This article discusses the 5 most important things that cryptocurrency beginners need to understand and execute when first starting to use exchanges.

Hope to make it smoother for beginners in cryptocurrency investment trading. #CryptoBasics

1. Set up two-factor authentication (2FA) for your account.

In the cryptocurrency space, the most important thing is not how to trade, but to learn how to secure your account.

Both the exchange account and your personal email account should have two-factor authentication set up.

Additionally, account security includes being cautious not to log in on unfamiliar networks, ensuring that your passwords are not the same as those for other accounts, etc., to protect your assets.

Action Steps:

  • Set up two-factor authentication (2FA) for both your cryptocurrency exchange account and email account.

2. Understand how to exchange cryptocurrency and fiat currency.

  • Fiat currency: For example, USD, EUR, JPY, which are the legal currencies of various countries.

  • Cryptocurrency: For example, BTC, ETH, USDT, USDC, which are classified as cryptocurrencies.

When first using exchanges and wallets, many beginners may feel anxious about their cryptocurrency accounts, thinking that they are completely different from their usual financial accounts, which cannot interact, or mistakenly believe that cryptocurrencies cannot be used for consumption.

In fact, cryptocurrencies in the exchange can be freely converted into fiat currency in your bank account through fiat exchanges, for example, you can convert USDT into USD with one click.

Quote: USDT Tether: Currently one of the largest dollar stablecoins in circulation globally, issued by Tether. USDT is backed by a corresponding amount of USD and other assets, allowing its price to be pegged close to 1:1 with the USD. In the world of cryptocurrency, US dollars and various fiat currencies may not be directly used for trading, leading to the emergence of cryptocurrencies that can be recorded and traded on the blockchain and are equivalent in value to fiat currencies, known as stablecoins.

Every country has local compliant fiat exchanges where you can convert local fiat currency into cryptocurrency or exchange cryptocurrency for fiat currency.

Therefore, in addition to the exchange you use for trading (for example: the largest cryptocurrency exchange globally - Binance), you can also register for a local fiat exchange in your country.

When you need to convert fiat currency, you can use a fiat exchange for trading.

Knowledge Point:

  • In addition to the most commonly used exchanges, also register for a fiat exchange in your own country (for example: MAX, Bibox are the two fiat exchanges I commonly use. Considering the number of cryptocurrency types and the trading volume depth, I think Binance is better for regular cryptocurrency trading).

  • Conduct a deposit and withdrawal using a fiat exchange, especially withdrawals, and understand how to retrieve your funds.

  • Deposit: Beginners usually use credit cards for deposits, followed by transferring from fiat exchanges on-chain.

  • Withdrawal: Transfer on-chain to the fiat exchange, then convert cryptocurrency into fiat currency.

  • On-chain transfer: Enter the corresponding wallet address and choose the blockchain mainnet. (For example: Many people choose to use the Tron network for transferring USDT, and it is important to ensure that the receiving and paying mainnets are the same to avoid loss during the transfer process.)



3. Understand the financial features of the exchange, enabling your account balance to generate income with one click.

For beginners, instead of focusing on trading, it is advisable to first understand various low-risk features of the exchange that can generate income. Here are some low-threshold, low-risk features, including flexible finance, airdrops, etc.

Taking Binance as an example, the low-risk features that beginners can use to earn rewards include:

  • Finance (Earn): Includes flexible (Flexible) and locked (Locked Products) income tools.

  • Launchpool: During events, invest tokens like BNB, FDUSD, USDC, and receive airdrop rewards for free.

  • Megadrop: Invest BNB in finance and complete designated Web3 tasks to receive airdrop rewards based on points.

  • Hodler Airdrop: Random airdrop rewards for users who continuously hold BNB in finance.

These are features that beginners can prioritize studying.

Action Steps:

  • First, prioritize researching the basic financial and airdrop features in the exchange.

Taking Binance as an example: Open the app, click on [Finance], and you can find various cryptocurrencies for flexible and locked finance (as shown below).

For example, if you hold BNB and invest in flexible or locked finance activities, you can automatically participate in launchpool, Megadrop, and Hodler Airdrop in addition to interest rate rewards.


Finally,

If you do not have an account yet, you can take the first step,

Register an account:Binance registration link


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