Introduction for newbies in the coin circle:
The essential guide to go from a novice to an expert! 🚀
Entering the world of cryptocurrency is like entering a treasure island full of opportunities and risks. How can you avoid traps and seize opportunities? This beginner's guide to the cryptocurrency world will help you quickly master the core knowledge and advance from a novice to a real player!
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📌 Basic knowledge: What is blockchain? What is the difference between Bitcoin and Ethereum? Understand the market operation mechanism!
📌 Spot Trading: Learn how to select currencies, buy and sell, and master limit orders, fees and trading strategies!
📌 Contract Trading: Understand leverage, long and short mechanisms, learn how to control risks and avoid forced liquidation!
📌 Trading strategies: long-term holding, short-term operation, fixed investment, grid trading, multiple methods to find the investment style that suits you best!
📌 Risk management: avoid FOMO, learn to stop profit and stop loss, so that your funds will no longer be ruthlessly harvested by the market!
📌 Advanced knowledge: DeFi, NFT, Layer 2, technical analysis, explore deeper investment opportunities!
Whether you are a novice or a player who wants to go further, this guide will become your survival guide in the coin circle! 📖🔥
Six things you must know about cryptocurrencies
Basic knowledge
Cryptocurrency: such as Bitcoin (BTC), Ethereum (ETH), etc.
Blockchain: Decentralized ledger technology that makes transactions transparent and traceable.
Decentralization vs. Centralization: The difference between decentralized exchanges (DEX) and centralized exchanges (CEX).
Public chains and smart contracts: Blockchains that support smart contracts, such as Ethereum and Solana.
Advanced Knowledge
DeFi (decentralized finance): such as liquidity mining, lending (AAVE), and staking.
NFT & GameFi: such as BAYC and Axie Infinity.
Layer 2 expansion: such as Arbitrum and Optimism.
Technical analysis (TA): K-line chart, moving average, support and pressure levels.
Fundamental Analysis (FA): Research project team, technology, application scenarios, etc.
Trading strategies
Long-term holding (HODL): Hold the stock for a long time after purchase without frequent trading.
Grid Trading: Use price ranges to automatically buy low and sell high.
Dollar-Cost Averaging (DCA): Regularly buy to spread risk.
Spot Trading
Buy/Sell: Use USDT to buy BTC, or use BTC to exchange for ETH, etc.
Market price vs. limit order: Market price is executed immediately, while limit order is executed after the price reaches the specified level.
Transaction fees: Different exchanges have different rates, and generally Maker (order placement) is cheaper.
Risk Management
DYOR (Do Your Own Research): Do your research and don’t follow orders blindly.
FOMO (Fear of Missing Out): Avoid emotional trading.
Stop Loss/Take Profit: Set up a reasonable risk management strategy.
Contract Transactions
Leverage: Amplify the trading capital. For example, 10x leverage means the capital is magnified 10 times.
Long and Short: Go long if the price is rising and go short if the price is falling.
Perpetual Contracts: Unlike traditional futures, they have no expiration date.
Margin: The principal used to open a position, which may be forced to close the position.