Guide to Survival for Newcomers in the Cryptocurrency World: Ten Ironclad Rules to Avoid Pitfalls
1. Avoid Leverage and Give Up the Dream of Quick Riches: Never borrow money or take out loans to trade cryptocurrencies! There are no myths of guaranteed profits in this field; the desire to get rich overnight often leads to total loss.
2. Trust Major Platforms: Only trade on established platforms like Binance. There are countless cases of small exchanges running away with funds or stealing coins; your capital can't withstand such risks.
3. Bet on Mainstream Coins: Invest 80% of your funds in Bitcoin and Ethereum, which have low volatility and strong resistance to declines; use 20% to try new coins. Small coins can experience extreme fluctuations, and without insider information, you can easily be left with nothing.
4. Invest with Spare Money: Only use money that you can afford to lose to trade cryptocurrencies. Losing it won’t affect your life, allowing you to sleep soundly at night; don’t let investments become a source of torment.
5. Build Positions in Stages: Don’t go all in at once! Buy more when prices drop 10%, entering in 2 to 3 stages. Always keep some reserve funds; even in a bad market, there is a chance for recovery.
6. Take Profits and Don’t Be Greedy: Sell in batches when you achieve 10% - 20% profit; securing profits is real money. Greedily chasing price increases may result in losing your principal.
7. Beware of High-Yield Traps: Projects in communities boasting “guaranteed profits” or “hundredfold coins” are all scams. Once you enter, they may dump their holdings and leave without giving you time to react.
8. Maintain Your Composure and Avoid Chasing Prices: Extreme fluctuations to half or zero in small coins are common. Chasing prices and panic selling will only lead to further losses, ultimately wiping out your capital.
9. Don’t Trust “Mentors” Who Claim They Can Make You Rich: Those who actively teach you how to make money are 99% focused on your capital. You can learn from free experiences, but never blindly follow their investments.
10. Learn Daily to Ensure Survival: A day in the crypto world is like a year in reality. Spend 1 hour each day studying policies, candlestick charts, and project updates; failing to learn will eventually lead to elimination from the market.
