Cryptocurrency Investment Beginner's Guide: Core Knowledge and Essential Common Sense#
1. Analysis of Basic Characteristics of Cryptocurrency Trading#
- 24/7 Trading Mechanism: The market operates continuously 7×24 hours, with no holidays or market closures.
- No Price Limitations: Unlike the stock market, the daily volatility of cryptocurrencies can exceed 20% (as seen in BTC's historical single-day increase records).
- Micro Transaction Support: Minimum trading unit is 0.0001 BTC (approximately 0.6 yuan), breaking the trading limits of traditional securities markets.
- Instant Trading System: Adopts a T+0 settlement model, supporting same-day buy and sell operations.
- Flexible Fund Mechanism: Supports withdrawal of digital assets and fiat currency exchange at any time, ensuring liquidity.
Special Reminder: Choosing a compliant trading platform is the first step to investment safety. It is recommended to register with a market-validated leading exchange —
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2. New Investor Decision-Making Framework#
- Core Asset Allocation: BTC and ETH, as the basic currencies in the blockchain field, are the cornerstone of the investment portfolio.
- Digital Asset Classification System:
- Base Currency (BTC)
- Public Chain Platform (ETH)
- Application Token (SC)
- Stable Asset (USDT)
- Equity Token (BNB)
- Fiat Currency Deposit Channels:
- Certified OTC trading platforms (supporting multi-currency trading)
- Private OTC trading (recommended to choose a guaranteed trading model)
- Beware of unprotected private trading risks.
3. Comprehensive Explanation of Trading Terminology#
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Position Management Terms:
- Full Position: 100% capital invested
- Partial Position: Liquidating part of the assets
- Heavy Position: Value of holdings > liquid funds
- Light Position: Value of holdings < liquid funds
- Empty Position: Completely holding fiat currency
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Risk Control Terms:
- Take Profit: Closing position after reaching expected returns
- Stop Loss: Setting a maximum loss threshold
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Market Cycle Terms:
- Bull Market: Period of sustained price increases
- Bear Market: Long-term declining market environment
4. Digital Asset Security Management Solutions#
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Exchange Storage Risks:
- Warnings from historical security incidents in the industry (including security vulnerability cases from leading platforms)
- Risk warnings for funds on informal trading platforms
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Asset Custody Solutions:
- Software Wallets: Convenient but need to guard against cyber attacks
- Hardware Wallets: Recommended to use professional cold storage devices (such as brands like OneKey)
- Multi-Signature Solutions: Institutional-level asset custody methods