As a newcomer to the cryptocurrency world, please remember the first and most important rule before starting to invest: only invest money that you can afford to lose. The cryptocurrency market is highly volatile, and high returns are inevitably accompanied by high risks.
10 investment tips tailored for newcomers in the cryptocurrency world, all based on the Binance platform, with clear steps and strong operability:
1. Safety first: Complete basic account protection (your digital gateway)
Steps: After registering a Binance account, immediately complete the following two steps.
· Real-name verification (KYC): Complete identity verification in the [Account Center], which is a prerequisite for withdrawals and using more features.
· Enable Two-Factor Authentication (2FA): In 【Account Center】 - 【Security】, enable Google Authenticator and SMS verification. This is the most crucial line of defense for protecting your assets and can significantly prevent account theft.
Beginner's Understanding: It's like adding a dynamic password lock to your bank account; just having the password isn't enough to get in.
2. Capital Management: Use 'spare money' and learn to diversify your holdings.
Operation:
· Only invest spare money: Decide on an amount you can completely afford to lose, such as 5%-10% of your savings, so that even if you lose it all, it won't affect your life.
· Diversification Management: Don't buy all your cryptocurrency at once. It is recommended to split your funds into:
· Core Holdings (60%-70%): For purchasing major coins like Bitcoin and Ethereum.
· Potential Holdings (20%-30%): For researching and investing in some mid to small-cap tokens that you are optimistic about.
· Cash Reserve (10%): Keep some stablecoins (like USDT) for buying the dip during market crashes or for when opportunities arise.
Beginner's Understanding: Don't put all your eggs in one basket. Use money that you won't regret losing, even if it's a few hundred.
3. Start with Major Coins: First buy BTC and ETH.
Operation: On the Binance App home page, click 【Trading】 -> 【Spot】, enter BTC/USDT or ETH/USDT in the search box, and then proceed to purchase.
· Why? Bitcoin and Ethereum are the 'blue-chip stocks' of cryptocurrencies, with the largest market capitalization and strongest consensus. They are more resilient and stable compared to smaller coins. As a beginner, you should first understand them.
Beginner's Understanding: New investors should first buy large-cap stocks like Moutai and Apple, rather than taking risks on stocks of unknown companies.
4. Learn Basic Trading: Start with 'Spot Trading'.
Operation:
· What is Spot Trading? It means using real money (like USDT) to directly purchase digital currencies; once bought, you truly own it.
· Avoid Contract Trading: In 【Trading】 -> 【U-Standard Contract/Coin Standard Contract】, it is leveraged trading that can amplify gains but also easily lead to liquidation and losses. Beginners should not touch it until they have enough experience!
Beginner's Understanding: Spot trading means paying cash upfront for goods; contracts are like borrowing money to gamble, you can win a lot but also lose fast, and beginners often get wrecked.
5. Embrace Stablecoins: Understand the role of USDT.
Operation: On Binance, use the 【Quick Buy】 feature to buy USDT with fiat currency (RMB, etc.).
· What is USDT? It is a stablecoin pegged to the US dollar, 1 USDT ≈ 1 USD. Its value is relatively stable, like 'cash' in the crypto world. When you are unsure which coin to buy, or want to temporarily exit the market, convert your assets to USDT.
Beginner's Understanding: Think of USDT as the game currency you exchange in an arcade; you can convert RMB to game currency (USDT) and then use that currency to play different machines (buy different cryptocurrencies).
6. Use Simple Tools: Set 'Limit Orders' instead of 'Market Orders'.
Operation: In the spot trading interface, select 【Limit Order】 to buy and sell.
· Market Order: Execute immediately at the best current price, but you cannot control the cost.
· Limit Order: You can set a price at which you want to buy or sell. The transaction will only occur when the market price reaches your set price. This helps you avoid chasing prices.
Beginner's Understanding: When you want to buy something, a market order is 'buy it immediately no matter the price'; a limit order is 'I offer 100 yuan, buy it for me when the price drops to 100 yuan.'
7. Implement Regular Investment Strategy: The secret to ignoring short-term fluctuations.
Operation: In the Binance App's 【Finance】 section, find the 【Regular Investment】 feature.
· Settings: Choose major coins like BTC or ETH, set a fixed amount (e.g., invest 100 yuan every Wednesday) at a fixed time each week or month.
· Why? Regular investments can average out your holding costs. When the market rises, you profit; when it falls, you can buy more coins with the same amount of money. This is the least stressful long-term investment strategy suitable for beginners.
Beginner's Understanding: It's like a bank's regular saving plan, saving money regularly while ignoring short-term price fluctuations to aim for long-term average returns.
8. Learn to Withdraw and Store: Not all assets should be kept on exchanges
Operation:
· For assets that remain static for a long time: Consider transferring them to your private wallet (such as a hardware wallet or decentralized wallet like Trust Wallet). Keep the private key yourself for better security.
· For frequently traded assets: Keep them on Binance.
· Note: Withdrawals require network fees, and the address must be filled out correctly; otherwise, assets will be permanently lost! Beginners can try with small amounts first, and once skilled, they can handle larger assets.
Beginner's Understanding: Exchanges are like banks, where most of your money is stored for convenience; private wallets are like a safe at home, safer but more cumbersome to use, suitable for storing valuable items.
9. Enhance Your Knowledge: Treat Binance as a learning platform.
Operation:
· Read 【Binance Academy】: Find this section in the App, which contains a wealth of free introductory articles and videos.
· Follow 【Binance Research】: In the Binance official website or App, the research section publishes various in-depth reports on cryptocurrencies, helping you make more informed investment decisions.
· Beware of 'teachers' with signals: Don't trust any 'masters' on social media who invite you to join groups and promise to help you make money; 99.9% are scammers.
Beginner's Understanding: Before investing money, take time to learn. You will never earn money beyond your understanding.
10. Manage Your Mindset: Make a plan and stick to it strictly.
Operation:
· Write down your goals: For example, 'If BTC rises to XX price, I will sell 20%' or 'If my principal loses 30%, I will liquidate and take a break.'
· Don't FOMO (Fear of Missing Out): Don't get envious of others making money and chase high prices.
· Do not panic sell: During significant market drops, review your regular investment plan and diversification strategy, and remain calm.
· Learn to Take Profits: If you make money, consider selling in batches, pulling out your principal and some profits, and using the profits to continue investing; this will greatly improve your mindset.
Beginner's Understanding: Investing is an anti-instinct game. Having a plan is like having a map for navigation, helping you not get lost amidst the market's emotional storms.
Summary:
For beginners, safety, learning, and stability are the three core principles. Starting with basic operations on the Binance platform and major coins, use spare money for regular investments and diversification strategies, continuously learn and manage your mindset, and you can thrive and steadily grow in the high-risk, high-reward crypto market. Wish you successful investing!
