Entering the cryptocurrency world, witnessing the legendary stories of others' wealth skyrocketing is indeed thrilling, but the reality is harsh — the law of 'seven losses, two breaks, one gain' applies here as well, and even more so. As someone who has been through it, I have seen too many novices enthusiastically enter the market, only to leave in disappointment. Don't worry, this practical guide does not discuss metaphysics, but rather focuses on truly actionable methods that can help you protect your principal and steadily profit. Remember: in the cryptocurrency world, surviving long is a thousand times more important than making quick profits.
1. Profit Foundation: Awareness > Luck (A Must-Know Course to Avoid Being Cut)
Crazy Learning of Basic Knowledge (A Must!):
What is blockchain? Understanding decentralization, distributed ledgers, consensus mechanisms (PoW, PoS, etc.) — this is the foundation for understanding the value of all cryptocurrencies. What are Bitcoin (BTC) and Ethereum (ETH)? Understand the problems they solve and their core differences. They are the 'gold' and 'oil' of the crypto world, the starting point for most strategies. Wallets, public keys, private keys, mnemonic phrases: These are the lifelines of your assets! Not understanding = potential loss of coins at any time. Hardware wallets (cold wallets) are the safest option. How exchanges operate: Centralized exchanges (CEX like Binance, OKX) vs. decentralized exchanges (DEX like Uniswap, PancakeSwap). Understand the pros and cons and risks. Basic terminology: Token, Coin, Gas Fee, Market Cap, Trading Volume, Candlestick Chart, Bull Market/Bear Market... Don't let terminology hinder your understanding of information. Recommended resources: CoinMarketCap/CoinGecko (for data), Binance Academy (for systematic learning), classic books (Mastering Bitcoin) (for in-depth understanding).
Deeply understand the risks (bloody lessons!):
Extremely high volatility: A daily fluctuation of 50% is normal. If you have a weak heart, borrowing money to invest is a big taboo. Project risk: Over 90% of projects will eventually go to zero. Air tokens, scam coins, rug pulls are everywhere. Regulatory risk: Policy shifts can cause the market to plummet or make certain operations illegal in an instant. Exchange/platform risk: Hacking, exit scams (even well-known platforms have historical cases), withdrawal restrictions. Personal risk: FOMO (fear of missing out), greed, panic, operational errors.
II. Profit Prerequisites: Capital management is the lifeline.
Invest only with idle money:
Definition: Even if you lose everything, it does not affect your basic living expenses, rent, medical expenses, or family support. It is recommended not to exceed 5%-10% of liquid assets. Absolute taboo: Do not borrow money! Do not take out loans! Do not use living expenses! Do not use money for buying a house/marriage/lifesaving!
Position management strategy (novice survival rule):
Core Position (50%-70%): Invest only in BTC and ETH. They are time-tested, relatively the most stable (by cryptocurrency standards), and have the strongest market consensus. They are your guarantee to survive in a bear market and reap rewards in a bull market. Satellite Position (20%-30%): After in-depth research, allocate a small amount to mainstream altcoins (such as SOL, ADA, DOT, AVAX, etc. Layer 1, or UNI, LINK, MATIC, etc. mainstream application tokens) that you are optimistic about, have real applications, and strong teams. Strictly control the number, do not exceed 3-5. Exploration/Speculation Position (≤10%): Used for chasing hot trends, new projects (such as inscriptions, Meme coins), participating in early airdrops, etc. Treat this money with the mindset that it’s already lost. Stablecoin Position (Flexible): Keep some USDT/USDC. Used for buying the dip, paying gas fees, or as a safe haven during extreme market panic.
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