Must-See for Beginners in the Crypto World!
Have you recently been overwhelmed by the hype in the crypto world? As a newbie who just entered the scene, I've stumbled into many pitfalls. Today, I'm here to share some essential tips for beginners in the crypto world, hoping to help everyone avoid these pitfalls!
1. What is the crypto world?
The crypto world is, in simple terms, the realm of digital currencies. The most famous among them is Bitcoin (BTC), along with Ethereum (ETH) and others. They are all digital assets based on blockchain technology, simply put, a new type of "electronic currency."
2. Why is the crypto world so popular?
High Yield Temptation: Many people are attracted by the high returns in the crypto world. For instance, Bitcoin has surged from mere cents to hundreds of thousands, a true wealth myth! But folks, behind high returns are high risks; don't just see others making money without noticing those who are losing it!
Technological Revolution: Blockchain technology is a major trend of the future; it can transform various industries such as finance, logistics, and healthcare. Therefore, many people are optimistic about its prospects and are getting in early.
3. The pitfalls beginners are most likely to fall into
Blindly Following Trends: Jumping in just because you see others making money, without understanding what you are buying. Folks, be sure to learn first; don’t let short-term fluctuations cloud your judgment!
Choosing Unregulated Platforms: The platforms in the crypto world are varied, some are scams, and one misstep could lead to total loss. Always choose reputable platforms like Binance, Huobi, etc.
Excessive Leverage: Leverage can amplify gains, but it can also magnify losses. Beginners should never easily try high leverage, or you might find yourself starting from scratch overnight.
4. Essential Knowledge for Beginners
Basics of Blockchain: Understand what blockchain is and how it works. Simply put, blockchain is a decentralized ledger that records every transaction and is immutable.
Types of Digital Currencies: Besides Bitcoin and Ethereum, there are many other cryptocurrencies like Dogecoin, Litecoin, etc. Each currency has its own characteristics and uses, so learn more about them.
Using Wallets: Wallets are tools for storing digital currencies, with hardware wallets and software wallets available. Hardware wallets are more secure but slightly expensive; software wallets are convenient but be sure to keep your private keys safe.
Follow Yuanbao for more insights
