Recently, I’ve noticed that the number of people around me who want to trade crypto for profit is indeed increasing, but there are very few who can truly get the fundamentals down clearly. I myself also started out as a beginner, so today I’ll organize some core knowledge points for crypto trading to provide a reference for new users.

First, you need to understand what crypto trading is. Put simply, it’s buying low and selling high to profit from the price difference—exactly the same logic as stock trading, real estate speculation, or forex trading. The difference is that digital currencies have advantages that traditional investment products don’t: 24/7 uninterrupted trading and no daily price-limit restrictions. That’s also why returns often far exceed those of the stock market, futures, funds, and real estate. I’ve seen many people achieve decent gains in the crypto space thanks to these features.

The first step in getting started with crypto trading is choosing the right trading platform. An exchange is where you trade digital currencies. There are many mainstream exchanges now, and larger platforms usually have higher safety levels, so you can trade with confidence. Some coins can only be purchased on specific exchanges, so choosing a reliable platform is especially important.

Next, you need to understand the concept of USDT. USDT (Tether) is essentially a stablecoin pegged to the U.S. dollar: 1 USDT equals 1 dollar. In trading, it plays the role of an “intermediary.” If you want to buy coins, the process is like this: first use renminbi to buy USDT, then use USDT to exchange into the digital currency you want. When selling, you do the reverse: exchange the coin for USDT, then exchange USDT back into renminbi. This process is called coin-to-coin trading (coin-to-coin exchange), and it’s a basic operation that beginners must master.

As for the definition of mainstream coins, Bitcoin ranks first and Ethereum ranks second—these two are widely recognized as value coins. Some people think only these two count as mainstream; others think coins within the top 10 by market cap count; and still others believe that as long as they are listed on major exchanges, they count. My view is that coins with a higher market cap are usually more recognized by the market, have better liquidity, and therefore greater investment value. Conversely, coins with lower market caps tend to have less recognition, poorer liquidity, and higher risks—so beginners really should be more cautious.

I think the specific steps for entry-level crypto trading should go like this: First, you must learn the basics. You can read books, take courses, or join communities—just make sure you understand the principles behind important projects such as blockchain, Bitcoin, Ethereum, and more. Second, clarify your investment goals. Are you trying to hold long-term or trade for the short term? Are you doing it for financial freedom or to increase returns? Once your goals are clear, your strategy can be formulated more reasonably. Third, establish a risk-control mechanism. Decide how much loss you can tolerate, set stop-loss levels, and stop losses in time is crucial—otherwise you could suffer massive losses. Fourth, choose a safe and reliable trading platform and look up information such as the platform’s scale, reputation, and trading fees. Fifth, invest gradually based on your risk tolerance and the market situation, and continuously adjust your portfolio.

There are also a few particularly important points to pay attention to: Fund management must be reasonable—never put in funds beyond what you can afford to lose. I’ve seen many people go all-in on a single coin, only to end up losing miserably. You should diversify your investments and build a diversified portfolio. Security protection is also very important: use strong passwords to protect your account, enable two-factor authentication (2FA), and be careful with phishing emails and scam websites. The last point is mindset. The cryptocurrency market is highly volatile and it’s easy to be swayed by emotions. Stay calm and rational, don’t be misled by short-term price fluctuations, and look at investing from a long-term perspective—only then can you make better decisions.

Getting started with crypto trading isn’t necessarily hard, but it’s also not straightforward. The key is to build a solid foundation and put risk management in place. I wish all beginners can find their own rhythm in the crypto world.