Beginner's guide to crypto: From zero to systematic trading
1. Basic knowledge of exchanges (familiarize in 1-2 days)
✅ Registration and certification
Choose mainstream exchanges (like Binance, OKX, Bybit, Coinbase)
Complete KYC (identity verification) to increase withdrawal limits
Bind Google Authenticator (2FA) for enhanced security
✅ Fund transfer and trading
Fiat deposit: Buy USDT/BTC through OTC (over-the-counter trading)
Spot trading: Directly buy and sell coins (low risk, suitable for beginners)
Contract trading: Leverage amplifies profits/losses (high risk, proceed with caution)
Withdrawals and deposits: Distinguish between different chains (ERC20/TRC20/BEP20) to avoid wrong transfers
✅ Basic information acquisition
Market data: CoinMarketCap, CoinGecko
Trading depth: Exchange order book (buy/sell liquidity)
K-line basics: Support level, resistance level, trading volume
2. Underlying logic: The core factors of price fluctuations
✅ Market supply and demand
Buy volume > Sell volume → Price rises | Sell volume > Buy volume → Price falls
Real trading volume on exchanges (beware of wash trading fake data)
✅ Influencing factors
Macroeconomic factors: Federal Reserve policies, global economic conditions
Industry factors: Bitcoin ETF, regulatory policies, hacking events
Project factors: Token economics, team background, on-chain data
✅ The influence of whales (large holders)
Large trades cause significant price fluctuations
Can track whale wallets using on-chain tools (like Nansen)
✅ Which coins can be bought? Which cannot?
Can buy: BTC, ETH, mainstream Layer 1 (SOL, AVAX)
Be cautious when buying: newly listed altcoins (90% go to zero), anonymous team projects
3. Build a trading system (core!)
✅ Trend trading
Follow the trend, do not go against it
Use moving averages (MA50/MA200) to determine trends
✅ Swing trading
Buy at support levels, sell at resistance levels
Combine with RSI (overbought/oversold indicator)
✅ Arbitrage strategy
Arbitrage between exchanges (needs to be executed quickly)
Spot and contract basis arbitrage
✅ Automated trading (advanced)
Grid trading (suitable for sideways markets)
Quantitative strategy (requires programming knowledge)
4. Position management (determines survival rate)
✅ Fund allocation
Single trade ≤ 5% of total funds
Contract leverage ≤ 10x (newcomers are advised to keep within 5x)
✅ Dynamic adjustment
Gradually take profits after gaining (e.g., 'pyramid selling method')
Never add to a losing position (to avoid averaging down losses)
✅ Black swan response
Set stop-loss in advance during extreme market conditions
Keep some stablecoins (USDT/USDC) for bottom fishing
5. Risk control (core to prevent liquidation)
✅ Hard rules
Always set stop-loss for each trade (loss ≤ 2% of capital)
If daily loss ≥ 5%, mandatory stop trading
✅ Contract risk control
Avoid high leverage (20x or more ≈ gambling)
Do not hold positions, do not add to losing trades
✅ Fund security
Store large assets in cold wallets (Ledger/Trezor)
Do not click on unfamiliar links (anti-phishing)
6. Trading mentality (the hardest part to master)
✅ Emotional management
Do not FOMO after profits (do not blindly chase rising prices)
Do not revenge trade after losses (take a break and calm down)
✅ Discipline
Execute as planned, do not change orders last minute
Do not stay up late watching the market (fatigue leads to poor decisions = losses)
✅ Long-term thinking
Do not pursue getting rich overnight
Continuous learning (technical analysis, on-chain data)
Summary: Survival rules for beginners
1️⃣ Simulate first, then trade live (practice for at least 1 month)
2️⃣ Small funds for trial and error (initial investment ≤ 500U)
3️⃣ Only trade spot, avoid contracts (to prevent quick loss)
4️⃣ Continuous learning (stay updated on industry trends, technical analysis)
5️⃣ Strict stop-loss (surviving gives you a chance to win)
Remember: Only a few people make money in the crypto space, controlling risk is the key to survival! 🚀
