Essential Knowledge Every Crypto Newbie Must Know in 2025

Cryptocurrencies encompass various types, including currency-based (e.g., BTC), platform-based (e.g., ETH), application-based (e.g., SC), stablecoins (e.g., USDT), and dividend-based (e.g., BNB with buyback), each featuring unique attributes.
For newcomers to crypto, 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—avoid it entirely! So, what fundamental knowledge must you grasp before engaging in crypto trading?

Many individuals starting their journey into cryptocurrencies and blockchain feel overwhelmed, not by coin selection but by unfamiliar terminology. For those genuinely aiming to enter this space and achieve wealth through trading, here are the essential basics.

Today, we've compiled relevant professional terms for your reference:

1. Basic Characteristics of Virtual Currency Trading

Trading Hours: Operates 24/7, 365 days a year, with no market closures.
No Daily Price Limits: Unlike stocks, which have price caps, crypto trading imposes no daily limits (e.g., 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 found in stocks.
Anytime Trading: Features T+0 trading, enabling same-day buying and selling, unlike stocks that mandate T+1 (sale the following day).
No Time Limit for Withdrawals and Cash Out: Permits withdrawals or cash-outs at any time, ensuring high liquidity.

Numerous unreliable exchanges exist in the market. Newcomers often lack the experience to assess whether an exchange might abscond with funds. It's advisable to register on well-established and reputable platforms—
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2. Basic Knowledge for Crypto Newbies

Bitcoin and Ethereum serve as the hard currencies of the blockchain world. If uncertain about digital asset choices, BTC and ETH are recommended.
Digital currencies include various types: currency-based (e.g., BTC), platform-based (e.g., ETH), application-based (e.g., SC), stablecoins (e.g., USDT), and dividend-based (e.g., BNB with buyback). For beginners, focus on distinguishing value coins from air coins; hold value coins long-term and avoid air coins entirely, even during massive surges.
Fiat currency purchase channels encompass OTC trading platforms and private OTC transactions. OTC platforms typically support assets like BTC, ETH, and EOS, while private OTC depends on scale, often limited to BTC and ETH. Avoid private trades without escrow, as scams can lead to unrecoverable losses.

3. Common Professional Terms in Crypto Trading

Position (仓位): The ratio of invested funds to total available capital.
Full Position (全仓): Utilizing all available funds to purchase cryptocurrency.
Reducing Position (减仓): Selling a portion of crypto holdings, but not all.
Heavy Position (重仓): Crypto holdings constitute a larger share relative to available funds.
Light Position (轻仓): Available funds outweigh crypto holdings.
Empty Position (空仓): Selling all crypto assets and holding only cash.
Take Profit (止盈): Selling crypto after achieving a specific profit level to secure gains.
Stop Loss (止损): Selling crypto once losses reach a predetermined threshold to prevent further decline.
Bull Market (牛市): Characterized by sustained price increases and an optimistic outlook.
Bear Market (熊市): Marked by continuous price declines and a pessimistic perspective.

4. Crypto Security Issues

Security remains a primary concern in the crypto realm. Assets stored on exchanges are not entirely secure; even major platforms like Binance have experienced multiple hacks. Smaller exchanges are particularly vulnerable, often serving as easy targets for hackers. Thus, security is a significant issue.

How can you safeguard your crypto? The optimal method is storing digital assets in a private wallet, available in two forms:

Software Wallet: An application-based storage solution offering high convenience but lower security.
Hardware Wallet: Physical devices, such as OneKey or USB-like wallets, providing enhanced safety.

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🔥 Recommended Reading

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Exchange domain names may face blocks or slowdowns due to network issues, not platform outages. Exchanges regularly update backup domains to ensure reliable access.

1. OKX Backup Domains OKX - Overseas (VPN needed) or Backup Link
1. Binance Backup Domain Binance
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Key Information for Crypto Beginners in 2025