Essential Knowledge Every Crypto Newbie Must Know in 2025

Cryptocurrencies exist in multiple forms, including currency types (BTC), platform types (ETH), application types (SC), stablecoins (USDT), and dividend types (BNB with buyback), each featuring distinct attributes. For newcomers, the critical distinction lies between value coins and air coins. Value coins are suitable for long-term holding, but regardless of how much an air coin surges (even by 10,000x), it should be avoided entirely. So, what fundamental knowledge must you grasp before trading cryptocurrencies?

Many beginners entering the cryptocurrency and blockchain space feel overwhelmed—not by selecting which coin to purchase, but by the abundance of unfamiliar terms. For those genuinely aiming to enter this field and achieve wealth through trading, these essential basics are crucial.

Today, we have compiled key professional terms for your reference:

1. Basic Characteristics of Virtual Currency Trading

Trading Hours: Operates 24 hours a day, 365 days a year, with no market closures.
No Daily Price Limits: Unlike stocks with daily price caps, cryptocurrency trading imposes no such restrictions; for example, Bitcoin surged over 20% in a single day on May 28.
Minimum Trading Unit: Allows purchases as small as 0.0001 BTC (approximately 0.6 CNY), eliminating the "one lot" (100 shares) minimum requirement seen in stocks.
Anytime Trading: Features T+0 trading, enabling buying and selling on the same day, unlike stocks that require T+1 (selling the next day).
No Time Limit for Withdrawals and Cash Out: Permits withdrawals or cash-outs at any time, ensuring high liquidity.

Numerous unreliable exchanges populate the market. Beginners often lack the experience to evaluate if an exchange might abscond with funds. Registering on well-established and reputable exchanges is advisable—
Top 10 Chinese Crypto Exchanges in 2025🔥【Must Save】

2. Basic Knowledge for Crypto Newbies

Bitcoin and Ethereum serve as the hard currencies in the blockchain ecosystem. If uncertain about which digital asset to purchase, BTC and ETH are recommended.
Digital currencies encompass various types: currency (BTC), platform (ETH), application (SC), stablecoins (USDT), and dividend (BNB with buyback). Newcomers should focus on distinguishing value coins from air coins; hold value coins long-term and avoid air coins entirely, regardless of potential massive pumps.
Fiat currency purchase channels include OTC trading platforms and private OTC. OTC platforms typically support assets like BTC, ETH, and EOS; private OTC varies by scale, often limited to BTC and ETH. Avoid private trades without escrow, as scams can make fund recovery extremely challenging.

3. Common Professional Terms in Crypto Trading

Position (仓位): The ratio of your invested capital to your total funds.
Full Position (全仓): Investing all available funds in cryptocurrency.
Reducing Position (减仓): Selling a portion of your cryptocurrency assets without liquidating everything.
Heavy Position (重仓): Cryptocurrency holdings constitute the majority relative to available funds.
Light Position (轻仓): Available funds outweigh cryptocurrency holdings.
Empty Position (空仓): Liquidating all cryptocurrency assets and holding only cash.
Take Profit (止盈): Selling cryptocurrency upon achieving a specific profit level to lock in gains.
Stop Loss (止损): Selling cryptocurrency when losses hit a predetermined threshold to mitigate further declines.
Bull Market (牛市): A market phase where prices consistently rise, fostering an optimistic outlook.
Bear Market (熊市): A market phase characterized by continuous price declines and a pessimistic outlook.

4. Crypto Security Issues

Security remains a paramount concern in cryptocurrency. Assets stored on exchanges are not entirely secure; even major platforms like Binance have experienced multiple hacks. Smaller exchanges are particularly vulnerable, akin to automated ATMs for hackers. Thus, security is a significant challenge. To safeguard your crypto, the optimal approach is storing digital assets in a private wallet. Two types exist:

Software Wallet: An application for storing cryptocurrency; offers high convenience but lower security.
Hardware Wallet: Physical devices, such as OneKey or USB-style wallets, providing enhanced safety.

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Register on leading crypto exchanges such as OKX, Binance, Huobi, Bitget, Bybit, Gate, Backpack, and others—all accessible in one location!
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🔥 Recommended Reading

2026 Latest Top 10 Cryptocurrency Exchange Rankings 🔥【Must Save】

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Many exchanges' original domain names may face blocks or slowdowns due to network issues, not platform outages. Exchanges regularly update backup domains to maintain reliable access.

1. OKX Backup Domains OKX - Overseas (VPN needed) or Backup Link
1. Binance Backup Domain Binance
1. Bitget Backup Domain Bitget
1. Bybit Backup Domain Bybit/Bybitglobal
1. Huobi HTX Backup Domain Huobi/HTX
1. Gate.io Backup Domain Gate.io

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Critical Knowledge for Crypto Beginners in 2025