How can beginners accumulate their first million in the crypto market? Key 8 steps!

Many newcomers want to make big money in the crypto market, but the high volatility of the market can leave them confused. In fact, accumulating your first pot of gold in the crypto market doesn't require complex operations. The following 8 key steps can help you gradually achieve wealth growth.

1. Choose the right track: Start with mainstream coins.

If you're a beginner, it's recommended to start with Bitcoin (BTC) and Ethereum (ETH).

• Bitcoin is the cornerstone of the entire crypto market and still has significant growth potential in the long run.

• Ethereum, as the leader in smart contracts, is relied upon by almost all DeFi and NFT projects for its ecosystem development.

Beginner's Advice: Don't start by investing in small coins, but rather accumulate experience from mainstream assets.

2. Adopt a dollar-cost averaging strategy (DCA) to reduce investment risks.

The market is highly volatile; dollar-cost averaging can help you smooth out costs and reduce the impact of short-term price fluctuations.

Practical methods:

• Set aside 500-2000 yuan each month to regularly buy BTC or ETH, and stick to it regardless of market fluctuations.

• In the long run, your average holding cost will be lower than a one-time purchase, making returns more stable.

3. Diversify investments and allocate assets reasonably.

Avoid going all in on a single coin; a reasonable allocation of funds can reduce risk.

Recommended investment ratio:

• 50% Mainstream coins (BTC, ETH): Hold for the long term.

• 30% Stablecoins (USDT, USDC): Reserve funds to wait for better buying opportunities.

• 20% Potential small coins (SOL, AVAX, etc.): Appropriately participate in high-growth tracks.

4. Pay attention to market cycles and avoid chasing prices.

The crypto market usually operates on a 3-4 year cycle; bear markets are buying opportunities, while bull markets are selling opportunities.

Smart approach:

• Buy in batches during bear markets instead of chasing high prices when the market rises.

• Sell in batches during bull markets to avoid missing high points.

5. Avoid high-risk operations and protect your principal.

• Avoid high leverage: While leveraged trading can magnify profits, losses can also be magnified, and beginners are at high risk of liquidation.

• Don't blindly follow market trends: There are many market hotspots, but many projects are short-lived, so do your homework before investing.

6. Participate in staking and DeFi to earn passive income.

If you hold BTC or ETH for the long term, consider staking some assets or using DeFi lending to earn additional interest income.

7. Keep an eye on industry dynamics and continue learning.

The crypto market changes rapidly; continuous learning is key to long-term survival. You can do this by:

• Follow crypto news and KOL analyses.

• Participate in cryptocurrency community discussions and learn investment experiences.

8. Stay patient and set long-term goals.

Investment is not about getting rich overnight, but rather a long-term process. If you want to make a million in the crypto market, the most important factors are patience and discipline. Stick to your strategy and don't let short-term fluctuations affect your decisions.

Summary:

For beginners to succeed in the crypto market, the key is to choose the right assets, adopt a dollar-cost averaging strategy, diversify investments, grasp market cycles, and control risks. As long as you can stick to it, accumulating your first pot of gold is not out of reach!