Recently, I’ve noticed more and more friends around me want to get into the crypto world, but many of them don’t actually understand how to get started. So I’m going to organize the basic knowledge I’ve figured out over the past few years, hoping it can help everyone.

First, let’s talk about what “trading crypto” means. Put simply, it’s buying and selling digital assets on an exchange, and earning the spread by taking advantage of price fluctuations. Bitcoin and Ethereum are the two most mainstream types. The trading mechanisms in the crypto world are much more flexible than the stock market—trades run 24 hours a day without interruption, and there are no limits on price upswings or downswings. That’s also why some people can make money here. Crypto trading comes in two main styles: one is short-term futures contracts, aiming to enter and exit quickly; the other is long-term spot trading, which means buying and holding for a long time, then selling when the price rises to the ideal level.

To trade crypto, the first thing you need is to find a reliable exchange. There are many mainstream exchanges now, just like banks—some are big, some are small. When choosing, you need to look at the platform’s security and scale. Large exchanges are generally safer and more dependable, but some specific coins really can only be bought on certain platforms, so you’ll have to research that yourself.

Before entering the market, you also need to understand one key concept: USDT. This is a stablecoin—1 USDT is pegged to 1 US dollar—so you can basically treat it as USD. On exchanges, you can’t directly use RMB to buy crypto. You have to first exchange RMB for USDT, and then use USDT to swap into the digital assets you want. When selling, you just do the opposite: exchange your coins for USDT, then swap USDT back into RMB. This process is called coin-to-coin trading.

When it comes to mainstream coins, Bitcoin is the top one, and Ethereum is the second. They have the highest market caps and recognition, and they also have the best liquidity, so the investment risk is relatively lower. Those smaller coins that rank lower might have bigger potential for explosive gains, but their risks are much higher, and their recognition and liquidity are far worse.

Here are some suggestions about trading crypto. First, thoroughly understand the projects you want to invest in— not all projects are trustworthy. Look at the whitepaper, get to know the team background, evaluate the technical applications, and examine the market prospects. Do your homework, and you’ll be able to make a more rational decision. Second, diversify your risk—don’t put all your money into a single coin. Even if one project goes wrong, your other investments can help cushion the impact.

Your mindset is also important. The crypto world has big fluctuations, which can easily make people impulsive, but impulsive decisions are often wrong. Stay calm, develop a long-term strategy, and don’t let short-term volatility scare you. At the same time, you should have a clear risk management plan—set your investment amount, your stop-loss levels, and make decisions based on your own risk tolerance. Never blindly chase short-term profits—that’s the fastest way to lose money.

Also, be on guard against all kinds of scams. In the crypto world, there are especially many “airdrop” coins, pyramid schemes, and fake projects. Be extra alert toward anything that promises overly high returns. At the same time, protect your own information and assets: use strong passwords, enable two-factor authentication, and back up your wallet regularly—these basic steps are absolutely something you must do. Finally, choose a reliable platform. Some exchanges may have issues like being unable to withdraw funds or shutting down the platform—so you need to understand the platform’s rules, fees, and the supported coins in advance.

In general, trading crypto requires rationality and patience. Don’t let market sentiment carry you along. If you prepare well, control your risks, and keep learning, you’ll be able to last longer in the crypto world.