The cryptocurrency market is full of opportunities but also carries huge risks. For newcomers, blindly following trends may lead to total loss. Here is a systematic beginner's guide to help you avoid common pitfalls and start investing rationally.
📌 One, Basic Knowledge: Understand core concepts
1. Blockchain and cryptocurrency
Blockchain: A decentralized distributed ledger that ensures transaction transparency and immutability.
Bitcoin (BTC): Digital gold, market capitalization benchmark.
Ethereum (ETH): The cornerstone of the smart contract ecosystem, supports DeFi, NFTs, and other applications.
Stablecoins (USDT/USDC): Fiat-backed, used for hedging and trading pair settlements.
2. Key terminology
Private key/Public key: The private key is your asset control; losing it = asset zero.
Gas fee: Transaction fee on the Ethereum network.
Spot vs. Contracts: Spot is buying coins directly, contracts are leveraged bets on price changes.
📊 Two, Trading Methods: Differences between spot, contracts, and leverage
Trading types Characteristics Suitable groups Risk
Spot trading: Buy coins directly, hold long-term; suitable for beginners and long-term investors; low risk.
Contract trading: Leverage betting on price changes (can go long/short); suited for short-term traders; high risk (prone to liquidation).
Leverage trading: Borrowing money to amplify investment size; suited for experienced traders; medium to high risk (may be liquidated).
⚠️ Beginner's advice:
First, play with spot trading, then try contracts/leverage after familiarizing with the market.
Avoid high leverage (like 100x); beginners are prone to liquidation.
🔐 Three, Safe Entry: How to avoid being scammed?
2. Protect asset security
Enable 2FA (two-factor authentication).
Store large assets in cold wallets (such as Ledger/Trezor).
Beware of scams: Fake customer service, fake airdrops, phishing websites are rampant.
📈 Four, Trading Strategies: How can beginners profit steadily?
1. Dollar-cost averaging (DCA)
Invest a fixed amount in BTC/ETH every month to smooth out price fluctuations.
2. Basics of technical analysis
Candlestick chart: Understand opening price, closing price, support/resistance levels.
MACD/RSI: Tools to help judge buy/sell points.
3. Risk management
Stop-loss and take-profit: Avoid emotional trading.
Diversified investment: BTC + ETH + potential altcoin combinations.
🚀 Five, Trends to watch in 2025
Bitcoin spot ETF: Institutional funds continue to flow in.
Layer2 (such as zkSync, Starknet): Ethereum scaling solutions, potential airdrops.
RWA (Real-world asset tokenization): Such as Ondo Finance, Maple Finance.
🎯 Summary: Beginner's to-do list
Learn the basics (blockchain, trading terminology).
Start with spot trading, avoid high leverage.
Dollar-cost average BTC/ETH and hold long-term.
Protect your private keys and beware of scams.
The cryptocurrency market fluctuates wildly 24/7; rational investing is key to survival!
