As a veteran trader with over 10 years in the cryptocurrency market, I want to share the correct way for beginners to start their journey in the cryptocurrency world. I also started as a newbie and gradually reached my current level, from entering the market with 8000 to achieving financial freedom; all the class leaps were gained in the cryptocurrency market.
Today, I want to share how I successfully transformed from a newbie; this article is divided into three parts.
I. Cognitive framework that beginners must understand in the cryptocurrency market.
II. Complete basic knowledge for beginners in the cryptocurrency market.
3. How can beginners earn their first pot of gold? Every newcomer wanting to enter the cryptocurrency market is often confused.
Wealthy individuals enter first to test with real money, and only by spending money do they get new opportunities.
But most people actually start in the cryptocurrency market from scratch.
Without knowledge, English, or capital, the only thing you have is hard work.
So starting from zero is the norm for entering the cryptocurrency market.
I suggest starting small.
Even for small profits, one should not act recklessly; although time is not as valuable, it is not worthless either. Spending time in valuable places is always better than wasting it.
Learning industry knowledge also takes time, as it is vast and complex.
Getting started, how can you smoothly get in?
I once bought a Bitcoin back when it cost 8000 RMB, but my understanding didn't keep pace, and I felt that making money was pointless.
So in the end, time sends the dog; life must take a detour, whether early or late.
Through over 10 years of experience in the cryptocurrency market:
I found that some summarized information is very valuable; a preliminary start is suitable for beginners to understand. Everyone can learn from it.
In summary, to put it simply, beginners should start by researching major public chain projects and refining their focus rather than spreading too wide.
Because you lack discernment, it’s best not to distinguish; first, follow experienced people to observe major projects and significant trends that might have airdrops.
If you have little money, you have to be frugal; you can't afford to lose.
Casting a wide net is not suitable for you; it only suits wealthy individuals.
Never believe in ratios, traditional concepts, etc.; you are an independent individual, and you must believe in yourself, that you can succeed, and then persist.
Don't give up. Just take the first step. Proceed step by step.
As for multi-number, witch, magic, and such things, that will come later; first, understand the game rules, main chain, side chain, and focus on major projects first.
Progress step by step. Money can be earned endlessly, but losses can be complete.
2. Complete basic knowledge for beginners in the cryptocurrency market.
The cryptocurrency market refers to the field of cryptocurrencies, which has received increasing attention in recent years. For newcomers, understanding basic knowledge is very important. This article will introduce the basic knowledge of the cryptocurrency market to help you quickly get started.
1. What is the cryptocurrency market? The cryptocurrency market refers to the field of cryptocurrencies, also known as the digital currency market or virtual currency market. It encompasses all people, projects, and communities related to cryptocurrencies.
II. History of the Cryptocurrency Market. The origin of the cryptocurrency market can be traced back to 2009 when Bitcoin (Bitcoin) was created as the first application of blockchain technology. Since then, more and more cryptocurrencies have been developed, and the cryptocurrency market has gradually formed.
III. Important concepts in the cryptocurrency market.
1. Blockchain technology: Blockchain is a decentralized distributed ledger technology characterized by security, transparency, and immutability. Blockchain technology is the foundation of the cryptocurrency market and the core of cryptocurrencies.
2. Cryptocurrency: Cryptocurrencies are digital currencies issued based on blockchain technology, using cryptography to enable secure transactions and control currency issuance. Bitcoin, Ethereum, and Litecoin are the most well-known cryptocurrencies in the market.
3. ICO (Initial Coin Offering): ICO refers to the initial token issuance, similar to the IPO (Initial Public Offering) in traditional finance. ICOs are a common fundraising method in the cryptocurrency market.
IV. Investment Strategies in the Cryptocurrency Market.
1. Research projects: Before investing in the cryptocurrency market, you must thoroughly research the projects. Understanding the team's background, technical strength, and market demand can help you make informed investment decisions.
2. Diversified investment: Cryptocurrency investing carries certain risks, so it is recommended to spread investments across multiple projects to reduce risk.
3. Long-term holding: Investments in the cryptocurrency market are long-term; short-term fluctuations do not represent the intrinsic value of the project. Therefore, it is recommended that investors adopt a long-term holding strategy.
V. Risks and Precautions in the Cryptocurrency Market.
1. Volatility risk: Prices in the cryptocurrency market fluctuate greatly, and investors need to be mentally prepared and implement risk control.
2. Project risk: There are many projects in the cryptocurrency market, some of which may be scams or frauds. Investors need to choose projects carefully and pay attention to risk warnings.
3. Security risks: Digital assets in the cryptocurrency market need to be stored in wallets, and investors must choose a safe and reliable wallet and protect their private keys. VI. Future Outlook of the Cryptocurrency Market.
As an emerging industry, the cryptocurrency market has enormous development potential. With the continuous maturation of blockchain technology and the expansion of application scenarios, the cryptocurrency market is expected to become an important part of the future financial system.
This article introduces the basic knowledge of the cryptocurrency market, including its definition, history, important concepts, investment strategies, risks, precautions, and future outlook. I hope this knowledge helps newcomers understand the cryptocurrency market better and achieve success in it.
Remember, investment in the cryptocurrency market requires caution; do not blindly follow trends, and effective risk control is essential for better investment returns.
1. Basic knowledge that beginners must know about the cryptocurrency market.
More and more people are paying attention to cryptocurrency trading, but very few truly understand it. Newcomers often do not know where to start, so today I want to share some basic knowledge for beginners in the cryptocurrency market.
1. What is cryptocurrency trading? This article will first discuss cryptocurrency trading. In fact, cryptocurrency trading is similar to stock trading, real estate trading, and foreign exchange trading, where profits are made by buying low and selling high. For example, if you believe house prices will rise, you buy a house immediately, wait until prices rise, then sell for a profit. The difference is that cryptocurrency trading involves digital currencies with a more free trading mechanism (24/7 uninterrupted trading), and greater profit potential (no price limit), making digital currencies an investment target with a return on investment far exceeding traditional stock markets, futures markets, funds, and real estate.
2. What is an exchange? An exchange is a platform for trading digital currencies, with major exchanges currently being Huobi, Binance, and OKEx. There are also many other smaller exchanges, similar to the four major banks and various other banks. Using a top-ranked exchange has a high security factor, allowing for safe trading. Some coins can only be purchased on specific exchanges.
3. What is USDT? Exchanges are places for trading Bitcoin and other digital currencies; trading requires a kind of intermediary currency, also known as stablecoin, which is USDT. This is also the fiat currency we use most commonly.
USDT, called Tether, is a virtual currency that links cryptocurrencies to the fiat currency US Dollar, and is a virtual currency that is backed by reserves in foreign exchange accounts. You can simply understand it as US dollars.
Tether (USDT) is a token based on the stable value currency US Dollar (USD) launched by Tether, with a value of 1 USDT = 1 USD.
Exchanges themselves cannot directly sell or buy virtual currencies, nor can they sell you USDT. If you want to buy coins, you need to first buy USDT with RMB, then exchange USDT for the digital currency you want to buy. If you want to sell coins, you need to exchange your digital currency for USDT and then sell it for RMB. Once you have USDT, you can exchange it for any digital currency on the exchange, which is called currency-to-currency trading.
4. Basic terms for cryptocurrency trading. Position: Refers to the ratio of actual investments to actual invested funds.
Full position: Investing all funds into virtual currencies.
Reducing positions: Selling part of the virtual currencies but not all.
Heavy position: The proportion of cryptocurrency compared to funds is larger.
Light position: The proportion of funds compared to virtual currencies is larger.
Empty position: Sell all the cryptocurrencies held and convert everything into funds.
Take profit: Selling the virtual currencies held after securing a certain profit.
Stop-loss: Selling the virtual currencies held after losses reach a certain level to prevent further losses.
Bull market: Prices continue to rise, and the outlook is optimistic.
Bear market: Prices continue to fall, and the outlook is bleak.
Bullish (long position): The buyer believes the currency price will rise in the future, buys coins, and sells them for profit when the price increases.
Short seller (short position): The seller believes the currency price will drop in the future and sells a portion of their holdings (or borrows coins from the trading platform), locking in profits once the price drops to a certain level while also avoiding risks.
Position building: Buying virtual currencies.
Margin call: Gradually buying virtual currencies, such as first buying 1 BTC, and then buying another 1 BTC.
Rebound: When the currency price drops, it rebounds due to a rapid decline.
Consolidation (sideways): The price fluctuates little, and the currency price remains stable.
Slow decline: The currency price is gradually falling.
Plunge (waterfall): A rapid and significant drop in currency price.
Cutting losses: After buying a virtual currency, if the price drops, sell it at a loss to prevent further losses, or if the price rises after shorting, buy the virtual currency at a loss.
Stuck: Expecting the price of a cryptocurrency to rise, but upon buying, the price drops; or expecting the price to drop, but after selling, the price rises.
Unlocking: After buying virtual currency, a drop in price causes temporary paper losses, but later the price rebounds, turning losses into profits.
Missing out: After selling virtual currency due to a bearish outlook, the price continues to rise, and timely buying fails to happen, resulting in lost profits.
Overbought: The currency price has risen to a certain height continuously, and the buying power is nearly exhausted, and the price is about to drop.
Oversold: The currency price has dropped continuously to a certain low point, the selling force is nearly exhausted, and the price is about to rebound.
Inducing: The price has been consolidating for a long time, with a significant possibility of a drop. Most short sellers have sold their virtual currency, and suddenly the bear side raises the price, inducing the bull side to believe the price will rise, leading to buying. However, the bear side then suppresses the price, trapping the bull side.
Inducing shorts: After the bulls buy virtual currencies, they deliberately suppress the price, causing bears to believe the price will drop, leading to selling and falling into the bulls' trap.
5. What are mainstream digital currencies? Mainstream coins are valuable coins; Bitcoin is the leader, Ethereum is the second. Some believe only these two are mainstream digital currencies, while others think only the top ten by market capitalization are mainstream, and some believe any coin listed on mainstream exchanges qualifies as mainstream.
Taking CoinMarketCap as an example, we can see the market capitalization rankings of related cryptocurrencies. Mainstream coins rank high, for instance, Bitcoin firmly occupies the top position in market capitalization.
Generally, cryptocurrencies with high market capitalization rankings have high market recognition and good liquidity, thus having high investment value. Conversely, cryptocurrencies with low market capitalization rankings have low recognition, poor liquidity, and correspondingly higher investment risks, so users are advised to be cautious when buying.
6. Risks of trading cryptocurrencies. A very sensible piece of advice regarding cryptocurrency investment might come from Ethereum founder Vitalik Buterin: Do not invest any money you cannot afford to lose. I remind all newcomers again to act according to your ability; do not borrow, take loans, mortgage, or use credit cards to participate in such investments, especially in contract trading.
7. Contract trading. Currency trading is spot trading; to profit in both rising and falling markets, you need to engage in contract trading, which is different from currency trading and belongs to futures trading. This means that the objects of these transactions are standardized contracts.
You can pay a certain margin ratio to borrow some digital currency, choosing to go long in a bullish market or go short in a bearish market, and you can also trade both ways to hedge risks. Therefore, through contract trading, you can profit regardless of whether the market is rising or falling, greatly improving capital efficiency.
The margin payment ratio corresponds to different leverage. For example, if you judge BTC to be bearish in the future and want to open a short position of 100 BTC, you only need to pay a minimum of 1% margin, which is 1 BTC, to borrow 100 BTC, meaning 100 times leverage. This means you use 1 BTC of funds to leverage 100 BTC of profit. After borrowing, you sell immediately and wait for the price to drop. If BTC drops from $35,000 to $34,000, you buy back 100 BTC and return it to the platform, you will gain (35000-34000)*100=100000 dollars. If you do not use contract trading, you cannot profit from this drop; if you do not use 100 times leverage, you cannot achieve 100 times the profit. This is the nature of contracts.
Beginners should not trade contracts! Beginners should not trade contracts! Beginners should not trade contracts! It's important to emphasize this three times! Contracts may seem like the fastest path to wealth, but they are definitely not the safest route. The 'speed' mentioned here often leads to liquidation and bankruptcy, rather than financial freedom.
8. Three essential elements for trading cryptocurrencies.
1. An Android phone. (Android is more convenient; iPhones are prone to losing certificates.) An Android phone is also essential for engaging in projects.
2. Spare money. Money that is not urgently needed in the near future; losing it won't affect living quality.
Three, mindset. Trading has risks; those who are anxious about gains and losses should not participate.
The cryptocurrency market is not the only way to make money; there are many paths to explore, and returns are always proportional to the investment. I hope we can all gain something in the cryptocurrency market.
II. The cryptocurrency market refers to the trading market and community for digital currencies, with Bitcoin being the most famous. For newcomers in the cryptocurrency market, understanding some basic knowledge is very important.
1. What is Bitcoin?
Bitcoin is a decentralized digital currency supported by the Bitcoin blockchain network. It is designed to not rely on any financial institutions, offering high security and anonymity.
2. What is blockchain?
Blockchain is the foundational technology for Bitcoin and other cryptocurrencies, a decentralized distributed ledger that records all transaction information and ensures the security and accuracy of data through encryption and consensus mechanisms.
3. What is an exchange?
Exchanges are platforms for buying and selling digital currencies, allowing users to trade different cryptocurrencies. Users can buy or sell Bitcoin and other digital currencies through exchanges.
4. What is a wallet?
A wallet is a tool for storing and managing digital currencies. It can be a software wallet, hardware wallet, or online wallet. Users can use wallets to send and receive digital currencies and check their balance and transaction history.
5. What is mining?
Mining is the process of verifying and processing Bitcoin transactions by solving complex mathematical problems. Miners maintain the Bitcoin network by providing computing power and receive a certain amount of Bitcoin as a reward.
6. What is an ICO?
ICO (Initial Coin Offering) is a crowdfunding model where companies or projects issue new digital currencies to raise funds. Investors can purchase these newly issued digital currencies, expecting their value to increase in the future.
7. What is a white paper?
A white paper is a detailed project introduction and planning document usually released by the cryptocurrency project team. It contains information about the project's goals, technical architecture, business model, etc., helping investors understand the project's potential and feasibility.
8. What is market capitalization?
Market capitalization refers to the total market value of a cryptocurrency, which is the current price of the cryptocurrency multiplied by its total supply. Market capitalization reflects the status and influence of a cryptocurrency in the market.
I hope the above simple illustrations can help everyone quickly understand the basic knowledge of the cryptocurrency market. Before entering the cryptocurrency market, be sure to prepare adequately and assess risks, investing cautiously. The cryptocurrency market is a field full of opportunities and risks; only by continuously learning and accumulating knowledge can one better participate.
III. How can beginners earn their first pot of gold?
In 2025, after 11 months of full-time trading, I turned 2000 USDT into over 2 million USDT, a profit of 1000 times.
In the cryptocurrency market, if you want to truly achieve financial freedom and compound interest, methods, techniques, and forming your own profit system are crucial!
Once mastered, the cryptocurrency market will become like your 'ATM'; making money will be as simple as breathing!
After more than 10 years of cryptocurrency trading, I summarize my wealth journey as follows:
The first million took the longest and was the most painful; the trading system was constantly reshaped and polished, taking a year and a half.
The second million took three months.
The third one million only took 40 days.
The fourth million only took 5 days.
75% of the funds were earned in six months.
If your account is below 1 million yuan and you want to profit in the short term in the cryptocurrency market, there is indeed a timeless trading strategy that is also a 'foolproof technique' that retail investors can easily adopt.
Don't worry about whether you can learn; if I can seize this opportunity, so can you. I'm not a god, just an ordinary person. The only difference between others and me is that others overlooked this method. If you can learn this method and pay attention to it during the trading process, it can help you earn an additional 3 to 10 percent in profit daily.
1️⃣ Invest in batches: If you have 10,000 yuan, split it into five parts, using only 2,000 yuan for each trade.
2️⃣ Test investment: Start with 2000 yuan to buy a cryptocurrency as a trial.
3️⃣ If the price drops, add to the position: If the currency price drops by 10%, invest 2000 yuan to increase your position.
4️⃣ If the price rises, take profit: If the currency price rises by 10%, sell a portion to lock in profits.
5️⃣ Repeated cycle: Continuously buying and selling until funds run out or coins are sold out.
Strategic advantage: The benefit of this strategy is that even if the price drops, you can remain calm. By buying in batches, you avoid the risk of a single investment. Even if the price drops by half, you are only gradually increasing your position. Every time you sell, you can lock in 10% profit. For example, if you have 100,000 yuan and invest 20,000 yuan each time, earning 2,000 yuan each time.
Main techniques include:
Technical analysis: Using charts and indicators to identify trends;
Fundamental analysis: Paying attention to news and macroeconomic factors;
Risk management: Set stop-loss orders and diversify investments.
Trading strategy: Determine entry and exit points and use different strategies.
Psychological factors: Maintain discipline and patience.
Practice and learning: Simulated trading and continuous learning.
Choose a reliable trading platform.
Short-term risks in cryptocurrency trading are significant; thorough research and risk assessment must be conducted before trading.
After more than 10 years of trading cryptocurrencies, I have gone from a beginner to achieving financial freedom and social mobility. I want to share with everyone the misunderstandings of new traders in cryptocurrency trading and how to avoid them.
In the tide of digital currencies, more and more newcomers are attracted by the potential high returns and are entering the cryptocurrency market. However, trading cryptocurrencies is not a smooth path; newcomers often fall into various misunderstandings, leading to significant losses.
Deeply analyzing the misunderstandings of new cryptocurrency traders and proposing corresponding avoidance strategies.
1. Misunderstandings of new traders in cryptocurrency trading.
1. Blindly following trends.
New investors often lack independent thinking ability and easily follow trends. When they see a cryptocurrency price rise and hear others recommend it, they buy without hesitation, ignoring the fundamentals and technical aspects behind it. This blind following behavior is very dangerous. Market sentiment can change rapidly; when newcomers follow trends to buy, they may already be at a high point, and once the market reverses, they will suffer significant losses.
For instance, in the speculation of certain popular cryptocurrencies, newcomers rush in when they see prices soar. However, these cryptocurrencies may lack actual value support and are merely bubbles inflated by market speculation. When the bubble bursts, prices plummet, and newcomers often end up as the last ones holding the bag.
2. Chasing highs and selling lows.
Chasing highs and selling lows is another common misunderstanding for new traders. When a cryptocurrency's price rises, newcomers, driven by greed, buy high, hoping for further price increases for more profits. Conversely, when prices drop, fear triggers panic selling, worrying about further losses.
This behavior not only increases trading costs but also causes investors to miss out on genuine investment opportunities. The digital currency market is highly volatile, and price fluctuations are normal. Chasing highs and selling lows often leads to confusion during market volatility, resulting in frequent trading and ultimately losses.
3. Lack of risk awareness.
New investors often lack awareness of risks, seeing only the high returns of digital currencies while ignoring their high risks. They might invest large sums into the cryptocurrency market, even borrowing to trade, without properly planning their funds and risks.
The digital currency market possesses high uncertainty and risk. Price fluctuations can lead to significant losses, or even total loss of capital for investors. Newcomers should fully recognize the risks, control their positions reasonably, and not put all eggs in one basket.
4. Over-reliance on technical analysis.
Although technical analysis has some reference value in digital currency trading, newcomers often rely too much on it, neglecting fundamental analysis and market sentiment. They may make buying and selling decisions based on certain technical indicators without considering the actual value of the cryptocurrency and market trends.
Technical analysis is just a tool and cannot be the sole basis for decision-making. The digital currency market is influenced by various factors, including policies, regulations, market sentiment, and project fundamentals. Newcomers should consider all factors comprehensively to make more accurate investment decisions.
5. Unstable mindset.
An unstable mindset is also a significant misunderstanding among new cryptocurrency traders. During market fluctuations, newcomers can easily be swayed by emotions, leading to feelings of greed, fear, and anxiety. When prices rise, greed can make them overly optimistic and ignore risks; when prices drop, fear can cause panic selling, resulting in poor decisions.
A good mindset is the key to successfully trading cryptocurrencies. Investors should remain calm and rational, not be swayed by emotions. During market fluctuations, they should learn to control their emotions and make wise decisions.
II. How to Avoid Misunderstandings in Trading for Newcomers.
1. Cultivate independent thinking ability.
New investors should strive to cultivate their independent thinking ability and not blindly follow trends. Before making investment decisions, they should conduct in-depth research and analysis on the cryptocurrency, understanding the underlying technology, team, application scenario, and other factors.
At the same time, learn to analyze market trends and sentiments, and do not be affected by short-term price fluctuations. By continuously learning and practicing, you can enhance your analytical and judgment capabilities and make wiser investment decisions.
2. Develop reasonable trading strategies.
New investors should develop reasonable trading strategies and avoid chasing highs and selling lows. They can determine suitable buying and selling timing based on their risk tolerance and investment goals. For example, they can adopt a strategy of buying and selling in batches to reduce trading costs and minimize risk.
In addition, strictly adhere to your trading strategy and do not be swayed by emotions. When market fluctuations occur, operate according to the established strategy and do not change trading plans arbitrarily.
3. Enhance risk awareness.
New investors should fully recognize the risks of the digital currency market and plan their funds and risks reasonably. Do not invest all funds into the cryptocurrency market; determine a suitable investment ratio based on your risk tolerance.
At the same time, learn to diversify investments to reduce risks. You can choose different types of cryptocurrencies for investment, avoiding concentration in a single cryptocurrency. Additionally, set reasonable stop-loss and take-profit points to lock in profits and control losses.
4. Comprehensive use of various analytical methods.
New investors should comprehensively use various analytical methods and not overly rely on technical analysis. In addition to technical analysis, they should also pay attention to fundamental analysis and market sentiment of the cryptocurrency. Understanding the project's technical strength, team background, application scenarios, and market trends can lead to more comprehensive investment decisions.
Adjust and optimize based on your actual situation. At the same time, continuously learn and master new analytical methods and tools to improve your analytical skills and level.
5. Maintain a good mindset.
New investors should maintain a good mindset and not be swayed by emotions. During market fluctuations, they should stay calm and rational and not panic. Appropriate breaks and relaxation can help relieve stress and adjust their mindset.
At the same time, establish a correct investment philosophy; do not treat cryptocurrency trading as a way to get rich overnight. The digital currency market has a high degree of uncertainty and risk; investors should view it with a long-term investment perspective, not be tempted by short-term gains.
In short, new traders need to avoid blindly following trends, chasing highs and selling lows, lacking risk awareness, over-relying on technical analysis, and having unstable mindsets. By cultivating independent thinking, developing reasonable trading strategies, enhancing risk awareness, using various analytical methods, and maintaining a good mindset, new investors can improve their investment levels and profitability, achieving better returns in the cryptocurrency market. At the same time, new investors should continuously learn and accumulate experience to improve their overall quality and prepare for long-term investment.