Recently, many people have been interested in entering the cryptocurrency world, but few truly understand it. I myself started as a beginner, and today I want to share some basic knowledge about getting started in the crypto space, hoping to help everyone avoid some detours.

First, you need to understand that trading cryptocurrencies is essentially buying low and selling high to profit from the price difference, similar to stock or real estate trading. The difference is that digital currency trading is more flexible, operates 24/7 without interruption, and has no limit on price fluctuations, which is why many people believe the profit potential is greater.

The first step to entering the crypto world is to find a reliable exchange. An exchange is a platform for trading digital currencies. Top-ranked exchanges are safer, more liquid, and I personally recommend using larger platforms. Many small coins can only be purchased on specific exchanges, just like big banks and small banks.

Next, you need to understand what USDT is. USDT, called Tether, is a stablecoin pegged to the US dollar. 1 USDT is roughly equal to 1 USD. It is the most commonly used fiat currency in the crypto space. If you want to buy coins, first exchange RMB for USDT, then use USDT to buy your desired digital currency. When selling, do the reverse. This process is called crypto-to-crypto trading, which is a fundamental skill every beginner must learn.

Then, some essential terms. Positions, full position, reducing position, heavy position, light position, and no position all refer to your capital allocation. Take profit and stop loss are ways to protect yourself. Bull and bear markets are market trend judgments. Going long and going short are trading directions. There are also terms like cutting losses, being trapped, missing out, and bull and bear traps, which describe situations encountered during actual trading. It’s recommended that beginners first understand these concepts before jumping in.

Mainstream coins are those with high market cap rankings and broad recognition. Bitcoin ranks first, Ethereum second. These coins have good liquidity and relatively lower investment risk. Coins ranked lower in market cap carry higher risks and should be approached cautiously.

One must mention the risk issue when entering the crypto space. Ethereum’s creator, Vitalik Buterin, once said a very honest thing: don’t invest money you can’t afford to lose. I want to reiterate that you should never borrow money, take out loans, or use credit cards to trade crypto—that’s a painful lesson. Especially with contract trading, beginners should stay far away.

Speaking of contracts, this is something that can amplify gains but also cause quick losses. Crypto-to-crypto trading only profits in a rising market, but contracts allow for two-way trading: going long when prices rise, going short when prices fall, and using leverage to magnify capital. For example, if you think BTC will fall, you can deposit 1% margin and borrow 100x BTC to sell. If BTC drops by $1,000, you can earn 100 times that profit. It sounds tempting, but it’s also the fastest way to get liquidated. Beginners should definitely avoid contracts; it’s not a shortcut to wealth but a quick path to bankruptcy.

Three essentials for getting started in crypto: first, an Android phone to install various apps; second, spare funds—money you won’t need urgently in the short term, so losing it won’t affect your life; third, a good mindset—don’t be overly anxious or greedy.

Finally, I want to say that making money in crypto is not limited to trading. The ecosystem is vast, opportunities are plentiful, and returns are always proportional to input. I hope everyone can find their own rhythm in this market.