Entering the cryptocurrency market requires systematic learning, establishing risk awareness, and avoiding blind following. The following are core learning directions, organized in the logic of 'Basic Understanding → Practical Skills → Risk Control → Advanced Improvement', suitable for beginners to gradually enter the field:

I. First Understand Core Concepts: Avoid 'Speculating on Air'

The foundation of the cryptocurrency market is blockchain technology and cryptoeconomic logic. Without understanding the basics, it is easy to be exploited.

  1. Basics of Blockchain

    • What is Blockchain? (Core characteristics of distributed ledger, decentralization, and immutability)

    • Consensus Mechanisms: Differences and impacts of various mechanisms like PoW (Bitcoin), PoS (Ethereum 2.0), DPoS, etc. (e.g., energy consumption, security, level of decentralization).

    • Differences between Public Chains, Private Chains, and Consortium Chains: Why are public chains the core medium for cryptocurrencies? (e.g., positioning of public chains like Ethereum, Solana, Aptos).

  2. Core Classification of Cryptocurrencies

    • Mainstream Coins: Bitcoin (BTC), Ethereum (ETH), etc., which are among the top 10-20 by market cap. Understand their value logic (e.g., Bitcoin's 'digital gold' attribute, Ethereum's smart contract ecosystem).

    • Altcoins: Coins with lower market caps and conceptual tokens, extremely high risk. Beware of projects that 'tell a story' but lack actual implementation.

    • Stablecoins: USDT, USDC, DAI, etc. Understand their logic of pegging to fiat currencies (fiat reserves, algorithmic stability) and risks (e.g., lessons from the UST collapse).

  3. Key Terminology Literacy

    • Wallets: Differences and usage scenarios between cold wallets (hardware wallets, e.g., Ledger) and hot wallets (software wallets, e.g., MetaMask). Private keys = asset ownership; losing them equals losing assets.

    • Exchanges: The operational logic and risks of centralized exchanges (CEX, e.g., Binance, OKX) and decentralized exchanges (DEX, e.g., Uniswap) (CEX regulatory risks, DEX slippage issues).

    • Other Terminology: Mining, Staking, Decentralized Finance (DeFi), NFT, Layer 2, Tokenomics, Gas fees, etc. At least know the basic meanings.

II. Learn to Analyze the Market: From 'Following the Trend' to 'Rational Investment'

The cryptocurrency market experiences extreme price volatility; blindly chasing highs and lows is a major cause of losses, and an analytical framework must be established.

  1. Fundamental Analysis (Value Judgment)

    • Assessing Projects: Is the white paper clear? Is the team background reliable (experience in blockchain technology, excessive anonymity)? What is the progress of implementation (frequency of code updates, number of ecosystem applications)?

    • Assessing Tokenomics: Total token supply, circulating supply, unlocking mechanisms (are there large amounts of team tokens waiting to be unlocked and dumped?), token utility (is there actual value support or is it purely speculation?).

    • Assessing Industry Trends: For example, hot topics in 2024-2025 (Bitcoin ETF, Ethereum Layer 2, AI + Blockchain, compliance, etc.), avoid betting on outdated concepts.

  2. Technical Analysis (Short-term Price Reference)

    • Basic K-Line Knowledge: Bullish candles, bearish candles, doji, and the identification of support and resistance levels.

    • Common Indicators: MACD (trend judgment), RSI (overbought/oversold), trading volume (capital heat), but be wary of 'indicator malfunctions' (significant control by major players in the crypto market).

    • Avoid Misunderstandings: Technical analysis is not a 'prediction tool'; it can only assist in judging market sentiment and cannot be the sole basis for decision-making.

  3. Information Channel Screening

    • Authoritative Data Platforms: CoinMarketCap (market cap, trading volume), Dune Analytics (on-chain data), Nansen (address tracking), use data to verify project popularity.

    • Reliable Information Sources: Industry media (CoinDesk, The Block), official project Twitter/Discord, regulatory agency announcements (e.g., policies from the US SEC, South Korea's Financial Supervisory Service), stay away from 'pump groups' and 'insider information'.

III. Practical Skills: Protecting Assets is the Top Priority

  1. Essential Course on Safe Operations

    • Wallet Usage: Store large amounts of assets in cold wallets, only keep daily trading funds in hot wallets, and absolutely do not disclose private keys/mnemonic phrases to anyone (even 'customer service').

    • Exchange Security: Enable two-factor authentication (2FA, such as Google Authenticator), avoid logging into accounts on public networks, and do not click on unfamiliar links (to prevent phishing).

    • Prevent Scams: Be wary of 'high-yield investments', 'referral bonuses', and other Ponzi schemes. Stay away from 'air coins' that lack contract addresses or cannot be traded on mainstream exchanges.

  2. Trading Rules and Strategies

    • Basic Operations: Differences between deposits, withdrawals, limit orders/market orders, avoid losses due to operational errors (e.g., buying the 'same name altcoin').

    • Risk Control: Beginners should absolutely avoid high leverage (contracts, perpetual), invest 'spare money', and ensure that the position of a single coin does not exceed 10%-20% of total funds. Set take-profit and stop-loss orders (e.g., mandatory exit at a 10% loss).

    • Avoid Emotional Trading: The cryptocurrency market often experiences 'wild fluctuations'. Do not chase high prices out of 'fear of missing out', nor sell at a loss due to 'panic'. Establish your trading discipline and strictly adhere to it.

  1. Regulatory Policies Must Be Taken Seriously

    • Different countries have vastly different attitudes towards cryptocurrencies: China bans cryptocurrency trading and token issuance; the US has tightened regulations on cryptocurrencies (SEC often defines tokens as 'securities' for prosecution); countries like South Korea and Japan are gradually becoming compliant.

    • Compliance Risks: Clarify the legal regulations in your area before investing to avoid having your assets frozen due to 'illegal trading'.

  2. Understanding the Core Risks of the Cryptocurrency Market

    • Market Risk: Price volatility may exceed 50% in a single day, or even lead to project collapse (e.g., Terra/LUNA crash).

    • Technical Risk: Smart contract vulnerabilities (e.g., hacker attacks on DeFi projects), exchange bankruptcies (e.g., FTX collapse).

    • Human Risk: Greed (chasing highs), fear (selling at a loss), and gambling mentality (leveraging for rebounds) are the main causes of losses, harder to overcome than technical issues.

V. Continuous Advancement: From 'Beginner' to 'Mature Investor'

  1. Track Industry Trends

    • Focus on Blockchain Technology Innovations: For example, Ethereum upgrades (Dencun upgrade), the ecological development of new public chains (Solana's TPS optimization), Layer 2 scaling solutions (Arbitrum, Optimism).

    • Understand Macroeconomic Impacts: The effects of Federal Reserve interest rate hikes/cuts on risk assets (including cryptocurrencies) and the correlation between global economic cycles and the cryptocurrency bull and bear markets.

  2. Review and Summary

    • Record Reasons After Each Trade: Why buy? Why sell? What are the core factors of profit/loss? Avoid repeating mistakes.

    • Learn from Others' Experiences: Read review articles from seasoned investors (e.g., 'How to Avoid XX Scam', 'Strategies for Bull/Bear Markets'), but do not blindly follow the 'experts' recommendations.

  3. Clarify Your Own Positioning

    • There are different ways to play in the cryptocurrency market: long-term value investment (holding mainstream coins), swing trading (buy low, sell high), DeFi mining (earning returns but needing to understand smart contracts), NFT collecting, etc. Beginners are advised to start with 'mainstream coins + low positions' to find a model that suits them.

Final Reminder: The cryptocurrency market is not a 'wealth creation myth', but a 'high-risk battlefield'.

90% of beginners will lose money initially, with the core reason being 'pretending to understand, greedy risk-taking'. The first step in entering the market is not 'making money', but 'surviving'—using small funds for trial and error, establishing a knowledge system and risk awareness, and gradually improving understanding. Remember: true cryptocurrency experts first learn 'not to lose', then talk about 'profit'.