1. Basic Understanding: Understand the 3 Core Concepts
Blockchain: As a globally public 'distributed ledger', its core characteristics are the absolute transparency and immutability of data, which is the technological foundation for the existence and operation of cryptocurrencies like Bitcoin and Ethereum. It ensures that every transaction is traceable and cannot be maliciously tampered with through a decentralized network of nodes.
Mainstream Coins:
Bitcoin (BTC): Known as 'digital gold', it has become a preferred asset for inflation resistance due to its scarcity and wide recognition, facing relatively lower market volatility risks when held long-term.
Ethereum (ETH): As a leading smart contract platform, it provides solid technical support for decentralized finance (DeFi), non-fungible tokens (NFTs), and other diverse ecosystems, with significant richness and innovation in the industry.
Key Terms:
Gas Fees: The fees that need to be paid during on-chain transactions, which fluctuate in real-time depending on network congestion. Therefore, it is essential to confirm the real-time fee rate before conducting transfers or other operations to avoid transaction efficiency issues due to cost problems.
DeFi/NFT: DeFi refers to decentralized finance, breaking the centralized barriers of traditional finance; NFTs are unique certificates of digital assets. For newcomers, it is recommended to start from relatively basic staking and exchange-related segments to gradually experience their functionalities.
2. Practical First Step: Choose a Safe Trading Platform
Binance: As one of the largest cryptocurrency exchanges globally, it supports direct fiat deposits, and its platform interface is very friendly to newcomers, with simple and easy-to-understand operational processes, effectively lowering the entry barrier for beginners.
OKX: The Chinese interface is complete and localized services are in place, offering various trading functionalities including spot and futures, which can meet the trading needs of investors at different stages, suitable for newcomers to gradually explore diverse trading models.
Gate.io: With the notable advantage of transparent fund reserves, it is a relatively safe choice for newcomers entering the crypto space who want to try small amounts, allowing investors to have a clearer understanding of the platform's financial status.
3. First Purchase of Cryptocurrency: 4 Steps
Fiat Currency Deposit: Purchase USDT through Alipay or bank cards. This token is pegged to the US dollar at a 1:1 ratio, with a relatively stable price, and serves as a common 'bridge' into the cryptocurrency market.
Purchase Mainstream Coins: Use a distribution strategy of '70% fund allocation in BTC/ETH, 20% allocation in platform tokens (like BNB), and 10% exploring potential coins'. When trading, it is recommended to use 'Market Orders' for quick execution, effectively avoiding the slippage risk that may arise from limit orders and ensuring trades are executed as expected.
Small Amount Trial: It is recommended that the initial investment does not exceed 5% of personal liquid funds, so that even in the event of risk, it will not have a significant impact on personal finances, providing a buffer space for newcomers.
4. Asset Security Storage: Wallet Selection Guide
Short-term Trading: You can directly use wallets provided by exchanges, but be cautious to avoid storing large amounts of assets long-term here to reduce potential losses from platform security risks.
Long-term Holding:
Hot Wallets: Such as MetaMask and Trust Wallet, these wallets need to connect to the internet and are suitable for daily small transactions, offering high convenience.
Cold Wallets: Devices like Ledger and Trezor belong to physical devices that use offline storage methods, providing the highest level of security against network attacks, suitable for storing large amounts of assets for long-term holding.
5. Risk Management: Avoid becoming 'chives' (a term for inexperienced investors who are easily harvested).
Position Allocation: Follow the principle of '70% in mainstream coins + 20% in potential coins + 10% in cash'. This configuration ensures relative stability of assets while reserving some space for obtaining excess returns.
Dollar-Cost Averaging Strategy: Buy BTC/ETH on a fixed date each month, gradually spreading the investment to average out the cost differences caused by market volatility, reducing risks caused by poor timing.
Take Profit and Stop Loss: When asset profits reach 30%, adopt a strategy of selling in batches to lock in profits; when losses reach 15%, execute forced stop-loss operations to prevent further losses. You can use features like Binance's 'Conditional Orders' and OKX's 'Strategy Trading' to automate operations, reducing the interference of human emotions in decision-making.
Pitfall Avoidance Guide: Newcomers should stay away from high-leverage contracts, as statistics show that the liquidation rate exceeds 95%, posing extremely high risks; also be wary of so-called 'hundredfold returns' from meme coins, of which 99% are scams; do not be deceived by false promises.
6. Recommended Learning Resources
Data Analysis: CoinMarketCap provides comprehensive cryptocurrency market data, while DeFiLlama focuses on on-chain data statistics, providing strong support for investors analyzing market dynamics.
Information Platforms: Jinse Finance and CoinDesk are authoritative news platforms in the industry, providing timely access to important information about the global cryptocurrency market.
KOL Recommendations: Follow industry key opinion leaders on Twitter such as @VitalikButerin (co-founder of Ethereum) and @cz_binance (CEO of Binance) to gain insights on cutting-edge views and industry trends.
Tutorial Courses: Binance Academy offers free systematic courses, and Bilibili's (Xiao Zhen Blockchain Open Course) delves into blockchain knowledge from a technical perspective, suitable for newcomers with different learning needs.
Special Reminder⚠️
Newcomers must remember: Invest only with spare money, be mentally prepared for the complete loss of assets, and do not invest funds needed for living expenses.
Reject FOMO (Fear of Missing Out) mentality, do not blindly panic sell in the face of market crashes, and do not impulsively chase high prices during surges; maintain rational judgment.
Regularly withdraw part of the profits, following the principle of 'recouping the initial investment before rolling over', to gradually achieve safe asset appreciation.
🌹🌹 Welcome everyone to communicate in the comments, feel free to ask if you have any questions!!!
