Today, let's talk about the issues that beginners face when trading cryptocurrencies, in a simple and easy-to-understand manner, hitting the pain points directly, so you can take fewer detours on this journey in the crypto world. Whether you're a complete novice just starting out or a prospective trader eager to try, this article will provide you with great insights! 1. Opening an Account - Every beginning is difficult
First of all, the first step in trading cryptocurrencies is of course to open an account. Choosing a reliable trading platform is like choosing a trustworthy mentor. There are many large platforms both domestically and internationally, such as Binance, Huobi, OKEx, and so on. The key to selecting a platform is to look at its security and user reputation. Don't take shortcuts by choosing a shady platform; in the end, if your money disappears, you won't even know who to cry to.
What Newbies Must Know When Entering the Crypto Space!
1. Newbies must understand: 3 fundamental concepts to lay a solid foundation If you want to play in the crypto space, first understand these 3 things, or you may easily fall into a 'cognitive pit'! 1. Blockchain: A transparent 'global ledger' Simply put, it is a shared ledger distributed worldwide, where all transaction records are publicly accessible and cannot be altered. The technological foundation of cryptocurrencies like Bitcoin and Ethereum is this 'accounting system'. 2. Mainstream coins: The 'hard currency' of the crypto space Bitcoin (BTC): Known as 'digital gold', it has a fixed supply (21 million) and is often seen as an asset against inflation, with relatively low long-term holding risks.
What should newcomers in the cryptocurrency world pay attention to?
1: Do not play contracts, do not engage in short-term trading, do not borrow to trade coins, otherwise it will definitely end in tragedy. Must remain rational, do not cross these trading red lines. Contracts and short-term trading are just looking for you to be the bag holder.
2: Just entering the cryptocurrency world, listen less and learn more. If you don’t even know how to cross-chain assets on the simplest exchanges or the concept of blockchain, how can you make money?
3: Continuously research market trends, learn investment skills, learn from those who have achieved outstanding results in the industry, and learn to pay for consultations. Knowledge and information are the most powerful tools for investors.
4: Patience is the fundamental topic of making money! You may be deceived countless times before understanding what the cryptocurrency world is like. Cherish every experience of being deceived, and rise again where you fell.
As a complete novice suddenly interested in the cryptocurrency market, how can I avoid pitfalls?
If it really is very sudden, the most straightforward way to avoid pitfalls is to not rush into this circle. The cryptocurrency market is N times more dangerous than the stock market. If you have no investment experience at all, I really do not recommend entering this circle. You can first learn about the historical events in the cryptocurrency market, understand those major crashes that are coded by dates, such as the recently occurred '10.11' incident; learn about exchange exit scams; various hacking incidents; and events involving worthless coins, among others, without end. For now, just take a serious look from the outside. These are not just stories; behind them are bloody lessons, and these lessons can cost you money. Implicitly, the money in the cryptocurrency market can be a matter of life and death at any time.
What should newcomers in the crypto world avoid first?
1. Capital and account security: only invest with idle funds, and do not exceed 10%-20% of the amount you can afford to lose; never borrow to leverage. Choose compliant platforms like Binance and OKX. 2. Learn knowledge before taking action: first understand the basic concepts of blockchain, distinguish between mainstream coins like Bitcoin and altcoins or scam coins. Investigate each project's background before investing. 3. Formulate rational trading strategies: prioritize mainstream coins such as Bitcoin and Ethereum, and use a small amount of funds to try potential projects. Set profit and loss limits to avoid chasing highs and selling lows; beginners should avoid high leverage, as it significantly increases the risk of liquidation, and can also consider dollar-cost averaging to reduce the impact of market volatility.
How can newcomers enhance their knowledge in the cryptocurrency space?
1. First, understand the 'basic concepts': Don't just focus on candlestick charts right away, first understand 'what blockchain is' and 'what the difference is between Bitcoin and Ethereum', just like first knowing what a smartphone is before learning how to play games. It's recommended to watch educational short videos (like beginner blockchain videos on Bilibili), and avoid dealing with incomprehensible 'air coins'. 2. Practice with a 'simulated trading platform': Find a platform that supports simulated trading (like Binance's simulation), practice with virtual money, learn to read simple indicators (like moving averages which represent the 'average price trend'), try the multi-timeframe candlestick method mentioned earlier, you won't feel bad if you incur losses, and you can gain experience.
What should you do first to enter the crypto world?
If you are reading this article, it means you are probably curious about the term "crypto world."
It might be a casual remark from a friend at a dinner party, saying, "I made a small fortune with Bitcoin"; It could also be seeing a short video where someone born in the 1990s made money trading cryptocurrencies and bought a Porsche; More likely, it's a sudden thought that arises when you are under a lot of work pressure and can visibly see the ceiling on your income:
Shouldn’t I also try to venture into this "new world of financial freedom"? No problem, but I'd like to advise you—don't rush to impulsively deposit money; first, make sure to take solid steps in entering the field.
How can beginners avoid pitfalls in the crypto world? A few tips for newcomers to cryptocurrency trading.
1. Do not touch contracts
The crypto world has not only beginners but also many veterans! Experts! All have fallen due to contracts. Beginners should safely trade spot and hold on.
2. Do not trade small coins
Most small coins in the crypto world are just for harvesting profits, they may drop to zero or fall more than 99%. If you haven't heard of them and their market cap is small, don't trade them; choose mainstream coins instead.
3. Do not use small exchanges
Small exchanges can have risks of running away at any time or cutting off the internet, and all the money inside will be inaccessible. It is recommended to use mainstream exchanges, such as Binance or OKEx, and to keep funds separated in mainstream exchanges.
Is the threshold for newcomers in the cryptocurrency world high?
The threshold for newcomers in the cryptocurrency world can be summarized as: easy to enter, difficult to survive long-term. Here are the key points: I. Low entry threshold - Easy to operate: Mainstream platforms (such as Binance, Weex) complete registration in 10 minutes, can buy cryptocurrency for 10 USD, supports Alipay/credit card payments.
- Abundant learning resources: Binance Academy free courses, (Blockchain Revolution) books, etc., basic knowledge can be mastered in 1-2 months.
- Compliance enhancement: The US approved Bitcoin ETF, and the EU passed the MiCA regulation, allowing users to participate through compliant channels. II. Core risks are high - Price volatility is severe: Bitcoin often sees daily fluctuations exceeding 10%, and in 2025, it experienced a 40% increase in one week followed by a 25% drop.
What does rolling over mean in the cryptocurrency world?
How to roll over: In the cryptocurrency world, you need to find a way to first earn 100W in capital, and there is only one way to earn 100W from tens of thousands. That is to roll over. But the risks are relatively greater! (Operate cautiously) When you have 100W in capital, you will find that your whole life seems to be different. Even if you do not use leverage, just holding onto spot gains 20%, you will have 20W; 20W is already the income ceiling for most people in a year. Moreover, when you can turn tens of thousands into 100W, you will grasp some ideas and logic for making big money. At this point, your mindset has also calmed down a lot, and from now on, it's just copy and paste.
Rolling over may be your only way to become a big shot.
How to roll over:
In the crypto world, if you want to earn 1 million in capital while having only a few tens of thousands, there is only one way to earn 1 million in capital, and that is to roll over. Once you have 1 million in capital, you'll find that life seems completely different. Even if you don't use leverage, just holding a spot that rises by 20% will give you 200,000, which is already the ceiling of annual income for most people. Moreover, when you can grow from tens of thousands to 1 million, you will grasp some ideas and logic for making big money. At this point, your mindset will calm down a lot, and from then on, it's just copy and paste. Don't always think of millions or billions; you have to start from your actual situation. Boasting only makes the bull comfortable. Trading requires the ability to identify the size of opportunities; you can't always maintain a small position or a heavy position. Usually, just play with small positions, and when a big opportunity arises, bring out the big guns.
How to operate contract rolling in the cryptocurrency market?
Contract rolling refers to the operation where the position holder adjusts their position due to changes in market conditions during contract trading. There are several methods for contract rolling:
1. Forward rolling: Forward rolling refers to the operation where traders holding long positions close their old positions when prices rise, and then open new long positions. This allows for greater profits when prices rise while reducing risk.
2. Reverse rolling: Reverse rolling refers to the operation where traders holding short positions close their old positions when prices fall, and then open new short positions. This allows for greater profits when prices fall while reducing risk.
Why are there still so many people playing in the crypto futures market after liquidation?
Let's put it this way, you earn 10,000 yuan a month But in the contract, you take 10,000 yuan of principal to do 100 times the contract As long as it rises by 1%, you can earn 10,000 yuan
In the crypto market, apart from the big players opening small positions as spot traders There are only small players relying on leverage to get rich as gamblers
The increase in the crypto market, under extreme conditions
One second has a fluctuation of 1-2%, and trading is available 24 hours a day, all year round during lunch breaks!
That is to say, with good luck, you can earn your monthly salary in one second
How much is a usdt? You can earn at least a 3.5% profit margin by transferring from one hand to the other. Last year, by the end of the year, the net profit from doing off-market U trading was over a million. In any circle, there are those who eat the meat, those who drink the soup, and those who can't even drink the soup. The crypto circle is the same. No matter which circle you are in, you must learn from those who have results. Even if you can't eat the meat, at least you can have a bowl of soup. Since I started sharing about making U trades in the crypto circle, I've found that there are indeed quite a few interested people. Think about it; in a commercial society, everything is an expenditure. In this day and age, if you can't earn, then you're a fool and looked down upon. Recently, I met an interesting person who kept pestering me to teach him. His emotional value was high, and he respected me greatly, which reminded me that I was once like that too. Only then would others be willing to teach you, so I unreservedly connected him with all the channels I knew. This person is also impressive; his execution is outstanding. In less than a month, starting with a capital of 20,000, he told me yesterday that he earned over 30,000. Seeing his excited expression makes me happy too. Isn't this the meaning of what I share?
How many people in the cryptocurrency world are truly making money?
In the cryptocurrency world, only three types of people can really make big money:
First type: Long-term investors who treat Bitcoin/Ethereum as savings
These people do not see themselves as trading cryptocurrencies; they view Bitcoin ($BTC) and Ethereum ($ETH) as digital gold, accumulating them like savings. They regularly invest a portion of their salary each month, buying Bitcoin and Ethereum and putting them directly into cold wallets, completely unconcerned with market trends. No matter how high the bull market rises or how low the bear market falls, they remain unfazed and almost never discuss cryptocurrency topics. After years of regular investment, over time, their assets quietly appreciate, potentially accumulating millions or even tens of millions of wealth after ten years. Most importantly, they know they cannot precisely predict short-term fluctuations, so they abandon this attempt and view not knowing as their advantage.