For newbies in the crypto world, this is a field full of opportunities but also fraught with traps. Keeping the following precautions in mind can help you significantly drop risks and avoid unnecessary losses.

Your mindset determines how long you can survive in the crypto world. Respect the market, and refuse FOMOFOMO, which stands for "Fear Of Missing Out." It's easy to act impulsively and chase after high prices when you see stories of others getting rich, resulting in buying at the peak. Remember: there are always opportunities in the market; missing one is okay, but if you lose your principal, you truly lose everything. Do not invest money you cannot afford to lose. Recognize the high-risk nature of the cryptocurrency market, which is extremely volatile, with 24-hour trading and no price limits. Your assets can double in a day or be cut in half. This is a global market, and regulatory policies, celebrity statements, and actions from project teams can all lead to significant fluctuations. Treat it as a high-risk investment rather than a guaranteed profit gamble.
Independent learning and research are essential. Do not blindly trust anyone's recommendations, including so-called "experts," "teachers," or social media KOLs. They are likely to be "shouting orders" to drive up prices, waiting for you to take the bait. Before investing in any project, at least take the time to understand its white paper, the problems it solves, the background of the team, the technological foundation, and the community ecology. Invest only with spare money that you can afford to lose. Never borrow money, take out loans, or use credit cards to trade coins, as this will distort your mindset and prevent you from making rational judgments.
To be honest, many newbies ask: Can contracts make money? Yes! But it’s definitely not a way to earn passively! 1. The principal is like your own father! Protect it! Only use spare money! It should be the kind of money that you can afford to lose without affecting your meals and sleep! Never go all in, and definitely don’t borrow money to play! Position management is crucial! I’m used to not exceeding 2%-5% of total funds in a single trade. No matter how good the market is, don’t be greedy and increase your position to the point where you can’t sleep! 2. Stop loss! Stop loss! Stop loss! (Say it three times!) Before opening a position, you must set a stop loss point! This is your life-saving symbol! Don’t fantasize about "waiting a bit longer for it to come back"; the market punishes all kinds of disobedience. Execute mechanically! When it hits the stop loss point, act decisively without hesitation! Feeling sorry? It’s a hundred times better than getting liquidated! 3. Emotions are the biggest enemy! Don’t get carried away when making money, thinking you are the "chosen one"; don’t panic when losing money, wanting to go all in to recover losses. Both mindsets are extremely dangerous! Establish a trading plan and stick to it! Don’t let market FOMO emotions lead you astray. Turn off the community noise and focus on your strategy. 4. Only trade in markets you understand! Don’t try to catch every hot trend! Have you thoroughly studied Bitcoin and Ethereum? Focus on 1-2 coins that you truly understand; it’s more important to know their "temperament". Trends are your friends. Counter-trend trading? That’s a game for experts (or fools). Newbies should obediently follow the trend! 5. Continuous learning + review! Candlestick patterns, indicators, fundamentals... If you don’t understand, don’t play! Basic knowledge is the foundation. Review every day/week! Why did the profitable trades make money? Where did the losing trades go wrong? Record! Reflect! Improve! 6. Bloody lessons: Don’t hold onto losing positions! That’s how liquidation happens! Admit mistakes and exit, come back next time.
The final truth: the risk of contracts is extremely high, extremely high, extremely high! It is not a shortcut to wealth! It is more like a "high risk, high reward" financial game arena. I share my insights not to encourage everyone to get involved, but if you must play, I hope to help you avoid the pitfalls I've encountered and reduce your tuition fees. Keep a calm mindset, control risks, and engage in small bets for fun (not real gambling!), and perhaps you can share a piece of the pie in this battlefield. But always remember: as long as you're alive, there is hope.