchange <br> is similar to buying and selling coins on an exchange, except that it is done on the chain.
Earn income by participating in liquidity mining <br>An innovative way of income unique to cryptocurrency. Simply put, it is by providing liquidity to decentralized exchanges, and they will return transaction fees and additional rewards to you.
The case in the picture is to add liquidity to the liquidity pool of the two currency pairs BTC/FB, with fee feedback + liquidity reward, and the total annualized return rate is as high as 2683%.
Liquidity mining is a relatively complex method of earning money with high reward opportunities and higher risks. Please do your homework and act within your ability before trying it for the first time:
What is liquidity mining? How much profit can you make? What is Impermanent Loss?
Participating in borrowing and depositing to earn interest is similar to earning interest on deposits, except that it is on the chain. The interest rate fluctuates according to market conditions, sometimes as high as tens to hundreds.
Stake to earn staking rewards
A type of income unique to cryptocurrency, which is related to the underlying operation of the blockchain. It is a way to participate in the operation of the blockchain and make money at the same time. It has a long cycle and is usually preferred by long-term investors.
What is liquidity mining? How much profit can you make? What is Impermanent Loss?
After making money from Bitcoin investment, how can I withdraw the money and exchange it for Taiwan dollars? Do you have to pay tax on profits?
It is strongly not recommended to find someone to buy or sell Taiwan dollars privately . The risk of being defrauded is high. You may also come into contact with questionable coins or cash, which may be frozen, and the gain outweighs the loss.
Cryptocurrency can be bought and sold legally in Taiwan, and there are legal platforms. The safer way is to sell the currency through the exchange or agency where you bought it and exchange it for Taiwan dollars, and then withdraw the balance of Taiwan dollars to your own bank account. How to buy before coins, now do the reverse to withdraw funds and exchange them for Taiwan dollars.
There are tax reporting considerations when withdrawing funds in Taiwan dollars. Currently, transaction tax is "not" required to be paid when buying and selling cryptocurrencies in Taiwan. Profits are regarded as profits from other asset transactions (such as profits from foreign exchange trading), and income from property transactions "must be declared". Incorporated into personal comprehensive income tax. In other words, profits are regarded as a kind of income and are reported together with income tax. If the individual tax rate is higher, more taxes will be paid.
For tax reduction considerations when making large withdrawals, you can take advantage of the annual overseas income tax-free quota of 1 million yuan and the annual basic income tax-free quota of 6.7 million yuan (adjusted to 7.5 million yuan next year), and directly wire foreign currencies back to Taiwan on the exchange. operate.
Easy to start, hard to get into cryptocurrency investing
The above content shares the current introductory teaching on investing in Bitcoin in Taiwan. The whole process can be simplified into the following paragraph:
"Register an account at an agency or exchange, remit money to buy coins, and then place the coins on the exchange or transfer them to an on-chain wallet. Through simple holding, you can earn price differences through buying and selling transactions, and participate in various financial management tools. Make money in other ways, and then use the same channel as buying coins to reverse convert it into Taiwan dollars and withdraw money after making money."
Going deeper means more details, including the narrative track of cryptocurrency, technical differences, token economic models, etc., as well as more tools, such as on-chain data tracking tools, portfolio management tools, and more exchanges and wallets.
There is so much content related to cryptocurrency that it is impossible to understand it all at once. Just follow the current trends and opportunities and learn relevant information at the same time:
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