Recently, I’ve noticed many people want to enter the crypto world but don’t know where to start. I’d like to share some of my experiences with everyone, hoping to help newcomers get started in the crypto space.

Actually, the logic of trading cryptocurrencies is quite simple, just like stock trading or real estate—buy low and sell high to profit from the difference. But digital currencies have an advantage: they trade 24/7 without trading limits, so the potential returns are much greater than traditional stock or property investments.

To start investing in crypto, the first step is to choose a reputable exchange. There are many options out there, but platforms with higher rankings are generally safer. An exchange is where you buy and sell digital currencies, similar to the stock market.

Once you enter the exchange, you’ll find that trading requires USDT, also known as Tether. Simply put, USDT is equivalent to the US dollar—1 USDT = 1 USD. It’s a stablecoin issued by Tether, pegged to the dollar. To buy coins, you first purchase USDT with RMB, then exchange USDT for the digital currency you want. This process is called “crypto-to-crypto trading.”

Next, here are some essential terms you need to know. Position size refers to the proportion of your funds invested in cryptocurrencies. “Full position” means investing all your money into coins, while “empty position” means selling everything. Also, there’s take profit (TP) and stop loss (SL)—these are key for risk management. Take profit means selling once you reach a certain profit level; stop loss means selling to cut losses when the price drops to a certain point. Never gamble and hold on stubbornly. A bull market is when prices keep rising; a bear market is the opposite. Going long means buying expecting prices to go up; going short means selling expecting prices to fall.

Regarding mainstream cryptocurrencies, Bitcoin is the absolute leader, and Ethereum is second. Generally, the higher the market cap ranking, the higher the market recognition, liquidity, and the lower the risk. Conversely, smaller coins tend to have poor liquidity and higher risk.

Want to make money even in a declining market? Then you need to try contract trading. Contracts are futures trading—you can use margin to borrow coins and leverage to amplify gains. For example, if you think BTC will fall, you only need to put up 1% margin to control a 100x position. But I must say—beginners should never touch futures! It’s not a quick way to get rich; more often, it’s a fast track to liquidation and bankruptcy.

Regarding risks, Ethereum’s co-founder Vitalik Buterin gave the most honest advice: Don’t invest any money you can’t afford to lose. This is especially important for newcomers. I also recommend not borrowing money, taking loans, or using credit cards to participate, especially with futures trading.

To start investing in crypto, you need three things. First, an Android phone for easy app downloads. Second, some spare cash—funds you won’t need urgently in the near future, so even if you lose it, it won’t affect your life. Third and most important, mindset. Crypto trading involves risks, and unstable mental states can lead to poor decisions.

Opportunities in the crypto space are far more than just trading coins. There are many paths to explore. As long as you’re willing to learn, stay rational, and control risks, you can gradually accumulate experience after entering the market. Returns are always proportional to your investment. I hope everyone can gain something in this market.