Advice for Newcomers in the Cryptocurrency World

1. Don't touch contracts!!!

In the cryptocurrency world, there are not only newcomers but also many experienced traders! Many skilled traders have lost money in contracts; newcomers should safely trade spot and hold.

2. Don't invest in small altcoins

Most small altcoins in the cryptocurrency world are designed to exploit inexperienced traders, dropping to zero or falling by more than 99%. Avoid small market cap coins that you haven't heard of, and choose mainstream cryptocurrencies instead.

3. Don't use small exchanges

Small exchanges can have risks of going offline at any time, and you may not be able to withdraw your funds. It's advisable to use mainstream exchanges, or you can separate your funds across various mainstream exchanges.

4. Don't have overly high expectations

The era of tenfold or hundredfold gains is over; now many institutions and elites are entering the market, and big profits are no longer available. Achieving a doubling of your investment is already quite good, and if newcomers can avoid losses, they have already outperformed over 90% of people.

5. Don't store money in unknown wallets

If you have large funds, it's advisable to keep them in a wallet, as exchanges also come with risks. For small amounts, using a small wallet also carries the risk of disappearing.

6. Don't play ultra-short-term trades

The volatility in the cryptocurrency market is significant; a 20% drop in Bitcoin in a single day is common, and altcoins can drop sharply as well. It's tough to manage short-term trades, so hold onto the coins you have.

7. Set stop-loss and take-profit levels

Set targets for yourself; if the price drops to a certain level, exit decisively. If it rises to a certain level, sell it firmly, and don't worry about how much it rises afterward. Many people lose money in bull markets because they fail to take profits in time.

8. Don't bring all your funds into the cryptocurrency world

The risks in the cryptocurrency world are too high, and there are risks associated with deposits and withdrawals. It's advisable to use only spare money and small amounts to practice in the cryptocurrency world.

9. Continuously learn and acquire knowledge

People cannot earn money beyond their understanding; even if you make a lot initially, if your knowledge doesn't keep up, you will quickly lose it back, and it could lead to continuous losses. You must keep learning.

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