🚀Basic Entry Knowledge for Cryptocurrency Beginners
Guide for Newcomers in the Cryptocurrency Market: The crypto market is full of opportunities, but it also comes with significant risks. For newcomers, blindly following trends can lead to total loss. Below is a systematic guide to prepare for entering the market, helping you avoid common pitfalls and rationally embark on 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. Recommended reading: "Bitcoin White Paper" and Ethereum's official documentation.
2. Recognize Main Asset Classes
Bitcoin (BTC): Digital Gold, Market Capitalization Indicator
Ethereum (ETH): Cornerstone of the Smart Contract Ecosystem
Stablecoins (USDT/USDC): Fiat-pegged Risk-averse Tool
Altcoins: High-risk, high-volatility assets
3. Master Key Terms
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 Trial and Error)
1. Practice Spot Trading
Use $100-500 to test the waters, familiarize yourself with buy/sell orders, market orders, and setting take-profit and stop-loss limits.
2. Dollar-Cost Averaging BTC/ETH
Buy at a fixed time each month to smooth out price fluctuations (e.g., automatic deductions on payday).
3. Stay Away from Contract Leverage
Newbies should avoid using 10x or 100x leverage in the first 3 months due to extremely high liquidation risks!
3. Continuous Learning
- Reverse Thinking: When social media is buzzing about "hundred times coins," it is often a signal to sell.
Final Advice: The cryptocurrency market operates 24 hours a day, with extreme price fluctuations. Pay attention to how much time you spend monitoring prices daily to avoid emotional trading. Remember—making money in a bull market is luck; surviving in a bear market is skill.
