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50 Essential Knowledge Points for Beginners in the Crypto World: Learn to Protect Your Capital First, Then Consider Making Money!#

The crypto world is by no means a casino, but a brutal battlefield!

Some become rich overnight, while others lose everything. The key lies in some entering with wisdom, while others only bring greed and run naked!

Many blindly rush into the crypto world in pursuit of wealth, yet they do not even understand the basic concepts: they cannot comprehend on-chain data, cannot analyze candlestick charts, and do not even understand how market makers harvest retail investors, ultimately becoming the ones left holding the bag.

Today, Old Zhao summarizes 50 essential knowledge points for beginners. First, learn to protect your capital, then think about profits—once your capital is gone, the crypto world will have no connection with you.

【Basic Concepts】

1. What is Blockchain: A decentralized distributed ledger, where transaction records are publicly and transparently available across the network, and altering data requires controlling 51% of the nodes.
2. Public Chain/Private Chain/Consortium Chain: Public chains (like BTC, ETH) are open to everyone; private chains (like internal enterprise systems) require permission to access; consortium chains (like Ripple) are co-built by multiple institutions.
3. Difference Between Token and Coin: A Coin is a native "currency" (like BTC), while a Token is a project "point" (like UNISWAP's UNI). Be wary of project teams confusing the concepts.
4. The Essence of DeFi: Decentralized finance, using smart contracts to replace traditional banks, supporting functions like lending and wealth management, but code vulnerabilities may lead to financial losses.
5. The Value of NFT: As a digital proof of ownership, it is not an ordinary image; avoid purchasing "air NFTs" and ask yourself before buying: who will take it off your hands?

【Trading Skills】

6. Comparison of Spot and Futures: Spot is "buying assets" directly, while futures are "leveraged bets on price fluctuations." Beginners are advised to start with spot trading.
7. Basics of Candlestick Charts: Bullish candles (upward), bearish candles (downward), moving averages (average cost line); avoid being confused by red and green fluctuations.
8. Support and Resistance Levels: The price rebound point is called the support level, while the price drop point is called the resistance level; essentially, it is a psychological game in the market.
9. Volume Analysis: A surge in volume may indicate a correction, while a decrease in volume may suggest a rebound; comprehensive judgment should be made in conjunction with trends.
10. Stop-Loss and Take-Profit Strategies: Exit promptly upon reaching target profits, decisively leave when hitting the stop-loss line (e.g., 10%); the crypto world is never short of opportunities, and greed is the biggest enemy.

【Risk Control】

11. Importance of Private Keys: The private key is the lifeline of your assets; if lost, the coins disappear permanently; avoid storing it in cloud drives or screenshots, prioritize using hardware wallets.
12. Withdrawal Safety Steps: Withdraw coins from the exchange to your wallet, first test with a small amount (e.g., 0.0001), and confirm receipt before transferring larger amounts.
13. Beware of Shitcoins: Tokens with names containing "Dog," "Shib," or "Floki" are 99% worthless "air coins"; stay away from traps for retail investors.
14. Identifying "Signal Teachers": Those claiming to guide you to "buy low and sell high" are either scammers or fools; there are no infallible "stock gods" in the crypto world.
15. Leverage Risk Warning: With 10x leverage, a 10% drop results in liquidation; do not bet your entire fortune.

【Ecosystem Awareness】

16. Bitcoin's Positioning: "Digital gold," with a total supply of 21 million coins, has strong anti-inflation properties and serves as a value anchor in the crypto world.
17. Ethereum's Role: "Blockchain operating system," supporting ecosystems like DeFi, NFT, and gaming, but with high gas fees and limited concurrency.
18. Layer 2 Solutions: Such as Arbitrum and Optimism, aimed at alleviating Ethereum congestion, providing low fees and fast transactions.
19. Cross-Chain Bridge Functionality: Enables asset transfers across chains (e.g., Ethereum to BNB Chain); choose well-known platforms to prevent hacking.
20. Stablecoin Characteristics: Such as USDT, USDC, DAI, pegged 1:1 to the US dollar, but USDT has controversies over over-issuance.

【Project Analysis】

21. White Paper Review: Focus on project goals, profit models, and team backgrounds; prioritize reading the original English version and be wary of translation biases.
22. Token Economic Model: Check total supply, distribution mechanisms, and lock-up rules; stay away from "infinite issuance" tokens.
23. On-Chain Data Indicators: Observe the number of holding addresses, transaction volume, and large transfers; data is real but may be manipulated.
24. Community Activity Assessment: Refer to Twitter followers and the quality of discussions in Telegram groups; identify genuine communication rather than noise from pump-and-dump schemes.
25. Competitor Comparison Method: Compare safety and performance of projects in the same sector (e.g., Aave vs. Compound, Solana vs. Avalanche).

【Tools】

26. Exchange Selection: Binance, OKX, Coinbase; beginners should focus on spot trading and temporarily avoid futures leverage.
27. Wallet Management: MetaMask, TP Wallet; manage private keys independently and do not store them on exchanges.
28. Market Monitoring Tools: CoinGecko, CoinMarketCap; check rankings, market capitalization, and trading volume data.
29. On-Chain Explorers: Etherscan, BscScan; query transaction records and address holdings.
30. Information Platform Recommendations: CoinDesk, The Block; focus on in-depth analysis and avoid clickbait.

【Mindset】

31. Avoid FOMO (Fear of Missing Out): Do not blindly chase prices during surges; be wary of pump-and-dump schemes.
32. Resist FUD (Fear, Uncertainty, Doubt): Do not rush to sell on negative news; beware of wash trading traps.
33. Reject All In: Only invest spare money; do not borrow or sell property to trade crypto.
34. Adhere to Long-Termism: BTC has seen incredible growth over ten years, but frequent traders may miss out on profits.
35. Take Breaks When Necessary: Avoid greed in bull markets and panic in bear markets; the crypto world operates 24/7, and mental health needs to be managed.

【Advanced Topics】

36. Staking and Mining Mechanism: Deposit into DeFi platforms to earn interest, but be aware of the risk of "impermanent loss."
37. Liquidity Mining Strategy: Provide liquidity to trading pools to earn transaction fees, avoiding high-yield "Ponzi" schemes.
38. NFT Investment Logic: Prefer blue-chip projects (like BAYC, CryptoPunks) and avoid junk NFTs.
39. GameFi Participation Points: Earning while playing requires examining the economic model; beware of Ponzi-like games.
40. DAO Operational Principles: Decentralized organizations making decisions through token voting; be cautious with small DAOs to avoid control risks.

【Crypto Jargon】

41. "Going All In": Betting your entire capital, a high-risk gambler's behavior.
42. "Airdrop": Free distribution of tokens; beware of "prepaid airdrop" scams.
43. "Rug Pull": Project team absconds, causing the token price to drop to zero.
44. "Whale": Large holding addresses whose movements influence the market.
45. "Wash Trading": Major players intentionally crashing prices to disperse retail investors.

【Historical Events】

46. The 312 Crash: On March 12, 2020, BTC halved in a single day, triggering massive liquidations.
47. The 519 Market Crash: On May 19, 2021, the entire crypto market plummeted, with DeFi locked value halving.
48. The Luna Crash: In 2022, the algorithmic stablecoin Luna went to zero, evaporating $40 billion.
49. FTX Crisis: In 2022, the world's second-largest exchange went bankrupt, and founder SBF was arrested.
50. Bitcoin Halving Pattern: The supply halves every four years; history shows "drop before halving, rise after," but dynamic analysis is needed.

These 50 knowledge points are the essence distilled from Old Zhao's painful lessons in the crypto world. Save this article to avoid three years of detours!

Remember: The crypto world is not a money printer, but a transformation of understanding—every profit comes from understanding the world.

Master Basic Crypto Tools to Navigate with Ease!#

With numerous tokens in the crypto world, selecting coins and operations requires a clear strategy. Trading based on feelings is hard to sustain.

The following shares commonly used trading tools to assist you in making efficient decisions.

Note: Some websites are not linked; please search on Google.

1. SpotOnChain#

The crypto world is not limited to exchanges. Many tokens need to be obtained on-chain, and whale holdings often transfer on-chain.

On-chain analysis tools can reveal key information.

SpotOnChain provides on-chain data reporting, address relationship visualization, monitoring alerts, and more. It can track institutional addresses, smart money, and KOL holdings, with a database covering hundreds of influential entities. Real-time monitoring of venture capital or well-known institutions' fund movements.

2. Arkham#

Arkham is also an on-chain analysis tool with comprehensive functions: supporting alerts, tracking, and address buy/sell monitoring. Compared to SpotOnChain, its experience is better, but it currently does not support Solana chain data.

3. Crypto Deal Flow#

Project financing amounts often reflect institutional confidence, indicating potential for price increases. It is recommended to check the financing history before purchasing coins. This tool is suitable for English users; Chinese users can opt for Rootdata—information is edited by users and requires self-verification of accuracy.

(4) Token Unlocks

Focuses on token unlock data queries, covering mainstream cryptocurrencies. The free version is limited to 7 days of data; large unlocks usually ferment a month in advance, and full information requires membership. Following Chinese media can also provide monthly statistics.

(5) Coinmarketcap

The core function is to query coin prices, including prices, circulation, FDV, and other data for mainstream cryptocurrencies, and categorizes tokens by sector for targeted research.

(5) Dex Screener

Also provides token prices and candlestick analysis, focusing on low market cap shitcoins and meme coins, essential tools for trading shitcoins.

(6) DefiLlama

A Web3 data platform covering DeFi, stablecoins, NFTs, and other metrics. Both retail and institutional investors rely on its on-chain data (like TVL) to assist in investment decisions, supporting in-depth analysis by chain and project.

Have you ever thought: who is harvesting your time?

QuestMobile data shows that young people spend an average of about 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 online during lunch breaks... the time killer is unconsciously yourself!

These fragmented times are enough for a novice to transform into a professional trader in three years. For example, last year's student Xiao Jia now earns 100,000 a month.

Second, choice is greater than effort.

Imagine two people: Zhang San spends 1 hour every night on Douyin, 40 minutes reading novels, and plays 3 games; Li Si spends 1 hour every night reviewing candlestick charts, 40 minutes listening to trading courses, and writing journals. Two years later: Zhang San's gaming rank improves, his weight increases to 180 pounds, and he may also lose 60,000 by following others; Li Si establishes a stable trading system, with side income far exceeding his main job.

Student Liang Liang (a pseudonym) reviews candlestick charts during commutes and tests models during lunch breaks, earning a 137% annual salary through gold trading in 2024!

If you desire to replicate success, I will share my growth path and the efficient methods validated by the training camp.

Third, Stage 1: Understanding the Market

In the first month, master three elements:

Element 1: Candlesticks.

(Figure 1: "Basic Section" Assignment No. 3—Candlestick Basics Assessment)

Understanding candlesticks is essential for chart reading—they visualize price fluctuations, but it is not just about opening and closing prices; you must also understand the underlying line patterns (as shown in Figure 1).

(Figure 2: "Naked Candlestick Section" Assignment No. 2—Price Action Basics Assignment)

Distinguish between candlestick types: bullish trend candlestick, bearish trend candlestick, or non-trending candlestick? (as shown in Figure 2)

Trend Candlestick: Breaks through key levels (range, structure, previous candlestick extremes), marking the start or continuation of a trend, visually showing the dominance of bulls or bears.

Non-Trend Candlestick: Direction is unclear, with bulls and bears in a stalemate; impulsive entries can lead to losses.

Element 2: 12 Golden Candlesticks and Signal Candlesticks, Entry Candlesticks.

(Figure 3: Horizontal 12 Golden Candlestick Wallpaper)

12 Golden Candlesticks: A high-win-rate candlestick combination (as shown in Figure 3, high-definition images available for free on the public account).

Signal Candlesticks: Indicate entry timing, such as the turning candlestick in the 12 Golden Candlesticks.

(Figure 4: Bullish Trend Candlestick & Bearish Trend Candlestick & Effective Entry Candlestick)

Entry Candlestick: The candlestick that executes the order (as shown in Figure 4). Signal candlesticks are preparation, while entry candlesticks are action.

Element 3: Basic Candlestick Patterns and Structures.

Aside from indicators, the core of the market is candlesticks. Before entering, clarify:

• What is the market trend direction?
• What is the trend stage (early/late)?
• Which segment of the trend to follow? How to intervene?
• Reversal points and ambush points?

(Figure 5: Training Camp Deliberate Practice: All Price Action Patterns)

(Figure 6: Training Camp Deliberate Practice: All Price Action Patterns)

In price action, quickly identify bull flags, bear flags, terminal flags, and pullback types (as shown in Figures 5 and 6), and locate trend starting points and measurement logic.

(Figure 7: Training Camp Deliberate Practice: Types of Trends in Chan Theory)

In Chan theory, identify the central area, trend types, and termination methods (as shown in Figure 7), judging trend distances, termination states, and follow-up values.

Like building a house: first master single-point skills like cement wall construction, then combine them into walls and houses.

After completing Stage 1 "Understanding the Market," proceed to Stage 2 "Deliberate Practice."

Fourth, Stage 2: Deliberate Practice

Transform knowledge into skills, rejecting mere theoretical discussions.

Step 1: Chart Reading

(Figure 8: Training Camp Deliberate Practice: Reading Charts Using Chan Theory & Trend Types)

(Figure 9: Training Camp Deliberate Practice: Reading Charts Using Price Action)

Chart reading is market analysis (as shown in Figures 8 and 9). Connect the three elements to answer:

• Is there a trend and what direction?
• What is the stage and following strategy?
• What are the entry points and ambush positions?

Step 2: Discover All Trading Opportunities

(Figure 10: Training Camp Deliberate Practice: Identify All Opportunities)

(Figure 11: Training Camp Deliberate Practice: Identify All Opportunities)

Mark all entry opportunities from a hindsight perspective (as shown in Figures 10 and 11), for example:

• A rising wedge top in the early stage of a downtrend, shorting at low 1/low 2.
• Shorting the FB structure in a non-terminal downtrend.
• Going long at the bottom of the trading range in the early stage of an uptrend, at high 1/high 2.

Step 3: Identify Preferred Trading Types

After practicing 50-200 charts, ask yourself:

• "I prefer xxx pattern reversals."
• "xxx situations have a higher win rate."

(Figure 12: Training Camp Deliberate Practice: Write Your Trading System & Basic Win Rate)

(Figure 13: Training Camp Deliberate Practice: Write Your Trading System & Basic Win Rate)

Summarize patterns to form your first trading system (as shown in Figures 12 and 13). Though rudimentary, it is derived from practical reviews and yields basic data.

With scientific training, building a trading system is not difficult.

Fifth, Stage 3: Dive In Boldly

Once the system's win rate meets standards, start with 100 yuan in real trading:

Goals:

1. Actively incur losses to overcome fear.
2. Compare real trading data with review data to test fidelity.

Requirements:

1. Only trade opportunities within the system.
2. After a logical stop-loss, only revenge once.

Possible Results:

• Review win rate 70%, real trading win rate 80% or 40%—discrepancies reveal issues.
• Common issues: frequent revenge trading, breaking discipline, adding unverified strategies, cross-cycle/variety operations.

Solutions:

• Technical issues: return to Stage 2 to iterate the system, then enter Stage 3 for continuous optimization.
• High data correlation: rare but possible, indicating talent emergence.

Thus, I have fully shared the growth path and training camp methodology. Those with sufficient budget can seek professional coaching; the training camp provides coaches, teaching assistants, and fellow comrades. For self-practitioners, adhering to the above steps, you can expect to earn 100,000 a month within a year, reclaiming your time sovereignty.

The best time to plant a tree was ten years ago, or it is tonight. While others are waiting for milk tea, study non-farm payroll fluctuations in gold, and calculate Bitcoin ETF arbitrage during 9.9 free shipping—this is not about competition, but a struggle for the pricing power of time.

In 2025, with candlesticks as your pen and fluctuations as your ink, write your path to financial freedom outside of 8 hours.

Related Reading#

The Latest Ranking of the Top 10 Virtual Currency Trading Platforms in China for 2025🔥【Worth Collecting】

【Real Stories of Getting Rich in Crypto】Many people ask me how I went from 0 to 11 million and then to a debt of 100,000 after years of trading crypto?

🔥🔥🔥 Alpha Finds Practical Tools for Crypto#

1️⃣ Axiom Dog Trading Tool https://axiom.trade
2️⃣ Gmgn Dog Trading Tool https://gmgn.ai
3️⃣ Dbot Dog Trading Tool https://app.debot.ai
4️⃣ Morelogin Multi-Account Fingerprint Browser www.morelogin.com

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