From 50,000 to tens of millions now. It was through trading cryptocurrencies that I achieved class mobility and financial freedom! If it weren't for the opportunities in the cryptocurrency space, I might still be working overtime in some company, facing the risk of being undermined by my boss or bullied by clients! This chance to turn my life around is rare. How many people spend their entire lives just to see such opportunities missed, or never even come? One day in the cryptocurrency world equals ten years in the human world.
This is really not just talk. 'The cryptocurrency world is a place that easily instills faith in people.'
2025 will see the onset of a rampant bull market, and 2025-2026 will be extremely wild, beyond imagination!
50 essential knowledge points to master when entering the cryptocurrency space. First, learn not to lose, then think about making money!
The cryptocurrency space is not a casino; it's a battlefield!
Some people become rich overnight while others lose everything, simply because some enter with a brain while others enter with 'greed' naked!
Many people plunge into the cryptocurrency world seeking overnight wealth, yet they don’t even understand basic concepts, don’t know how to read on-chain data or candlestick charts, and have no idea how market makers exploit retail investors. It’s no surprise they end up as bag holders.
Today I summarized 50 must-know entry points for beginners. First, learn not to lose; then think about making money. If your principal is lost, the market has nothing to do with you.
[Basic Concepts]
1. What is a block: A decentralized ledger where transaction records are publicly available across the network. To alter the data, you would first need to hack 51% of the network’s computers.
2. Public chain/Private chain/Consortium chain: A public chain (like BTC, ETH) can be used by anyone, a private chain (like internal company use) requires permission, and a consortium chain (like Ripple) is a small circle of several institutions.
3. Token and Coin: A Coin is 'currency' (like BTC), a Token is 'points' (like UNISWAP's UNI). Don’t be fooled by project parties.
4. What is DeFi: Decentralized finance, using code to replace banks; it can lend and invest, but if the code has vulnerabilities? The money is gone.
5. NFT is not JPG: It's proof of digital ownership, but don’t touch 'air NFTs'. Ask yourself before buying: Who can I sell this to?
[Trading Techniques]
6. Spot vs. Contracts: Spot is buying 'cabbages', contracts are 'leveraged bets on cabbage prices'. Beginners should start with spot trading.
7. Candlestick charts are essential: Bullish candles (up), bearish candles (down), moving averages (average cost line). Don’t be blinded by 'red and green.'
8. Support and resistance levels: Price rebounding at a certain point is called support, while price dropping at a certain point is called resistance; this is a 'psychological battle.'
9. Trading volume: An increase in volume may indicate a drop, and a decrease in volume may indicate a rise, but don’t memorize blindly; consider the trend.
10. Stop loss and take profit: Run when you reach your expected profit, stop-loss (like 10%) when hit; don’t be greedy. The cryptocurrency space is never short of 'opportunities.'
[Risk Control]
11. Private key = lifeline: If you lose your private key, your coins are gone. Don’t store them in cloud drives or take screenshots; use a hardware wallet.
12. Confirm withdrawals: When withdrawing from an exchange to a wallet, first transfer a small amount like 0.0001 to test, confirm the receipt, then transfer larger amounts.
13. Stay away from 'meme coins': Coins with names including 'Dog', 'Shib', or 'Floki' are 99% 'air coins.' Don’t be a victim.
14. Beware of 'teachers': Those who take you to 'buy the dip' or 'sell the top' are either scammers or fools; there are no 'stock gods' in the cryptocurrency space.
15. Don't leverage: With 10x leverage, a 10% drop can liquidate you. Don’t bet your entire fortune on tomorrow.
[Ecosystem Awareness]
16. Bitcoin is 'digital gold': A total of 21 million coins, anti-inflation, and the eternal anchor of the cryptocurrency world.
17. Ethereum is the 'operating system': DeFi, NFTs, games all run on it, but gas fees are a bit high and the concurrency is a bit low.
18. Layer 2 is the 'highway': it solves Ethereum congestion, like Arbitrum and Optimism, with low transaction fees and fast speeds.
19. Cross-chain bridges = 'portals': Transfer coins from Ethereum to BNB Chain using cross-chain bridges, but don’t use small platforms; they can be hacked.
20. Stablecoin = 'digital dollar': USDT, USDC, DAI, pegged 1:1 to the dollar, but USDT has over-issuance risks.
[Project Analysis]
21. Must-read whitepapers: What the project does, how it makes money, who the team is. Don’t trust 'Chinese whitepapers'; read the English original.
22. Token economic model: Total amount, how it's distributed, whether there are 'locked assets'. Don’t buy coins with 'unlimited issuance.'
23. On-chain data: Look at 'number of holding addresses', 'transaction volume', 'large transfers'. Data doesn’t lie, but can be 'manipulated'.
24. Community activity: Twitter followers, Telegram group activity, but don’t trust 'calls'; look for 'real discussions.'
25. Competitor comparison: Among lending platforms, which is safer, Aave or Compound? Among public chains, which is faster, Solana or Avalanche?
[Tools]
26. Exchanges: Binance, OKX, Coinbase. Beginners should start with 'spot trading', don’t touch 'contracts' or 'leverage'.
27. Wallets: MetaMask, TP Wallet. Keep your private keys secure; don’t store them on exchanges.
28. Market software: CoinGecko, CoinMarketCap. Check rankings, market cap, and trading volume.
29. On-chain explorers: Etherscan, BscScan. Check transaction records and holding addresses.
30. Information platforms: CoinDesk, The Block. Don't just look at clickbait; read in-depth analysis.
[Mindset]
31. Don’t FOMO: If you see a coin rising, don’t rush to chase it; it might be a pump and dump.
32. Don’t FUD: Don’t rush to sell when you hear bad news; it might be a washout.
33. Don’t go all-in: Invest with spare money; don’t sell your house or borrow money to trade cryptocurrencies.
34. Long-termism: BTC has risen 10 million times in ten years, but 99% of people cannot hold on due to frequent trading.
35. Learn to rest: Don’t be greedy in a bull market, don’t panic in a bear market. The cryptocurrency market trades 24 hours, but your heart does not.
[Advanced]
36. Staking mining: Deposit coins into DeFi platforms to earn interest, but be wary of 'impermanent loss.'
37. Liquidity mining: Provide liquidity to trading pools to earn fees, but avoid high-yield ones; they may be 'Ponzi schemes.'
38. NFT strategies: Buy blue-chip projects (like BAYC, CryptoPunks), but don’t buy junk NFTs.
39. GameFi: Earn money while playing games, but be sure to look at the economic model. Don't play Ponzi games.
40. DAO: Decentralized Autonomous Organization, uses tokens for voting decisions, but avoid participating in 'small DAOs' as they can be manipulated.
[Cryptocurrency Jargon]
41. 'Going all in': All in, gambling behavior.
42. 'Airdrop': Free coins, but don’t trust 'prepaid airdrops'; they are scams.
43. 'Rug pull': When project parties run away, the coin price drops to zero.
44. 'Whales': Addresses that hold a large amount of coins, their every move affects coin prices.
45. 'Washing': Major players deliberately crashing the market to scare off retail investors.
[History]
46. 312 Crash: On March 12, 2020, BTC dropped 50% in one day. How many people were liquidated?
47. The May 19 Massacre: On May 19, 2021, the cryptocurrency market collectively plummeted, and DeFi locked assets were halved.
48. Luna crash: In 2022, the algorithmic stablecoin Luna dropped to zero, evaporating 40 billion USD.
49. FTX Crash: In 2022, the second-largest exchange FTX went bankrupt, and founder SBF was arrested.
50. Bitcoin halving: The production is halved every four years. Historical pattern: 'drop before halving, rise after halving', but don’t be inflexible.
'These 50 knowledge points are experiences I've crawled out from the 'mountains of corpses and seas of blood' in the cryptocurrency space. Save this article to avoid three years of detours!
Let me give you one more piece of advice: The cryptocurrency space is not a money printing machine; it is a realization of cognitive understanding. Every penny you earn is a reflection of your understanding of the world.
Then, just learn to use some basic cryptocurrency tools, and you're good to go!
There are so many coins in the cryptocurrency space. You need to be clear about which one to buy and how to buy it.
Otherwise, trading based on feelings is not a long-term solution.
Opportunities are here, assets double! Follow Cheng Ge closely to easily make big money.
Keep an eye on: IOTX, ATM
