Recently, friends often ask me how to get started with cryptocurrency and how to play it. Actually, this is a good question because the cryptocurrency market has indeed attracted many traditional institutions to enter, even listed companies like Tesla have included crypto assets in their portfolios.

I’ve noticed that many beginners are most concerned with two issues: first, where exactly should they start? Second, how can they avoid pitfalls? Today, I want to share some of my observations with everyone.

First, let’s talk about why consider investing in cryptocurrencies. Compared to mature markets like stocks and forex, the emerging crypto market offers more opportunities. The capital threshold is also much lower; some coins can be bought for just $2-10, which is much cheaper than traditional stocks. Plus, 24/7 trading means no market closing, and anyone worldwide can participate. This advantage is quite obvious.

Regarding how to trade, there are mainly two ways. One is buying spot or futures contracts on exchanges, which require real-name verification; the other is trading through contract-for-difference (CFD) platforms, which are usually more strictly regulated and offer better fund security. If you want to operate stocks, forex, and crypto assets with one account, CFDs are more convenient.

When choosing coins, I recommend beginners start with assets that have high market capitalization and liquidity. Bitcoin is still the leader, with the largest market cap and strongest consensus, just like buying blue-chip stocks—more stable. Currently, BTC is around $77.21k, with a fixed supply of 21 million coins, making it highly scarce. As spot ETFs become more popular and traditional institutional funds keep flowing in, its volatility is gradually decreasing, and it has become a core asset in portfolios.

Ethereum is the second-largest cryptocurrency by market cap, now priced around $2.11k. It’s not just the second in the crypto world; more importantly, it has real applications. DeFi, NFTs, on-chain gaming, and the recently hot RWA (Real World Assets) are all projects you can see and use. After the Cancun upgrade, gas fees dropped significantly, transaction speeds increased, and application scenarios expanded.

I see USDP (Tether) as a “tool coin,” pegged at $1, mainly used for transferring between different coins to avoid market volatility and serve as a temporary parking spot.

BNB is the native token of a major exchange, now priced at $661.80. It has practical value—holding BNB can enjoy trading discounts and participate in new coin mining activities. The exchange regularly burns BNB to support its price, and this deflationary mechanism is a plus for long-term holders.

Solana (SOL) is a public chain I favor, currently priced at $84.95. Its features include extremely fast transaction speeds, ultra-low fees, and an experience close to traditional web applications. For small investors, there’s no need to worry about fees eating into the principal. In recent years, Wall Street institutions have also been paying attention to it, viewing it as one of the most promising competitors to Ethereum.

Regarding common mistakes beginners make, I’ve also fallen into some traps. The most common is frequent trading—buying and selling often, which ends up eating all the profits in transaction fees. Another is not respecting the market, always trying to fight against it, which can lead to liquidation. Also very important is not setting stop-loss and take-profit points, leaving your positions exposed to risk.

I want to emphasize the importance of stop-loss and take-profit. Every investment involves risk, and beginners must understand that while risks are uncontrollable, they can be effectively managed with tools. Most trading platforms offer these features; when placing orders, be sure to pay attention to these options and don’t forget to set them out of excitement.

Finally, be cautious of two types of traps. The first is pump-and-dump scams involving junk coins—projects with no technology or application, disguised as “metaverse” or “Web3.0,” claiming they will fly to the sky, but in reality, the project team is just manipulating and dumping tokens. The second is Ponzi schemes, claiming to be blockchain projects but actually using new investors’ money to pay earlier investors. These projects often promise “capital preservation and doubling,” “fixed high returns,” or encourage you to recruit others for commissions. Be alert when you see such language.

When choosing a platform, always verify regulatory licenses, confirm whether the platform is supervised by recognized international authorities, and whether user funds are stored in separate accounts. Recently, some scam platforms have forged licenses; it’s recommended to check directly on the official websites of regulatory agencies.

In fact, making mistakes as a beginner is unavoidable. The key is not to fall into the same trap repeatedly. After making a mistake, stop trading and take a step back to reflect. Only then can you face errors honestly and find ways to improve. Playing with cryptocurrencies is essentially a process of constant correction. One day, when you make fewer mistakes than others, the era where you truly profit will begin.