[Introduction to Cryptocurrency] How to play with virtual currency? How do newbies buy virtual currency? Can lazy people make money investing in cryptocurrency by learning from scratch in the currency circle?

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How to play with virtual currency? Getting Started with CryptocurrencyHow do newbies buy cryptocurrencies? Cryptocurrency is a rapidly growing financial sector today as there are many investment opportunities that attract the attention of many investors. However, how does cryptocurrency work? For newbies to virtual currencies, this area can appear complex and confusing. This article will take you into the world of virtual currency introduction, from basic concepts to trading principles, hoping to help you protect your virtual digital assets and formulate investment strategies.

How do newbies start learning cryptocurrency? How to play with virtual currency? Let us teach you:

• The first step is to establish a basic understanding of blockchain technology and the operation of cryptocurrency.
• Step 2: Set clear personal investment goals and risk tolerance, carefully consider investment plans, and avoid exceeding your own affordability.
• Step 3: Choose a reliable cryptocurrency trading platform and conduct simulated trading to familiarize yourself with the operation and reduce risks.
• Finally, during actual transactions, investments are spread across different projects to reduce single project risks. Keep learning and be patient, and don’t blindly follow market rumors.

Hopefully this guide will help you succeed in the cryptocurrency world! Whether you want to learn more about cryptocurrencies or start investing, this virtual currency guide will help you get started easily!

We've also talked about it before:Why are cryptocurrencies worth money? Fully understand the value application and potential risks of virtual currency, these two articles can be read together, and you will have a better understanding of the world of cryptocurrencies.

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1. How to play with virtual currency? The Basics of Getting Started with Cryptocurrency

Before entering the field of cryptocurrency investment, I suggest that novices should first understand and start with basic knowledge. Do not think that traditional stock investment thinking can be completely applied to this field. Here is an introduction to what newcomers who have just entered the cryptocurrency circle should know. basic knowledge.

A. ""Cryptocurrency" and "Virtual Currency"Is it the same thing?

Many people use cryptocurrencies and virtual currencies as synonyms, but in fact, there are subtle differences between the two.

"Cryptocurrency"It is a special virtual currency whose existence is based on a technology called blockchain. Cryptocurrency transaction information is encrypted and stored on a decentralized network, making transactions more transparent, secure and difficult to tamper with.

"Virtual currency"It is a currency that exists only in electronic form. It has no physical existence and no value backed by a central bank or government. For example, in-game coins or points from certain loyalty programs can be considered virtual currencies.

So if everyone is talking about cryptocurrency in the future, never blurt out that I am also playing it."Virtual currency", everyone will regard you as a super newbie, because the nature of cryptocurrency and virtual currency is completely different. (However, this website is still oriented to novices, and these two words will still cross-appear in my website in the future)

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B. What are the advantages of buying cryptocurrencies?Why buy cryptocurrencies?

1. decentralized: Unlike traditional currencies, cryptocurrencies do not rely on central banks or governments. This reduces policy intervention and the risk of sudden financial crises. For example, when China strictly regulated Bitcoin, the price of Bitcoin was not greatly affected because its decentralized nature allowed it to operate on a global scale without being restricted by the policies of a single country.
2. transparency: Since transaction information is recorded on the blockchain, anyone can view it, which ensures the transparency of transactions. For example, when someone anonymously donates a large amount of Bitcoin to a charity, the organization can publicly display the Bitcoin address, and anyone can view the donation amount and transaction records to ensure transparency in the use of funds.
3. safety: Encryption technology makes transactions difficult to tamper or defraud, and provides high-quality privacy protection. For example, Bitcoin’s blockchain technology uses powerful encryption algorithms to make transactions difficult to tamper with or be defrauded. This makes Bitcoin highly secure and avoids problems like credit card fraud in the traditional financial system.
4. Low transaction fees: There is no middleman involved, and transaction costs are greatly reduced. For example, when you need to move large amounts of money across countries, using Bitcoin can save you significant transaction fees that may be higher with traditional international bank transfers.
5. international trade: Cryptocurrencies enable fast, low-cost international transactions without foreign exchange restrictions. For example, many multinational companies have begun to accept Bitcoin as a payment method because using Bitcoin can conduct cross-border transactions quickly and at low cost without being subject to foreign exchange restrictions or complicated procedures for cross-border remittances.

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C. Differences in trading logic between cryptocurrency and traditional stocks

How to play with virtual currency? When we talk about investment logic, there are some core differences between cryptocurrencies and traditional stocks:

1. value driven: The value of traditional stocks is typically based on a company's financial health, profits, market share and other factors. The value of cryptocurrency is more based on technological innovation, user acceptance and market sentiment.
2. Market opening hours: Traditional stock markets have fixed opening and closing times, while the cryptocurrency market operates 24 hours a day.
3. Liquidity and Volatility: The cryptocurrency market is relatively young and susceptible to news and events, which makes it highly volatile. The traditional stock market is relatively stable due to its profound history and large market size.

D. What are the related products of cryptocurrency exchanges?

In the world of cryptocurrency, the first thing everyone comes into contact with must be exchanges, includingBinance,OKXThese. The simplest way to do it in the exchange is toBuy and sell spot, is the first step for almost everyone. Later, when they become more familiar with the currency circle and exchanges, they will start to pay attention to the exchanges.contractThis thing, so today I will help you introduce the spot andcontractThe difference, and how to play the two.

First of all, we can see the picture below. I have listed the top 5 exchanges for cryptocurrency spot and derivatives. We can see that there is a very obvious gap in trading volume. The overall trading volume is only 13% for spot and derivatives. The number of commodities is as high as 87%. This is also a similar environment to the overall market. In fact, spot transactions only account for a small part, and most of the transactions are in derivatives.

PS. Derivatives include contracts and options. The amount of options is very small, so the derivatives here are almost equivalent to contracts.

2023//11/21 14:00, data source CoinMarketCap

Spot Trading:

Simply put, it means buying and holding various cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH) or Binance Coin (BNB). This type of trading typically does not involve leverage. However, many exchanges also offer the option of leveraged trading, usually with a leverage ratio of no more than 10 times. The essence of using leverage is to use the original coins as collateral to borrow more coins. Since it involves borrowing, there is a certain amount of interest that needs to be paid.

contract trading:

Namely, futures trading (in stocks), often referred to as "contracts" in the cryptocurrency world. Most often, these contracts are perpetual contracts, meaning theyNo specific expiration date. In order to prevent a large price difference between the contract and the spot in the long term, the perpetual contract will charge long contract holders when a positive price difference occurs.Funding fee (or funding rate), and pays those holding short contracts, and vice versa. This is a mechanism to maintain price consistency. Contract trading allows for varying degrees of leverage, ranging from 1x to 100x, depending on the exchange's regulations.

Further reading:What is a perpetual contract? Are virtual currency futures that never expire guaranteed to make money? Be aware of the risks involved!

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2. How to play with virtual currency? Getting Started with Cryptocurrency: Learning the Currency Circle from Scratch

How to play with virtual currency? Before starting to invest in cryptocurrencies, it is crucial for newbies to understand the basic concepts. First, a cryptocurrency is a currency that is stored digitally, usingEncryption technology ensures security and anonymity. The most famous cryptocurrency is Bitcoin, but many other different types of cryptocurrencies already exist.

A. Current mainstream cryptocurrency currencies

• Bitcoin (BTC for short): Bitcoin is the first digital currency that has successfully achieved decentralization and encryption. It is regarded as digital gold and the cryptocurrency with the largest market value.
• Ethereum (ETH for short): Ethereum is an open source blockchain platform that supports smart contracts and provides the foundation for many projects.
• Binance Coin (BNB): It is the currency of Binance platform, and the chain used is Binance chain.
• SOL(Solana): Solana is a high-performance blockchain platform whose main features are its high throughput and low transaction costs. It is designed to solve the scalability limitations of traditional blockchains such as Bitcoin and Ethereum.
• Ripple (XRP): Ripple is the basis of the digital payment protocol developed by Ripple Labs and is designed to enable fast and low-cost cross-border payments.
• Bitcoin Cash (BCH): Bitcoin Cash is a fork of Bitcoin that strives to increase transaction speeds and expand block sizes.
• Dogecoin (DOGE for short): Dogecoin is a currency inspired by the Internet meme "dog" image. Its community is active and has received widespread attention.

Current cryptocurrency market capitalization ranking (2024/01/04):

B. How do cryptocurrency newbies start buying coins in Taiwan?

It is recommended to start using centralized exchanges at the beginning. Decentralization may involve cross-chain and gas fee issues, so it is not recommended for novices to use it at the beginning.First of all, I would recommend newbies to open a Taiwanese cryptocurrency exchange or an international cryptocurrency exchange (such as Binance, OKX). The following will explain why you need to do this.

Assuming that you have already applied for these exchanges and completed the identity authentication, I will introduce how I buy cryptocurrency:

• Deposit NT$: Choose a cryptocurrency exchange in Taiwan (you can also deposit directly into exchanges in other countries, but the handling fee is usually very considerable), such as Max's platform, they will ask you to do relevant KYC (identity verification), and after depositing Taiwan dollars, you can buy relatedUSD stablecoin(Such as: USDT, USDC, BUSD) Make subsequent transactions more convenient.
• Cryptocurrency trading: At this time, I will transfer the stablecoins of the Taiwan exchange to the international exchange (hereinafterBinanceFor example, why choose an international exchange? Because these exchanges are usually large in scale, support many chains, have low handling fees, and have diversified products, they will be more convenient to use in the future) for currency purchases or any financial product transactions.

Explanation of nouns for novices (can be studied with the picture above):

1. currency exchange office(The first step for deposits, the fourth step for withdrawals): Exchanges that convert Taiwan dollars (or any country's legal currency) into cryptocurrencies (usually operated in Taiwan, such as MAX Exchange)
2. exchange(The fourth step of depositing, the first step of withdrawing money): After transferring the stablecoin purchased at the currency exchange, it can be used to purchase cryptocurrency (such as Bitcoin)
3. Stablecoin: The medium for transactions in all processes, such as US dollar stable currency (mainly USDT), which is the circulating currency for mainstream blockchain transactions and buying and selling currencies.

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C. Recommended cryptocurrency exchanges: Binance, OKX

The comparison between Binance and OKX is as follows:

feature	Binance Binance	OKX Ouyi
global influence	The world's largest exchange	The world's top three leading Web3 technology companies
service provided	Extensive trading options including spot and futures	Innovative staking and multi-chain wallet services
security measures	Relatively safe, large scale and long history	Relatively safe, Web3 wallet can enhance asset control
user interface	Intuitive and user-friendly	A relatively trendy and youthful interface, highly customized and feature-rich
Supported currency types	Supports multiple cryptocurrencies and fiat currencies	Extensive support for various cryptocurrencies
customer service	24/7 global customer support	Professional technical support and multi-language services
Educational Resources	Provide rich educational content and guidance	Includes webinars and detailed FAQ
Exclusive registration link	Click here to register on Binance	Click here to register OKX

1. Binance Binance Exchange: The world’s largest virtual currency exchange

Binance is one of the largest cryptocurrency exchanges in the world, known for its wide range of cryptocurrency trading pairs, high liquidity, and low trading fees.It provides diversified services, including spot trading, contract trading, staking, lending and its unique Binance smart chain(BSC). Binance is committed to providing a safe trading environment with multi-layered security measures and user asset protection mechanisms.In addition, Binance provides a user-friendly interface suitable for traders of all experience levels, and provides cryptocurrency knowledge and trading skills through its educational platform "Binance Academy" to support users' investment decisions. Its global reach and innovative spirit have made it a leader in the cryptocurrency space.

Why do you want to recommend Binance?

Binance's financial products are the most useful platform I have ever seen. It also has a one-click financial management function, which allows novices to quickly enter the world of cryptocurrency and improves fund utilization. The financial products clearly inform users which products are low-risk and high-yield (relatively high-risk), which is very considerate! Usually low-risk products are stable income products with fixed deposits, and high-yield products are mostly liquid mining and dual-currency financial management (this kind of investment usually requires more technical operations), so you should be careful when choosing products.

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2. OKX European exchange: the entry brick of Web3

What is OKX exchange? OKX is a cryptocurrency centralized exchange (CEX) and Web3 wallet platform established in Seychelles, providing services to millions of users around the world. The trading platform provides basic spot trading and simple contract trading, and its derivatives include margin, futures, perpetual contract exchange and options. Other products include trading bots, block trading, OKX Earn (savings, stablecoins, DeFi, staking, ETH 2.0, etc.), crypto loans, and the platform’s launchpad Jumpstart (aka.IEO).

In addition, OKX also has its own native blockchain - OKX chain and native token - OKB. Developers and projects can use them to deploy DApps and use their infrastructure, such as the OKX 2 prediction machine, etc.

Why do you want to recommend OKX?

OKX Wallet claims to be the "portal to Web3" and provides cryptocurrency hot wallets, decentralized exchanges (DEX), NFT markets and decentralized applications (DApps). The wallet supports more than 30 networks, including Bitcoin, Ethereum, BNB chain, Solana, Polygon, Avalanche, Fantom and other major blockchains.

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How to tell if a cryptocurrency exchange is not a scam?

First of all, the first relatively simple and superficial way can be fromCoinMarketCaporCoinGeckoLooking at its current exchange rankings, basically all exchanges within the 20th place can be considered trustworthy. But this is not the case (because even FTX, the second largest exchange in the past, can have disasters), you must carefully check their reserve fund report.

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You can click here to check his reserve fund status or go to their official website to check. Such protective measures can at least help you screen out more problematic exchanges and make you more confident in cryptocurrency transactions.

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I have also written about how to prevent cryptocurrency scams. The content is very detailed and complete. Interested Q fans can read further!

How to avoid cryptocurrency scams? 10 common scams that can cost you your hard-earned money

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3. Getting Started with Cryptocurrency: Choose the Cryptocurrency Trading Platform that’s Right for You

How to play with cryptocurrency? A cryptocurrency trading platform is an essential tool for your trading. However, there are many different platforms to choose from on the market, each with its own features, pros and cons. When choosing a trading platform, consider the following factors:Security, transaction fees, trade matching and user interface. Carefully choose a platform that suits your needs to ensure your transactions run smoothly.

A. Choose a suitable trading platform

When you're ready to actually trade, it's crucial to choose a safe and secure cryptocurrency trading platform. Carefully study the handling fees, security measures, user reviews and other factors of different platforms to ensure the safety of your funds. Choosing the right cryptocurrency trading platform is very important for newbies. Here are some suggestions and considerations:

1. safety: This is the most important factor. Check whether the platform has historical security vulnerabilities and whether it uses encryption measures such as cold storage and two-factor authentication (2FA).
2. user experience: Choosing a platform with a friendly interface and easy-to-use can make your trading process smoother.
3. cost: What is the rate structure? Are deposit, withdrawal, and transaction fees reasonable?
4. Supported currencies: Some platforms may only support mainstream digital currencies, such as Bitcoin and Ethereum, while other platforms may support multiple tokens.
5. customer service: A responsive customer service team is very helpful when problems arise.
6. Regulation and Compliance: In some countries or regions, cryptocurrency trading platforms may require permission or permission from regulatory authorities. This can provide a level of security.

B. Recommended exchanges for getting started with cryptocurrency:

1. Binance: One of the world's largest cryptocurrency trading platforms, supporting multiple currency transactions.
2. OKX: OKX (formerly OKEx) is a leading global cryptocurrency trading platform, offering trading and derivatives trading in multiple cryptocurrencies. Recently, it has strongly supported the Asian market, has frequent marketing activities, and its operating interface is very user-friendly.
3. ACE Ace Exchange: ACE Ace Exchange is a local cryptocurrency trading platform in Taiwan. It is specially designed for Taiwanese users. It provides a safe trading environment that complies with local regulations, local currency trading support, and professional customer service for the Taiwanese market, ensuring that Taiwanese users can feel at ease and Conveniently conduct digital asset transactions.

The characteristics of each exchange may change over time and market demand. Before choosing an exchange, it is recommended to further research itsReputation, Fees, Supported Currencies, and any other functions or features you feel are important.

Security has always been the most important issue for exchanges, so it is recommended to pay attention to the security evaluations and user reviews of each exchange.Never invest all your funds in the same exchange. Just like the FTX thunderstorm, many people lost their assets overnight.

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C. Build your own cryptocurrency wallet: protect your digital assets

Some people will consider using a cryptocurrency wallet after having an exchange, mainly based on security and usage factors. If you have started to invest a lot of money in the cryptocurrency field, you may need a safe cryptocurrency. Wallet to store and manage your digital assets. Cryptocurrency wallets are divided intoHot wallet and cold walletTwo types. Online wallets are easy to access and operate, but are relatively insecure and vulnerable to hacker attacks. Offline wallets provide higher security by storing private keys on offline devices. When choosing a wallet, make sure to choose a wallet service that is reliable and has good reviews.

Some common cryptocurrency wallets include:

If you still have concerns about the security of the exchange, consider using an online hot wallet. In this way, the private key is completely controlled by you and is not stored on the exchange. Moving your cryptocurrencies on an exchange to a hot wallet increases security. Although hot wallets are already relatively secure, there is still a risk of being hacked because the private keys are stored on the user's device or browser.

Therefore, when using a hot wallet, be sure to properly protect your account and password, and do not leave any information related to passwords or private keys on the device or on the Internet. It is best to handwrite this information on paper and save it.

If your concerns about security persist, then purchasing a cold wallet may be a good option. A cold wallet is a physical device like a USB or card that is only used when connected to a computer and online.When not in use, it disconnects from the network and saves the private key offline so that hackers cannot attack your private key.

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4. Introduction to Cryptocurrency Investment: Investment Strategies for Lazy People in the Currency Circle

Here are four of the most common cryptocurrency investing strategies for beginners:

Investment Strategy	Purpose	How to execute
long-term holding	Buying and holding a certain cryptocurrency for a long time, expecting its value to increase.	1. Research and select one or several potential cryptocurrencies. 2. Buy the currency on the appropriate exchange. 3. Transfer currency to a private wallet for added security. 4. Be patient and avoid panic selling due to market fluctuations.
Regular currency buying and staking	In addition to purchasing cryptocurrencies, you can also earn interest or rewards.	1. Purchase cryptocurrencies that support staking, such as ETH or other PoS currencies. 2. Stake these currencies on specific platforms or wallets to earn rewards. 3. Check staking returns regularly and reinvest or withdraw.
Regular quota	Average cost method to reduce the impact of market fluctuations.	1. Decide on a fixed investment amount and investment frequency, such as buying 1,000 yuan in BTC every month. 2. Purchase at a predetermined frequency and amount regardless of market conditions. 3. Maintain this strategy in the long term to reduce irrational decisions made due to short-term market fluctuations.
Copy trading	Follow the strategies of experienced traders and hope for similar returns.(PS: The performance of the trader who follows the order may be different from that of the follower, please choose your trader carefully)	1. Register on a platform that supports copy trading. 2. Choose one or more traders with good performance to follow. 3. Set your own capital limits and other parameters, and then the platform will automatically execute transactions according to the selected trader's operations.

Glassnode reports: 80% Bitcoin address has started making profits

One sentence proves that over time, long-term holders will be the winners.

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5. Introduction to Virtual Currency: Cryptocurrency Risk Assessment Strategy

Cryptocurrency investing is not without risk. Before investing, it is very important to understand and evaluate investment risks.I recommend always being aware that factors such as market volatility, government regulation, technological risks, and hacking attacks can have a significant impact on the cryptocurrency market. Develop a risk assessment strategy for yourself so that you can make informed investment decisions and protect your money from potential risks.

Some common cryptocurrency trading platforms include: Binance, OKX, ACE…etc. Each of these platforms offers different trading pairs, as well as trading options for multiple cryptocurrencies.Before registering and using the platform, please be sure to understand its security and fee structure, and take necessary security measures, such as enabling two-factor authentication (2FA) function, to enhance the security of your account.

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Further reading:

cryptocurrency investmentIt's not without risk. Before investing, it is very important to understand and assess the risks. Please be aware that factors such as market volatility, government regulation, technical risk and hacking attacks can have a significant impact on the cryptocurrency market. Develop a risk assessment strategy so you can make informed investment decisions and protect your capital from potential risks.

There are several important cryptocurrency risk assessment strategies that can help you better respond to currency market fluctuations

• diversification: Diversify your investment into different cryptocurrencies and other investment projects to reduce the risk of a single investment.
• Regularly adjust the strategy: Regularly check market conditions and adjust your investment strategy as needed to adapt to market changes.
• use leverage sparingly: Avoid excessive use of leverage trading, so as not to increase risks and losses.
• Learn Technical Analysis: Learn to use technical analysis tools to help you predict market movements and make smarter investment decisions.
• Pay attention to market trends and predict the future: To successfully invest in cryptocurrencies, it is crucial to understand market trends and be able to predict future changes. By monitoring market news, technical developments, and related indicators, you can understand market movements and make informed investment decisions. However, keep in mind that markets are constantly changing and predicting the future is not always accurate. Therefore, carefully evaluate and study market trends and make appropriate adjustments based on your investment strategy.

But the most important thing is to continue learning and start investing in the market. This is not investment advice but you can refer to:You can first withdraw a small amount of funds from your own assets of about 5~10% to buy some mainstream currencies (Bitcoin, Ethereum or even stable coins) to feel the pulse of the cryptocurrency market and feel the active atmosphere of the currency circle.

While the cryptocurrency market is a highly volatile and unpredictable one, there are methods and strategies that can help newbies pay attention to market trends and make more informed predictions. Here are some suggestions:

Strategies/Methods	A detailed description
Education and Learning	Understand the basics of cryptocurrency and read various articles and news
	Take online courses (such as Coursera, Udemy)
Follow news and analysis	Subscribe to news sources (Taiwan related media that I often read include: Block Guest, Chain News, and Dongzhu)
	Listen to the experts (but who are the experts?)
Use technical analysis	Analyze price charts to predict future trends
Pay attention to macroeconomic indicators	Understand the impact of global economic, regulatory news and technology developments
Participate in community discussions	Participate in social media groups, you can join some Discord, Line, Telegram groups
Use tools and resources	Use tools and libraries (e.g. TradingView, CryptoCompare, CoinGecko)
Continuously monitor and adjust strategies	Regularly review strategies and make adjustments based on market changes
Be cautious and patient	Stay calm, not affected by short-term price fluctuations, and maintain confidence in your investment strategy
Listen to experts	You can follow senior traders or participate in relatedTeaching courses

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How to play virtual currency: How to identify and prevent virtual currency scams?

As cryptocurrencies rise in popularity and value, so do scams. Tech enthusiasts and newbies alike must be aware of these scams to protect their assets. Below, we’ll look at some common scammers and how to protect against them.

1. Understand common virtual currency fraud techniques:

• Counterfeit project or ICO: Scammers will pretend to be a new cryptocurrency project or initial coin offering (ICO) to attract investment. They may build professional websites that provide fake technical documents and fake team information.
• Phishing websites and fake wallets: Scammers will create websites that look very similar to real cryptocurrency exchanges or wallets to defraud users of their login information or private keys.
• Ponzi scheme: In this scam, the scammer promises high returns but actually uses new investors’ money to pay early participants.
• False advertising and fake celebrity endorsements: Scammers may use social media or other platforms to pose as celebrities endorsing or recommending a cryptocurrency.

2. Preventive measures:

• Conduct in-depth research: Before investing in any cryptocurrency or project, conduct a detailed background check. View the project's white paper, team members, and other reliable sources.
• Use reliable wallets and exchanges: Only use wallets and exchanges that are well-known and recognized by the community. Avoid clicking on unknown links or downloading unknown software.
• Turn on two-factor authentication: Two-factor authentication should be enabled for all cryptocurrency-related accounts.
• Too good to be true: If an investment promises high returns and looks too good to be true, it's probably a scam.
• Protect your private key: Never share or reveal your private key, and be sure to store it in a safe place.

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6. How can newbies learn to invest in cryptocurrency?

Establish virtual currency basics

First, establish a basic knowledge of cryptocurrencies. Learn what blockchain technology is and how cryptocurrencies work. You can read related books, online articles, watch video tutorials, and take online or offline courses.

• books: For example, "Mastering Bitcoin" was written by Andreas M. Antonopoulos, which provides a detailed introduction to the working principles of Bitcoin and blockchain.
• Websites and Blogs: Such as CoinMarketCap and CoinGecko, these platforms provide the latest cryptocurrency prices, market capitalization, trading volume and other data. News or knowledge platforms: Platforms such as Chain News, Blockchain Guest, etc. can increase your understanding of cryptocurrency.
• Online courses: For example, Coursera and Udemy have courses on blockchain and cryptocurrency, which are suitable for novices to learn.

Research common cryptocurrencies

Learn about the common cryptocurrencies in the market, such as Bitcoin, Ethereum, Binance Coin, SOL, etc., as well as their characteristics and uses. These are representative coins of the cryptocurrency space and are a good starting point for newbies.

Track market dynamics

Follow the latest developments and news from the cryptocurrency market. Understand the ups and downs of the market, technological updates, regulatory changes and other factors can affect the price and movement of cryptocurrencies.

use simulated trading

Before actually investing, it is recommended to use a demo trading platform for virtual trading. This allows you to invest in real market conditions without using real money, reducing risk and familiarizing yourself with trading operations.

Diversify investments (diversify risks)

Don't put all your money into one cryptocurrency, diversify. This reduces the risk that even if one of the projects performs poorly, the others may keep performing well. Among them, risk diversification includes several methods:

Be careful with investment advice

In the field of cryptocurrency, there are many people who provide investment advice and forecasts, but the market fluctuates greatly. It is recommended to treat these suggestions with caution and make rational judgments by yourself. The cryptocurrency market has high risks. Before investing, learn risk management strategies, set stop loss points and target prices, and avoid excessive emotional reactions.

All in all, cryptocurrency investing is an area with high risk and high potential reward. As a novice investor, it is recommended to be cautious, build a solid foundation, and follow the above recommendations for investment. Keep learning and accumulating experience, I believe you will be able to succeed in this emerging field.

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How to play with virtual currency? Recommended books on cryptocurrency

「Cryptocurrency Bible: The Past and Future of Digital Currencies, Digital Assets, Cryptocurrency Trading and Blockchain” is the first professional blockchain book that discusses the generational value of currency and tokens! To understand cryptocurrency, you must not understand blockchain technology and cryptography!

Read this book to quickly master:

• Technology and use of Bitcoin, Ethereum and other cryptocurrencies
• Blockchain technology and how it works
• Cryptocurrency market operation, risk assessment and value measurement
• How Bitcoin and Blockchain Are Changing Global Business and Their Potential Impact

When it comes to cryptocurrencies, this is all you need.

【Features of this book】

1. It integrates industry, government and learning, and transforms complex knowledge into easy-to-understand concepts. It is full of useful information but easy to read.
2. Fully deconstruct the technical, application, and business aspects of cryptocurrencies and blockchains, and understand all the details in one book!
3. The authors and reviewers are both heavyweight experts and industry authorities with deep credibility.

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Conclusion: How do beginners buy cryptocurrencies and play with virtual currencies?

By now you know the basics of cryptocurrency and have mastered the key steps of opening a wallet, choosing a trading platform, assessing risks and developing an investment strategy. This information will help you invest in cryptocurrencies with more confidence and rationality to maximize returns. Remember to stay calm and cautious in your investments, study and track market trends regularly, and adjust your strategies at any time. Start your cryptocurrency investing journey and embrace the financial opportunities ahead!

Again, cryptocurrency investment risks:

When you buy cryptocurrencies on an exchange, the coins are stored on the exchange, which is both convenient and carries some risk.One of the risks is that if the exchange goes out of business, you may not be able to get your cryptocurrency back.In addition, since the private key is kept by the exchange, once the exchange is attacked by a hacker, your private key may also be stolen, which may lead to financial losses. As for whether the exchange will compensate, it depends on the exchange's policy and integrity.

Therefore, I recommend everyone to choose the top ten exchanges on the market. These exchanges not only have rich operational experience and high security, but also have been properly handled even if they have been attacked. These large exchanges themselves are highly profitable, so the possibility of running away is extremely low.

Cryptocurrency self-test:
If you feel the same about the following five sentences, please tick them in your heart

▢ I think cryptocurrency is the future trend,but don't know how to enter this new world
▢ I want to learn cryptocurrency, butThe information on the Internet is very fragmented, cannot learn sequentially
▢ I want to allocate part of my assets in cryptocurrency, butI don't know of any safe way to invest
▢ I want to study how to invest in cryptocurrency, but most articles on the Internet only talk about profit, andDidn’t talk about the risks
▢ I see many cryptocurrency investment opportunities every day,I don't know how to tell if it's a scam

◆ Check 0: It means you have some understanding of cryptocurrency.Already standing on the cusp of a new trend.
◆ Tick 1-2: It means that you don’t know much about cryptocurrency investment.Still need to master more methods.
◆ Tick 3-4: means you have no clue about cryptocurrency at all,I am often nervous that I am getting further and further away from the wind, but I don’t know where to start.
◆ Tick 5: It is an advanced patient, and the financial world has undergone major changesUnknowingly, you must change immediately!

How many ticks did you get on your cryptocurrency self-test?

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FAQ: Beginners getting started with cryptocurrency, how to play with cryptocurrency?

Question 1: What is a cryptocurrency?

A: A cryptocurrency is a digital asset that uses blockchain technology to encrypt and verify transactions. They are not controlled by any central agency or government and are characterized by decentralization. The most famous cryptocurrency is Bitcoin, but there are many other types of cryptocurrencies such as Ethereum, Binance Coin, etc.

Question 2: How should I start investing in cryptocurrencies?

Answer: Before starting to invest in cryptocurrencies, you must first understand the basics and risks of cryptocurrencies. It is recommended that you research and learn about blockchain technology, characteristics of different cryptocurrencies, and market trends. Choose a trusted cryptocurrency trading platform, register an account and complete identity verification. Before starting the actual investment, it is recommended that you conduct simulated transactions (or purchase from a small amount first), familiarize yourself with the operation and practice investment strategies.

Question 3: How to reduce the risk of cryptocurrency investment?

Answer: There are several ways to reduce the risk of cryptocurrency investment: first, do not invest more than you can afford, and avoid over-investment. Second, diversify your investments into different cryptocurrency projects, so that even if one of the projects fails, the overall risk can be reduced. Also, stay calm and patient, don't be influenced by market rumours, and make wise investment decisions.

Question 4: How do I protect my cryptocurrency investment? Keep my cryptocurrencies safer?

A: The way to protect your cryptocurrency investment includes using a safe and reliable cryptocurrency wallet. It is recommended to use a hardware wallet or cold wallet to prevent cyber attacks. In addition, regularly change the passwords of the trading platform and wallet, and enable the two-step verification function to increase the security of the account. Be wary of emails, messages and websites from unknown sources to avoid falling victim to phishing attacks. Remember to keep your private key and seed phrase safe and avoid disclosing them to others.

Question 5: Is cryptocurrency investment safe?

Answer: The cryptocurrency market is highly volatile and involves high investment risks. Additionally, due to its decentralized nature, you may be at risk of having your funds stolen if you do not take appropriate security measures (such as using a hardware wallet or enabling two-factor authentication). Therefore, investors should carefully assess risks and take appropriate safety measures.

Question 6: How can a newbie tell if a cryptocurrency is worth investing in?

answer:

1. technical foundation: First understand the technical architecture behind the cryptocurrency. Are there any innovative technical solutions? Does it solve an existing problem or challenge? For example, some cryptocurrencies may focus on faster transaction speeds or lower transaction costs.
2. development team: Who is developing this project? Do they have past experience or success stories in related fields? A senior team with expertise may make a project more attractive.
3. Use Cases: Does this cryptocurrency have practical application scenarios? Is it just an empty concept or does it have real commercial or social value?
4. Market demand: Is there a large group of potential users or customers? If the currency solves a problem for a broad market, it may have greater growth potential.
5. community support: A healthy and active community is often a characteristic of a successful cryptocurrency. Community members may participate in development, promotion, or even help solve problems.
6. Differences from other competing currencies: Does this currency have unique features or advantages that make it different from other currencies? Can you stand out in the fierce competition?
7. overall market environment: The cryptocurrency market is highly volatile and is affected by global political and economic events and technological developments. Before investing, you need to evaluate how these macro-environmental variables may affect your investment decisions.
8. Possible regulatory risks: Different countries and regions have different attitudes and regulations towards cryptocurrency. Consideration needs to be given to whether there is a risk of regulatory changes that may affect the legality or liquidity of the currency.

Question 7: I want to buy cryptocurrency, how do I get started?

answer: There are many ways to buy cryptocurrencies. Here are a few common methods, including using over-the-counter (OTC) trading, cryptocurrency exchanges, and exchange houses:

1. Over-the-counter (OTC):
   • What is OTC trading? OTC trading refers to buying or selling cryptocurrencies directly from other people outside of exchanges. This is often used for large transactions as it provides greater price stability and allows transactions to be completed privately.
   • how to proceed? Usually this is an option for large traders (big whales), and you can trade through a specific OTC agent or platform. When choosing an OTC service, make sure to choose a reputable and experienced provider.
2. Cryptocurrency exchanges:
   • What is a cryptocurrency exchange? A cryptocurrency exchange is a platform (the main ones mentioned here are the major international centralized exchanges, such as Binance, OKX, and ACE) that allow users to buy, sell or exchange various cryptocurrencies.
   • how to proceed? First, you need to register an account at the exchange, and then transfer currency (stable currency such as USDT) through an exchange in Taiwan, top up with a credit card or other methods. After registering, you can buy your desired cryptocurrency on the exchange.
3. exchange house(Taiwan Cryptocurrency Exchange):
   • What is an exchange house? The exchange referred to here is actually the so-called Taiwan Exchange, which allows you to quickly deposit money through bank transfer and quickly exchange one cryptocurrency for another.
   • how to proceed? Usually through KYC second-level verification, and then binding your own bank account, you can easily deposit money into the corresponding exchange.

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Question 8: How to explain virtual currency?

Answer: Virtual currency is an electronic or digital asset that mainly relies on encryption technology to ensure the security of its transactions and the stability of its value. Unlike traditional currencies, virtual currencies are not issued by a central bank or government and typically exist on blockchain technology.

Question 9: What is needed to play with virtual currency?

Answer: To participate in virtual currency trading or investment, you need the following:

• A digital wallet to store and manage your virtual currencies.
• Visit a cryptocurrency trading platform to buy or sell currencies.
• Initial market knowledge and research to ensure informed investment decisions are made.
• Knowledge of virtual currency risks.

Question 10: How to make money with virtual currency?

Answer: You can look forward to making money with virtual currency in the following ways:

• Make long-term or short-term investments.
• Day trade or take advantage of price differences.
• Through mining (specific cryptocurrencies).
• Participate in DeFi projects or provide liquidity.

Question 11: How do newbies start playing virtual currency?

A: First, you should research and choose a suitable cryptocurrency wallet. Then, register an account on a suitable cryptocurrency trading platform. Once set up, you can purchase virtual currency or receive it from others.

Question 12: Are virtual currencies the same as cryptocurrencies?

A: Virtual currencies and cryptocurrencies are used interchangeably in many contexts, but there are some subtle differences between them. All cryptocurrencies are virtual currencies, but not all virtual currencies use encryption technology.

Question 13: Why does virtual currency have value?

Answer: The value of virtual currency mainly comes from its scarcity, security, decentralized characteristics and people's trust and acceptance of it. In addition, market demand and supply also affect its value. Most virtual currencies have a fixed supply cap, which is an important factor in their value.

Question 14: How much is the virtual currency?

A: The price of virtual currencies is constantly changing and is affected by a variety of factors, such as market demand, supply, news reports and macroeconomic factors. To know the real-time price of a specific virtual currency, it's best to check a major cryptocurrency trading platform or financial news website.

Question 15: Can virtual currencies still be invested now?

Answer: Yes, virtual currencies can be used as investment tools. However, like any investment, cryptocurrency investing has risks. Investors should conduct sufficient research and consider their own risk tolerance before investing.

Question 16: How many types of virtual currencies are there?

A: There are thousands of virtual currencies, including many different cryptocurrencies. The most well-known is Bitcoin, but there are many other popular cryptocurrencies such as Ethereum, Ripple, Litecoin, etc. Each of these currencies has its own characteristics and uses, and new virtual currencies continue to appear on the market.

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