Cryptocurrency is not the same as stocks. Trading is 24 hours, no limits on price fluctuations, and it can go to zero (like LUNA dropped by 99.9% overnight).
Core concept three-piece set
Blockchain: public ledger, transaction records cannot be tampered with (but project parties can run away).
Wallet: consists of cold wallets (hardware devices) and hot wallets (mobile/computer software). Mnemonic words = bank card + password; if lost, all coins are completely lost.
Gas fee: transaction fee, which might be higher than the transfer amount when the Ethereum network is congested.
Common currency classification
Bitcoin (BTC): the gold of the crypto world, with relatively small fluctuations;
Ethereum (ETH): smart contract platform with many ecological projects;
Stablecoins (USDT/USDC): pegged to the US dollar, used for hedging (but USDT has a history of crises).
Two, safety and fraud prevention (protecting your capital is essential for the future)
Three fatal operations
❌ Screenshot of mnemonic words stored in a cloud drive (hackers' favorite);
❌ Click on 'official' airdrop links (90% are phishing sites);
❌ Following 'teachers' to trade contracts (classic scam tactics).
Identifying meme projects: rough official website + exaggerated white paper + anonymous team = high risk;
Annualized return rate over 50% = high probability of a scam;
If a coin's name includes 'Elon', 'Satoshi', or similar famous names, run fast.
Principle for choosing exchanges: only use the top 10 exchanges globally (Binance/OKX

/Gate

);
Withdraw coins to your own wallet; do not leave coins on exchanges for a long time (your account may be frozen).
1: Do not trade with debt. Trading with borrowed money means overextending yourself. This is the most important.
2: Those who play contracts eventually go to zero.
Newcomers should avoid high-leverage contracts. Desire is infinite; if you profit, you want to earn more, if you lose, you want to recover. Even if you trade a hundred times, if you lose control once, all previous gains and capital will vanish.
Three: interact more with veterans in the crypto world.
Four: you can spend a little money to join some paid groups; choose who to follow at your own discretion, as long as you believe this blogger is reliable and can genuinely teach you something.
Five: Do not buy hot coins
When a coin is at its hottest, or when the market is crazy about a certain coin, it usually means it's nearing the end. At this time, if you already hold this coin, you might consider cashing out. If you don't hold this coin, it's best not to enter the market again, as there's a 90% chance you're just picking up the bag.
Six: Do not use small exchanges; small exchanges always carry risks of running away or disconnecting, making all funds inside unrecoverable.
Seven: Understand what a 'meme coin' is:
Meme coins are bets on the chain, and due to their very low market value, they fluctuate wildly, easily increasing dozens or even hundreds of times, but the risks are the same, with a significant risk of going to zero.
A meme coin is a derivative coin similar to Bitcoin or Ethereum, but different meme coins have different backgrounds and trends!
Mainstream coins include Bitcoin, Ethereum, and Solana, among other public chain coins.
Eight: understand what first and second markets mean.
Coins that you can buy on all exchanges are second-level trades.
First-level trading refers to on-chain transactions, purchased on decentralized exchanges or WEB3 wallets. I do not recommend novices to trade in the first market, as it's very easy to get scammed with Pi X coin.
Nine: understand what left-side trading and right-side trading mean
Left-side trading: buying below the price or selling above it when the market trend is unclear, mainly operating through limit orders. For example, bottom-fishing during a downtrend, thinking this position will stop falling, trying to catch the bottom. This approach carries relatively high risk.
Right-side trading: waiting for the market to show direction, such as when the price starts to rebound or breaks through/breaks a key position, then entering the market. This means chasing gains or losses; it's safer but may miss out on the initial profits.
Ten: you should pay attention to some bloggers who share experiences, rather than those who brainwash/market or share profits.
Eleven: Do not trust anyone who actively approaches you claiming they can help you make money!
Twelve: Continuous learning is crucial; a person cannot earn money beyond their understanding. Even if someone makes a lot initially, if their knowledge doesn't keep up, they will quickly lose it back and could be left with a heavy burden. Continuous learning is necessary to improve understanding!
I hope every newcomer who just joined the crypto world can avoid detours. Although you will encounter various setbacks and losses, these are things you need to face so that you can grow quickly!
A big taboo in the crypto world: traders who don't understand candlestick charts.

This article will help you easily understand candlesticks.
Many people enter the crypto world, confused and trading, wanting to make a quick buck, yet they can't even understand candlestick charts. The biggest taboo in the crypto world is not understanding candlestick charts. Now let's talk about crypto candlestick charts.
1. What the heck is a candlestick?
Candlestick, also known as 'candle chart', may look like a small sausage, but it is actually the 'prophet' of the crypto world!
In simple terms, a candlestick represents the price fluctuations of a coin over a period (such as 1 hour, 1 day) using a 'candle'. Four key data points are: opening price, closing price, highest price, and lowest price.
Body: the body of the candle, with two colors:
Red (bullish candle): closing price > opening price → coin price rose!
Green (bearish candle): closing price < opening price → coin price dropped!
Shadow line: the 'little braids' that grow up and down from the candle:
Upper shadow line: distance between highest price and body → 'ceiling' of the bulls and bears fighting.
Lower shadow line: distance between the lowest price and body → 'floor' of the bulls and bears fighting.
For example:
If there is a long red bullish candle, it shows that buyers are very aggressive, directly pushing the coin price from the floor to the ceiling!
If there is a long green candlestick, it indicates that sellers are fierce, pushing the coin price from the peak down to the pit!
2. What secrets are hidden in the body of the candlestick?
1. Body length:
Long bullish candle: body is thick → buyers are frantically buying, the trend may continue to rise!
Long bearish candle: body is thick → sellers are frantically dumping, the trend may continue to fall!
Small bullish/small bearish: body is thin → bulls and bears are evenly matched, market may fluctuate!
2. Shadow line length:
Long upper shadow line: rises halfway and is smashed down → may be 'the finger of a deity', or it could be a peak signal!
Long lower shadow line: drops halfway then pulls back → may be a 'golden pit', or it could be a rebound.
Mnemonic:
The longer the shadow, the more tangled the bulls and bears!
The longer the body, the clearer the trend!
Three, common candlestick patterns, understand the market sentiment instantly!
1. Doji:
Very small body, upper and lower shadow lines are about the same length → bulls and bears are even, the market is about to change!
Occurrence position:
If it rises too much → may signal a peak!
If it drops too much → may signal a bottom!
2. Hammer:
Long lower shadow line with a small body → someone bottom-fished after it dropped to the floor → may signal a reversal!
(suitable for bottom-fishers!)
3. Hanging man:
Long lower shadow line appearing after continuous rises → Beware of the main force pulling up to sell!
(Run fast!)
4. Red Three Soldiers:
Three consecutive small bullish candles → trend is steadily upward → keep up!
5. Black Three Crows:
Three consecutive small bearish candles → trend is downward → stay away!
Four, practical tips that even beginners can use!
1. Look at the volume:
Candlestick surge + explosive trading volume → real breakout, just do it!
Candlestick surge + shrinking trading volume → High price for selling, run fast!
2. Find key levels:
Support level: multiple times dropping to a certain position and bouncing back → may signal a bottom!
Resistance level: multiple times hitting a certain position and being smashed down → may signal a peak!
3. Do not be greedy:
Do not guess a single candlestick, look at combinations of three or more!
For example, the 'Morning Star' (drop → small star → rise) is a reversal signal, but a single small star is useless!
Five, summary
Summary: Candlestick charts are the 'electrocardiogram' of the crypto world. Understanding the body, shadow, and patterns can help predict rises and falls!
Don't blindly trust a single candlestick; combining it with trading volume and key levels increases your win rate!
Which candlestick have you been burned by? Share your story in the comments!
Want to learn more 'loss prevention techniques'? Follow me; next issue reveals 'moving average traps'!
I am the crypto world teacher, focusing on sharing useful and diverse professional knowledge in the crypto world for many years. If you are destined to meet, who will help you if not me? Follow the public account [Cognitive Inner Coin] to unlock things in the circle, and clear the fog of the crypto market. I do not advocate trading contracts, do not engage in fund pools, and do not touch MLM schemes. I just hope our encounter is filled with goodwill.
I am Teacher Xiao Xun, focusing on sharing useful and diverse professional knowledge in the crypto world for many years. If you are destined to meet, who will help you if not me? I do not advocate trading contracts, do not engage in fund pools, and do not touch MLM schemes. I just hope our encounter is filled with goodwill.
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