How can a newbie start buying and selling cryptocurrencies?

Cryptocurrencies are based on blockchain technology and have the characteristics of decentralized and cryptographic algorithms. Common ones are Bitcoin and Ethereum, where Bitcoin is the pioneer, while Ethereum has expanded its application scenarios due to its smart contracts.

Feb 25, 2025 at 05:18 pm

Learn about cryptocurrencies

Choose a trading platform

• Security: Check whether the platform has multiple encryption, cold wallet storage and other security measures. Large platforms such as Binance and Huobi have invested a lot in security protection.

• Compliance: Ensure that the platform is legal and compliant in the operating area, subject to relevant supervision, and avoid financial risks.

• Transaction fees: Understand transaction fees, cash withdrawal fees, etc. The fee standards of different platforms vary, and choose a reasonable fee.

Registration and authentication

• Register an account on the selected platform, fill in your mobile phone number, email address and other information, and set a security password.

• Identity verification is carried out according to the platform requirements. Generally, uploading ID card photos and facial recognition is required. The purpose is to comply with anti-money laundering and other regulations to ensure transaction security.

Learn trading terms

• Market price order: Orders that are immediately traded at the current market price can be quickly traded, but the transaction price may fluctuate.

• Limit order: Set an expected price. When the market price reaches this price, the transaction can be controlled, but it may not be completed.

• Stop loss order: To prevent losses from expanding, set a stop loss price and automatically sell it when it reaches it.

Funding preparation and recharge

• Fiat currency recharge: Fiat currency is recharged into the trading platform through bank transfers, third-party payments, etc. Some platforms support direct bank card charging, which is easy to operate.

• Digital currency recharge: If there are already other digital currencies, you can transfer money from your wallet to the trading platform, and be careful to ensure that the address is accurate.

Develop a trading strategy

• Long-term investment: Analyze the long-term value of cryptocurrencies, choose potential currencies, such as Bitcoin, and hold them for a long time to wait for value-added.

• Short-term speculation: Pay attention to short-term market fluctuations, use technical analysis indicators, such as K-line charts, MACDs, etc., buy low and sell high.

• Diversified investment: Don’t concentrate funds in one cryptocurrency, diversify investments in different types and reduce risks.

Start trading

• Buy operation: Select the cryptocurrency to be purchased in the trading interface, such as Bitcoin, select the order type (market order or limit order), enter the purchase quantity or amount, and confirm the order.

• Selling operation: After holding cryptocurrencies, choose to sell at the right time according to the market conditions and your trading strategy. The operation is similar to buying.

Manage and protect assets

• Set strong passwords: include upper and lower case letters, numbers, and special characters, and are replaced regularly to prevent password leakage.

• Turn on two-factor authentication: such as SMS verification code, Google authentication device, etc., to increase account security.

• Using a hardware wallet: When you hold a large amount of cryptocurrencies for a long time, you can use a hardware wallet, such as Ledger Nano S, to store the private key offline to avoid cyber attacks.