Entering the crypto space presents opportunities and risks for beginners. To help newcomers better understand the key points for getting started, I have optimized the original content for smoother expression, highlighting key points, and added some practical details:
1. Basic knowledge: Build a solid foundation for getting started **
Blockchain
This is a decentralized database technology characterized by public and transparent data that cannot be altered once recorded. The Bitcoin network is a typical application instance of blockchain.Mainstream cryptocurrencies
BTC (Bitcoin): As the pioneer of digital currency, it is widely regarded as 'digital gold' due to its scarcity and other characteristics, possessing certain value retention attributes.
ETH (Ethereum): Not only supports smart contracts but also builds a large ecosystem with extensive applications in DeFi (Decentralized Finance), NFT (Non-Fungible Tokens), and other fields.
Stablecoins (USDT/USDC, etc.): These cryptocurrencies maintain a fixed exchange ratio with fiat currencies and can be used for hedging during market fluctuations. They are also commonly used mediums in daily transactions.
Exchange
An exchange is a platform for buying and selling cryptocurrencies, with well-known platforms like Binance and OKX. Trading on these platforms usually requires completing KYC (Know Your Customer) verification to ensure trading security and compliance.Wallet
Hot wallet: A software wallet that is connected to the internet, such as MetaMask, which is convenient for frequent trading operations.
Cold wallet: Hardware devices represented by Ledger, which operate offline and offer higher security compared to hot wallets, suitable for storing large assets.
2. Getting started steps: A step-by-step guide for you **
Register on an exchange
It is recommended to prioritize choosing leading platforms like Binance and Coinbase, which are generally more secure and reliable. After registration, complete identity verification as required to activate trading permissions.Fiat currency deposit
USDT can be purchased through bank transfers or third-party payment methods and then exchanged for other cryptocurrencies according to individual needs.Learn trading types
Spot trading: Directly buying and selling cryptocurrencies, which is the preferred trading method for beginners and carries relatively low risk.
Contract trading: Involves leverage mechanisms and carries extremely high risk; it is not recommended for beginners to try lightly.
Asset storage
To balance security and trading convenience, it is recommended to store large assets in cold wallets; small assets can remain in exchanges for easy trading operations.
3. Investment strategies: Rationally respond to market fluctuations **
Position management
Always use spare money for investments and strictly avoid the 'All in' approach to prevent judgment from being affected by financial pressure.
Adopt a diversified holding strategy, allocating funds to mainstream coins and promising small coins to reduce the risks associated with the volatility of a single cryptocurrency.
Trading discipline
Develop the habit of setting profit and loss limits to restrain yourself and avoid unnecessary losses caused by emotional trading.
For beginners, long-term holding (HODL) and regular investment are relatively safe methods that can effectively reduce the impact of short-term market fluctuations.
Learning tools
Using data websites like CoinMarketCap and CoinGecko, you can stay updated on key information such as cryptocurrency prices, market capitalization, and trading volume.
With on-chain analysis tools like Nansen and DeFiLlama, you can delve into blockchain data to assist in making more reasonable investment decisions.
4. Psychological building: Maintaining a calm mindset is crucial **
Reject FOMO (Fear of Missing Out): Market opportunities are everywhere; do not blindly chase after rising or falling prices, and avoid making impulsive decisions out of fear of missing opportunities.
Accept volatility: The crypto market operates on a 24-hour continuous trading model, where daily fluctuations of 30% are common. Learn to adapt to this high volatility.
Independent judgment: In the face of the complex information in the market, learn to filter out noise and not blindly follow KOLs (Key Opinion Leaders) or messages in communities; cultivate your independent judgment ability.
