Newbie Investment Guide in the Crypto World: A Steady Approach to Avoid Pitfalls
Newcomers in the crypto world often find themselves in a dilemma of "fearing losses while wanting to earn."
Given the current market volatility, blind operations can easily lead to pitfalls. This guide will help you clarify your thoughts, ensuring you don't lose from the start.
First, understand the basics before taking action.
The core of the crypto world is "buy low, sell high," but the risks vary greatly depending on the method used.
Newbies should start with spot trading, such as mainstream coins like BTC and ETH. Buy when prices drop to a certain level and sell when they rise by 5%-10%. You don't need complex indicators; just test the waters with 200-500 U.
For instance, my friend Xiao Li just entered the market and only engaged in spot trading. He hasn't lost in 3 months and has figured out the market rhythm.
Absolutely avoid futures contracts. Although 10x leverage seems to offer high earnings, some people lose 500 U within half a day and don’t even know where they went wrong.
Next, steer clear of high-risk "minefields."
The primary market may seem like a place to buy coins at low prices, and the prices might skyrocket by 10 times once listed, but it has the most pitfalls. Last year, many newbies invested in "metaverse projects," only to lose their money as the projects vanished.
Launchpads are relatively stable. Holding platform tokens like BNB can help you secure allocations for new coins, generally earning 2-5 times your investment. However, be aware of the possibility of not securing allocations or projects failing to launch properly; don't invest your entire capital.
Finally, remember two key principles.
First, don’t be greedy for “free surprises.” Airdrops are nice, but just use mainstream platforms like Arbitrum. Repeated trading to “inflate volume” can get you blacklisted;
Second, be cautious about chasing hot NFTs. The market is cold now; last month, someone followed trends to buy “celebrity NFTs,” which have dropped 80% and are still unsellable. If you don’t understand the art and project value, don’t get involved.
For newbie investors, slow is fast. Practice spot trading for 3 months, learn to set stop-losses, and only then consider other strategies. Preserving your principal is key to long-term profits.
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