Step 1: Establish a basic cognitive framework
Understanding core concepts: As a beginner, it is essential to grasp the basic principles of blockchain, including decentralization, immutability, and other characteristics. Bitcoin (BTC) is primarily positioned as 'digital gold' for value storage, while Ethereum (ETH) serves as a smart contract platform, supporting a rich ecosystem including DeFi, NFT, and more.
Essential knowledge: Understand the role of stablecoins (USDT/USDC) as a trading intermediary, as well as basic concepts such as Gas fees, wallet classifications (hot wallet vs cold wallet), etc. The mnemonic phrase is equivalent to wallet control and must never be screenshot and stored on the phone.
Step 2: Choose a secure entry path
Exchange selection: prioritize choosing major compliant platforms like Binance, OKX, Coinbase, etc. These platforms have high liquidity, support multiple cryptocurrencies, and have been tested in the market for a long time. Avoid using small exchanges, as 60% of beginners lose money due to choosing the wrong platform.
Capital management: use the "532 rule" for position allocation: 50% of funds allocated to BTC, ETH, and other mainstream coins, 30% allocated to potential coins ranked 11-50 by market cap, and 20% reserved for flexible funds. No single investment should exceed 5% of total funds.
Step 3: Establish a security strategy
Investment strategy: beginners are advised to adopt a regular fixed investment (DCA) strategy, buying a fixed amount of BTC/ETH each month to smooth price fluctuations. This strategy is suitable for investors who do not have time to monitor the market and has significant long-term effectiveness.
Profit-taking and loss-cutting: set a dual stop-loss mechanism, with a price stop-loss line of 5%-8%. If the cryptocurrency's daily decline exceeds 20% or if the project party modifies the white paper, decisively reduce positions. During severe market fluctuations, stop-loss is key to avoiding deep losses.
Step 4: Avoid common traps
Absolute no-go: avoid shady exchanges, high leverage contracts, offline trading and private placements, and false project hype. Data shows that users with over 10x leverage have a liquidation rate of up to 92%, and for beginners, participating is like "naked running into the market".
Scam prevention tips: beware of fake airdrops, fake whitelists, disguised official websites, and other high-risk S-class scams. Any request for private keys, mnemonic phrases, or verification codes is 100% a scam. Only download wallets from official websites or channels, and avoid clicking on unfamiliar links.
Step 5: Mindset management and long-term planning
Emotional control: avoid FOMO (fear of missing out) emotions, don't chase prices during spikes, and establish a trading plan to strictly follow. A ±15% daily fluctuation in BTC is normal; invest with spare money.
Long-term investment value
Mainstream coin allocation: Bitcoin has anti-inflation properties, with historical annual returns of about 150%; Ethereum, as a smart contract platform, supports DeFi and NFT ecosystems, and its technological upgrades should be monitored.
Risk warning: cryptocurrency is highly volatile and may become worthless overnight. Never go all-in, only invest spare money, and participate with no more than 30% of your savings. Remember: money earned by luck will eventually be lost due to lack of skill.
Practical suggestions
Beginner's must-do checklist:
Learn the basics (blockchain, trading terminology)
Choose a secure exchange
Start with spot trading, avoid high leverage
Invest in BTC/ETH regularly, hold long-term
Protect your private key, beware of scams
Investment mantra: what to buy → Bitcoin for anti-inflation, Ethereum for ecological gains; how to buy → choose major exchanges, regular investment + grid trading, store coins in cold wallets; what to avoid → leverage, altcoins, shady platforms, all-in gambling.
The essence of survival in the crypto world is "survive first"; instead of pursuing "get rich overnight", it is better to master avoidance techniques and risk management skills first. By establishing a clear cognitive framework, choosing compliant platforms, and formulating reasonable strategies, beginners can move forward steadily in the cryptocurrency market.
I am Chen Xi, a seasoned cryptocurrency enthusiast and practical instructor, a reliable partner on your trading journey! If you are confused about your positions, follow me, and I will use practical experience to help you avoid pitfalls and guide you.#加密货币 #btc #新手小白 #ETH
