How to Invest in Ethereum in Taiwan? Complete Guide to Ethereum Investment Strategies (2026)

Ethereum (ETH) is the second-largest cryptocurrency by market cap after Bitcoin, and one of the digital assets with the highest holding percentage among Taiwanese investors. Since its official launch in 2015, ETH has experienced multiple bull and bear cycles, with price volatility far exceeding traditional assets. It has frequently experienced deep corrections of more than 60%, but its long-term annualized returns remain in the high double-digit range. With the approval and listing of US spot Ethereum ETFs in July 2024, continued institutional capital inflows, and the decrease in new supply following the Ethereum network's completion of The Merge to Proof of Stake in 2022, ETH's market structure has gradually matured, though its high volatility characteristics persist.

For Taiwanese investors, the difference in ETH investment typically lies not in whether to enter the market, but in how to establish positions and adjust timing. Whether to build positions all at once or through dollar-cost averaging, hold spot assets or use futures contracts, and whether to participate in staking to earn staking rewards - these choices directly affect overall returns and volatility tolerance, and determine whether one can maintain their established strategy during severe market fluctuations.

This article starts from the practical trading scenarios of Taiwanese ETH investors, explaining the differences between dollar-cost averaging, long-term holding, and short-term trading, along with their suitable audiences. It introduces how to execute buy operations on BingX, and compiles ETH's historical cycle patterns and commonly used judgment indicators to help establish consistent decision-making methods. Additionally, it covers practical issues such as allocation ratios, risk management, and tax record-keeping. The content of this article is for reference only and does not constitute investment advice. Cryptocurrency investment carries high risks, and investors should assess their risk tolerance before investing.

Key Takeaways

• ETH is currently available on BingX for both spot and perpetual futures trading. Taiwanese users can first buy USDT with TWD, then choose to directly purchase spot or use perpetual futures for leveraged trading. Different instruments correspond to different risks and investment purposes.
  
  
• Dollar-cost averaging (DCA) is a low-risk strategy for Taiwanese general investors to enter ETH. It requires no market timing judgment and reduces the impact of single entry points through long-term batch investing, making it easier to execute consistently in high-volatility markets.
  
  
• ETH and BTC market cycles are highly correlated, but ETH has independent network narratives (DeFi, L2 scaling, Ethereum upgrades). Understanding the current cycle position helps adjust investment pace and capital allocation.
  
  
• ETH's proportion in the overall investment portfolio (including Taiwan stocks, US stocks, and other assets) is typically recommended to be controlled within the 3% to 15% range. The proportion directly affects the overall asset volatility and risk tolerance.
  
  
• ETH trading profits should be declared as property transaction income in Taiwan. It's recommended to keep complete trading records and regularly organize profit and loss statements for subsequent tax filing and asset management.
  
  

Is Ethereum Worth Investing in 2026? ETH Historical Price Performance Review and Market Outlook

Source: CoinGecko

From a historical price performance perspective, Ethereum's long-term returns are outstanding, but its volatility is also far higher than traditional assets. In terms of annual returns, ETH rose over 9,000% in 2017, over 460% in 2020, and over 400% in 2021, but also fell about 82% in 2018 and 67% in 2022. This means Ethereum's investment prospects cannot only consider long-term upward trends, but must also understand cyclical retracements and high volatility characteristics.

After 2024, Ethereum's market structure has undergone significant changes. US spot Ethereum ETFs were approved for listing in July, providing institutional and traditional financial investors with more direct allocation channels. ETF cumulative assets under management exceeded $10 billion in 2025. Simultaneously, since Ethereum's The Merge transition to Proof of Stake in 2022, new supply generation has further decreased. Combined with EIP-1559's burn mechanism, ETH even exhibits deflationary characteristics during high network activity periods. ETF capital inflows, structural changes on the supply side, and the maturity of the Layer 2 scaling ecosystem collectively pushed ETH into a new high range in 2025. ETH reached an all-time high of approximately $4,946 on August 24, 2025, before falling back and experiencing significant correction in Q1 2026.

For Taiwanese investors, whether Ethereum is worth investing in 2026 depends on understanding which cycle position we are currently in. From historical data, ETH often experiences deep adjustments after major rally years, while each Ethereum network upgrade and market structure change may reshape the next round of trends. If positions haven't been established yet, dollar-cost averaging would be more suitable than one-time heavy positioning to diversify entry risk. If ETH is already held, one should check whether the allocation ratio still matches their risk tolerance. ETH still has long-term allocation value, but is more suitable for disciplined strategy participation rather than simply chasing short-term prices.

Extended Reading: Ethereum Treasury Explained: Who Are the Largest Corporate ETH Holders in 2026?

ETH Annual Price Performance Review (2016-2026)

Note: Annual returns are calculated using public historical price data; highs and lows are approximate ranges compiled from public historical data for market context explanation. Actual values may vary slightly depending on data sources and exchange quotes.

When to Buy Ethereum? 5 Key Indicators for Timing Market Entry

ETH prices are highly volatile, making it difficult to judge entry timing based solely on absolute prices. For long-term investors, a more practical approach is to simultaneously observe market sentiment, technical indicators, on-chain data, network upgrade cycles, and ETF fund flows. These indicators don't all need to align simultaneously to signal a buy opportunity, but when multiple signals converge within the same timeframe, it usually indicates the market has entered a range worth gradual accumulation.

1. Fear & Greed Index Below 25: When the Fear & Greed Index enters "extreme fear" territory, it indicates market sentiment is overly pessimistic, with investors generally reducing risk positions. Historically, such emotional lows have often appeared in ranges favorable for medium to long-term positioning, but should still be combined with other indicators for confirmation rather than used as a standalone buy signal.
   
   
2. ETH Below 200-day Moving Average: The 200-day moving average is often viewed as an important divider of long-term trends. When ETH falls below the 200-day MA, it usually indicates the market has entered a weak or bear market phase. This is not suitable for one-time heavy positioning, but one can start planning gradual accumulation to reduce single entry point risk.
   
   
3. ETH/BTC Ratio Below 0.04: The ETH/BTC ratio reflects Ethereum's strength relative to Bitcoin. When the ratio remains below 0.04 for extended periods, it indicates ETH is in relative weakness among mainstream crypto assets. Historically, such ranges have often been followed by ETH catch-up rallies. For relative value investors, this is an important reference for deciding whether to increase ETH allocation.
   
   
4. ETH Staking Ratio Continuously Rising: After Ethereum's transition to Proof of Stake, Ethereum staking ratios reflect long-term holder confidence. When the proportion of ETH locked in the network continues to rise, it indicates many holders are choosing to participate in staking rather than sell, with reduced circulating supply providing price support. If staking ratios decline instead, potential selling pressure should be monitored.
   
   
5. Sustained ETF Net Inflows: After the approval of US spot Ethereum ETFs, ETF fund flows have become an important indicator for observing institutional demand. If ETFs maintain net inflows for consecutive days or weeks, it usually indicates institutional allocation is ongoing with relatively stable downside support. If inflows significantly slow or turn to net outflows, short-term buying strength needs reassessment.
   
   

In practice, these indicators are better used to adjust buying pace rather than predict absolute bottoms. For example, maintain regular DCA normally, but when the fear index drops below 25, prices fall below the 200-day MA, or ETH/BTC ratio approaches long-term lows, consider increasing DCA amounts. If ETF funds continue flowing in and the market hasn't entered overheated territory, original positioning can be maintained. Conversely, if market sentiment becomes overly greedy or prices are far above long-term averages, investment pace can be reduced to avoid excessive price chasing in high-volatility ranges.

What Percentage Should ETH Represent in Your Investment Portfolio?

ETH's allocation percentage in an investment portfolio should be determined based on overall financial situation, risk tolerance, investment horizon, and confidence in Ethereum's long-term ecosystem development. Since ETH volatility is far higher than Taiwan stocks, US stock ETFs, or bonds and other traditional assets, and its overall price stability is lower than BTC, allocation percentages shouldn't only consider return potential but also whether one can maintain their original investment plan during downturns. Below are common allocation approaches for three types of investors.

1. Conservative Taiwanese Investors (primarily holding Taiwan stocks, ETFs, or time deposits): ETH is recommended to be controlled within 3% of total investable assets. This proportion allows participation in ETH's long-term growth potential while avoiding excessive impact from cryptocurrency volatility on overall assets. For these investors, small-amount accumulation through dollar-cost averaging is more suitable, with one-time heavy positioning or leverage not recommended.
   
   
2. Aggressive Taiwanese Investors (already having diversified allocations in stocks, ETFs, etc.): ETH proportion can be increased to 3% to 10% of total investable assets, with actual percentages adjustable based on individual understanding of cryptocurrency and risk tolerance. It's recommended to first establish an overall asset allocation framework, such as the respective proportions of stock ETFs, bonds, cash, and other assets, then decide ETH's role within it, avoiding disruption of original financial goals due to excessive ETH volatility.
   
   
3. Taiwanese Investors with Cryptocurrency as Primary Investment Focus: If cryptocurrency itself is already an important allocation in the investment portfolio, ETH usually serves as a secondary core holding, recommended to account for 20% to 40% within the cryptocurrency portion. This allows the overall cryptocurrency portfolio to retain BTC as the main core, with ETH as supplementary allocation to diversify main-chain ecosystem risks, and smaller proportions participating in other high-volatility altcoins. High-volatility altcoin positions shouldn't be overly concentrated, typically not exceeding 30% of the cryptocurrency portfolio, to reduce the impact of significant single small-cap coin declines on the overall portfolio.
   

How to Invest in Ethereum? Four Ways to Invest in ETH in Taiwan

Investing in Ethereum in Taiwan doesn't necessarily mean only "buying once and holding long-term." Different investors have varying capital scales, risk tolerances, and time commitments, so suitable ETH investment strategies also differ. Generally, common approaches include dollar-cost averaging, spot batch positioning, perpetual futures trading, and Ethereum ETFs, with dollar-cost averaging being most suitable for investors just starting to build ETH positions.

1. Buying Ethereum Spot on BingX

Spot buying of Ethereum is the most straightforward ETH investment method, suitable for investors who already have clear entry reasons and wish to determine buy prices and position sizes themselves. Unlike dollar-cost averaging, spot buying typically involves choosing to establish larger ETH positions all at once or in batches when judging the market to be at relatively low levels, during price pullbacks, or when specific technical signals appear.

1. Register Account and Transfer Funds: Visit the BingX official website or app to register an account. After completing basic identity verification and security settings, go to the "Buy Crypto" page where you can buy USDT with TWD through credit cards or third-party payments as funding source for purchasing ETH.
   
   
2. Enter ETH/USDT Spot Page to Place Orders: Go to "Spot Trading" and search for ETH/USDT. To control buy prices, use limit orders by entering target prices; for immediate execution, use market orders at current market quotes. BingX ETH spot maker and taker fees are both 0.1%.
   
   
3. Use BingX AI to Assist Entry Timing: Before placing orders, refer to BingX AI's market trend summaries, technical signals, and price range assessments. Combined with ETH/USDT chart observations of support levels, resistance levels, and recent volatility as auxiliary basis for whether to enter gradually.
   
   
4. Build ETH Positions in Batches and Keep Records: If the buy amount is large, it's recommended to split funds into 3 to 5 batches for gradual entry, reducing the risk of buying at short-term highs at a single time point. After each purchase, record buy time, ETH quantity, average execution price, and trading fees as basis for subsequent asset management and Ethereum tax filing.
   
   
5. Decide on ETH Storage Method: ETH for short-term holding or re-trading can remain temporarily in BingX accounts; for long-term holding of larger amounts, consider withdrawing some ETH to self-controlled hardware wallets (such as Ledger or Trezor). When withdrawing, confirm using ETH mainnet or Layer 2 networks, and seed phrases should be stored offline, avoiding screenshots or cloud storage.
   
   

2. Dollar-Cost Averaging (DCA) Ethereum on BingX

Dollar-Cost Averaging (DCA) is one of the easiest methods for general Taiwanese investors to enter the ETH market. This strategy involves investing fixed amounts at fixed intervals to purchase ETH, requiring no judgment of short-term highs and lows while reducing the impact of single entry timing through long-term batch buying. For investors without time to monitor markets who wish to participate in ETH's long-term trends with lower stress, dollar-cost averaging is easier to execute consistently than one-time heavy positioning.

BingX provides spot recurring buy functionality with minimum 1 USDT investment, supporting hourly, daily, weekly, or monthly schedules, with single plans accommodating up to 5 different tokens simultaneously. Once set up, the system automatically buys ETH according to fixed frequencies, allowing investors to gradually accumulate positions without manual ordering each time.

1. Register BingX Account and Transfer Funds: Visit BingX official website or app to register an account. After completing basic identity verification and security settings, go to the "Buy Crypto" page to buy USDT with TWD through credit cards or third-party payments, depositing into spot accounts as deduction source for recurring buys. It's recommended to maintain at least 1 to 3 months of DCA amounts to avoid plan suspension due to insufficient USDT balance.
   
   
2. Enter Spot Recurring Buy (DCA) Page: In the BingX website or app, go to "Spot Trading" → "Spot Bots" section, click "Recurring Buy" to enter the setup page.
   
   
3. Select ETH and Set Investment Amount: In coin selection, search for ETH/USDT and enter the USDT amount for each deduction. Set based on monthly income, investable budget, and risk tolerance, such as fixed monthly investment of 1,000 to 3,000 TWD equivalent USDT, and set annual investment caps to avoid unlimited accumulation during market declines.
   
   
4. Choose Execution Frequency: Options include hourly, daily, weekly, or monthly execution. For most Taiwanese investors, weekly or monthly DCA already achieves cost-averaging effects; for further price smoothing, daily DCA can be chosen.
   
   
5. Confirm and Start Plan: After confirming coin selection, investment amount, and execution frequency, submit and the system will automatically buy ETH according to settings. Later, execution records can be viewed anytime in the "Recurring Buy Management" page, or plans can be adjusted, paused, or deleted.
   
   
6. Regularly Update Position Records: It's recommended to download BingX trading records monthly, organizing each buy date, ETH quantity, execution price, and TWD conversion costs as record basis for subsequent asset management and tax filing.
   
   

3. Trading Ethereum Perpetual Futures on BingX

Taiwanese investors hoping to participate in ETH short-term price volatility or profit from shorting during downtrends can operate through BingX's ETH/USDT perpetual futures. BingX futures maker fee is 0.02%, taker fee is 0.05%, with funding rates settled every 8 hours (Taiwan time 8:00, 16:00, 0:00). Perpetual futures support both long and short positions, but carry higher risks than spot trading. It's recommended to control leverage at 3 to 5x and immediately set stop-loss and take-profit after opening positions.

1. Ensure Account Has Sufficient USDT Margin: Go to BingX "Assets" → "Fund Transfer" to transfer USDT from spot account to perpetual futures account. Margin invested per position opening is recommended not to exceed 20% of total futures account balance, avoiding single trade impact on overall fund safety.
   
   
2. Enter ETH/USDT Perpetual Futures Page: Go to "Futures Trading" → "Perpetual Futures", search for ETH-USDT. Before ordering, check funding rates and settlement times to assess holding costs, avoiding long-term positions in unfavorable rate environments.
   
   
3. Use BingX AI and TradingView Charts to Determine Direction: BingX futures pages have built-in TradingView charts and provide BingX AI market analysis. Before ordering, refer to ETH market trend summaries, technical signals, RSI, Bollinger Bands, and support/resistance levels as auxiliary basis for deciding long or short positions.
   
   
4. Choose Isolated Mode, Set Leverage and Place Orders: Isolated margin mode is recommended to limit single trade risk to that specific margin amount. Leverage can initially be set at 3 to 5x, prioritizing limit orders to establish positions for reduced trading costs and slippage impact.
   
   
5. Immediately Set Stop-Loss and Take-Profit: After opening positions, immediately set Stop Loss and Take Profit. For 4-hour chart trading, stop-loss ranges can be set at 3% to 7%; for daily chart trading, 7% to 12%. ETH volatility is typically higher than BTC, so stop-loss space should be adequate, but remains a basic risk control tool for futures trading and shouldn't be omitted.
   
   

4. Buying Ethereum ETFs

Besides directly purchasing ETH spot or operating through perpetual futures, Taiwanese investors can also participate in ETH price performance through Ethereum ETFs. US spot Ethereum ETFs were approved for listing in July 2024, currently offering multiple products to choose from. The advantage is trading through traditional brokerage accounts without needing to manage private keys, wallets, or on-chain transfers, and avoiding cryptocurrency deposit/withdrawal processes. For investors already familiar with investing in US stock ETFs who wish to allocate ETH through more familiar methods, Ethereum ETFs are relatively easier to understand alternatives.

However, Ethereum ETFs still have significant differences from directly holding ETH. ETFs are essentially financial products tracking Ethereum prices, with investors holding ETF shares rather than on-chain ETH. Therefore, they cannot withdraw coins or transfer to crypto wallets, nor can they be used for on-chain transactions, DeFi interactions, or staking for yield. Additionally, ETFs may involve management fees, trading hour restrictions, and brokerage-related costs, with prices also affected by US stock trading hours and market liquidity. For Taiwanese investors, if the goal is long-term allocation without handling wallet and exchange operations, Ethereum ETFs can be considered. If the goal is truly owning ETH with flexible deposits/withdrawals, participating in DeFi, or staking yields, directly purchasing ETH spot on exchanges like BingX would be more suitable.

Extended Reading: 2026 Spot Ethereum ETF Investment Guide: Which ETF Products Do Investors Favor Most?

4 Major Risks and Preparations for ETH Investment

While Ethereum is one of the core assets in the cryptocurrency market, it remains a high-volatility, high-risk investment target. Before entry, besides evaluating prices and buying methods, one must also understand basic issues such as capital allocation, asset custody, tax records, and risk management, avoiding focusing only on long-term return potential while ignoring volatility and operational risks during actual holding periods.

1. ETH Volatility Far Exceeds Traditional Assets and is Greater Than BTC: ETH has historically fallen 70% to 80%+ from peaks multiple times, with bear markets potentially lasting 1 to 2 years, with 2018 and 2022 being clear examples. Funds invested in ETH should be money that wouldn't affect living conditions and financial security even with long-term paper losses. Emergency funds, loans, or funds with clear short-term purposes should not be used for ETH investment.
   
   
2. Long-term ETH Holding Should Consider Self-Custody: Keeping ETH on exchanges is convenient for operations but also carries platform risks such as security incidents, operational issues, or withdrawal restrictions. For long-term holding of larger ETH amounts, it's recommended to move main positions to self-controlled hardware wallets (like Ledger or Trezor), keeping only ETH needed for short-term trading or conversion on exchange accounts. Private keys and seed phrases should be stored offline, not screenshotted or stored in cloud services.
   
   
3. ETH Trading Profits May Require Declaration in Taiwan: ETH trading profits upon withdrawal typically need calculation as property transaction income, with basic logic being sale price minus purchase cost and related fees. Staking rewards, liquidity mining yields, and other on-chain income currently lack clear Taiwan tax guidance, but conservative approach is recognizing as income at market value when received. It's recommended to regularly download trading records from BingX, preserving details of each buy, sell, transfer, and fee as basis for future tax filing and asset management. For detailed filing methods, refer to "Complete Cryptocurrency Tax Filing Tutorial."
   
   
4. No Strategy Can Replace Risk Management: Dollar-cost averaging, long-term holding, spot buying, or futures trading are just different participation methods and cannot guarantee profits. Ethereum network upgrades, ETF fund inflows, L2 scaling ecosystem development, and macroeconomic environments can all affect ETH price trends. Before investing, confirm your risk tolerance, fund purposes, and holding timeframe, consulting professional financial or tax advisors when necessary.

Conclusion: Is Ethereum Worth Investing in 2026?

Ethereum in 2026 still has long-term allocation value, but the premise is that investors can accept high volatility and deep corrections. From a market structure perspective, the 2024 spot Ethereum ETF launch provides institutional capital with more mature allocation channels, while Ethereum's post-Merge supply mechanism and continued Layer 2 scaling ecosystem development still support ETH's long-term investment narrative. However, ETH has experienced significant corrections in every cycle, with Q1 2026 corrections from the August 2025 all-time high already exceeding 60%, meaning investors who entered at peaks may need to wait several years to return to cost basis.

For Taiwanese investors, the more suitable approach is not one-time heavy positioning, but first confirming investable amounts, position ratios, and drawdown tolerance capacity, then participating in markets through dollar-cost averaging or batch buying. If markets enter overheated phases, pre-established batch reduction or profit-taking rules should be implemented to avoid overly concentrated decisions driven by emotions. Overall, if optimistic about Ethereum's long-term role as smart contract and DeFi infrastructure, ETF capital inflows, and ETH's secondary core positioning in crypto asset allocation, ETH can still be included in 2026 investment portfolios. But a more reasonable approach is viewing it as one of the high-volatility core crypto assets, participating with clear proportions and disciplined strategies rather than relying simply on short-term price judgments.

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