For beginners in the cryptocurrency world, mastering the following skills can help reduce risks to a certain extent:
- Learn the basics: Spend time learning the principles of blockchain, the concept of cryptocurrencies, consensus mechanisms, etc. Understand the white paper and the project's goals and technical roadmap. You can improve your knowledge by reading specialized books and following industry media (such as Babi Special and Golden Finance).
- Choose reliable platforms: Prioritize well-known, long-established, and compliant trading platforms, such as Binance and Huobi (be aware of domestic policies on virtual currency trading restrictions). Check the platform's security measures, such as whether there is fund custody and multi-factor authentication.
- Start with small investments: Never invest a large amount of money at the beginning; only use idle funds that, if lost, will not affect your life. For example, start with no more than 5000 yuan to gain experience.
- Avoid following the crowd: Do not blindly follow the “tips” from communities and forums, and do not be easily swayed by “get rich overnight” stories. Think independently and make your own judgments on any investment advice.
- Diversify investments: Do not concentrate your funds in one cryptocurrency; appropriately allocate mainstream coins (such as Bitcoin and Ethereum) and a small amount of potential coins to reduce the risks associated with the volatility of a single currency.
- Set stop-loss and take-profit: Set your stop-loss and take-profit points in advance, such as 15% loss for stop-loss and 30% profit for take-profit, and strictly execute them to avoid greed and fear affecting your decisions.
