in

Since we’ve been growing really fast recently, I prepared a little starter kit to help newbies avoid loosing money

edit: **avoid losing money.**

*Apologies for the typo on the heading.*

**I’ve added links to other useful posts on both this sub and elsewhere on some topics. So be prepared to get sucked into a nice little rabbit hole of learning if you wanna get a great headstart.**

**•Learn the [basics of cryotcurrency trading](https://academy.binance.com/en/articles/a-complete-guide-to-cryptocurrency-trading-for-beginners)**

**•Make sure you know what the following basic crypto-related terms/abbreviations are:**

ATH – All time High

FUD – Fear, Uncertainty and Doubt

FOMO – Fear of Missing Out

[Market cap, Volume & Supply](https://www.reddit.com/r/CryptoCurrency/comments/lkwz2r/a_beginners_guide_to_market_cap_volume_supply/?utm_medium=android_app&utm_source=share)

[Candlestick charts](https://academy.binance.com/en/articles/a-beginners-guide-to-candlestick-charts.amp)

[Support and Resistance levels](https://academy.binance.com/en/articles/the-basics-of-support-and-resistance-explained.amp)

[Relative Strength Index](https://www.google.com/url?sa=t&source=web&rct=j&url=https://academy.binance.com/en/articles/what-is-the-rsi-indicator.amp&ved=2ahUKEwj4l_-w64rwAhWKyYUKHQzQC98QFjAAegQIBBAC&usg=AOvVaw1pF1FBG0gmqDeEuzoSM-ID&ampcf=1)

[Moving averages](https://www.google.com/url?sa=t&source=web&rct=j&url=https://academy.binance.com/en/articles/moving-averages-explained.amp&ved=2ahUKEwiwk7XB64rwAhXyz4UKHTNABO8QtwIwAHoECAcQAg&usg=AOvVaw2tk232D0JPL6Ow3Gh7Ff0h&ampcf=1)

[Dollar cost averaging (DCA)](https://www.google.com/url?sa=t&source=web&rct=j&url=https://academy.binance.com/en/glossary/dollar-cost-averaging%3Famp%3D1&ved=2ahUKEwjItbzn64rwAhXJzoUKHVV0BAgQFjAAegQIBBAC&usg=AOvVaw2XS5z0-tFBL8On8KCxCkSE&ampcf=1)

And many more.

**•Learn how to use your exchange app.** Seriously, make sure you understand all the basic tools in your exchange app.

**•Learn about [market cycles](https://cryptopotato.com/what-are-crypto-market-cycles/).** It’s basically a term referring to long-term price pattern used when technically analysing price of cryptocurrencies, Market cycles are a long-term price pattern used when technically analysing price of cryptocurrencies, stocks or fiat currencies. The theory of market cycles is incredibly prevalent in cryptocurrency, with Bitcoin‘s price succinctly completing a full cycle no less than five times in its ten year history. During a cycle, some securities or asset classes outperform others because their business models aligned with conditions for growth

**•Don’t chase hype.** [ Avoid FOMO](https://www.reddit.com/r/CryptoCurrency/comments/kt6a4h/fomo_traps_to_avoid_beginner_guide_with/?utm_medium=android_app&utm_source=share) (fear of missing out) traps. Don’t believe everyone who is shilling a coin. Always remember the adage: “If the shoe shine boys are giving financial advice, then it’s time to get out of the market.” Practice DD (Due diligence). Don’t ever chase a coin that’s gone up so much. Never consider a miss out on potential profits as loss. Always do your own research (DYOR).

**•The market is not always like this.** Right now, it’s a very volatile and bullish market. A lot of all these gains you see are not normal.

**•Please only invest money you are willing to lose.** Don’t take out a loan, use rent money or other funds you can’t afford to lose. No, seriously, there literally can’t be any reasons to ever go against this rule. Ever! Only. Invest. What. You. Can. Afford. to. Loose.

**•Low cap coins, lets say anything not in the top 50 by circulating market cap, come and go like the wind.** These projects rarely stay around, they often can’t launch products, and most die a slow death on exchanges as founders and early investors dump them to zero drying up any liquidity that is there. Becareful with them and do a very thorough research before investing in anyone for the long term. Again, always DYOR.

•**Absolutely don’t touch margin trading/leverage/futures/options unless you are a pro at all of the above.** Otherwise stay put in the relatively simpler world of spot trading.

**•Don’t ever feel bad for for investing with small amounts, any amount is good; it will help you to learn.** No one cares if you’ve invested $100 or $1m. What matters is that you’ve taken a step for your future self, from which most of people are disconnected. No, this is no joke. [FMRI studies](https://www.researchgate.net/publication/51738840_Future_self-continuity_How_conceptions_of_the_future_self_transform_intertemporal_choice) suggest that when you imagine your future self, your brain does something weird: It stops acting as if you’re thinking about yourself. Instead, it starts acting as if you’re thinking about a completely different person. So when you make plans for your future by investing even just a small amount in crypto, you’ve successfully broken that barrier and actively planned on your own behalf to create a better world and a better life for your future self. No one should make you feel anything but proud of this.

**•Your goal in long term investments are the high cap coins.** The top 30, 20, or more preferably top 10 that have been around for a while. Or other altcoins whose projects you’ve done diligent research on and truly believe they’ll grow immensely and contribute to the crypto sphere and tech in general.

**•[Learn to spot pump and dumps (PnDs)](https://www.reddit.com/r/CryptoCurrency/comments/lb4zsv/with_the_recent_influx_of_new_users_i_decided_to/?utm_medium=android_app&utm_source=share) and runaway from them!** Also, learn strategies for recovering from these dangerous schemes if you’ve fallen for one. Trust me, greed and high-risk will not help you recoup your losses.

**•Whatever low experience, always remember there are thousands of skilled traders out there today who’ve experienced the same and even worse.** Trust me, you’ll recover.

**•Never place all your trust on Technical analysis alone.** They can disappoint you like that highschool friend that always never stood up for you especially when the bullies (whales) showed up to deal with you. They’re also almost pure horseshit when dealing with low cap coins.

**•Understand [basic trade psychology](https://www.google.com/amp/s/academy.binance.com/en/articles/the-psychology-of-market-cycles.amp)**, especially during uptrends and downtrends. And always keep an eye out for potential cognitive biases like confirmation bias, loss aversion, endowment effect and others that may greatly influence your decision making.

**•If you’re not willing or ready to commit yourself to a lifetime of learning, you shouldn’t be trading or investing in cryptocurrencies.**

Bonus: Don’t forget to always help out other newbies when you’ve become more accustomed to the market. And never forget: **You were once at the bottom looking at the top for advice. Humility is king!**

Any other tips would be very much appreciated.

*Edit: To everyone that have commented so far, thanks for all the additional tips! And to the newbies, I’d suggest you go through the comments to see the additional priceless gems contributed by others. Definitely worth your time!*



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41 Comments

  1. Related to FOMO and FUD…

    Patience is a must. Make a plan, trust it and stick to it. Missed a chance to buy in a dip? Don’t worry, there will be another dip. Frustrated that another coin is pumping while one you’ve got isn’t moving much? No worries, your day will come. Be patient. If you can manage that, in a year or two you’ll look back and be surprised at how far you’ve come.

    ETA: Take social media with a grain of salt. Everyone will tell you why we’re all gonna be rich in a week. Don’t just buy in, patience, a steady approach will win out.

  2. For beginners who don’t have much to invest, using Brave browser and other passive earning methods can be quite helpful. Playing certain dapps can also be worthwhile.

  3. My number one tips.

    Never invest more than you can afford to lose.

    If it dips right after you’ve bought, welcome to the ‘oh for fucks sake’ club we all belong too.

    Patience: practice it. You’ll need it.

    And remember, you haven’t lost a cent unless you sell at a dip.

    Above all, getting in now means you’re still well ahead of the herd, it’s fine to not understand, you’ll learn, we all do every day.

    You have time, relax, enjoy the ride, do your due diligence.

    A lot of guys and girls on here are pretty good at this so lurk, listen to the advice, you’ll be just fine! There’s no hurry.

  4. As a newbie, I am amazed at the amount of help I am getting from these threads, thank you OP and everyone who submitted beginner starter kits, I am still really new, and have no money to invest so for now I am learning what I can and moon FTW

  5. I would add that in terms of making money, the price of the coin and how many coins you have does not matter. Only the % growth in market cap

    For example If you have 1000 coins of a coin worth $0.001 ($1 total invested) and there are 1,000,000 coins. The total market cap is $1000. If the price increases to $0.002, the market cap is now worth $2000 and your investment is $2.

    On the other hand if you only have 0.1 coin and it the price is $10 per coin ($1 invested) and the market cap is $1000. If the price of the coin goes to $30, the market cap is now $3000 and your tenth of a coin is worth $3.

    A lot of new people get caught up on owning thousands of coins instead of a small fraction and it really doesn’t matter.

  6. As a noob,thank you for this post. I’ve been investing minimal amounts for a few months and done well but I know it could backfire at any time. The ‘only spend money you can afford to lose’ advice is the best I’ve gotten,when I started out I was planning on dumping a few k on ripple,but very glad I didn’t.

  7. Love the advice! I’m pretty new here but I would like to address this point:

    >5. Don’t chase hype. Avoid [FOMO](https://www.reddit.com/r/CryptoCurrency/comments/kt6a4h/fomo_traps_to_avoid_beginner_guide_with/?utm_medium=android_app&utm_source=share) (fear of missing out) traps. Don’t believe everyone who is shilling a coin. Practice DD (Due diligence). Don’t ever chase a coin that’s gone up so much.

    This is a very real fear in investing. And the due diligence become even more important. Sometimes the hype can still be real, and you can get yourself in on the ground floor to hit those maximum gains. But you must go in with a plan in case things go south.

    You can develop your own case studies to determine if you want to risk your money. At this point one Bitcoin is over $55k. I’m sure there were a lot of people saying that it’s never going to go past $1. But looking back, at this point you wouldn’t care if you bought in at $2 or $20 because the gains are through the roof in comparison.

    Everyone can prolly look at DOGE or any other hyped crypto and make the same arguments for staying in or doubling down or cashing out.

  8. Good quick tips OP, I’d also chime in and say make sure you set your targets and stick to them. For example: Do you want to double your money and cash out your initial stake (de risk)? Or are you wanting to accumulate x amount of a coin to sit on? Just my 2 moons!

  9. What a great write-up! You are the antithesis of an earlier post today that was lamenting people talking down to noobs who were seeking advice and knowledge! Thank you for taking the time out of your day to do this!

  10. Great commandments OP!

    I would like to add that if you make profits, then they are yours only after you’ve cashed out.
    It is important to realise that until the converted crypto to fiat reaches your bank account, these profits are not yet real. You don’t have them yet.

  11. I have a genuine question… if I invest in an alto in, say vet or zil, and I goes up… is it wiser to take profit and move it into something else OR am I supposed to ride it up and down and hold longer term?

    NOT looking for “financial advice” looking for some techniques that have worked for you!

  12. Keep in mind that whenever you see someone pumping a coin in YouTube, you’re already way behind the train and will most likely be a victim of a pump a dump. Rely particularly on your own research rather than second hand information, specially for big investments.

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