How to Avoid Pitfalls for Newcomers in the Crypto World?
1. Do not touch contracts!!!
In the crypto world, there are not only newcomers but also many veterans! Experts! Many have lost everything in contracts. Newcomers should focus on spot trading and hold onto their assets.
2. Do not play with small cryptocurrencies.
Most small cryptocurrencies in the crypto world are designed to take advantage of investors, dropping directly to zero, falling by more than 99%. If they have a small market cap and you haven't heard of them, do not invest. Choose mainstream cryptocurrencies.
3. Do not use small exchanges.
Small exchanges always carry the risk of running away or going offline. All your funds may become inaccessible. It is advisable to use mainstream exchanges, and you can also diversify your funds across major exchanges.
4. Do not have overly high expectations.
The era of tenfold or hundredfold returns in the crypto world has passed. Now, major institutions and elites have entered the market, and big dividends are no longer available. Achieving a double return is already quite good; if newcomers can avoid losses, they are ahead of over 90% of people.
5. Do not keep money in unknown wallets.
If you have a large amount of capital, it's advisable to use a wallet, as exchanges carry risks too. For small wallets, there is also a risk of running away.
6. Do not engage in ultra-short trading.
The crypto market is highly volatile; it is common for Bitcoin to drop 20% in a day, and altcoins can be halved in value. Short-term trading is hard to control; hold onto your assets.
7. Set stop-loss and take-profit levels.
Set goals for yourself. If it drops to a certain level, execute your exit strategy decisively. If it rises to a certain level, sell resolutely, regardless of how much it continues to rise afterward. Many people lose in bull markets simply because they fail to take profits in time.
8. Do not invest all your funds in the crypto world.
The risks in crypto are too high, and both entry and exit carry risks. It is advisable to use only your spare cash for small investments in the crypto world to practice first.
9. Continuously learn and acquire knowledge.
One cannot make money beyond their understanding. Even if you earn a lot at first, if your understanding doesn't keep up, you will quickly lose it back, and you may end up with significant losses. Constantly learn to improve your understanding.
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