5 Little Things Newcomers in the Crypto World Should Know

1: Don't use a wallet at the beginning; keeping your coins on a well-known exchange is a safer choice.

2: It's best for newcomers to avoid new coins, as their price fluctuations are very large and difficult for beginners to grasp.

3: Newcomers should avoid engaging in contract trading! It's very dangerous for beginners and can easily lead to losses; believe me, it's something you can't control! If you're uncertain about investing in the crypto world, you can choose to buy Bitcoin and Ethereum.

4: Be mentally prepared before entering the crypto world; a 20% drop in a day is a common occurrence. Don't invest all your funds into any single coin other than Bitcoin and Ethereum, especially altcoins! They could potentially go to zero!

5: Position allocation is very important! Never go all-in; always keep some 'bullets' in hand to respond to market changes in a timely manner.

Think about position management and your trading mindset; give yourself a clear understanding of what you want.

For short-term trading, you can sell near resistance levels; don't regret if prices rise, as you are a short-term participant. If it goes up and you hesitate to sell, thinking of holding for the long term, then if it drops, you want to trade short-term—this mindset can be very torturous for yourself.

If you're a long-term player, don't fear pullbacks along the way. Don't focus on the process; just look at the results. Of course, you must be able to endure pullbacks of 50% or even 100%. The entire bull market consists of continuous pullbacks followed by rises, in a rhythm of oscillating upward spiral. For swing traders, you can reduce your position when prices rise, but after reducing your position, you must buy back if prices pull back to avoid missing out and chasing highs.