🚀 Newbie's Guide to Cryptocurrency | Avoid 99% of the Pitfalls!
1. Basic Understanding: Grasp the 3 Core Concepts
Blockchain: A globally public "ledger," with transparent and immutable data, the foundation of technologies like Bitcoin and Ethereum.
Mainstream Cryptocurrencies:
Bitcoin (BTC): Digital gold, the preferred choice for inflation resistance, lower risk for long-term holding.
Ethereum (ETH): Smart contract platform, supports ecosystems like DeFi and NFTs.
Key Terms:
Gas Fee: On-chain transaction fee, confirm real-time rates before transferring.
DeFi/NFT: Decentralized finance and digital asset certificates, recommended to start experiencing from staking and exchanges.
2. First Practical Step: Choose a Safe Trading Platform
Recommended Exchanges:
Binance: The world's largest, supports fiat deposits, newbie-friendly.
OKX: Comprehensive Chinese interface, offers various functions including spot and contracts.
Gate.io: Transparent capital reserves, suitable for small experiments.
3. First Purchase of Cryptocurrency: 4 Steps
Fiat Deposit: Purchase USDT (pegged 1:1 to the US Dollar) through Alipay/bank card.
Purchase Mainstream Coins:
Allocate 70% of funds to BTC/ETH, 20% to platform tokens (like BNB), 10% to explore potential coins.
Use "Market Order" for quick transactions to avoid slippage risk of limit orders.
Small Experiment: Initial investment suggested not to exceed 5% of liquid funds.
4. Asset Security Storage: Wallet Selection Guide
Short-term Trading: Use exchange wallets, but avoid storing large amounts of assets long-term.
Long-term Holding:
Hot Wallets: MetaMask, Trust Wallet, suitable for daily small transactions.
Cold Wallets: Ledger, Trezor, physical devices for offline storage, offering the highest security.
5. Risk Management: Avoid Becoming a "Lamb"
Position Allocation:
70% Mainstream Coins + 20% Potential Coins + 10% Cash.
Dollar-Cost Averaging Strategy: Buy BTC/ETH on a fixed date each month to average costs.
Take Profit and Stop Loss:
Sell in batches at 30% profit, enforce stop loss at 15% loss.
Use Binance "Conditional Orders" and OKX "Strategic Trading" for automated operations.
Pitfall Guide:
Stay away from high-leverage contracts (newbies have over 95% liquidation rate).
Beware of "Hundredfold Returns" meme coins, 99% are scams.
