In the context of a sluggish global economy, financial markets, including cryptocurrencies, have suffered a blow. To make matters worse, cryptocurrencies have continued to be harassed by US regulators (mainly the SEC) in the past two years, resulting in the overall performance of cryptocurrencies being unsatisfactory, far inferior to the big bull market in 2021.

In the crypto winter, many investors were forced to leave the market for various reasons. It could be because they were deceived, their contracts were liquidated, or they could not make money. Fortunately, you are a newcomer and have not suffered these sins, and you entered the market during the bear market when the prices were very low. Although the timing of entering the market is good, it does not mean that you can make money lying down. You need to understand some basic things such as market characteristics, personal necessities, trading strategies, etc. Otherwise, "heaven" will turn into "hell".

What is the cryptocurrency market?

Unlike financial markets such as stocks, foreign exchange, bonds, and funds, cryptocurrencies have only been around for a decade or so, and are a very typical high-risk, high-return market.

High returns are relatively simple and easy to understand, which means there are many opportunities such as airdrops, mining, trading, ICO, IEO, coin issuance, etc., and the profits brought by a single opportunity are relatively lucrative, especially in the early stages of the birth of new concepts and new gameplay. Among them, the more typical one is the prevalence of ICO in 2017, and the emergence of 100-fold coins, such as the famous Ethereum (ETH) and Binance Coin (BNB).

However, the risks of cryptocurrency are also very high, which are reflected in various aspects, such as regulatory crackdowns, phishing websites, no price limit mechanism, whales manipulating coin prices, exchange crashes (unplugging the network cable), project parties running away with funds, etc.

Things newbies need to do when investing in cryptocurrency

Faced with such a complex financial market, if you still have the courage to challenge it, it means that you are more open to new things and have a strong ability to bear risks. However, these are not enough, you also need to accomplish three things.

(1) Selection.

There are many different ways to play in the cryptocurrency world. You need to try them all, analyze their pros and cons and yields, and then choose one or two that best suit your situation. In theory, you can choose all, but people have limited energy, time, and funds, so it is not feasible; and casting a wide net will make you lose judgment and unable to seize opportunities.

(2) Persistence.

People who enter the cryptocurrency market basically want to make quick money and are very impetuous, which makes persistence very valuable. You have to understand that although there are many opportunities in this market, it does not mean that everyone can make money and it can be realized immediately. I remember around 2018, I was crazy about getting wool, registering trading platform accounts, adding token contract addresses to my wallet, and finally only got the Matcha platform coin (MX), which was relatively valuable.

（3）Learning.

ICO, IDO, IEO, decentralized finance (DeFi), Metaverse, Gamfi, X to Earn, NFT, PFP, NFTFi, Web3, etc., these are all things exclusive to the cryptocurrency world, and they are constantly updated. "If you don't study for a day, you will feel like you are falling behind; if you don't study for a month, you will feel out of this circle", this is the true portrayal of the cryptocurrency world.

Generally speaking, opportunities are often hidden in new things, because old things are outdated and the cost-effectiveness of not investing too much money is not high. Therefore, if you want to seize new opportunities, you must know how to learn so that you can discover them in time, otherwise you will always be a latecomer.

Investing in cryptocurrency exchanges

In the field of cryptocurrency trading, Binance, as one of the world's largest cryptocurrency trading platforms, is favored by users in mainland China. For novices, how to register a Binance account may be a little confusing, but don't worry, below we will introduce you to the registration process in detail and answer some common questions from users in mainland China.

registration process:

1. Visit the official website: Enter the Binance official website in your browser: https://www.binance.com/zh-CN/join?ref=RFHBT7IA

2. Fill in the registration information: After clicking the "Register" button, you will be directed to the registration page. On this page, you need to fill in your email address and set a secure password. Please make sure that the password is complex and remember it.

3. Enter the invitation code: There is an option called "Invitation Code" on the registration page. Please enter the invitation code: RFHBT7IA. This is a special invitation code. Users who register with it will receive 20% discounts and benefits.

4. Complete verification: Next, you may need to perform human-machine verification, usually through a graphic verification code or SMS verification code. After completing the verification, click "Register".

5. Email Verification: After registration, you will receive an email with a verification link. Please click on the link to verify your email address.

6. Set up two-factor authentication (optional): To increase the security of your account, it is recommended that you enable two-factor authentication. You can choose to use Google Authenticator or SMS authentication.

7. Complete the registration: Once you have completed the above steps, congratulations! You have successfully registered a Binance account.

Special circumstances in mainland China:

Limited access: Due to the Internet control policy in mainland China, sometimes you may not be able to directly access the Binance official website. You can try to use tools such as VPN to access it.

SMS verification: In mainland China, you may not be able to receive international SMS messages, which will affect the SMS verification during registration. In this case, you can try to switch to another network or contact customer service for help.

Legal Compliance: Please be sure to understand and comply with the relevant laws and regulations of mainland China and your location to avoid violating relevant regulations.

A Guide to Avoiding Scams When Investing in Cryptocurrency

As a novice investor, investing in cryptocurrencies requires smart strategies to avoid being the target of scams. Here are some important points about investment strategies:

1) Self-awareness and caution:

• Acknowledge your own shortcomings and inexperience, and be respectful of investing. Don't pay a heavy price for ignorance and overconfidence.

2) Research:

• Common ways to cheat people in the primary market: fraud. For example, they try every means to get you to subscribe to a certain project token, but do not give you the token, or give you the token but do not put it online for trading.

• Countermeasures: Be sure to conduct sufficient project research. Avoid private transactions and try to trade through reliable platforms (such as Binance, OKX, etc.) because they will screen, monitor and track projects.

In this regard, many people think that after being cheated, they can recover the money by calling the police. This is almost impossible because it is difficult to get support from technical and legal aspects, and the police do not like cryptocurrency cases. Therefore, prevention is always better than compensation, and never imagine that things can be solved after they happen.

3) Restrain greed:

• Common ways to cheat users in the secondary market include manipulating the price of coins and pulling the plug on the internet. The former mainly controls the price to harvest users, while the latter prevents investors from adding margin in extreme market conditions to break through the contract positions. These two methods are usually implemented by exchanges and are extremely crude. There is also a more advanced form, which uses high returns, airdrops and other benefits to attract investors to provide liquidity, deposit interest and other products, and sweep away user assets.

• Countermeasures: Keep a restrained attitude towards greed. Reduce the leverage level of contract transactions and keep it within a reasonable range (for example, within 10 times). Do not be fooled by high returns, airdrops and other benefits, so as not to become a victim of cutting leeks.

Summarize

The cryptocurrency market is a very dynamic one, full of opportunities, but also full of all kinds of scams. Therefore, if you want to get a piece of the pie, you must build your own "moat", such as professional trading knowledge & skills, good psychological quality, strong hands-on ability and other hard conditions, otherwise you will be directly abandoned by the market.

In addition, you must understand soft skills such as choice, persistence, and learning in order to remain unchanged in the ever-changing market and not be eliminated by the cruel bear market. These are the important reasons why I have never left the cryptocurrency circle since 2017. I hope it can help you!