How can beginners avoid pitfalls in the cryptocurrency world?

1. Do not invest in small coins

Most small coins in the crypto market are designed to exploit investors; they can drop to zero, falling more than 99%. If the market cap is small and you haven't heard of it, don't invest. Stick to mainstream coins.

2. Don't have overly high expectations

The era of tenfold or hundredfold returns in the crypto market is over. Now, major institutions and elites have entered the market, and the big profits are gone. Achieving double your investment is already quite good; if a beginner can avoid losses, they have already outperformed over 90% of people.

3. Avoid ultra-short-term trading

The volatility in the crypto market is significant; it is common for Bitcoin to drop 20% in a day, and altcoins can get halved. Short-term trading is hard to control, so hold onto the coins you have.

4. Set stop-loss and take-profit levels

Set goals for yourself. If the price drops to a certain level, execute your plan and exit. If it rises to a certain point, sell decisively, regardless of how much it may continue to rise afterward. Many people lose money in a bull market simply because they do not take profits in time.

5. Don’t bring all your funds into the crypto market

The risks in the crypto market are too high. Both entering and exiting involve risks. It is advisable to use only spare money and start with small investments to practice in the crypto space.

6. Continuously learn and acquire knowledge

One cannot earn money beyond their understanding. Even if you make a lot of money initially, if your knowledge doesn't keep up, you will quickly lose it all back, and possibly even more. Constantly learning and improving your understanding is essential.

7. Find an experienced and reliable mentor

There are many pitfalls in the crypto market; over 99% of people lose money. Finding a reliable, experienced mentor from whom you can learn is crucial. While it may not guarantee profits, it can at least help you avoid many traps.