Recently, many beginners want to enter the cryptocurrency market, but they don’t know where to start. In fact, getting started with cryptocurrencies isn’t as complicated as it sounds—I’ve put together some hands-on experience and lessons to share with everyone.

First, let’s talk about why more and more people have been paying attention to cryptocurrencies in recent years. Compared with traditional stocks and forex, the cryptocurrency market has only been developing for about ten years. There are more opportunities, but also more volatility. Plus, the barrier to entry is extremely low—some coins can be bought for just 2–10 US dollars, which is very friendly for small investors. On top of that, trading is available 24 hours a day with no geographic restrictions, so you can trade anytime, anywhere. This is definitely something that attracts a lot of people.

When it comes to trading methods, there are mainly two options. One is buying spot or contracts directly on an exchange, and the other is trading using Contracts for Difference (CFD). My suggestion is: if you care about capital safety and want to manage multiple assets with a single account, a CFD platform is more convenient. If you want to hold actual coins, exchanges are the first choice. But when choosing a platform, you must check its license to confirm whether it is regulated by legitimate financial authorities. There are so many scam platforms now—verifying directly on the regulator’s official website is the safest.

For beginners, the most reliable strategy for getting started is to start with major coins. Bitcoin is currently around 76K US dollars. As the coin with the largest market cap, it’s like the blue-chip stock of the crypto world—many institutions allocate to it. Ethereum (ETH) is currently 2.08K US dollars; it’s the leader among smart contract platforms. DeFi, NFTs, and gaming all run on Ethereum, so its application scenarios are the most diverse. Tether (USDT) stays at 1 US dollar. This is the tool I use to temporarily park funds—I don’t use it to make money from price differences. Binance Coin (BNB) is now 658 US dollars. It has real utility value, and holding it can also give you trading discounts. Solana (SOL) is at 84 US dollars. It has fast transaction speeds and ultra-low fees, making it suitable for experiencing the feel of a high-speed blockchain.

My own experience and lessons: frequent trading can eat up a large amount of transaction fees, and even if you’re right, you may still not make money. In 2018, when I was trading contracts on a certain large exchange, I kept opening and closing positions all day long, and in the end I lost badly. Only later did I realize that not respecting the market is one of the easiest mistakes for beginners to make. No one can predict with 100% accuracy. If your judgment is wrong, you must cut your losses immediately—don’t stubbornly hold on. Another key point is to always set stop-loss and take-profit levels, which can keep risk within an acceptable range. I once didn’t set a stop-loss, and a single price spike blew me out and liquidated me right away. That loss left a lasting impression on me.

Finally, be careful about two major pitfalls. First is pump-and-dump hype of “junk coins”: projects that issue coins with no technology or application, packaged as claims like the metaverse or Web3.0. Once you pour money in, they dump and run. Second is a Ponzi scheme: it’s wrapped in the banner of blockchain, but in reality it uses money from later participants to pay earlier investors, promising a few tenths of a percent in interest every day or earning commissions by bringing in more people. The moment you see these kinds of talking points, you should be on high alert.

The core of getting started with cryptocurrencies is choosing the right platform, choosing the right coins, and managing risk. Making mistakes isn’t the scary part—the scary part is repeating the same mistakes. Keep accumulating experience, and you’ll naturally find a trading pace that suits you.