Guide for Newcomers to the Cryptocurrency Market 🍵
Guide for Newcomers to the Cryptocurrency Market: The cryptocurrency market is full of opportunities but also carries significant risks. For newcomers, blindly following trends may lead to total loss. Here is a systematic preparation guide to help you avoid common pitfalls and rationally embark on your investment journey.
1. Solidify Basic Knowledge
1. Understand Core Concepts of Blockchain
First, grasp what decentralization, distributed ledger, and smart contracts are before discussing investments. Recommended reading: 'Bitcoin White Paper' and Ethereum's official documentation.
2. Recognize Mainstream Asset Classes
Bitcoin (BTC): Digital gold, market capitalization benchmark
Ethereum (ETH): Cornerstone 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, and contract leverage—at least be able to distinguish between 'spot' and 'contract' before proceeding.
2. Practical Entry Strategies (Start with Small Steps and Trial and Error)
1. Practice Spot Trading
Use $100-$500 to test the waters, familiarize yourself with buy/sell orders, market orders, and stop-loss/stop-profit settings.
2. Dollar-Cost Averaging BTC/ETH
Buy at a fixed time each month to smooth out price fluctuations (e.g., automatic deduction on payday).
3. Stay Away from Contract Leverage
Newcomers should avoid using 10x or 100x leverage in the first 3 months; the risk of liquidation is extremely high!
3. Continuous Learning and Information Discrimination
- Data Tools: Use CoinGlass to check liquidation data and Dune Analytics to check on-chain holdings.
- Contrarian Thinking: When social media is buzzing about '100x coins,' it is often a signal to sell.
Final Advice: The cryptocurrency market operates 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.
