The categories of digital currencies are diverse, including: currency type (BTC), platform type (ETH), application type (SC), stable type (USDT), and dividend type (repurchase BNB). Digital currencies have various attributes.#
New investors in the cryptocurrency space should focus on distinguishing between valuable coins and worthless coins. Valuable coins are suitable for long-term holding, while worthless coins should be avoided even if they experience significant price increases! So, what are the basic common sense rules for trading cryptocurrencies?
For newcomers who are just getting into digital currencies and blockchain, the biggest confusion often lies not in choosing which coin to buy, but in understanding various technical terms. What foundational knowledge must a true beginner master before seeking wealth?
Today, I have compiled relevant technical terms for reference:
I. Common Sense of Trading Cryptocurrencies: Basic Characteristics of Virtual Currency Trading#
- Trading Time: Open 24/7 all year round without any market closure.
- No Price Limits: Virtual currency trading has no price increase or decrease limits, while stocks have such constraints; for example, on May 28, Bitcoin's daily increase exceeded 20%.
- Trading Units: The minimum purchase is 0.0001 BTC (approximately 0.6 yuan), with no similar restrictions like the minimum purchase of one lot (100 shares) in stocks.
- Anytime Trading: This is the T+0 mechanism; stocks are T+1 trading, meaning purchases made on the same day must be sold the next day; virtual currencies support buying and selling on the same day.
- No Time Limit for Withdrawals and Cashing Out: Funds can be withdrawn or cashed out at any time, with extremely high liquidity.
There are many informal exchanges in the market, and newcomers often lack the experience to judge their reliability. It is recommended to register on a reputable platform with a long history—
The latest ranking of the top 10 virtual currency trading platforms in China for 2025 is out 🔥【Worth Collecting】
II. Common Sense of Trading Cryptocurrencies: Basic Knowledge for Beginners in Virtual Currency Trading#
- Bitcoin and Ethereum are hard currencies in the blockchain field. If newcomers are unsure which assets to purchase, it is recommended to prioritize BTC and ETH.
- There are many types of digital currencies, including currency type (like BTC), platform type (like ETH), application type (like SC), stable type (like USDT), and dividend type (like repurchase BNB), each with unique attributes. Investors should distinguish between valuable coins and worthless coins; valuable coins can be held long-term, while worthless coins should be avoided even if they surge!
- Channels for purchasing fiat currency include over-the-counter trading platforms and private over-the-counter trades. OTC platforms typically support multiple assets like BTC/ETH/EOS, while private OTC trades vary in scale, mostly limited to hard currencies like BTC and ETH. Avoid private trades without guarantees to prevent scams that are difficult to recover from.
III. Common Sense of Trading Cryptocurrencies: Common Technical Terms in Virtual Currency Trading#
- Position: Refers to the ratio of the actual assets held by the investor to the total investment funds.
- Full Position: Investing all funds to purchase virtual currencies.
- Reducing Position: Partially selling virtual currencies but not completely liquidating.
- Heavy Position: A large proportion of virtual currency in the investment portfolio.
- Light Position: A large proportion of available funds in the investment portfolio.
- Empty Position: Completely selling all held virtual currencies and converting everything to cash.
- Take Profit: Selling assets after achieving a certain profit to lock in gains.
- Stop Loss: Selling assets when losses reach a preset point to prevent further losses.
- Bull Market: Prices continue to rise, and market prospects are optimistic.
- Bear Market: Prices continue to fall, and market prospects are bleak.
IV. Common Sense of Trading Cryptocurrencies: Security Issues in Digital Currencies#
The security of digital currencies has always been a major challenge in the cryptocurrency space. Storing assets on exchanges is not absolutely safe; even large platforms like Binance have experienced theft, and smaller exchanges are at higher risk and can easily become targets for hackers. How can one ensure the security of their assets? It is recommended to store digital currencies in private electronic wallets. Software wallets store assets through applications but have lower security; hardware wallets like OneKey (usually in USB form) provide higher protection.
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Related Reading#
The latest ranking of the top 10 virtual currency trading platforms in China for 2025 is out 🔥【Worth Collecting】
【Real Stories of Wealth in the Cryptocurrency Space】Many people ask me, after years of trading cryptocurrencies, how did I go from 0 to 11 million and then to a debt of 100,000?
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