1. Understand What Crypto Really Is
Cryptocurrencies are digital assets built on blockchain technology.
Coins vs Tokens: Coins (e.g., Bitcoin, Ethereum) have their own blockchain, while tokens run on existing blockchains (e.g., $USDT on Ethereum).
Utility & Purpose: Some are used for payments, others for governance, DeFi, NFTs, gaming, etc.
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2. Volatility Is Extreme
Prices can swing 10–30% in hours — gains can be huge, but losses can be just as fast.
Never invest money you cannot afford to lose.
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3. Security Is Your Responsibility
Wallets: Keep large holdings in cold wallets (offline hardware wallets) instead of exchanges.
Use strong passwords, 2FA, and beware of phishing scams.
Once funds are sent to a wrong address, they’re irreversible.
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4. DYOR (Do Your Own Research)
Check the project’s whitepaper, roadmap, and team.
Verify if it solves a real problem or is just hype.
Beware of “pump and dump” coins or those with no utility.
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5. Market Timing Matters
Crypto runs in bull cycles and bear cycles.
Learn technical analysis (charts, trends) and fundamental analysis (news, updates, regulations).
Don’t FOMO (fear of missing out) — chasing green candles often leads to buying the top.
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6. Beware of Fees & Taxes
Trading fees, withdrawal fees, and network gas fees can eat into profits.
Many countries tax crypto gains — know your local rules.
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7. Diversify Wisely
Don’t put all your money in one coin.
Mix between large caps (e.g., BTC, ETH), mid-caps, and small caps based on your risk appetite.
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8. Emotional Control Is Key
Fear and greed drive most losses.
Have an entry and exit plan before buying.
Use stop-loss orders to limit downside.
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9. Regulations Can Change Everything
Governments can ban or heavily regulate crypto trading in your country.
Regulatory changes often cause sharp price moves.
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10. Start Small & Learn
Practice with small amounts before committing big capital.
Consider using demo accounts on exchanges to learn without risking money.