From 50,000 to tens of millions now. It’s through trading coins that I achieved class mobility and financial freedom! If you say there was no opportunity in the crypto world, I might still be working overtime at some company, facing difficulties from my boss or customer! I had this chance to turn my life around. How many people spend their lives only to miss such opportunities or never have them at all! One day in crypto is ten years in the world.
This is not just talk. “The crypto world is a place that easily instills faith.”
In 2025, a violent bull market will start early; 2025-2026 will be extremely wild, unimaginable!!
50 essential knowledge points for beginners in the crypto world, learn to avoid losses first, then think about making money!
The crypto world is not a casino, it’s a battlefield!
Some become rich overnight, while others lose everything, simply because some enter with a clear mind while others run in naked with 'greed’!
Many people rush into the crypto world seeking overnight wealth, yet they don’t even understand some basic concepts, on-chain data + incomprehensible, K-line charts + cannot read, don’t know how market makers harvest retail investors; they deserve to be taken advantage of by project teams.
Today I summarized 50 essential entry knowledge points for beginners, learn to avoid losses first, then think about making money; if your principal is gone, the crypto world has nothing to do with you.
[Basic Concepts]
1. What is a block: A decentralized ledger, all transaction records are publicly available; if you want to change data, you must hack 51% of the computers on the network.
2. Public chain/Private chain/Consortium chain: Public chains (like BTC, ETH) are available to everyone, private chains (like internal company use) require permissions, consortium chains (like Ripple) are a small circle among several institutions.
3. Token and Coin: Coin is “currency” (like BTC), Token is “points” (like UNI of UNISWAP); don’t be fooled by project teams.
4. What is DeFi: Decentralized finance, using code to replace banks; can borrow and invest, but if the code has vulnerabilities, your money is gone.
5. NFT is not JPG: It is proof of digital ownership, but don’t touch “air NFTs.” Before buying, ask yourself: Who can I sell this to?
[Trading Skills]
6. Spot vs Futures: Spot is “buying vegetables,” Futures is “leveraging to gamble on vegetable prices,” beginners should start with spot trading.
7. K-line charts must be looked at: Bullish candles (up), bearish candles (down), moving averages (average cost line); don’t be dazzled by “red and green.”
8. Support/Resistance levels: A price rebound at a certain point is called support, a drop at a certain point is called resistance; this is “psychological warfare.”
9. Trading volume: A surge in volume may indicate a drop, a decrease in volume may indicate a rise; don’t memorize it, combine it with trends.
10. Stop loss and take profit: Run when expected returns are reached, cut losses if it hits the stop loss line like 10%, don’t be greedy; the crypto world is full of “opportunities.”
[Risk Prevention]
11. Private key = lifeline: If you lose your private key, your coins are gone; don’t store them on cloud drives, don’t take screenshots, use a hardware wallet.
12. Withdrawal confirmation: When withdrawing coins from an exchange to a wallet, first transfer a small amount like 0.0001 to test, confirm receipt before transferring a large amount.
13. Stay away from shitcoins: Coins with names containing “Dog,” “Shib,” or “Floki” are 99% “air coins,” don’t become a retail investor.
14. Beware of “teachers”: Those who tell you to “bottom fish” or “top escape” are either scammers or fools; there are no “stock gods” in the crypto world.
15. Don’t use leverage: With 10x leverage, a 10% drop leads to liquidation; don’t gamble your entire fortune on tomorrow.
[Ecological Awareness]
16. Bitcoin is “digital gold”: Total supply of 21 million coins, inflation-resistant, the eternal anchor in the crypto world.
17. Ethereum is the “operating system”: DeFi, NFT, and games all run on it, but Gas fees are a bit high and concurrency is a bit low.
18. Layer2 is the “highway”: It solves Ethereum congestion, such as Arbitrum, Optimism, with low transaction fees and fast speeds.
19. Cross-chain bridge = “Portal”: Transfer coins from Ethereum to BNB Chain using a cross-chain bridge, but don’t use small platforms, they can easily get hacked.
20. Stablecoins = “digital dollars”: USDT, USDC, DAI, pegged 1:1 to the dollar, but USDT has over-issuance risks.
[Project Analysis]
21. Must read the white paper: What the project does, how it makes money, who the team is; don’t trust “Chinese white papers,” read the English original.
22. Token economic model: How much total supply, how it’s distributed, is there a “lock-up,” don’t buy coins with “unlimited issuance.”
23. On-chain data: Look at “number of wallet addresses,” “trading volume,” “large transfers,” data doesn’t lie, but can be “faked.”
24. Community activity: Twitter followers, Telegram group activity, but don’t trust “pump signals,” 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 first use “spot trading,” don’t touch “futures” or “leverage.”
27. Wallets: MetaMask, TP Wallet; keep your private keys safe, don’t store them on exchanges.
28. Market software: CoinGecko, CoinMarketCap, check rankings, market cap, and trading volume.
29. On-chain explorer: Etherscan, BscScan, check transaction records and wallet addresses.
30. Information platforms: CoinDesk, The Block; don’t just look at clickbait, focus on in-depth analysis.
[Mindset]
31. Don’t FOMO: Don’t rush to chase after a coin when it goes up, 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 cash, don’t sell your house or borrow money to trade.
34. Long-termism: BTC has risen 10 million times in ten years, but 99% of people can’t hold on because of frequent trading.
35. Learn to rest: Don’t be greedy in a bull market, don’t panic in a bear market; the crypto world trades 24 hours, but your heart doesn’t.
[Advanced]
36. Staking mining: Deposit coins into DeFi platforms to earn interest, but beware of “impermanent loss.”
37. Liquidity mining: Provide liquidity to trading pools to earn fees, but don’t touch high yield ones, they might be Ponzi schemes.
38. NFT gameplay: Buy blue-chip projects (like BAYC, CryptoPunks), don’t buy trash NFTs.
39. GameFi: Earn money while playing games, but pay attention to the economic model, don’t play Ponzi games.
40. DAO: Decentralized Autonomous Organization, uses tokens for voting on decisions, but don’t participate in “small DAOs,” they can be easily manipulated.
[Terminology]
41. “Going All in”: All in, a gambler’s behavior.
42. “Airdrop”: Free coins, but don’t trust “prepaid airdrops,” they are scams.
43. “Rug pull”: Project team runs away, coin price drops to zero.
44. “Whale”: Addresses holding large amounts of coins, their every move affects coin prices.
45. “Washing”: Major players intentionally crash the market to scare off retail investors.
[History]
46. The 312 crash: On March 12, 2020, BTC dropped 50% in one day; how many people got liquidated?
47. The 519 massacre: On May 19, 2021, the crypto world collectively crashed, DeFi locked assets halved.
48. Luna crash: In 2022, the algorithmic stablecoin Luna went to zero, evaporating 40 billion dollars.
49. FTX collapse: In 2022, the world’s second-largest exchange FTX went bankrupt, founder SBF was arrested.
50. Bitcoin halving: Every four years, the output halves, historical trend “drops before halving, rises after halving,” but don’t be overly rigid.
“These 50 knowledge points are my experiences crawling out of the ‘mountain of corpses and sea of blood’ in the crypto world; save this article to avoid three years of detours!
Here’s another saying: The crypto world is not a money printer; it’s a realization of cognition; every penny you earn is a reflection of your understanding of the world.
Then, if you can use some basic crypto tools, that’s enough!
In the crypto world, there are so many coins; you must clearly understand which one to buy and how to buy it.
Otherwise, trading coins based on feelings is ultimately not a long-term solution.
Opportunities have come, assets can double! Follow Biao Ge and easily make big money.
Keep an eye on: IOTX, ATM