Entering the crypto world and witnessing the legendary stories of others' wealth skyrocketing is indeed tempting, but the reality is harsh—the 'seven losses, two breaks, one profit' rule applies here as well, and perhaps even more so. As someone who has been through it, I have seen too many beginners rush in excitedly, only to leave in disappointment. Don't worry, this practical guide won't discuss metaphysics, but will share truly operable methods to help you protect your principal and steadily earn profits. Remember: in the crypto world, living long is a thousand times more important than earning quickly.
1. Foundation for profit: Awareness > Luck (required course to avoid being cut)
Crazy learning of basic knowledge (a must!):
What is blockchain? Understand decentralization, distributed ledgers, consensus mechanisms (PoW, PoS, etc.)—this is the foundation for understanding the value of all coins. What are Bitcoin (BTC) and Ethereum (ETH)? Understand the problems they solve and their core differences. They are the 'gold' and 'oil' of the crypto world, and are the starting point for most strategies. Wallets, public keys, private keys, mnemonic phrases: This is the lifeline of your assets! Not understanding = risk of losing coins at any time. Hardware wallets (cold wallets) are the safest choice. How exchanges operate: Centralized exchanges (CEX like Binance, OKX) vs. decentralized exchanges (DEX like Uniswap, PancakeSwap). Understand the pros and cons and risks. Basic terms: Token, Coin, Gas Fee, Market Cap, Trading Volume, K-Line Chart, Bull Market/Bear Market... Don't let terminology hinder your understanding of information. Recommended resources: CoinMarketCap/CoinGecko (for data), Binance Academy (for systematic learning), classic books (Mastering Bitcoin) (in-depth).
Deeply understand the risks (bloody lessons!):
Extreme volatility: A daily fluctuation of 50% is normal. Those with weak hearts or who invest with borrowed money are at great risk. Project risk: Over 90% of projects will ultimately go to zero. Air coins, scam coins, and rug pulls are everywhere. Regulatory risk: Changes in policy can instantly lead to market crashes or illegal operations for certain businesses. Exchange/platform risk: Hacking attacks, exit scams (even well-known platforms have historical cases), withdrawal restrictions. Self-risk: FOMO (fear of missing out), greed, panic, operational errors.
2. Prerequisite for profit: Capital management is the lifeline
Invest only with spare money:
Definition: Money that, even if completely lost, will not affect your basic living expenses, rent, medical costs, or family support. It is recommended not to exceed 5%-10% of liquid assets. Absolute taboo: Do not borrow money! Do not take out loans! Do not use living expenses! Do not use money for buying a house/marriage/life-saving needs!
Position management strategy (beginner survival rule):
Core Position (50%-70%): Invest only in BTC and ETH. They are time-tested, relatively stable (by crypto standards), and have the strongest market consensus assets. They guarantee your survival in a bear market and profits in a bull market. Satellite Position (20%-30%): After thorough research, allocate a small amount to mainstream altcoins you believe in that have practical applications and strong teams (such as SOL, ADA, DOT, AVAX, etc. Layer 1, or UNI, LINK, MATIC, etc. mainstream application tokens). Strictly control the number; do not exceed 3-5. Exploration/Speculation Position (≤10%): Used for chasing trends, new projects (such as inscriptions, Meme coins), participating in early airdrops, etc. Consider this money as lost. Stablecoin Position (Flexible): Keep a portion in USDT/USDC for bottom fishing, paying gas fees, or as a safe haven in times of extreme market panic.
Still the same saying, if you don't know what to do in a bull market, click on my avatar, follow me for bull market spot planning, contract password, and free sharing.
