The field of cryptocurrency is becoming increasingly popular, with many beginners eager to dip their toes in, but there are many intricacies involved. This article provides a great entry guide for beginners.
Cryptocurrency is different from the money we usually use; it has no physical form, exists entirely online, and is not governed by a single institution, making it usable globally. Its foundation comes from blockchain technology, which is like a ledger that everyone can see and cannot be easily altered.
Among mainstream cryptocurrencies, Bitcoin is like the gold of the digital world, with a limited supply, making it relatively valuable and suitable for beginners to start understanding. Ethereum is not just a currency; it is a platform that can run various decentralized applications, with many new developments based on it. Stablecoins are pegged to the US dollar, providing price stability, and beginners often use them as a bridge in trading. As for those tokens that are not as famous as Bitcoin or Ethereum, beginners should not rush to engage with them; it’s better to wait until you gain some experience.
If you want to buy and sell cryptocurrencies, you need to find a reliable exchange; safety is the most important, just like choosing a safe bank to deposit your money. When registering, you need to complete identity verification so that your trading limits can be higher. When buying, for example, when buying USDT, follow the steps mentioned in the article, and select merchants with high transaction rates and good reputations.
Once the money is bought, you need to find a place to store it. Wallets are divided into hot wallets and cold wallets; hot wallets are convenient to use but not very secure; cold wallets are safe and suitable for long-term storage. Beginners, when just starting out and not having much money, can initially store it in exchanges, but important funds should still be kept in wallets.
There are many professional terms in this circle. Spot trading is direct buying and selling, without too many tricks; contract trading and leveraged trading can magnify profits, but the risks are also significant, so beginners need to be cautious. HODL means holding for the long term without selling, airdrops are free tokens distributed by project parties, gas fees are the money paid for transfers, and take-profit and stop-loss are prices set in advance for automatic buying and selling to prevent losses from becoming too large or profits from being too small.
The cryptocurrency market is highly risky, and prices can fluctuate greatly in one day, so be sure not to invest all your money or borrow money from others to invest. You should diversify your investments across different cryptocurrencies, and at the beginning, don't invest too much; start with small amounts to accumulate experience. Investing requires patience; don’t expect to make big money the day after buying, and keep learning to understand market dynamics. In terms of security, keep your wallet's mnemonic phrase safe, enable two-factor authentication on exchange accounts, avoid phishing websites, and use different passwords for different sites.
For common questions from beginners, it's not too late to enter the market now; this market is still developing. There is no threshold for trading amounts; you can play with any amount, but you still need to follow the principle of only investing money that you can afford to lose. Distinguishing between good and bad coins depends on whether they have actual technology, application scenarios, and active development teams. Also, there’s no need to constantly watch the prices, as that can lead to emotional trading.
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