5 Things Newcomers to Cryptocurrency Should Know

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

2: For new coins, beginners should avoid them because their price fluctuations can be very large, making them hard to manage for newcomers.

3: Beginners should avoid engaging in contract trading! It's very dangerous for newcomers and can lead to significant losses; trust me, this is something you can't handle! If you're uncertain about investing in cryptocurrency, consider purchasing Bitcoin and Ethereum.

4: Be mentally prepared before entering the cryptocurrency space; a drop of 20% in a day is common. Besides Bitcoin and Ethereum, don't invest heavily in any other single coin, especially altcoins! They could potentially go to zero!

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

Reflect on position management and your trading mindset. Define your own positioning and be clear about what you want.

For short-term trading, consider selling near resistance levels. If the price rises, don't regret selling; you were initially a short-term participant, so just move on to the next opportunity. If you are reluctant to sell when prices rise, thinking about holding long-term, then if prices drop, you revert to short-term thinking. This mindset can be very tormenting.

If you are a long-term player, don't fear pullbacks along the way. Focus on results rather than the process, and of course, be prepared to endure pullbacks of 50% or even 100%. The entire bull market involves constant pullbacks followed by rises, creating a fluctuating upward trend in a spiral manner. For swing traders, you can reduce your position when prices rise, but after reducing, you must buy back when prices pull back to avoid missing out and chasing highs.