Recently, I’ve noticed more and more people around me want to enter the crypto space, but very few actually understand it thoroughly. I’ve decided to organize the basic knowledge I’ve gained over the years about the crypto world, hoping to help newcomers avoid detours.

First, let’s talk about what trading cryptocurrencies is. Simply put, it’s buying low and selling high, similar to stock trading or real estate speculation. The difference is that digital currency trading has no time restrictions; you can trade 24/7, and there are no limits on price fluctuations, so the profit potential is indeed much greater than traditional investments.

To get started in the crypto world, the first step is to choose a reliable exchange. An exchange is a platform where you buy and sell digital currencies. Choosing a top-ranked, secure platform will significantly reduce risks. Different exchanges list different coins; some smaller coins can only be purchased on specific platforms.

Once you enter an exchange, you’ll find that you need to use an intermediary coin for trading, which is USDT, also called Tether. Simply put, it’s the digital version of the US dollar, with 1 USDT equal to 1 USD. The exchange itself cannot directly sell you USDT; you need to first buy USDT with RMB, then use USDT to exchange for other cryptocurrencies. When selling coins, it’s the reverse: USDT to RMB.

During your entry into the crypto world, you’ll often hear various terms. Position size refers to the proportion of your investment funds and holdings. Full position means investing all your money into coins; reducing your position means selling part of your holdings; and a zero position means selling everything to cash. Take-profit and stop-loss are very important—they’re settings to sell when you reach a certain profit or limit your losses. This helps protect your capital. A bull market is characterized by continuous price increases, while a bear market is the opposite. Going long means buying expecting prices to rise; going short means selling expecting prices to fall. There are also common situations like cutting losses, being trapped, or missing out, which are typical in investing.

Regarding mainstream coins, Bitcoin and Ethereum are recognized as the top two. Generally, coins with higher market cap rankings are more accepted by the market, have better liquidity, and carry lower investment risks. Conversely, coins with lower market caps tend to be riskier, so beginners should be cautious.

It’s important to emphasize the risk factor. Ethereum’s creator Vitalik once said, “Never invest money you can’t afford to lose.” A special reminder: never borrow money, take out loans, or use credit cards to trade crypto—this is extremely dangerous.

If you want to make money even during a downtrend, you need to try contract trading. Contracts are futures trading; you can borrow digital currencies with margin and amplify your gains using leverage. For example, if you’re bearish on BTC, you only need to put up 1% margin to borrow 100 times the amount in BTC, effectively using 1 BTC to control 100 BTC worth of position. But this method is very risky; beginners should avoid it entirely, as it’s easy to get liquidated and go bankrupt.

To start your crypto journey, I recommend preparing three things. First, an Android phone, which is more convenient than an iPhone. Second, some spare money—funds you can afford to lose without affecting your life. Third, the right mindset—trading crypto involves risks, and unstable mental states can lead to poor decisions.

Actually, there are many ways to make money in the crypto space beyond just trading coins. No matter which path you choose, remember one thing: returns are always proportional to your investment. If you’re interested in learning more deeply, you can check out various market data and project information on Gate, gradually gaining experience.