"Although I know you can't do it"
Entering the cryptocurrency world is an exciting yet confusing journey for many newcomers. In the face of the market's high volatility and various complex opportunities and traps, we need clear guiding principles. The following five suggestions are the core experiences I have summarized as a cryptocurrency finance blogger, hoping to help newcomers avoid detours and move forward steadily.
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1. Steadily invest in spot BTC (preferably only invest in Bitcoin)
Bitcoin (BTC), as the leader of the cryptocurrency market, has the highest security and market recognition. Whether for institutional investors or long-term holders, BTC is their first choice. For newcomers, Bitcoin is the best starting point for hedging and learning:
Why choose BTC: Bitcoin has a large market capitalization, high liquidity, relatively controllable risks, and possesses long-term value storage properties.
Avoid altcoins: Although small coins may bring short-term windfall profits, most are speculative products with extremely high risks, and they may even lose all value overnight.
For new investors entering the market, focusing on spot BTC is a wise choice. A dollar-cost averaging (DCA) strategy can be adopted to gradually build one's position amidst market fluctuations, reducing the pressure of failing to catch the bottom.
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2. Avoid small coins (90% of meme coins exit within 1 hour of release)
Small coins (especially meme coins) often create fantasies of sudden wealth, but the reality is that most meme coins have a very short lifecycle and may face liquidity exhaustion within an hour after release. Here are some common risks associated with small coins:
High risk: Small coins usually lack fundamental support and rely purely on speculation and emotions to drive prices. Once the promoters sell off, the price will collapse.
Poor liquidity: At critical moments, you may not even be able to sell if you want to, resulting in huge losses.
Opaque teams: Many small coin projects even lack a clear development team, posing a high risk of exit scams.
New investors must stay away from small coins and concentrate their funds on large projects with long-term development potential.
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3. Avoid small exchanges (preferably the top three)
Choosing an exchange is the foundation of investment, and small exchanges often have the following issues:
Low security: Small exchanges may cause users to lose funds due to technical vulnerabilities, poor management, or hacking attacks.
Exit scam risk: Many small exchanges cannot maintain operations during market downturns and may even shut down services directly.
Fake trading volume: Some small exchanges create hype through fake trading volumes but lack real liquidity support.
It is recommended to choose the top three exchanges in the industry, such as Binance, OKX, etc. These exchanges not only have higher security but also provide rich tools and services, making it easier for newcomers to learn and operate.
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4. Set take-profit and stop-loss (avoid chasing highs and panic selling)
Not setting take-profit and stop-loss is a major reason for many newcomers' losses. In the face of the high volatility of the cryptocurrency market, it is particularly important to establish clear trading rules:
Stop-loss: Set an acceptable loss range when buying, and decisively sell when the price hits that range to avoid further losses.
Take-profit: Similarly, sell part or all of your holdings promptly when the price reaches the expected target to lock in profits and prevent market pullbacks.
Chasing highs and panic selling is a common problem among most novices; blindly buying when prices rise and panicking to sell when they fall. Such operations not only fail to generate profits but also risk continuous losses in market fluctuations. Learning to set take-profit and stop-loss is the most essential skill to grasp after entering the cryptocurrency market.
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5. Lifelong learning! (If you don't progress, you'll regress)
The cryptocurrency market changes rapidly, with new concepts, technologies, and projects emerging continuously. To survive in the long term, one must keep learning:
Learn the basics of blockchain and cryptocurrency: Understand the technical logic and application scenarios of the projects to better assess their potential.
Follow industry trends: closely track market news and policy changes, such as regulations and project developments.
Learn investment skills: Gradually master investment strategies such as dollar-cost averaging, swing trading, and risk management to improve your operational level.
Learning is a lifelong process; only by possessing the ability to keep up with the times can you stand firm in this rapidly changing market.
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Finally
The cryptocurrency market is full of opportunities and challenges, but success is not based on luck; it is achieved by following the right principles and continuous learning. Although these five suggestions seem simple, if newcomers can strictly adhere to them, it will greatly increase their chances of surviving and profiting in the cryptocurrency market:
1. Steadily invest in spot BTC (preferably only invest in Bitcoin).
2. Avoid small coins (90% of meme coins exit within 1 hour of release).
3. Avoid small exchanges (preferably the top three, such as OKX, Binance).
4. Set take-profit and stop-loss (avoid chasing highs and panic selling).
5. Lifelong learning! (If you don't progress, you'll regress).
I hope every newcomer in the cryptocurrency world can collect and repeatedly ponder these suggestions, continuously improve themselves, and ultimately achieve financial freedom!
Finally: I know you will say "$BTC $ETH $SOL too expensive to afford," but I want to say, "If you can't afford it, you probably won't make money in the cryptocurrency world, I mean in the long run."
Earn money steadily; slow is fast.
