As someone who has mentored many newcomers, today I will break down the core knowledge for beginners into 6 steps, from basic operations to mindset management, learning according to this will help avoid 90% of pitfalls.
1. Exchange basics: A practical course that can be mastered in 2 days.
This step doesn’t require technical skills; it purely relies on 'hands-on experience', focusing on mastering 5 basic operations:
Registration and authentication: Choose a leading exchange (like Binance, Okex, etc.), complete identity verification (KYC), and pay attention to protecting your ID photo and the environment while doing facial recognition (don’t take pictures in strong light or backlight);
Fund transfer: Understand the difference between 'fiat accounts', 'spot accounts', and 'contract accounts' - to buy coins, first recharge from the fiat account, then transfer to the spot account for trading, moving to the contract account is only necessary for trading contracts;
Buying and selling coins: Distinguish between the interface for spot trading (buy low, sell high for profit) and contract trading (can buy or sell, with built-in leverage, higher risk), beginners should start with spot trading;
Information entry: Learn to read the exchange's 'market page' (K-line, trading volume), 'announcement board' (platform rules, currency dynamics), and 'asset page' (real-time view of positions and profits).
Spend 1-2 days exploring this step; it’s like learning to use an online shopping app, the more you click, the more familiar you become.
2. Underlying logic: Understand 'why coin prices move'.
The easiest pitfall for beginners is 'buying coins based on feelings', first understand these 3 core logics:
The essence of price fluctuations: Supply and demand + market sentiment. When more people are buying, capital flows in, and prices rise; when more people are selling, capital flows out, and prices drop. Positive news (like a coin being listed on a major exchange) attracts buying interest, while negative news (like regulatory crackdowns) leads to sell-offs;
Choosing exchanges and coins: Prefer compliant licensed exchanges with large user bases (strong risk resistance), and avoid 'unlicensed, high-return promise' small platforms (which are likely to run away). For coins, beginners should first focus on mainstream coins like BTC and ETH (strong consensus and relatively controllable volatility), while altcoins (low market cap, niche coins) have extremely high risks and should be avoided;
'Whale' influence: Large holders with substantial token holdings (whales) can influence prices through concentrated buying and selling, such as suddenly crashing prices (often referred to as 'cutting leeks'), beginners should be cautious of coins that 'rise without volume' (may indicate whales are manipulating the price to sell).
3. Build a trading system: Establish 'rules' to rely on for operations.
A trading system is not mysticism; it’s a clear rule of 'when to buy, when to sell'. Beginners can start with a simple version:
Buying signals: For example, buy when 'BTC drops to a certain support level (like $30,000) + trading volume increases';
Selling signals: For example, sell when 'the held coin rises by 20%' or 'falls below the stop-loss line (like 10% below the purchase price)';
Filter out invalid market movements: Only act on opportunities you understand, such as 'only buy when BTC closes a daily candlestick in green', stay out during indecisive market movements.
The system doesn’t need to be complex; the key is 'it can be executed'. At first, you can write it down, and check it against your notes before each trade to avoid acting on feelings.
4. Position management: Don’t put all your eggs in one basket.
The core of position management is 'Don’t let a single loss cause serious injury', remember these 2 iron rules:
Single coin position should not exceed 50%: For example, if you have 10,000 yuan, spend a maximum of 5,000 on BTC, and use the remaining for ETH or stablecoins (like USDT), to avoid significant losses from a crash in any single coin.
Buy/sell in batches: When you want to buy a coin, don’t invest all at once; divide the purchases into 3-5 batches (for example, buy one batch when it drops by 5%); when selling, also do it in batches, selling part when it rises a bit, thus reducing the risk of missing out or getting trapped.
5. Risk control: Protecting principal is more important than making money.
Beginners often fail quickly because they haven’t done proper risk control:
Set stop losses: Before each trade, determine 'how much you can afford to lose', for example, if buying a coin at 100 yuan, set a stop loss at 90 yuan, and sell immediately if it drops to that price to avoid deeper losses;
Avoid high leverage: Contract leverage of 10x or 20x may seem to amplify profits, but it actually amplifies risks; beginners can be liquidated even with 1-2x leverage, so it’s recommended to start with spot trading;
Don’t borrow money to trade coins: Invest with spare money, don’t touch living expenses or loans; otherwise, during market fluctuations, it’s easy to lose composure and make impulsive trades.
6. Mindset management: The 'invisible threshold' of making money.
80% of losses in the crypto space stem from emotional explosions; these 3 points should be etched in your mind:
Don’t chase highs and sell lows: Following the crowd when you see others’ coins rising often leads to buying at high points; panicking and cutting losses when prices drop leads to selling at low points, which is a common mistake for beginners;
Accept imperfection: No one can buy at the lowest or sell at the highest, making a profit in the middle is enough; greed can lead to 'cooked ducks flying away';
Don't get emotional after a loss: After one losing trade, wanting to 'double down to recover' often leads to greater losses; it’s better to stop and review, and operate again once your mindset is stable.
Lastly, it’s important to say: Entering the crypto world isn’t difficult, but the challenge lies in 'controlling your hands and guarding your heart'. The first 6 points are fundamental, and the rest relies on practical experience - take notes (record the reasons and results of each trade), summarize (what operations are prone to losses, which can yield profits), and gradually find your rhythm.
Remember: surviving in the crypto world is more important than making a lot of money at once. In the beginner stage, don’t think about getting rich quickly; first learn not to lose, and opportunities will naturally come.
