Many newcomers to the crypto space are eager to earn a million, but when they see the market's ups and downs, they can get a bit confused. Don't rush; to earn your first pot of gold, it doesn't have to be complicated. Follow these 8 steps I’ll share, and your wealth will gradually increase.
Step one, choose the right path; start with the big hits.
If you are a beginner, don't rush to play with those niche coins; start with the big ones like Bitcoin (BTC) and Ethereum (ETH). Bitcoin is the big brother of the crypto market, and in the long run, it still has room to grow. As for Ethereum, it dominates in smart contracts, and most DeFi and NFT projects rely on it. Beginners should start learning from these mainstream assets for a safer approach.
Step two, use dollar-cost averaging to reduce risk.
The market is highly volatile, and dollar-cost averaging can help you average your costs, making short-term price fluctuations less stressful. How to do it? Set aside a fixed amount of 500 to 2000 each month to regularly buy BTC or ETH; regardless of how the market changes, keep buying. Over time, your average cost will be lower than buying all at once, and your returns will be more stable.
Step three, don’t put all your eggs in one basket; allocate your assets reasonably.
Don't invest everything in one coin; that carries too much risk. I suggest allocating like this: 50% in mainstream coins (BTC, ETH) for the long term; 30% in stablecoins (USDT, USDC) to wait for opportunities to buy better; and 20% in some potential small coins (like SOL, AVAX) to test the waters.
Step four, watch the market cycles and don't chase highs or panic sell.
The crypto market generally has a cycle of 3 to 4 years. Buy in bear markets and sell in bull markets; you need to understand this principle. In a bear market, buy in batches; don’t wait until the market rises and then regret not buying earlier. In a bull market, sell in batches; don’t be greedy and miss the selling point.
Step five, don't play high-risk games; preserving your principal is the most important.
Don't touch high leverage; while it can amplify returns, losses can be frightening, and beginners can easily get liquidated. Also, don't blindly follow trends; the market has many hotspots, but many are fleeting. Do your homework before investing.
Step six, try staking and DeFi to earn some extra cash.
If you hold BTC or ETH for the long term, consider staking a portion of your assets or engaging in DeFi lending to earn some interest.
Step seven, pay more attention to industry trends; learning cannot stop.
The crypto space changes quickly; continuous learning is essential for survival. You can read crypto news, listen to KOL analyses, or join crypto communities to exchange investment experiences with others.
Step eight, be patient and set a long-term goal.
Investing is not a game of getting rich overnight; it takes time. If you want to earn a million in the crypto space, patience and discipline are the most important. Stick to your strategy and don't let short-term fluctuations affect your judgment.
To summarize, for beginners to succeed in the crypto space, the key is to choose the right assets, dollar-cost average, diversify investments, grasp market cycles, and control risks. As long as you keep at it, accumulating your first pot of gold is not difficult.