Many newcomers want to make big money in the crypto space, but the high volatility of the market leaves them at a loss. In fact, accumulating your first pot of gold in crypto does not require complicated operations. The following 8 key steps can help you gradually achieve wealth growth.
1. Choose the right sector: Start with mainstream coins
If you are a beginner, it is recommended to start with Bitcoin (BTC) and Ethereum (ETH).
Bitcoin is the cornerstone of the entire crypto market and still has great growth potential in the long run.
Ethereum, as the leader of smart contracts, is relied upon by almost all DeFi and NFT projects for its ecosystem development.
Beginners are advised: Do not invest in small coins right away; instead, start by accumulating experience with mainstream assets.
2. Adopt a dollar-cost averaging (DCA) strategy to reduce investment risk
The market is highly volatile, and DCA can help you average out costs and reduce the impact of short-term price fluctuations.
Practical method:
Set aside a fixed amount of 500-2000 yuan each month to regularly buy BTC or ETH, regardless of price fluctuations.
In the long run, your average holding cost will be lower than a one-time purchase, leading to more stable returns.
3. Diversify investments and allocate assets wisely
Avoid going all-in on a single coin; reasonable allocation of funds can reduce risks.
Recommended investment ratio:
50% Mainstream Coins (BTC, ETH): Long-term holding
30% Stablecoins (USDT, USDC): Reserve funds, waiting for better buying points
20% Potential Small Coins (SOL, AVAX, etc.): Participate appropriately in high-growth sectors
4. Pay attention to market cycles, avoid chasing highs and selling lows
The crypto market usually has a cycle of 3-4 years; bear markets are buying opportunities, while bull markets are selling opportunities.
Smart approach:
Buy in batches during bear markets, rather than chasing after the market rises.
Sell in batches during bull markets to avoid missing high points.
5. Avoid high-risk operations, protect your principal
Do not use high leverage: Although leveraged trading can amplify profits, losses can also be magnified, and beginners are prone to liquidations.
Do not blindly follow the crowd in investing: There are many market hot spots, but many projects are short-lived, so be sure to do your homework before investing.
6. Participate in staking and DeFi to earn passive income
If you hold BTC or ETH for the long term, consider staking some of your assets or engaging in DeFi lending to earn additional interest income.
7. Stay updated on industry trends and keep learning
The crypto space changes rapidly, and continuous learning is key to long-term survival. You can do this by:
Following crypto news and KOL analysis
Participating in crypto community discussions to learn investment experiences
8. Be patient and set long-term goals
Investing is not about getting rich overnight; it is a long-term process. If you want to earn 1 million in the crypto space, the most important factors are patience and discipline. Stick to your strategy and don’t let short-term fluctuations affect your decisions.
Summary:
For beginners to succeed in the crypto space, the key is to choose the right assets, adopt a dollar-cost averaging strategy, diversify investments, grasp market cycles, and manage risks. As long as you can persist in execution, accumulating your first pot of gold is not out of reach!
