$RAVE
A complete novice suddenly interested in the cryptocurrency world, how should one avoid pitfalls?
It's quite simple, avoid the following pitfalls:
1. Only choose large-cap, highly liquid cryptocurrencies such as BTC, ETH, SOL, XRP, DOGE, ADA; avoid others if possible to reduce the risk of being taken advantage of.
2. Prioritize spot trading; if you must trade contracts, regardless of the cryptocurrency, remember that leverage should not exceed 3x. Don't think 2x or 3x returns are low. This is a long-term compounding game. The reasoning is simple; for example, with $1000 at 3x leverage, if you earn $200 this time, the next time you'll be trading with $1200 at 3x leverage. Over the long term, this can be quite scary; in fact, 3x is already high. Anyone who tells you to use 10x, 20x, 50x, or 100x leverage is either foolish or malicious, block them immediately.
3. Do not trust any financial management, mining, or other random projects; everything is aimed at your principal, while you are only interested in their interest.
4. For exchanges, choose the leading ones, like Binance. Remember, anyone recommending a third-party exchange is either foolish or malicious; block them immediately. This is similar to choosing a hamburger.
Generally, normal people, when wanting to eat a hamburger and fries, will first default to choosing KFC or McDonald's, rather than something like 'Ken Duck' or 'McDuck'.
A complete novice suddenly interested in the cryptocurrency world, how should one avoid pitfalls?
It's quite simple, avoid the following pitfalls:
1. Only choose large-cap, highly liquid cryptocurrencies such as BTC, ETH, SOL, XRP, DOGE, ADA; avoid others if possible to reduce the risk of being taken advantage of.
2. Prioritize spot trading; if you must trade contracts, regardless of the cryptocurrency, remember that leverage should not exceed 3x. Don't think 2x or 3x returns are low. This is a long-term compounding game. The reasoning is simple; for example, with $1000 at 3x leverage, if you earn $200 this time, the next time you'll be trading with $1200 at 3x leverage. Over the long term, this can be quite scary; in fact, 3x is already high. Anyone who tells you to use 10x, 20x, 50x, or 100x leverage is either foolish or malicious, block them immediately.
3. Do not trust any financial management, mining, or other random projects; everything is aimed at your principal, while you are only interested in their interest.
4. For exchanges, choose the leading ones, like Binance. Remember, anyone recommending a third-party exchange is either foolish or malicious; block them immediately. This is similar to choosing a hamburger.
Generally, normal people, when wanting to eat a hamburger and fries, will first default to choosing KFC or McDonald's, rather than something like 'Ken Duck' or 'McDuck'.