How can beginners avoid pitfalls when entering the cryptocurrency world?

Advice for cryptocurrency newcomers

1. Do not engage in contracts! ! !

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

2. Avoid small altcoins

Most small altcoins in the cryptocurrency world are just traps for investors. They can drop to zero, with declines of over 99%. If you haven't heard of them and they have a small market cap, don't invest; choose mainstream coins instead.

3. Don't use small exchanges

Small exchanges carry risks of sudden shutdowns, or they may just cut off their network, making it impossible to withdraw your funds. It is advisable to use mainstream exchanges and consider spreading your funds across several of them.

4. Don't set expectations too high

The era of tenfold or hundredfold returns is over. Now, many institutions and elites have entered the market, and significant rewards are no longer available. Achieving a double return is already quite impressive; if beginners can avoid losses, they have outperformed over 90% of participants.

5. Don't store money in unknown wallets

For large amounts of money, it is advisable to use wallets since exchanges also have risks. For small amounts, there is also a risk of wallet scams.

6. Avoid ultra-short-term trading

The price fluctuations in the cryptocurrency world can be significant; for instance, Bitcoin can drop 20% in a day, and altcoins can be halved. It is challenging to control short-term trades, so hold onto your assets instead.

7. Set stop-loss and take-profit orders

Set targets for yourself: if the price drops to a certain level, execute your exit strategy decisively. If it rises to a certain point, sell resolutely, regardless of how much it may rise 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 entering or exiting will carry risks. It is advisable to use your spare cash and start with small investments to practice.

9. Continuously learn and acquire knowledge

One cannot earn money beyond their understanding. Even if you earn a lot initially, if your knowledge doesn't keep up, you will quickly lose it back, and possibly even more. Continuous learning is essential to enhance your understanding.

10. Find an experienced and trustworthy mentor

There are many pitfalls in the cryptocurrency world, with over 99% of participants losing money. Finding a reliable and experienced mentor, from whom you can also learn, can help you avoid many traps. However, be sure not to seek out mentors who focus on contract trading.