From Local Exchange to Cold Wallet: A Newcomer's Guide to Safe Deposits in Taiwan

For Taiwanese investors new to the cryptocurrency world, safety is the top priority. To securely purchase your first virtual asset, the key is choosing the correct deposit method, and finally transferring the assets to a cold wallet for safekeeping. Below is a comprehensive step-by-step guide covering everything from opening an account to asset protection.

Why Start with a Taiwanese Exchange?

Beginners often have a question: can’t I just use an international platform directly? The answer is yes, but it’s not the smartest choice. Local Taiwanese exchanges like Maicoin and BitoPro are worth prioritizing because they have been approved by the Financial Supervisory Commission (FSC), making them more compliant with Taiwanese regulations on anti-money laundering and fund management. These platforms are directly connected to domestic banking systems, allowing users to trade directly in New Taiwan Dollars (TWD) without complicated foreign exchange procedures. For newcomers, this means a lower learning curve and greater peace of mind.

Bank Transfer Deposit: Complete Your First Purchase in Three Steps

Step 1: Complete Identity Verification

Regardless of which local exchange you choose, the account opening process is similar. First, register an account, then proceed with identity verification (KYC). This usually requires uploading the front and back of your ID card and a selfie. The FSC mandates this process, which may seem cumbersome on the surface, but it’s actually designed to protect your assets and prevent account misuse.

Step 2: Link Your Bank Account

After verifying your identity, the next step is to link your bank account. It’s especially important that the account name matches the verified identity information on the exchange. Many beginners encounter issues here because they try to deposit using a spouse’s or family member’s account, which results in rejection. Remember, the account name must match.

Step 3: Make Your First Transfer

Once your bank account is linked, you can transfer funds from your bank to the exchange. Depending on the platform, it may take 1-2 business days for the transfer to arrive. After the funds are credited, you can exchange TWD for mainstream cryptocurrencies—Bitcoin (BTC), Ethereum (ETH)—or safer stablecoins like USDT and USDC.

Moving to a Cold Wallet: Truly Own Your Assets

After purchasing coins on a local platform, the most critical step is transferring your assets to a cold wallet. This is not just a technical process but also a psychological milestone—shifting from relying on the exchange to custody your assets to fully controlling your private keys.

The main advantage of cold wallets is “self-custody.” Exchanges are like banks—they store your assets for you, but the risk is that the exchange could be hacked, go bankrupt, or be frozen by regulators. Cold wallets (such as Ledger, Trezor, or software wallets like MetaMask) give you control of your private keys. As long as you don’t disclose your private keys to others, your assets always belong to you.

The transfer process is simple: generate the receiving address for the specific coin in your cold wallet, then use the “withdraw” or “transfer out” function on the exchange to input this address and the amount to transfer. But the next step is where most mistakes happen.

Chain Selection: A Small Detail That Ensures Your Asset Security

This is a common pitfall for many beginners: before transferring, you must confirm the “chain” or “network” selection.

The same cryptocurrency can support multiple blockchains. For example, USDT can be issued on ERC-20 (Ethereum), TRC-20 (Tron), or other chains. If you choose ERC-20 on the exchange but set your cold wallet to receive TRC-20, your coins will be lost forever—there’s no way to recover them through technical means.

Therefore, the golden rule before transferring is: Triple-check the chain/network. First, confirm which chain your cold wallet supports, then verify which chain options the exchange offers, and finally, double-check before clicking “confirm transfer.” Spending an extra 30 seconds to verify can save you from regret over a mistake.

Policy Explanation in Taiwan: Why Can’t You Use a Credit Card?

If you’ve tried to buy cryptocurrencies on Taiwanese international exchanges with a credit card, you’ll find many platforms don’t support it. This is not a technical limitation but a policy restriction.

The FSC prohibits Taiwanese exchanges from accepting credit card purchases of cryptocurrencies for three reasons. First, credit card transactions are “credit transactions,” making it difficult to verify the source of funds in real-time, which can facilitate money laundering. Second, since credit card transactions involve banking systems, if banks become involved in cryptocurrency-related risks, it could trigger systemic financial risks. Third, consumer protection considerations—credit cards offer chargeback periods and dispute mechanisms that are hard to apply in cryptocurrency transactions.

As a result, Taiwanese exchanges uniformly use bank remittance for deposits. While this adds an extra step, it ensures that every transaction has a clear record and traceable source of funds. In the long run, this approach protects both investors and platforms.

In summary: Deposit safely into a local exchange, then transfer your assets to a cold wallet for self-custody. This is currently the most prudent asset management method for beginners in Taiwan. Safety is always worth that extra minute.