I. Basic Understanding and Risk Warning
90% of newcomers lose money in the first year: Historical data shows that over 90% of newcomers lose money in their first year, mainly due to contract leverage and chasing highs and selling lows.
Crypto Circle ≠ ATM: The 2023 PEPE coin case shows that early investors made 100 times profit, but 95% of later entrants got trapped at the peak.
Blockchain ≠ All coins have value: Among 20,000+ cryptocurrencies, only 5% have technological implementation. Beware of copycat white papers, anonymous teams, and air coins with no code updates.
Bull Market ≠ Guaranteed Profits: In the 2021 bull market, 73% of altcoins went to zero. It is necessary to master the rules of Bitcoin’s draining period → altcoin season → crash cycle.
II. Security Protection System
Exchange Selection:
First Tier: Coinbase, Kraken (high compliance)
Second Tier: Binance, OKX (high trading volume)
Absolutely Avoid: Unknown small exchanges (risk of going bankrupt >50%)
Wallet Allocation Principles:
Exchange storage ≤10% of assets
Hot wallet (MetaMask) holds 20% of short-term funds
Cold wallet (Ledger) stores 70% of long-term holdings
III. Spot Trading Strategies
Beginner Stage (First 3 Months):
Only trade spot, no contract leverage
Focus on BTC/ETH (low volatility)
Use 5% of funds to practice trading, record every logic
Growth Stage (3-12 Months):
Learn on-chain analysis (monitor smart money addresses)
Participate in low-risk arbitrage (exchange price differences, stablecoin investments, annualized 3-8%)
Mature Stage (After 1 Year):
Layout for leading sectors:
Public Chain: SOL, ADA
DeFi: UNI, AAVE
Control Position: Single altcoin ≤ 5% of total funds
IV. Trading Tools and Terminology
Basic Tools:
Non-Small Number (Query project data)
CoinGecko/CoinMarketCap (Professional data)
Trading Instructions:
Limit Order: Set price for automatic execution (conservative choice)
Market Order: Immediate execution (fast but high price volatility)
Risk Management:
Set a 5%-10% forced stop-loss line
Retain over 30% cash to deal with black swan events
Common Terminology:
FOMO (Fear of Missing Out): Blindly chasing price increases
FUD (Fear, Uncertainty, Doubt): Irrational selling
Support/Resistance: Key price points
V. Recommended Learning Resources
Beginner Learning:
Documentary: (Bitcoin: The End of Money We Know)
Open Course: Peking University Xiao Zhen (Blockchain Technology and Applications)
Continuously follow MAGIC IDEX BABY CFX
