50 Core Knowledge Points to Learn When Entering the Crypto World: Protect Your 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 some entering with wisdom, while others are blinded by greed.
Many are drawn into the crypto world by the fantasy of getting rich overnight, yet they haven't grasped the basic concepts: they can't understand on-chain data, can't analyze candlestick charts, and don't even understand the operation mechanism of market makers, ultimately becoming the ones left holding the bag.
This article summarizes 50 essential knowledge points that beginners must master, with the core principle being to first learn to avoid losses, and then pursue profits. Once your 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, and 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 internal enterprise chains) 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), be wary of projects that confuse these concepts.
- Definition of DeFi: Decentralized finance, replacing 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" that have no actual 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, avoid being misled by colors.
- Support and resistance levels: Support is the price rebound point, while resistance is the price pullback point; essentially, it's a psychological game between bulls and bears.
- Volume analysis: A surge in volume may indicate a pullback, while a decrease in volume may indicate a rebound; comprehensive judgment should consider 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 Management】
- Importance of private keys: The private key is the lifeline of your assets; losing it means permanent loss; avoid storing it on cloud drives or screenshots, 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 are no absolute authorities in the crypto world.
- Leverage risk: With 10x leverage, a 10% drop leads 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.
- Ethereum's role: A blockchain operating system supporting DeFi, NFTs, and gaming, but with high gas fees and limited concurrency.
- Layer 2 solutions: Such as Arbitrum and Optimism, 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 over 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; be wary 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, OKEx, Coinbase, etc.; beginners should start with spot trading and avoid futures leverage.
- Wallet management: MetaMask, TP Wallet, etc.; manage private keys independently, do not store them on exchanges.
- Market software: CoinGecko, CoinMarketCap, for checking rankings, market caps, and trading volumes.
- On-chain explorers: Etherscan, BscScan, for tracking transaction records and address holdings.
- Information platforms: CoinDesk, The Block, focusing on in-depth analysis rather than clickbait.
【Mindset】
- Avoid FOMO: Don't blindly chase prices when they surge; be wary of pump-and-dump traps.
- Resist FUD: Don't panic sell during 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: Control greed in bull markets, stay calm in bear markets; prioritize mental and physical health.
【Advanced】
- Staking mining: Earn interest by depositing coins through DeFi platforms, but 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), avoid low-quality NFTs.
- GameFi participation: Earning while playing requires examining economic models and identifying Ponzi games.
- DAO operation: Autonomous organizations with tokenized voting; be cautious when participating in small DAOs to prevent manipulation.
【Terminology】
- "All in": Betting the entire portfolio, considered a high-risk behavior.
- "Airdrop": Free distribution of tokens; be wary of scams requiring upfront fees.
- "Rug pull": When project teams abandon the project, causing the token price to drop to zero.
- "Whale": An address with a large holding; their actions can impact the market.
- "Wash trading": When major players intentionally suppress prices to drive out 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 locked value 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 rate halves every four years; history shows a drop before halving followed by a rise, but dynamic analysis is needed.
These 50 knowledge points stem from practical experience; saving this article can help avoid detours. Remember: the crypto world is a place for cognitive realization, and profits come from a deep understanding of the world.
Master Basic Tools and Start Your Crypto Journey!#
With a variety of cryptocurrencies, investment requires clear targets and strategies. Blindly following trends is unlikely to last.
Here are some commonly used tools to assist you in making efficient decisions. Note: Some website links are not convenient to include; 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, tracking their large capital flows.
2. Arkm#
Also an on-chain analysis tool, supporting 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, indicating potential for price increases. 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 unlocking data queries, covering mainstream cryptocurrencies. Free users can only view 7 days of data; long-term tracking requires membership. Chinese media often summarize monthly unlocking information, which can serve as a supplement.
(5) Coinmarketcap
The core function is cryptocurrency price queries, including circulating supply, 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 meme coin trading.
(7) Defillama
A Web3 data platform providing 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 scrolling through 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 every night on Douyin, 40 minutes reading novels, and plays 3 games; awakened Li Si spends 1 hour every 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 commuting reviews and lunch break model testing can achieve annual returns exceeding 137% of salary.
If you aim to profit within a year, the following shares a systematic growth path.
Third, Stage 1: Understanding the Market
Duration: 1 month, mastering three elements:
1st: Basics of Candlesticks
(Figure 1: "Basic Section" Assignment 3 - Candlestick Basics Assessment)
Candlesticks are a visual tool for price fluctuations; you need to understand the line logic behind them (as shown in Figure 1) and distinguish between trend candlesticks (bullish/bearish dominance) and non-trend candlesticks (bull-bear stalemate) (as shown in Figure 2).
(Figure 2: "Naked Candlestick Section" Assignment 2 - Price Behavior Basics Assignment)
2nd: 12 Golden Candlesticks and Signal Candlesticks, Entry Candlesticks
(Figure 3: Horizontal 12 Golden Candlestick Wallpaper)
The 12 Golden Candlesticks are high win-rate candlestick combinations (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 the rise) and choose the following wave and entry points. For example, price behaviors like bull flags, bear flags, and retracement structures (as shown in Figures 5 and 6), or central points and trend types in the Chande theory (as shown in Figure 7).
(Figure 5: Intensive Training Camp Deliberate Practice: All Price Behavior Patterns)
(Figure 6: Intensive Training Camp Deliberate Practice: All Price Behavior 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 Behavior)
Assess the market state: Is there a trend, what is the phase position, and what are the entry strategies (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, 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 reviews (50-200 charts), refine preferences (like specific pattern reversals), form a preliminary trading system, and test basic win rates (as shown in Figures 12 and 13).
Fifth, Stage 3: Real Trading Verification
Once the system matures, conduct small real trades (like 100 yuan):
- Goal: Overcome loss mentality, compare differences between real trading and review data.
- Rules: Only trade opportunities within the system, try a single logic at most twice.
- Result Handling: If data deviations are large (like a sharp drop in win rate), return to Stage 2 to iterate the system; if close, then verification 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 cup of 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.
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