If you are interested in cryptocurrency and want to enter this rapidly developing industry, then congratulations, you have already taken the first step.
However, this place is also filled with traps, and a small mistake can lead to irreparable consequences.
How can beginners avoid those big pitfalls when entering the cryptocurrency market? Here are some valuable suggestions for newcomers.
1. When entering the cryptocurrency market, prioritize learning.
When stepping into the cryptocurrency market, do not rush to find supposed secrets to quick wealth; instead, calm down and learn systematically.
Master the basic concepts of digital currency, trading methods, risk management, market analysis, and information acquisition skills.
Every step is crucial.
Remember, the accumulation of knowledge is the cornerstone of wealth; without a solid foundation, any speculative behavior is like a castle in the air.
2. Firmly stay away from contracts.
In the cryptocurrency market, whether you are an experienced veteran or a skilled expert, there are many who have stumbled significantly in contract trading.
Beginners must steadily trade in spot markets and hold firmly.
3. Do not touch small coins.
Most small coins in the cryptocurrency market hide secrets and are tools for harvesting profits.
Once it drops, it is very likely to go to zero; declines of over 99% are not uncommon.
Do not attempt small market cap coins that are not well-known; decisively choose mainstream coins.
4. Stay away from small exchanges.
Small exchanges are always at risk of running away or may experience network disconnections; at that time, you may not be able to withdraw your money.
It is recommended to choose mainstream exchanges; you can also diversify funds across different mainstream exchanges to reduce risk.
5. Rationally view the myth of hundredfold coins.
The stories of hundredfold and thousandfold coins are always enticing, but remember that such opportunities are rare and often come with huge risks.
The era of tenfold and hundredfold returns in the cryptocurrency market has long gone; major institutions and elites have entered the market, and the big dividends are no longer available.
Do not blindly pursue high returns while ignoring potential risks.
In the cryptocurrency circle, stability is more important than aggressiveness.
If you can double your funds, that is already quite good; if beginners can avoid losses, they have already surpassed over 90% of others.
6. Do not store money in unknown wallets.
If the amount of funds is large, consider using a wallet, but small wallets also have the risk of running away.
If you choose to use a wallet, make sure to select a reliable one carefully.
7. Choose investment methods that suit you; do not engage in ultra-short-term trading.
Contracts, short-term trading, holding coins, staking, NFTs... there are many investment methods in the cryptocurrency circle, but not every one of them is suited for you.
The volatility in the cryptocurrency market is enormous; it is not unusual for Bitcoin to drop 20% in a day, and altcoins may even be halved directly.
Choose the investment method that best suits your actual situation.
For beginners, ultra-short-term trading is very difficult to control.
Holding coins may be a relatively safe choice, as it focuses more on long-term holding and value growth.
8. Be sure to set stop-loss and take-profit orders.
Set goals for yourself; when it drops to a certain level, decisively execute an exit strategy.
Sell decisively when it reaches a certain position, and do not care how much it rises afterwards.
Many people lose money in a bull market because they fail to take profits in time.
9. Don't invest all your funds into cryptocurrency.
The cryptocurrency market is extremely risky, and there are risks in entering and exiting funds.
It is recommended to first use your spare money to practice in the cryptocurrency market.
10. Find a reliable team and teacher.
There are many traps in the cryptocurrency market, and more than 99% of people are losing money.
Find an experienced and reliable teacher; even if they cannot guarantee profits,
at least they can help you avoid many pitfalls.
But definitely do not look for teachers who engage in contract trading.
11. Regularly review and summarize.
Regularly review and summarize your investment behavior, identify problems and shortcomings, and continuously improve your investment strategy.
In the journey of the cryptocurrency world, proceeding with caution is the cornerstone of success, and rational investment is the key to wealth.
In the path of cryptocurrency, proceed cautiously to achieve a legendary wealth.
If you want to seize this bull market, learning and selling on the spot will definitely be too late; it's best to have someone guide you to get started quickly.
We mainly focus on being a blogger centered around freshness.
Teaching someone to fish is better than giving them fish.
Investors in the cryptocurrency market, whether beginners or experts, gain not only financial returns but also growth in investment knowledge and experience.