🚀 Beginner's Guide to Cryptocurrency | Avoid 99% of the Pitfalls!
1. Basic Understanding: Grasp the 3 Core Concepts
Blockchain: A globally public "ledger", data is transparent and immutable, serving as the foundation for technologies like Bitcoin and Ethereum.
Mainstream Cryptocurrencies:
Bitcoin (BTC): Digital gold, the preferred choice for anti-inflation, with relatively low long-term holding risk.
Ethereum (ETH): A smart contract platform that supports ecosystems like DeFi and NFTs.
Key Terms:
Gas Fees: On-chain transaction fees, confirm the real-time rate before transferring.
DeFi/NFT: Decentralized finance and digital asset certificates, recommended to start experiencing from staking and exchange sectors.
2. First Purchase of Cryptocurrency: 4 Steps
Fiat Deposit: Buy USDT (pegged 1:1 to the US dollar) through Alipay/Bank Card.
Purchase Mainstream Coins:
70% of funds allocated to BTC/ETH, 20% to platform tokens (like BNB), 10% to explore potential coins.
Use “Market Order” for quick transaction to avoid slippage risks.
Small-scale Experimentation: First investment recommended not to exceed 5% of liquid funds.
3. Risk Management: Avoid Becoming “Chives”
Position Allocation:
70% Mainstream Coins + 20% Potential Coins + 10% Cash.
Dollar-Cost Averaging Strategy: Buy BTC/ETH on a fixed date each month to average costs.
Take Profit and Stop Loss:
Sell in batches at 30% profit, enforce stop loss at 15% loss.
Use Binance “Conditional Orders” and OKX “Strategic Trading” for automation.
Pitfall Avoidance Guide:
Steer clear of high-leverage contracts (newcomers have over 95% liquidation rate).
Beware of “hundredfold returns” shitcoins, 99% are scam projects.
Special Reminder
⚠️ Must-Read for Newcomers:
Invest only with spare money, be mentally prepared for complete loss.
Reject FOMO (Fear of Missing Out), don’t panic during crashes, don’t chase during surges.
Regularly withdraw profits, recover principal before snowballing investments.
