Guide for Newcomers to the Cryptocurrency Market

The cryptocurrency market is full of opportunities, but it also comes with significant risks. For newcomers, blindly following trends can lead to total loss. Below is a systematic guide for entering the market, helping you avoid common traps and rationally start your investment journey.

1. Solidify Basic Knowledge

1. Understand Core Blockchain Concepts

First, grasp what decentralization, distributed ledger, and smart contracts mean before discussing investments. Recommended readings include the 'Bitcoin White Paper' and the Ethereum official documentation.

2. Get to Know Mainstream Asset Classes

Bitcoin (BTC): Digital gold, market value barometer

Ethereum (ETH): Cornerstone of the smart contract ecosystem

Stablecoins (USDT/USDC): Fiat-pegged hedging tools

Altcoins: High-risk, high-volatility assets

3. Master Key Terms

Such as private key/public key, gas fees, market capitalization, liquidity, contract leverage—at a minimum, be able to distinguish between 'spot' and 'contract' trading before proceeding.

2. Practical Entry Strategies (Start with Small Steps)

1. Practice with Spot Trading

Use $100-$500 to test the waters, familiarize yourself with buy/sell orders, market orders, and setting take profit/stop loss.

2. Dollar-Cost Averaging BTC/ETH

Invest a fixed amount every month at a set time, smoothing out price volatility (e.g., automatic deductions on payday).

3. Continuous Learning and Information Discrimination

- Data Tools: CoinGlass to check liquidation data, Dune Analytics to check on-chain holdings.

- Reverse Thinking: When social media is abuzz discussing '100x coins', it's often a signal to sell.

Final Advice: The cryptocurrency market operates 24/7 with extreme price fluctuations. Monitor your trading time daily to avoid emotional trading. Remember—making money in a bull market is luck, surviving in a bear market is skill.