50 Core Knowledge Points to Learn When Entering the Crypto World: Preserve Capital First, Then Seek Profit!#
The crypto world is not a casino, but a battlefield! Some become rich overnight, while others lose everything; the key lies in the wisdom of some and the blindness of others due to greed.
Many are attracted to the fantasy of becoming rich overnight and dive into the crypto world without grasping basic concepts: unable to understand on-chain data, unable to analyze candlestick charts, and even unaware of how market makers operate, ultimately becoming the ones left holding the bag for projects.
This article summarizes 50 essential entry-level knowledge points that beginners must master, with the core principle being to learn to avoid losses before pursuing profits. Once capital is lost, the crypto world will have no connection with you.
【Basic Concepts】
- What is blockchain: A decentralized distributed ledger where all transaction records are public and transparent; altering data requires controlling over 51% of the nodes in the network.
- Public chain/Private chain/Consortium chain: Public chains (like BTC, ETH) are open for everyone to use, private chains (like those within companies) require permission to access, and consortium chains (like Ripple) are maintained by multiple institutions.
- Token and Coin: Coin is the native currency (like BTC), Token is a token (like UNI from UNISWAP); beware of projects that confuse these concepts.
- Definition of DeFi: Decentralized finance that replaces traditional banking functions with smart contracts, supporting lending and wealth management, but code vulnerabilities may lead to financial losses.
- Essence of NFT: A certificate of ownership for digital assets, not just simple images; avoid purchasing "air NFTs" with no real value and assess their liquidity.
【Trading Skills】
- Spot vs. Futures: Spot is the direct purchase of assets, while futures involve leveraged price speculation; beginners are advised to start with spot trading.
- Basics of candlestick charts: A bullish candle indicates a price increase, while a bearish candle indicates a decrease; moving averages reflect average costs, so avoid being misled by colors.
- Support and resistance levels: Support is the price rebound point, while resistance is the price retracement point; essentially, it is a psychological game between bulls and bears.
- Volume analysis: A significant increase in volume may indicate a correction, while a decrease may suggest a rebound; comprehensive judgment should be based on trends.
- Stop-loss and take-profit strategies: Exit promptly upon reaching target profits, decisively leave when hitting stop-loss levels (like 10%); opportunities in the crypto world are never exhausted.
【Risk Control】
- Importance of private keys: Private keys are the lifeline of assets; losing them means permanent loss; avoid storing them on cloud drives or screenshots, and use hardware wallets.
- Withdrawal verification: When withdrawing from exchanges to wallets, first test with a small amount (like 0.0001), and confirm receipt before transferring larger amounts.
- Beware of "meme coins": Tokens with names containing "Dog," "Shib," or "Floki" are often worthless; avoid blind investments.
- Stay away from "mentors": Those claiming to accurately "buy the dip" or "sell the top" are often scammers; there is no absolute authority in the crypto world.
- Leverage risk: With 10x leverage, a 10% drop can lead to liquidation; never bet your entire fortune.
【Ecosystem Awareness】
- Bitcoin's positioning: Digital gold, with a total supply of 21 million coins; its anti-inflation properties make it the benchmark in the crypto world.
- Role of Ethereum: A blockchain operating system that supports DeFi, NFTs, and gaming, but has high gas fees and limited concurrency.
- Layer 2 solutions: Such as Arbitrum and Optimism, which alleviate Ethereum congestion, reduce transaction costs, and increase speed.
- Cross-chain bridge functionality: Enables asset transfers across chains (like Ethereum to BNB Chain); choose reliable platforms to prevent hacking.
- Characteristics of stablecoins: USDT, USDC, DAI, etc., are pegged to the US dollar, but USDT has controversies regarding over-issuance.
【Project Analysis】
- White paper review: Study project goals, profit models, and team backgrounds; prioritize reading the original English version.
- Token economic model: Focus on total supply, distribution mechanisms, and lock-up terms; avoid projects with unlimited issuance.
- On-chain data indicators: Analyze the number of holding addresses, transaction volumes, and large transfers; beware of data manipulation.
- Community assessment: Observe Twitter followers and Telegram group activity; distinguish between genuine discussions and marketing hype.
- Competitor comparison: For example, compare the security of lending platforms Aave and Compound, or the performance differences between public chains Solana and Avalanche.
【Tools】
- Exchange selection: Binance, OKX, Coinbase, etc.; beginners should start with spot trading and avoid futures leverage.
- Wallet management: MetaMask, TP Wallet, etc.; manage private keys independently and do not store them on exchanges.
- Market software: CoinGecko, CoinMarketCap; check rankings, market caps, and trading volumes.
- On-chain explorers: Etherscan, BscScan; track transaction records and address holdings.
- Information platforms: CoinDesk, The Block; focus on in-depth analysis rather than clickbait.
【Mindset】
- Avoid FOMO: Do not blindly chase prices when they surge; beware of pump-and-dump traps.
- Resist FUD: Do not panic sell on negative news; it may be a washout tactic.
- Reject All in: Only invest spare money; avoid borrowing or selling property to trade.
- Long-term perspective: Bitcoin has seen significant growth over ten years, but frequent trading causes most to miss out on profits.
- Take breaks: Restrain greed during bull markets and remain calm during bear markets; prioritize mental and physical health.
【Advanced】
- Staking mining: Earn interest by depositing coins on DeFi platforms; be aware of impermanent loss risks.
- Liquidity mining: Provide liquidity to trading pools to earn fees; stay away from high-yield Ponzi schemes.
- NFT strategy: Prioritize blue-chip projects (like BAYC, CryptoPunks) and avoid low-quality NFTs.
- GameFi participation: Earning while playing requires examining economic models and identifying Ponzi games.
- DAO operations: Autonomous organizations with tokenized voting; participate cautiously in small DAOs to avoid manipulation.
【Terminology】
- "All in": Betting the entire portfolio, a high-risk behavior.
- "Airdrop": Free distribution of tokens; beware of scams requiring upfront payments.
- "Rug pull": When project teams abscond, causing token prices to plummet.
- "Whale": Addresses with large holdings; their actions impact the market.
- "Wash trading": When major players intentionally suppress prices to drive away retail investors.
【History】
- The March 12 crash: On March 12, 2020, BTC halved in a single day, triggering massive liquidations.
- The May 19 incident: On May 19, 2021, the crypto market collectively crashed, with DeFi lock-up volumes plummeting.
- Luna collapse: In 2022, the algorithmic stablecoin Luna went to zero, evaporating $40 billion.
- FTX collapse: In 2022, the world's second-largest exchange went bankrupt, and its founder was arrested.
- Bitcoin halving: The production is halved every four years; history shows a drop before halving followed by a rise, but dynamic analysis is needed.
These 50 knowledge points are derived from practical experience; saving this article can help avoid detours. Remember: the crypto world is a place for cognitive monetization, and profits stem from a profound understanding of the world.
Master Basic Tools and Start Your Crypto Journey!#
With a wide variety of cryptocurrencies, investment requires clear targets and strategies. Blindly following trends will not last.
Here are some commonly used tools to assist you in making efficient decisions. Note: Some website links may not be provided, please search for them yourself.
1. SpotOnChain#
Crypto investment is not limited to exchanges; on-chain analysis tools can reveal more information, such as whale movements.
This platform provides on-chain data reporting, address relationship visualization, and monitoring functions, covering hundreds of institutions, funds, and KOL addresses to track their large capital flows.
2. Arkm#
Also an on-chain analysis tool, it supports alerts and address tracking, with comprehensive features. However, it currently does not support Solana chain data.
3. Crypto Deal Flow#
The scale of project financing often reflects institutional confidence and indicates potential for growth. This website allows you to check financing history, suitable for English users. Chinese users are recommended to use Rootdata, but be aware that its crowd-sourced model may lead to information discrepancies.
(4) Token Unlocks
Focuses on token unlock data queries, covering mainstream cryptocurrencies. Free users can only view 7 days of data; long-term tracking requires membership. Chinese media often summarize monthly unlock information, which can serve as a supplement.
(5) Coinmarketcap
The core function is cryptocurrency price queries, including circulation, FDV, and other data for mainstream cryptocurrencies, categorized by sector for easy filtering.
(6) Dex Screener
Focuses on candlestick analysis of low market cap meme coins and is an essential tool for trading meme coins.
(7) Defillama
A Web3 data platform that provides multi-dimensional indicators for DeFi, stablecoins, NFTs, etc. Users can query TVL and other data for various chains and projects to assist in investment decisions.
Time management determines the height of wealth. QuestMobile data shows that young people spend an average of 2.8 hours daily on short videos (accumulating 1022 hours a year), 456 hours a year on social media during commutes, and 300 hours a year shopping during lunch breaks—these fragmented times are enough for a novice to transform into a professional trader in three years.
Second, choice is greater than effort.
Comparative case: Worker Zhang San spends 1 hour each night on Douyin, 40 minutes reading novels, and plays 3 games; awakened Li Si spends 1 hour each night reviewing candlestick charts, 40 minutes learning trading, and writing logs. Two years later, Zhang San may have gained weight and faced liquidation, while Li Si may have established a stable profit system, with side income surpassing his main job. Student cases prove that reviewing during commutes and testing models during lunch breaks can achieve annual returns exceeding 137% of salary.
If you aim to profit within a year, here is a shared growth path.
Third, Stage 1: Understanding the Market
Spend 1 month mastering three key elements:
1st: Basics of Candlesticks
(Figure 1: "Basics" Assignment No. 3—Candlestick Basics Assessment)
Candlesticks are a visual tool for price fluctuations; you need to understand the underlying line logic (as shown in Figure 1) and distinguish between trend candlesticks (bullish/bearish dominant) and non-trend candlesticks (bulls and bears in a stalemate) (as shown in Figure 2).
(Figure 2: "Naked Candlestick" Assignment No. 2—Price Action Basics Assignment)
2nd: 12 Golden Candlesticks and Signal Candlesticks, Entry Candlesticks
(Figure 3: Horizontal 12 Golden Candlestick Wallpaper)
The 12 Golden Candlesticks are a high-win-rate candlestick combination (as shown in Figure 3). Signal candlesticks are preparatory for entry (like reversal candlesticks), while entry candlesticks are for executing actions (as shown in Figure 4).
(Figure 4: Bullish Trend Candlestick & Bearish Trend Candlestick & Effective Entry Candlestick)
3rd: Candlestick Patterns and Structures
You need to judge the market trend phase (early or late in an uptrend) and choose the following wave and entry points. For example, price action includes bull flags, bear flags, and retracement structures (as shown in Figures 5 and 6), or the central area and trend types in the Chande theory (as shown in Figure 7).
(Figure 5: Intensive Training Camp Deliberate Practice: All Price Action Patterns)
(Figure 6: Intensive Training Camp Deliberate Practice: All Price Action Patterns)
(Figure 7: Intensive Training Camp Deliberate Practice: Trend Types in Chande Theory)
Fourth, Stage 2: Deliberate Practice
Transform knowledge into skills:
Step 1: Chart Analysis
(Figure 8: Intensive Training Camp Deliberate Practice: Reading Charts with Chande Theory & Trend Types)
(Figure 9: Intensive Training Camp Deliberate Practice: Reading Charts with Price Action)
Assess the market state: Is there a trend, what is the phase position, and what is the entry strategy (as shown in Figures 8 and 9).
Step 2: Identify Trading Opportunities
(Figure 10: Intensive Training Camp Deliberate Practice: Identify All Opportunities)
(Figure 11: Intensive Training Camp Deliberate Practice: Identify All Opportunities)
Mark all potential opportunities post-factum, such as shorting at wedge tops or entering FB structures (as shown in Figures 10 and 11).
Step 3: Determine Trading Preferences
(Figure 12: Intensive Training Camp Deliberate Practice: Write Your Trading System & Basic Win Rate)
(Figure 13: Intensive Training Camp Deliberate Practice: Write Your Trading System & Basic Win Rate)
Through extensive review (50-200 charts), refine preferences (like specific pattern reversals), form an initial trading system, and test the basic win rate (as shown in Figures 12 and 13).
Fifth, Stage 3: Real Trading Validation
After the system matures, conduct small real trades (like 100 yuan):
- Goal: Overcome loss mentality and compare differences between real trading and review data.
- Rules: Only trade opportunities within the system, and attempt a maximum of two times per single logic.
- Result Handling: If data deviation is large (like a sudden drop in win rate), return to Stage 2 to iterate the system; if close, then validation is successful.
Professional guidance can accelerate the process, but self-discipline in practice can also achieve monthly earnings of 100,000 within a year. Act now: use the time spent on a milk tea to study data instead of wasting time.
In 2025, with candlesticks as the pen and volatility as the ink, write the path to financial freedom.
Limited-Time Benefit—New Users Register to Receive a Guaranteed 20+ U Bitcoin Blind Box 🎁#
🎁 Register on mainstream exchanges like OKX, Binance, Huobi, Bitget, Bybit, Gate, Backpack, etc., and bookmark all mainstream exchanges' latest anti-loss domain on one webpage 👉🏻: https://linktr.ee
Related Reading#
🔥🔥🔥 Alpha Finds Useful Tools for Dog Trading#
1️⃣ Axiom Dog Trading Tool https://axiom.trade
2️⃣ Gmgn Dog Trading Tool https://gmgn.ai
3️⃣ dbot Dog Trading Tool https://app.debot.ai
4️⃣ Morelogin Multi-Account Fingerprint Browser www.morelogin.com
Everyone is Searching For#
Buying Bitcoin in China, ranking of crypto trading exchanges, is OKX reliable, is Binance reliable, downloading and registering OKX in China, depositing on OKX in China, registering on Binance App, downloading Binance App, tutorial for buying coins on Binance platform, Binance registration, Binance airdrop registration, downloading Binance on iPhone, how to buy President Coin, how to buy Dogecoin, buying Bitcoin with RMB, how to download OKX, Web3 airdrop, Web3 zero airdrop, downloading and registering Bitget in mainland China, registering with passport on OKX, downloading OKX, downloading Binance, crypto side business, OKX contracts, how to recharge RMB on OKX, how to recharge on OKX, how to create an NFT wallet, how to recharge RMB on Huobi, beginner's guide to the crypto world, btc8848.com, Tony's trading principles for contracts, contract leverage bit wave, DeFi mining, crypto airdrop, can crypto airdrops still be played, what to do if contracts are liquidated, how to buy President Coin on OKX and Binance, how to buy Ethereum on OKX and Binance, how to play DeFi staking and mining, can NFTs still be played, how to play Web3 zero airdrop, how to create inscriptions, how to create runes, beginner's guide to the crypto world, how to trade crypto, can trading crypto make money, beginner's guide to the crypto world btc8848.com, can trading crypto make money, what is contract leverage, DeFi mining, how to play crypto airdrop, OKX and Binance airdrop, node staking, liquidation, financial freedom, night investment heiyetouzi.xyz