Just entered the crypto world?
Don't rush to fantasize about the 'get rich quick' myth; first, learn to avoid pitfalls and protect your capital.
Many experienced traders, even institutional players, have fallen into traps; beginners should be especially cautious. The following 10 tips are hard-earned experiences, remember them to avoid 90% of the pitfalls.
1. Do not touch contracts!
Contracts are the 'death trap' of the cryptocurrency market.
Whether you are a beginner or an experienced trader, most of the tragedies of liquidation and losing all capital are caused by contracts.
Beginners should only trade spot; holding on is the key to having opportunities.
2. Do not trade small coins.
Small coins = the farmer's harvesting machine.
Many worthless coins and altcoins drop 99% and go to zero, having no value.
Only touch mainstream coins like BTC and ETH; don't gamble on coins you've never heard of.
3. Do not use small exchanges.
There are too many stories of small exchanges running away or disconnecting; if you can't withdraw your funds, it's a bloodbath.
Choose top exchanges first, and it's best to diversify your funds rather than putting all in one place.
4. Do not have overly high expectations.
The myth of tenfold or hundredfold gains is over.
Institutions and Wall Street have already entered; the big rewards are gone.
Doubling your investment is already lucky; if a beginner can avoid losses, they have already outperformed 90% of people.
5. Do not mix wallets randomly.
For large amounts, consider cold wallets/hardware wallets, as exchanges also carry risks.
But never put your money in unknown small wallets; running away will still result in total loss.
6. Do not engage in ultra-short-term trading.
A 20% drop in a single day is normal in the crypto market; it's even more common for altcoins to lose half their value.
Short-term trading is too fast-paced; beginners can easily chase prices and panic sell.
Be patient and hold onto the assets you believe in, don't let market fluctuations shake you out.
7. Learn to take profits and cut losses.
Set rules for yourself:
If it drops to a certain price, decisively cut losses and exit.
When it reaches the target price, decisively take profits.
Many people end up losing money in a bull market because they are reluctant to sell.
8. Do not bring all your funds in.
The cryptocurrency market carries significant risks, and there is uncertainty regarding deposits and withdrawals.
Only use spare money, and start with a small amount.
Don't gamble with money needed for living expenses.
9. Keep learning continuously.
Making money in the crypto market relies on knowledge, not luck.
Even if you make money at first, lack of knowledge can lead you to lose it back.
Continuously learn about blockchain, trading, and macro knowledge; enhancing your understanding will help you go far.
10. Find reliable teachers/communities.
99% of people in the crypto market ultimately lose money.
Having experienced people guide you can help you avoid many pitfalls.
✅ In summary: Beginners should avoid pitfalls before discussing profits. Surviving is victory!
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