Of course it will exist, because it is a product born under the globalization of the internet. As long as the internet is still running, the cryptocurrency world will always exist, no matter which country in the world it is, as long as there is a network, it will exist! Next, let me share my insights and experiences from many years in the cryptocurrency world. Friends who are interested can like and follow Brother Cheng.
Why you must understand the cryptocurrency world.
On May 12, 2025, the price of Bitcoin reached $104,000. Do you still think 'Bitcoin is just a bubble'? Reality is changing rapidly.
When US President Trump shouted at the campaign rally, 'Bitcoin is the currency of freedom,' when the world's largest asset management company BlackRock (managing assets of up to $11.6 trillion) included its Bitcoin ETF in the pension allocation manual, and when the sovereign nation El Salvador recognized BTC as legal tender and built 'Bitcoin Bond City' next to a volcano - the world has voted with its feet: cryptocurrency is not a geek's toy, but the last ticket for ordinary people in the 21st century to rewrite their destiny!
Looking around us - Hong Kong has opened up virtual asset trading licenses, allowing compliant cryptocurrency exchanges to operate; even traditional brokers like Futu Securities have launched deposit functions for BTC, ETH, and USDT. Traditional finance and the crypto world are converging, and a bridge of assets from Crypto to TradFi has quietly opened.
Many people think that only stock trading and buying funds are the 'right path to investing.' But look at examples around you, how many times can funds multiply? Can stocks allow you to leap up the social ladder? The reality is:
. Bitcoin has increased by more than 80 million times in its 15-year history, outperforming all traditional asset classes!
. In 2024, the global cryptocurrency user base is only 562 million, with a penetration rate of less than 7% (the internet user base exceeds 5 billion, and A-share users are 370 million).
. The daily trading volume of the US Bitcoin spot ETF has surpassed that of the gold ETF, but its market value is only 1/30 of the latter.
The cryptocurrency world has been the biggest dark horse that has changed fortunes in the past decade, and its profit opportunities are hidden in the daily on-chain fluctuations.
Of course, high profits mean high risks. This circle is not short of miracles, but it is also not short of scams. From 'going all in and losing everything' to 'getting cut like leeks,' how many newcomers dive into the cryptocurrency world and end up losing their principal before even getting on the chain.
In the simplest way, let's help you understand blockchain, avoid detours, and not fall into big pits. Start by recognizing trends and understanding risks. In the cryptocurrency world, even beginners can play smart!
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1. Legal risks in the cryptocurrency world.
Many newcomers are most concerned about the issue: will trading cryptocurrencies be illegal? Will my bank card be frozen? Will I get arrested? Today, I will clarify the most common legal risks in the cryptocurrency world, especially those related to deposits and withdrawals, as 90% of 'problems' are related to this!
1. Is trading cryptocurrencies illegal? Trading cryptocurrencies itself is not illegal. There are no clear regulations in China that 'trading cryptocurrencies' is a criminal act. The 924 policy targets virtual currency fraud, illegal fundraising, and pyramid schemes; mainstream media will not promote cryptocurrency trading positively, but normal trading does not constitute a criminal offense. Only when it involves illegal fundraising, fraud, money laundering, etc., will it constitute a real legal issue.
2. Are cryptocurrency trading profits legal?
If your profits are obtained through normal trading on a regular platform, such as buying and selling BTC/ETH, then this part of the profit is legal; but if your coins are earned through unknown channels, such as joining a pyramid scheme or recruiting others for commissions, then it belongs to property of unknown origin, which carries legal risks.
3. The real minefield is in 'deposit and withdrawal'!
Trading cryptocurrencies will not get you arrested, but improper deposit and withdrawal can easily lead to problems!
1. Selling USDT on the exchange is not illegal, but be careful whether the RMB you receive comes from black U (fraud, money laundering funds)! Once you receive black U, the consequences are severe:
. Bank cards are likely to be frozen. You may be considered a suspect in a fraud chain. Usually, you need to cooperate with the police, and only after returning the funds might it be possible to unfreeze them. II. If you are a 'C2C merchant' on the platform, the risks are even greater. Engaging in arbitrage for profit, daily payments, may be suspected of illegal operation, money laundering, or even fraud! Many cryptocurrency merchants have already been convicted and sentenced for this reason! Reminder: Newcomers must not easily engage in OTC or C2C transactions, don’t risk getting involved just to earn a few bucks!
4. The regulatory attitude in the country: it is not a ban, but 'risk control'.
Mainland China does not allow the establishment of virtual currency exchanges, but Hong Kong has been allowed to establish compliant platforms as a 'policy pilot' permitted by the country; most regular exchanges will also actively cooperate with the police to avoid legal risks. In summary: cryptocurrency is not a lawless land.
II. Asset allocation - don't put all your eggs in one basket.
Many newcomers want to 'ALL IN on a certain coin' as soon as they enter the cryptocurrency world, but real veterans understand that allocation is more important than prediction. This part will discuss the common types of assets in the cryptocurrency world and how to allocate them well to avoid liquidation and total loss.
1. You must understand the types of cryptocurrencies.
I. Bitcoin (BTC)
. The 'gold' of the crypto world, accounting for more than half of the market cap. It has the lowest risk and the highest liquidity, serving as the 'base asset' for cryptocurrency allocation.
II. Mainstream coins (ETH, etc.)
. Major leading tracks, such as ETH, SOL, etc.
. Stablecoins, such as USDT, USDC, etc.
. The cryptocurrency market ranks high, is highly active, and is suitable for short-term trading or long-term holding.
III. Altcoins
. Non-core blockchain tokens, mostly 'concept tokens' issued by various projects.
. Price volatility is high; some can multiply several times, while others can go to zero directly.
. Be cautious in identifying 'air coins' and 'scam coins', 99.9% of altcoins are just tools for harvesting retail investors!
2. The principle of fund allocation: the key to controlling risk.
I. Do not go ALL IN on a single coin/exchange.
. Exchange failures and plummeting prices can cause you to lose everything overnight.
. It is recommended to diversify to prevent single-point explosion.
II. Do not go ALL IN on a single currency: diversify your allocation into BTC, mainstream coins, and some altcoins to reduce overall volatility.
. Conservative: 5 (Bitcoin): 3 (Mainstream coins): 2 (Altcoins)
. Aggressive: 4 (Bitcoin): 3 (Mainstream coins): 3 (Altcoins)
III. Do not buy too many types of coins; with limited energy, control a small number of targets.
. The cryptocurrency market changes quickly, the more positions you hold, the harder it is to manage.
. It is recommended to control the number of core coins to 3~5, so you can stay updated and manage profits and losses in a timely manner.
The core of asset allocation in the cryptocurrency world is: diversify risks + maintain flexibility!
Market momentum starts, profits double! Follow Brother Cheng to ride the trend, and wealth will naturally come.
Keep an eye on: SPK, C.
