Recently, I've seen many newcomers entering the scene, and it reminds me of the pitfalls I faced back in the day. Today, I want to share some practical advice, and here Lao Zhao presents a survival manual for these new friends.
Are you confused when you first enter the crypto world? First, let me calm you down with ten bucks worth of advice. The crypto world is not an ATM; it’s more like a high-end casino. Out of ten people, seven will lose money, two will break even, and only one will make a profit! Bitcoin and Ethereum are different from stocks; they are not backed by companies, and their price fluctuations depend entirely on people's emotions, commonly known as speculative trading. Those who hype 100x coins have lower odds than winning the lottery, and if newcomers rush in blindly, they are just fodder!
First, you need to understand the difference between mainstream coins and altcoins: Bitcoin and Ethereum are considered the regular army—they can drop significantly but still recover. Bitcoin has historically crashed three times by 80% and still reached new highs. Altcoins like SHIB and PEPE are wildcards; they can surge and then plummet to zero, so newcomers should steer clear of them!
Next, you need to distinguish between spot trading and contract trading. Spot trading means you spend money to buy coins, like buying apples; if the coin rises, you profit, and if it falls, you lose, but you still have the apples! In contract trading, you are betting against the exchange on price movements; you can bet on both rising and falling prices, allowing for more operational flexibility.
How to reasonably use leverage: leverage is a double-edged sword. For newcomers, Lao Zhao's advice is to use 3-5x leverage! This is a safety line. Treat 10,000 as 30,000; only if it drops by 20% will you face liquidation. Always set a mechanical stop-loss when opening a position; if it falls by 10%, automatically exit—don't get emotionally attached to the exchange!
If you feel helpless or confused while trading in the crypto world, I hope my sharing can provide you with some inspiration and help! If you think Lao Zhao's sharing is good, give Lao Zhao a follow for more valuable content updates.#币安Alpha上新
$BTC