Cryptocurrency, Legality, Buying Cryptocurrency, Fund Transfers, Cryptocurrency Knowledge
When it comes to cryptocurrency, many people are both curious and afraid of pitfalls. Don't worry, this article clarifies legality, who holds it, how to buy, how to transfer funds, and essential knowledge in the crypto space.
- Legality of Cryptocurrency, Varies by Region
Let's first discuss the legality that everyone is most concerned about. In China, virtual currencies themselves are not illegal, but they cannot circulate as currency in the market, and financial institutions cannot provide related products or services. However, the situation varies greatly in different countries and regions; some countries completely prohibit it, while others allow it but under regulation, and trading platforms must have licenses. For example, Hong Kong is relatively compliant and open to crypto assets, with licensed virtual asset trading platforms, providing a compliant foundation for subsequent operations in Hong Kong.
OKX APP is one of the three major exchanges globally, with a 20% reduction in trading fees for registration!
OKX (Overseas) registration link: https://www.okx.com/join/97763692
OKX/Binance/Huobi - Register/Download: http://18907.cc
Binance domestic registration: https://www.binance.com/zh-CN/join?ref=565010509
Summary: Cryptocurrency trading is currently: prohibited but not illegal domestically; supported in most countries abroad like the US, Europe, Japan, Russia, and India; and legal and compliant in Hong Kong.
How to trade cryptocurrency legally and compliantly domestically? Use an overseas bank card in Hong Kong.
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Who are the Top Ten Holders of Bitcoin Globally?
As the most well-known cryptocurrency, Bitcoin's top ten holders attract significant attention. Satoshi Nakamoto holds about 1.1 million coins, valued at over $10 billion; institutions like BlackRock and Binance also hold large amounts of Bitcoin. Among these holders are mysterious individuals, large financial institutions, and well-known crypto platforms, reflecting the recognition of Bitcoin among different entities. -
What Exactly is Bitcoin?
Bitcoin can be described as "internet cash" (insert first image); it is like the cash in your wallet but exists only on the internet, with no physical coins or paper bills.
Compared to payment methods like certain platforms, when transferring money on those platforms, the money is still circulating within the banking system, and the platform merely acts as a messenger; whereas Bitcoin transfers are "peer-to-peer," sent directly to the other party without any banks or companies intervening, just like handing over cash offline.
Moreover, Bitcoin has no "owner's" ledger. Traditional currencies are managed by banks and governments, and your account balance is determined by them; however, Bitcoin's ledger (the blockchain) can be viewed by anyone in the world (but without seeing whose account it is), maintained by thousands of computers globally, with no central server. Want to alter the ledger? You'd have to hack over 51% of the world's computers simultaneously, which is nearly impossible! This ledger updates every 10 minutes, and everyone has an identical version.
- Want to Buy Cryptocurrency? Here are the Ways
(1) Common Purchasing Platforms
There are many cryptocurrency trading platforms now, such as Binance, Bybit, and others, where you can buy and sell common cryptocurrencies like Bitcoin and Ethereum, but you need to choose compliant platforms to avoid risks.
Binance
The Binance trading platform (official registration, official download) was created by a group of digital asset enthusiasts focused on blockchain assets. Headquartered in Tokyo, Japan, it is currently one of the most influential platforms in Chinese exchanges. Binance is a fusion of "Binary" and "Finance," meaning the integration of digital technology and finance.
Binance is a global cryptocurrency exchange serving 180 countries and regions, including North America, Europe, Taiwan, the Middle East, Hong Kong, and Malaysia, offering over 600 cryptocurrencies, with 270 million registered users worldwide. Since 2018, Binance has been regarded as the largest cryptocurrency exchange in the world by trading volume, with a 24-hour trading volume reaching $100 billion.
After six years of development, Binance has become a benchmark in the cryptocurrency industry, welcomed by a vast number of global cryptocurrency investors due to its rich trading offerings, low trading fees, high liquidity, high security standards, and excellent Chinese customer service!
Currently, Binance has established joint ventures with leading global partners, setting up crypto asset trading platforms that support fiat currency deposits in Japan, France, Italy, Spain, Dubai, the USA, New Zealand, and more, obtaining local regulatory licenses. Other countries and regions (including Taiwan/Hong Kong) can open accounts and trade on Binance's international site, with quick registration in five minutes and the best trading fees online.
Binance was founded by Canadian-Chinese engineer Zhao Changpeng, who conducted an ICO in 2017 to raise initial funds, with the token called Binance Coin (BNB).
Binance is a global cryptocurrency exchange serving 180 countries and regions, including North America, Europe, Taiwan, the Middle East, Hong Kong, and Malaysia, offering over 600 cryptocurrencies, with 120 million registered users worldwide. Since 2018, Binance has been regarded as the largest cryptocurrency exchange in the world by trading volume, with a 24-hour trading volume reaching $76 billion.
After six years of development, Binance has become a benchmark in the cryptocurrency industry, welcomed by a vast number of global cryptocurrency investors due to its rich trading offerings, low trading fees, high liquidity, high security standards, and excellent Chinese customer service!
Binance (official registration, official download) is a global digital asset trading platform founded by Xu Mingxing in 2017, previously known as Binance Ex. It offers various services, including cryptocurrency trading, derivatives trading (such as futures and options), as well as decentralized finance (DeFi) and Web3 ecosystem services. The platform is known for its rich trading products and technical strength, providing secure and efficient digital asset trading and value-added services to global users.
Binance offers OTC fiat trading, allowing users to purchase mainstream cryptocurrencies like Bitcoin and Ethereum with RMB. Additionally, Binance has launched Binance B tokens, which provide trading fee discounts and other privileges. The trading experience on Binance is relatively good, suitable for all types of investors, especially those needing futures and leveraged trading.
If you haven't registered on the Binance exchange yet, you can use the registration link and app download address below, along with video tutorials, to register yourself.
Huobi (Huobi/HTX)
Huobi Exchange (official registration, official download) is a digital asset trading platform founded in 2013, now renamed HTX (Chinese name: 火必). It provides spot and derivatives trading services for various cryptocurrencies, including Bitcoin and Ethereum, with operations in multiple countries and regions worldwide.
Asset Scale: $4.52 billion (asset growth from ecological expansion)
Trading Volume: 780 (27 new, closely following Binance)
24-hour Transaction Volume: $31.075 billion (returning to peak, globally leading)
Highlights: Since its establishment in 2013, Huobi has weathered storms and remains steadfast. After a record daily trading volume of 260,000 BTC in 2014, Huobi underwent a comprehensive upgrade in 2025, supporting mainstream cryptocurrencies and launching NFT and metaverse-related services, becoming a "veteran powerhouse" in the hearts of Chinese users.
Bitget
Bitget (click to download, click to register) is a leading cryptocurrency exchange that provides users with a seamless and secure trading experience. As a centralized exchange, Bitget has high liquidity, enabling fast and efficient trading of various digital assets.
One of Bitget's standout features is its extensive support for cryptocurrencies. Users can trade popular currencies like Bitcoin and Ethereum with various altcoins, providing ample opportunities for portfolio diversification. This wide selection caters to both experienced traders and newcomers to the cryptocurrency market. The platform is known for its user-friendly interface, simplifying the trading process. Whether managing accounts, executing trades, or exploring advanced features, users will find navigation intuitive and straightforward. The focus on usability ensures a smooth experience for all users.
In addition to trading, Bitget offers various earning opportunities. The platform supports staking, allowing users to earn rewards by locking tokens. Bitget also features a copy trading function, enabling users to mirror the trades of successful investors and providing futures trading for those looking to leverage their investments. Security is a top priority for Bitget, with robust measures like multi-signature wallets and advanced encryption to protect user assets. Additionally, 24/7 customer support is available to assist with any issues, ensuring a reliable and secure trading environment.
Gate.io Sesame Open
On July 22, 2020, Gate.io underwent a complete brand upgrade, officially adopting the Chinese name "芝麻开门."
Gate.io Sesame Open International Site (official registration, official download) is a global blockchain asset international site with an attitude. Since its establishment in 2013, it has provided nearly 500 high-quality blockchain asset trading and investment services to millions of users from over 224 countries worldwide. Gate.io is committed to being a trustworthy, secure, stable, and reputable blockchain asset international site, providing users with safe, convenient, and fair blockchain asset trading services while fully ensuring the security of users' trading information and assets.
Gate.io is operated by Gate Technology Inc., serving globally, with independent trading operations and centers in Canada, South Korea, Japan, Hong Kong, and other countries and regions.
Gate.io features super defense SSL links, offline Bitcoin wallet technology, instant blockchain asset access functions, multi-currency address sharing technology, and multi-layer security verification protection, while also offering lower trading and withdrawal fees for blockchain assets.
Bybit
Ranking of No KYC Cryptocurrency Exchanges
Bybit is a popular cryptocurrency exchange founded in 2018, headquartered in Singapore. It is known for its user-friendly interface and a variety of trading options, especially suitable for privacy-conscious users. Many consider it one of the best no KYC exchanges, as it allows users to withdraw without providing personal information like ID or address, although there are some limitations.
Currently, if you do not undergo KYC verification, you can withdraw up to $20,000 worth of cryptocurrency per day and up to $100,000 per month. However, the situation has changed over time. Previously, Bybit allowed trading and deposits without KYC, but starting in 2025, they tightened the rules. Now, to trade or deposit cryptocurrency, you need to complete KYC verification, which requires submitting identification. For withdrawals, the $20,000 daily limit is still relatively suitable for small to medium traders who wish to remain anonymous.
The exchange primarily focuses on derivatives trading, such as futures and perpetual contracts, with leverage up to 100 times. It also offers spot trading and staking options for passive income, but these options typically require KYC verification for full access. Bybit ensures the security of user funds through cold storage and two-factor authentication, ensuring safety even for non-KYC users.
Advantages
Provides high leverage of up to 100 times for derivatives trading
No KYC verification required, with a daily withdrawal limit of $20,000
Fast platform with over 100,000 transactions per second
Ensures fund security through cold storage and two-factor authentication
Has a simple mobile app and website for ease of use
Disadvantages
Trading and deposits require KYC, limiting privacy options
Bybit recently suffered a $1.4 billion hack
Not available in the US due to strict regulations
(2) Buying through Hong Kong Brokers
Hong Kong is compliant and open to crypto assets, and you can also purchase cryptocurrencies through brokers in Hong Kong. When buying from a Hong Kong broker, you need to complete identity verification and other processes, then transfer funds to the broker's account to trade cryptocurrencies, which provides more assurance of compliance.
(3) Ways to Receive Tokens
There are mainly two ways to receive tokens: "off-chain" and "on-chain" (insert second image). "Off-chain" refers to receiving tokens through trading platforms like Binance, obtaining assets from the trading platform's spot and fund accounts; "on-chain" refers to receiving tokens via wallet addresses, using wallet addresses or QR codes to receive assets.
- Cryptocurrency Terminology You Should Know
There are many exclusive terms in the crypto space that you should understand:
USDT: Known domestically as Tether or U Coin, it is a stablecoin launched by Tether, with 1 USDT = 1 USD, allowing users to exchange Tether for USD at a 1:1 ratio anytime, often buying virtual currencies first with it before purchasing Bitcoin, etc.
Bitcoin (BTC): The world's first cryptocurrency, born in January 2009, also referred to as "big cake" in the crypto community.
Altcoins: Any cryptocurrency other than Bitcoin is called an altcoin, with Ethereum (ETH) being the largest cryptocurrency after Bitcoin, also known as "second cake."
Web3 Wallet: A cryptocurrency wallet, similar to a WeChat wallet.
Contract: Refers to virtual currency futures.
Gas Fee: Transaction commission paid to miners.
Miners: Units responsible for bookkeeping; cryptocurrencies have no central server, and each miner keeps the ledger.
On-chain: Transactions conducted via blockchain, as opposed to "off-chain," which refers to transactions conducted through exchanges; on-chain is like cash transactions, while off-chain is like WeChat transfers.
C2C Trading: A method of withdrawing U Coin through the platform.
OTC Trading: Over-the-counter trading refers to trading activities outside the exchange, where buyers and sellers negotiate to reach a trading agreement. Trading formats include online platforms, offline stores, and ATMs. Most OTC merchants' offline stores and ATMs generally do not require KYC, and transactions can be completed in minutes, but large transactions are not allowed.
MSTR: MicroStrategy, a publicly traded company that holds hundreds of thousands of Bitcoins, can be understood as a Bitcoin concept stock, rising with Bitcoin.
Chain Scanning: Similar to shopping, it refers to finding newly released cryptocurrencies with high future value.
Smart Contract: An automatically executed contract.
Public Key & Private Key: A key pair that protects assets, comparable to a WeChat payment QR code and payment password.
Address: The account address for sending and receiving currency, comparable to a WeChat account.
Cold Wallet & Hot Wallet: A cold wallet is when the private key is written down, not connected to the internet, and absolutely secure, but it requires transferring back to the exchange for transactions, which is cumbersome; a hot wallet is when the private key is stored in a cryptocurrency wallet like Coinbase Wallet, making transactions convenient.
Mnemonic Phrase: Keywords for wallet recovery.
Faucet: A service that provides a small amount of digital currency for free.
- Cross-Border Fund Transfers, How to Operate Between Hong Kong and Mainland
(1) Transferring Money Abroad
To avoid suspected money laundering operations and prevent scrutiny or card freezing, keep these points in mind:
Choose large platforms like Binance or Bybit for OTC trading.
Opt for OTC platforms that support T+1/T+2 withdrawal strategies; although you cannot withdraw immediately after selling coins, it reduces the risk of being suspected of money laundering.
Avoid using stablecoins like USDT for OTC trading; prefer mainstream coins like BTC or ETH for OTC transactions.
The bank card used for OTC trading should be a separate card that you usually do not use, distinct from your salary card, so that even if it gets frozen, it won't affect other funds, and it will be easier to explain the flow of funds during investigations.
Use local banks for OTC trading, such as local city commercial banks or rural commercial banks.
Do not frequently trade with fixed merchants.
Find reliable OTC merchants for trading, and try to take large orders from major merchants and market makers, rather than placing small orders.
Reduce the frequency of withdrawals and increase the cash amount.
After OTC trading, do not transfer to your other bank cards to avoid contaminating other funds, which complicates investigations; if you need to withdraw urgently, you can use ATMs or spend online.
(2) Transferring Money Domestically (Between Hong Kong and Mainland)
There are many compliant ways to transfer money from Hong Kong to Mainland:
In Hong Kong, there are no restrictions on exchanging HKD or USD for offshore RMB, and applying for a Hong Kong credit card to pre-store offshore RMB for consumption also has no limit. By binding a Hong Kong UnionPay credit card to Mainland Alipay and WeChat, you can scan any QR code for payment (including those that only allow savings cards for Mainland cards, you can also swipe with a Hong Kong UnionPay credit card), and by creating a payment code, you can swipe the pre-stored funds from the Hong Kong credit card without loss.
Use China Merchants Yonglong to exchange for RMB, then withdraw cash from the Bank of China ATM in Mainland, with a limit of 10,000 RMB per transaction and a fee of 25, with a daily withdrawal limit equivalent to 20,000 HKD, which means you can withdraw 18,000 RMB daily without using foreign exchange quotas.
Buy USDT and swipe with a U card, like Bybit.
Physically transport cash from Hong Kong to Shenzhen, making several trips.
After placing an order, leave a message for the merchant: Please pay with real-name verification, and I will confirm as soon as the payment is received. Once the payment is received, make sure to check the details to see if it matches the payer on the order; if it is not a real-name payment, even if the money arrives, it will be returned without any explanation, such as exceeding card limits or using a family member's card.
Ensure that the receiving card is not one that has been unused for a long time or has a zero balance, as suddenly receiving a large amount can easily trigger risk control. Each receiving card can maintain a balance of one or two hundred, bound to WeChat Pay, and engage in some normal spending.
- What to Do If Your Card Gets Frozen, How to Explain and Prove?
If your bank card gets frozen, first, don't panic. Prepare relevant proof of the source of funds, such as transaction records from cryptocurrency trading platforms, buying and selling records, and identity verification information, to explain to the bank that the funds were obtained through compliant channels and that there are no illegal trading activities. If the freeze is due to cryptocurrency trading, you need to prove the compliance of the transactions, such as trading on a licensed platform, etc.
Finally
Regarding cryptocurrency, from legality to practical operations, there are many details worth exploring. If you want to learn more about cryptocurrency or have specific operational questions, remember to follow our public account, as we will continue to share practical content!