Do I need to open an account to invest in cryptocurrencies? What account should I open?
Let me start with the conclusion: If you are a novice, it is recommended to open an account, which is more convenient and safer; but there are also ways to play without opening an account, which is suitable for more advanced players or players who are taught or guided by others.
There are two ways to invest in cryptocurrency: through a "cryptocurrency exchange" with custodial assets or a non-custodial "cryptocurrency wallet" . The former requires opening an account and the latter does not. The differences between the two are as follows:
"Cryptocurrency exchange" that manages assets
It is very similar to a bank. To open an account (register an account), personal information will be verified. Once you have the account and password, you can log in to the exchange (similar to online banking). A person can only open one account at an exchange, but he can open multiple accounts at the same time. Open an account at an exchange; you can deposit coins and trade in the exchange account, or participate in fixed interest-earning financial products. Just like depositing money in a bank, the assets in the exchange are entrusted to the exchange, and the exchange may not be able to get them back if something goes wrong.
The operation of exchanges is simpler and more convenient. As long as security measures are taken, there is a certain degree of security. It is a better entry channel for newcomers who are not familiar with cryptocurrency."Cryptocurrency wallet" for non-custodial assets
It's completely different from a bank. You don't need to open an account or verify your personal information. You can open and create your own wallet address with just one click on your computer or mobile app. You can create as many addresses as you want. You can deposit coins in the address. You can follow. Centralized DApp interacts and participates in decentralized finance (DeFi). Unlike depositing money in a bank, the money in the wallet address is not entrusted to any organization. It is managed by itself, and it will not be affected if something happens to the wallet manufacturer.
However, the operation of a cryptocurrency wallet is more difficult and complex. You must have a better understanding of the decentralized mechanism, manage seed phrase and private keys yourself, and have a better awareness of security. Unless you have a trusted friend who can help, I recommend waiting for more information. Become familiar with cryptocurrencies before you start using them.
Extended reading: Where is the safest place to put coins? Exchanges vs. Cryptocurrency Wallets | Security Comparison
Back to the question, do I need to open an account to invest in cryptocurrency? What account should I open?
If you're new to cryptocurrencies, open an account! It is recommended to open an account! Open an account on a cryptocurrency exchange.
Is it difficult to open a cryptocurrency account? Account opening process instructions
Opening a cryptocurrency account is super easy. Even if it is your first time, you can usually open an account within half an hour. If you are skilled, you can complete it within a few minutes.
Cryptocurrency account opening process: Register > Provide personal data verification > Wait for verification to pass
The first step in opening a cryptocurrency account: Register
You can register with your email/mobile phone number. Currently, many well-known exchanges can directly use Google/Apple accounts to register. The registration process has been simplified to almost one-click registration, which can be completed with one or two clicks of the mouse.
If you do not use a Google/Apple account to register, registering by email will require a few more steps. You will need to go to your mailbox to receive a verification code, bind your mobile phone number, receive a verification SMS, etc., which can be completed within a few minutes.
You can log in after registering, but the account opening is not completed yet.
The second step of opening a cryptocurrency account: Provide personal information verification (commonly known as KYC)
Some exchanges only need to complete registration to start trading and use, while others will restrict certain functions, but no matter which one, you must complete KYC to enjoy the most complete functions.
The so-called KYC = Know Your Customer is a common procedure for financial institutions. Institutions must know who their customers are and master their true identities to help prevent money laundering or illegal use.
The KYC process for cryptocurrency exchanges is also very simple and can be completed within a few minutes as long as you prepare the relevant information.
The interfaces of different exchanges are different, but the process is basically the same, usually three or four steps:
Fill in personal information (country/name/birthday)
Remember to fill in the information consistent with the certificateUpload personal documents (passport/ID card/driver’s license)
Usually it is enough to provide one kind of ID, the most commonly used is the ID card, some will ask for a second ID.Upload a selfie with your ID or directly use the verification app. Usually it is most convenient to use the exchange app to take photos for verification. You can directly take a photo with your ID and upload it, or directly take a selfie. This part is to verify your operation.
Some advanced verifications require proof of address. Some exchanges have KYC grading. More advanced verifications require proof of residential address. Usually, a utility bill with the recipient as the recipient is used as proof.
As long as your phone is nearby and your documents are nearby, the KYC process can be completed in minutes.
The third step of opening a cryptocurrency account: Wait for verification to pass
Just confirm that the information is completely provided and wait. Unless there are special circumstances, such as the market being too hot and too many people applying, it will usually be approved within a few minutes to a few hours.
Common reasons for failed verification: the photo is blurry, the photo of the person does not match the ID, just rearrange the photo and verify it again.
What account should I open to invest in cryptocurrency?
Basically, it means opening an exchange account, but which exchanges should I open?
Opening an account is mainly for these three needs: depositing money to buy coins, trading cryptocurrency, and participating in cryptocurrency financial management to earn coins . Some exchanges can do it all at once, while others are not so convenient, so open more.
Key point: You cannot open multiple accounts on one exchange, but you can open accounts on multiple exchanges at the same time.
Deposit to buy coins
To invest in cryptocurrency, the first step after opening an account is to buy coins. Most exchanges support buying coins with a credit card, but the handling fee for buying coins with a card is high. There are not many exchanges that support buying coins by remitting Taiwan dollars. In order to buy coins, Tokens need to be registered and opened at a specific exchange.
7-11/FamilyMart buys Bitcoin? Tutorial on buying coins in convenience stores in Taiwan!
How to play with cryptocurrency in 2024? 3 step-by-step instructions for buying coins for beginners
Trade Cryptocurrencies
Since it is called an exchange, trading is the basic function, but each exchange still has its own advantages and characteristics. For example, some provide more currencies, some provide more trading robot functions, and some are more targeted at contract transactions, and the handling fees are also slightly different. .
In the future, you can slowly explore and find the exchange that is most suitable for your operations. However, in the early stage, it is recommended to open an account at a top-ranked exchange. Firstly, it is relatively safe. Secondly, there is more relevant information and it is easier to find answers to questions.
A must read for newbies! 2024 Cryptocurrency Exchange Ranking | Exchange Selection Principles
Cryptocurrency financial management and earning coins
There are no banks in cryptocurrency, but exchanges will also provide some financial services. After we buy the coins, in addition to continuing to trade, we can also put them in financial services to earn annualized interest income ranging from 5-20%.
The basic trading functions provided by each exchange are similar, but the financial management functions are much different. Not only the number of currencies supported, but also the types and yields of financial products are also very different. Some exchanges will also provide promotions for newly registered users from time to time. discount.
Just like digital banks often offer deposit interest rates higher than market conditions in order to attract new users to open accounts, exchanges often offer financial management interest rates higher than market conditions to attract new users.
My suggestion is to open more accounts, read more and compare more. The following three are currently the top three exchanges. It is recommended to open them all, because each exchange often has different promotions waiting for us:
In addition to the basic functions mentioned above, cryptocurrency exchanges often also have so-called new coin mining activities, which are similar to the listing of new stocks in stocks. What is more common in cryptocurrencies is free mining, which does not require spending money to purchase. To obtain new coins that are about to be listed, the conditions for participation are that you must be a user of the exchange, and through the tokens you hold such as $BTC, $ETH and the exchange platform currency, you can enjoy an annualized return of more than 100% in a short period of time. , it is recommended to open more accounts!
▌To obtain the latest exchange new currency mining activity information, welcome to join the Daily Biyan Chinese exchange group !
How to transfer funds between exchanges after opening multiple accounts?
Transfer is a basic operation of cryptocurrency. You can refer to these two tutorials:
How to transfer cryptocurrency on the blockchain? | Step-by-step tutorial on virtual currency transfer
Cryptocurrency Account Opening Precautions and Related Risks
"There is a cryptocurrency that is very easy to earn. I recommend opening an account here." The most important thing is to pay attention to scams and run away when you see this sentence. Never trust an exchange recommended by a stranger via private message. Even if the other person recommends a well-known exchange, don’t click on the link he provides. It is likely to be a phishing website.
The biggest risk when opening a cryptocurrency account is that you open an account at a fake exchange and the money you transfer is defrauded.
Three things to note when opening a cryptocurrency account:
Check and check again, only register on the correct official website, avoid phishing, use the useful query website: whois.com/whois
Only by using the referral code to register will you get a discount on the handling fee. You can directly click on the referral link of Biyan to register, while ensuring that it is the correct official website link.
You can only register and open one account on an exchange once, but you can open accounts on multiple exchanges.
It is recommended that everyone open it. No matter which company has promotional offers or new currency mining in the future, you can participate. The three major exchanges recommend registration links:
Daily Biyan x Binance Binance recommended registration link
This Binance invitation code has no validity. Once you use this discount code to register an account, the 10% handling fee will be waived forever! Daily Biyan x Binance Binance recommended registration link
Daily Biyan x OKX recommended registration link
Register with OKX through Daily Biyan’s exclusive invitation code: "CW2023" to enjoy a lifetime 20% handling fee discount ! Daily Biyan x OKX recommended registration link
Daily Biyan x Bybit discount registration link
Daily Biyan cooperates with Bybit to provide an exclusive discount code "21515", and you can get up to USDT $ 30,000 in trial credits for stored value! Daily Biyan x Bybit discount registration link
Summary-Opening an account is easy, but opening an account is just the beginning.
Cryptocurrency is a brand new field, and new currencies, new technologies, and new models are constantly emerging. Making money will not start automatically after opening an account, but requires continuous learning and communication.
If you want to learn more new knowledge, you can visit the Daily Coin Research website . We continue to provide articles about beginners' introduction | encryption or currency science | introduction to important or potential projects | market observation, etc.:
If you want to receive the latest market information and grasp the current pulse, you can subscribe to the daily Biyan e-newsletter . Currently, a weekly report will be released every week, which contains our key observations on the cryptocurrency market that week:
https://cryptowesearch.substack.com/subscribe
If you are too lonely and want someone to discuss and exchange ideas with, join the Telegram group of Daily Biyan . It is also subdivided into topic channels. No matter what topic you are interested in, you can participate in the exchange:
Daily Biyan Chinese Exchange Group
