How should beginners enter the cryptocurrency market?
In the wave of investment, virtual currency investment attracts many newcomers.
However, this field is fraught with risks and opportunities, and newcomers must be cautious. Below are the key points for entering the virtual currency world:
Fund Preparation: Prepare a few thousand to tens of thousands of spare money, ensuring it is within your risk tolerance to avoid financial pressure affecting investment decisions.
Platform Selection: Choose a legitimate trading platform, such as Binance, OKEx, or Huobi. If you cannot find them through your browser, you can use the 'Non-Small Number' app to locate them, leveraging legitimate platforms to reduce trading risks.
Tether Exchange: After entering the exchange, select a currency dealer based on the amount and payment method to exchange RMB for Tether (USDT). USDT is approximately 1:1 with the US dollar and fluctuates between 7.2 - 7.6 due to supply and demand. This is an important step in entering the market.
Trading Methods:
Spot Trading: Similar to stock trading, with no leverage; profits are made when the coin rises and losses occur when it falls. Currently, in the early stage of a bull market, spot trading is relatively safe and suitable for newcomers to accumulate experience and profits.
Contract Trading: Allows for bidirectional operations with leverage ranging from 2 to 125 times to amplify profits and losses. Although returns can be high, the risks are enormous. For instance, while some experienced traders can make millions in a short time, it can also lead to total loss for investors. Newcomers must be cautious.
Newcomer Pitfalls: Newcomers should avoid joining cryptocurrency groups to prevent information overload and blind following; do not borrow money for investment or engage in high leverage to avoid falling into debt; if lacking professional skills, rely on market cycles, work hard to earn money off-exchange, and carefully time your investments to buy low and patiently wait for appreciation, akin to a cheetah waiting for its prey.
Cryptocurrency investment presents both opportunities and challenges. If newcomers follow the above points and maintain rationality and patience, they can explore an investment rhythm that suits them and achieve steady wealth growth.
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