Cryptoassets Beginner's Guide | Avoid Common Mistakes and Start Securely from Scratch!

1. Basic Knowledge: Let's Understand Three Key Concepts Before Moving Forward

1. Blockchain: The “Foundation” of the Crypto Sphere

Simply put, blockchain is a “super ledger” shared by the entire world. All transaction data is transparent and traceable, and once recorded, it cannot be tampered with. Cryptocurrencies like Bitcoin and Ethereum ensure security and reliability through this technology.

2. Major Coins: The First Two That Beginners Should Focus On

• Bitcoin (BTC): Known as “digital gold,” it has strong inflation resistance and relatively low risk when held long-term. It is ideal as the first step in asset allocation.

• Ethereum (ETH): Not just a coin, but a “smart contract platform.” It supports most ecosystems in the crypto space, such as DeFi (decentralized finance) and NFT (digital asset certification), and has greater potential and volatility than BTC.

3. Essential Terms: Don't Be Misled by “Industry Jargon”

• Gas fees: The transaction fees for sending money or conducting transactions on the blockchain (similar to delivery fees for a package). They can become incredibly high when the network is congested.

• DeFi/NFT: The former refers to “Decentralized Finance” (e.g., earning interest by depositing cryptocurrency), while the latter refers to “Digital Asset Proof” (e.g., artwork on the blockchain). It is recommended for beginners to start with the exchange's “staking feature.” Jumping into complex mechanisms all at once is a no-go.

2. First Step in Practice: 50% of the Risk is Determined by Platform Choice

Reliable exchanges for beginners have the following characteristics:

• User-friendly UI/UX
• Comprehensive Japanese Support
• High Transparency of Funds
• Environment suitable for small amount testing

What is particularly important is the transparency of fund management. If the platform has a solid operational foundation, it can be used safely in the long term.

Traps to Avoid: Unnamed and Unregulated Small Platforms — 90% of scams and thefts occur in such places.

3. First Coin Purchase: Let's Move Forward with 4 Steps for Sure

1. Deposit in fiat currency: First, prepare the “common currency in the crypto sphere”

Purchase USDT (pegged to the US dollar at a 1:1 ratio, similar to “cash in the crypto space”) using credit cards or bank transfers. It offers more flexibility than buying BTC/ETH directly and is convenient when converting to other coins.

2. Fund Allocation: Allocation under the '721 Rule'

• Allocate 70% to BTC/ETH (foundation of the portfolio, risk mitigation)
• 20% allocated to platform tokens (linked to exchange growth, moderate fluctuations)
• 10% allocated to potential coins (small-scale trial, an amount that won't hurt if lost)

3. Tips for Ordering: Beginners Should Keep It “Simple”

Use “market orders” (executed immediately at the current price). “Limit orders” (waiting at a specified price) can be risky for beginners — there is a risk of setting the wrong price or experiencing slippage.

4. Managing Investment Amounts: Start with a small amount like pocket money

The investment amount should be less than 5% of your liquid funds (for example, if your monthly living expenses are 5000 yen, then a maximum of 250 yen). It is wise to gradually increase your position after sensing market fluctuations.

4. Asset Management: Let's Differentiate Between 2 Types of Wallets

• Short-term trading: Use the exchange's wallet

It's fast and convenient, but it's not advisable to store large amounts of assets for a long time. There is also a risk that the platform itself could be hacked.

• Long-term holding: Combination of hot wallet + cold wallet

  • Hot Wallets: Such as MetaMask, Trust Wallet, etc. They are easy to use on smartphones and computers, suitable for small daily transactions (like storing a few thousand yen worth of ETH).

  • Cold Wallet: Such as Ledger, Trezor. A physical device like a USB memory stick, for offline storage. Always manage high-value assets (over 50,000 yen) with this. The security is at the highest level.

Important: Your wallet's private key = your assets! Absolutely NO storing it in smartphone notes or on social media. Write it down on paper and keep it in a safe place.

5. Risk Management: The “Only Rule” for Beginners to Survive

1. Position Management: Always have “insurance” prepared

Major coins 70% + Potential coins 20% + Cash (USDT) 10%—— If you have cash on hand, you can increase your purchases when the market drops significantly, and you can also avoid the nightmare of losing your entire position.

2. Regular Investment Strategy: A “Cheat Code” for Beginners to Counter Market Fluctuations

Purchase a fixed amount of BTC/ETH on a specific day each month (for example, payday). By continuously buying without worrying about market fluctuations, you can lower your average cost in the long term. This is 100 times more prudent than emotional trading like “buying because it has gone up, selling because it has gone down.”

3. Taking Profits and Cutting Losses: Insure your profits and set a limit on your losses

• When profits exceed 30%, take profits in installments (e.g., sell half when it rises by 50% to secure gains)
• If you reach a loss of 15%, cut your losses without hesitation (the expectation of “it should rebound” is a mistake. 90% of beginners explode while holding positions)

Lazy tip: It is recommended to use the automatic trading function to set trading rules in advance, eliminating the need to monitor the market.

4. The “Death Zone” You Must Never Enter

• High Leverage Futures Trading: If beginners engage in this, there is a 95% chance they will lose their assets within a month. The idea of “making a fortune with a small capital” is an illusion.

• “100x Return” type shitcoins: 99% are scams. They will run away once they gather funds. You cannot win against market manipulators.

• Transfer to personal accounts: If someone claiming to be “customer support” or “an expert” asks for a transfer to a personal account, it is 100% a scam.

Summary

In the crypto space, it's more important to “learn slowly” than to rush. Taking a month to understand the basics and gaining experience with a small amount of capital will definitely lead to success more reliably than jumping in with a full investment right away.

Remember this: To earn big in the crypto space, you must first learn to “not lose big.”