Beginner's Guide to Avoiding Pitfalls in the Crypto World: Don't Confuse Trading Coins with Stock Trading or Buying Funds

Many newcomers eager to enter the crypto space have heard of “stock trading” and “buying funds,” but never assume these three are the same. The cost of falling into the wrong trap could be half your year's salary. To avoid detours, make sure to read this entire guide.

Many people think trading coins is similar to stock trading—buy low, sell high. But the truth is, stock trading involves shares of listed companies, backed by company revenue and profits, with predictable ups and downs; buying funds is even more straightforward, entrusting your money to professionals, which diversifies risk by riding on their expertise.

Crypto trading, however, is different. It has no physical backing; prices depend entirely on market sentiment and capital speculation. Today it might surge 50%, tomorrow it could fall back to zero, or even go to zero outright. More importantly, stock markets are regulated, so your money won't disappear out of thin air; but in the crypto world, small exchanges can run away, and hackers frequently steal coins—no one can guarantee your safety.

As a beginner, here are the three most important survival rules I secretly share with you:
1. Only use pocket money to test the waters. Even if you lose it all, it won't affect your daily life. Never borrow money or use leverage—that's only for gamblers.
2. Understand wallets and private keys first. Remember, “lose your private key, and your coins are gone.” Don't keep all your assets on exchanges.
3. Don't believe in the myth of getting rich overnight. 90% of altcoins are tools to scam retail investors. Spend two weeks building your foundation before jumping in.

Later, I will break down more technical terms that beginners find confusing, like “public chain” and “stablecoins,” and share how to spot scam exchanges. If you find this helpful, feel free to check more content. Following knowledgeable people is always better than blindly stumbling around.
What was the first coin you researched when entering the crypto space?
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