Guide for Newcomers to the Cryptocurrency Market

The cryptocurrency market is full of opportunities but also comes with significant risks. For newcomers, blindly following trends can lead to losses. Below is a systematic guide to preparing for entry into the market, helping you avoid common pitfalls and rationally start your investment journey.

1. Solidify Basic Knowledge

1. Understand Core Concepts of Blockchain

First, understand what decentralization, distributed ledger, and smart contracts are before discussing investments. Recommended reading: 'Bitcoin Whitepaper' and Ethereum official documentation.

2. Recognize Main Asset Categories

Bitcoin (BTC): Digital gold, market value barometer

Ethereum (ETH): Foundation of the smart contract ecosystem

Stablecoins (USDT/USDC): Fiat-backed risk-hedging tools

Altcoins: High-risk, high-volatility assets

3. Master Key Terminology

Such as private key/public key, gas fees, market capitalization, liquidity, contract leverage—at least be able to distinguish between 'spot' and 'contract' before operating.

2. Entry Strategies for Practical Experience (Start with Small Steps and Learn from Mistakes)

1. Practice Spot Trading

Use $100-500 to test the waters, familiarize yourself with buy/sell orders, market orders, and setting take profit/stop loss.

2. Dollar-Cost Averaging for BTC/ETH

Buy at a fixed time each month to smooth out price fluctuations (e.g., automatically deducting on payday).

3. Continuous Learning and Information Verification

- Data Tools: CoinGlass for liquidation data, Dune Analytics for on-chain positions.

- Contrarian Thinking: When social media is wildly discussing 'a hundred times coin,' it is often a signal to sell.

Final Advice: The cryptocurrency market never closes, operating 24/7, with extreme price fluctuations. Pay attention to your daily monitoring time to avoid emotional trading. Remember—making money in a bull market is luck, surviving in a bear market is skill.