What preparations are needed to enter the crypto space
1. What is cryptocurrency: First, understand what cryptocurrency is, the basic principles of blockchain technology, and the fundamental characteristics and terminology of the cryptocurrency market.
2. Learn about several common cryptocurrencies: Digital gold BTC, King of applications ETH, Stablecoin USDT, King of MEME coins DOGE!
①. Bitcoin (BTC)
Bitcoin (BTC) was created by Satoshi Nakamoto in 2009 and is the original cryptocurrency. Like most cryptocurrencies, BTC operates on a blockchain or ledger that records transactions across a network of thousands of computers. The process of adding to the distributed ledger must be verified by solving cryptographic puzzles, known as proof of work, making Bitcoin secure and immune to fraud.
Bitcoin's price has soared as it has become a household name. In May 2016, you could buy one Bitcoin for about $500, and by December 2024, Bitcoin had surpassed $100,000!
②. Dogecoin (DOGE)
Dogecoin gained fame in 2013 as a joke, but it rapidly grew into a well-known cryptocurrency due to its dedicated community and creative memes. Unlike many other cryptocurrencies, there is no limit to the number of Dogecoins that can be created, which can lead to devaluation as supply increases.
3. Cryptocurrency market: Study and understand how the cryptocurrency market operates, including exchanges, price volatility, market participants, and investment strategies.
4. Risk management: Learn how to assess and manage investment risks, including diversification, setting stop-loss points, and understanding market volatility. (In the crypto space, risk and reward are proportional!)
5. Security and protection: Prioritize security issues, choose reliable cryptocurrency exchanges and digital wallets, and take necessary security measures such as setting strong passwords, enabling two-factor authentication, and regularly backing up wallets.
6. Legal and compliance: Understand the legal and regulatory requirements regarding cryptocurrency in your country or region to ensure that you trade and invest within a legal and compliant framework. (Currently, there are no explicit regulations in the country stating that individual ownership or trading of cryptocurrencies is illegal, so newcomers can rest assured.)
7. Emotional control: Understand the volatility and uncertainty of the cryptocurrency market, learn how to control your emotions, and avoid impulsive investment decisions. (This is especially crucial for contract users; newcomers are advised to start with spot trading.)
The above points are essential preparations before entering the crypto space, but they are just a starting point. Continuous learning and maintaining a cautious attitude are very important in the crypto space.
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