How do beginners start their journey in the cryptocurrency world?
The cryptocurrency world is a place full of opportunities for many people, but it also comes with high risks. As a beginner, how can one avoid pitfalls and steadily get started? Below is a guide to entering the cryptocurrency space without stepping on mines or violating rules, suitable for beginners to get started with peace of mind.
1. What is the cryptocurrency world? Understand the basic concepts first.
1. Blockchain: A decentralized technology, simply understood as a database without a 'boss', where information is open and transparent.
2. Bitcoin (BTC): The big brother of the cryptocurrency world, known as 'digital gold', it is the first application of blockchain.
3. Ethereum (ETH): The second largest cryptocurrency, which can be understood as the 'app store' on the blockchain, supporting smart contracts.
4. Exchange: The 'bank' of the cryptocurrency world, a platform for buying and selling digital currencies, such as Binance, Huobi, etc.
5. Wallet: A tool for storing digital currencies, including exchange wallets and personal wallets. The private key and mnemonic phrase are your 'keys'; losing them means losing your currency.
2. The first step to entering the cryptocurrency world: Start with learning.
Don’t rush to invest; spend some time learning the basics:
Common terms in the cryptocurrency world: such as candlestick charts, mining, airdrops, mainstream coins, altcoins, etc.
Trading rules: Know when to buy and when to sell, familiarize yourself with 'take profit and stop loss'.
Safety precautions: Identify scams (such as Ponzi coins, air coins), protect your account security.
3. How to choose an exchange and wallet.
1. Choose a reliable exchange:
2. Wallet selection:
4. Preparations before investing.
1. Make an investment plan:
Only invest spare money: Use money you can afford to lose; never touch living expenses or emergency funds.
Control your position: Do not invest all your money at once; consider buying in batches.
Set targets: Decide how much you want to earn before selling, and set a stop-loss limit to avoid losses.
2. Understand the coins:
- Prioritize mainstream coins (BTC, ETH, etc.), which have relatively small fluctuations and lower risks.
- Altcoins (small coins) may have large gains but also carry a high risk of going to zero; not recommended for beginners.
