Guide for Newbies Entering the Cryptocurrency Market🍵
Guide for Newbies Entering the Cryptocurrency Market: The cryptocurrency market is full of opportunities, but it also comes with huge risks. For the newcomers, blindly following trends could lead to total loss. Here is a systematic guide to prepare for entering the market, helping you avoid common traps and rationally start your investment journey.
1. Solidify Basic Knowledge
1. Understand Core Concepts of Blockchain
First, understand what decentralization, distributed ledger, and smart contracts are before discussing investment.
2. Recognize Mainstream Asset Classes
Bitcoin (BTC): Digital gold, market value barometer
Ethereum (ETH): Cornerstone of the smart contract ecosystem
Stablecoins (USDT/USDC): Fiat-backed hedging tools
Altcoins: High-risk, high-volatility assets
3. Master Key Terminology
Such as private key/public key, gas fees, market capitalization, liquidity, contract leverage—at least be able to distinguish between “spot” and “contract” before operating.
2. Practical Entry Strategies (Start with Small Steps and Experiment)
1. Practice Spot Trading
Try with $100-500 to get familiar with buy/sell orders, market orders, and setting take profit and stop loss.
2. Dollar-Cost Averaging BTC/ETH
Buy at a fixed time each month to smooth price fluctuations (e.g., automatic deduction on payday).
3. Stay Away from Contract Leverage
Newbies should avoid 10x and 100x leverage for the first three months; the risk of liquidation is extremely high!
3. Continuous Learning and Information Discrimination
- Data Tools: Use CoinGlass to view liquidation data, Dune Analytics to check on-chain holdings.
- Reverse Thinking: When social media is buzzing about “100x coins,” it is often a signal to sell.
Final Advice: The cryptocurrency market operates 24/7 with extreme price volatility. Pay attention to your daily monitoring time to avoid emotional trading.
