CZ’s actually advice for beginners into crypto worth reading

[OcTradism]

Talking about learning the mechanics, wallets, backups, encryptions… all that might be a lot for someone to fully grasps before they can start investing. You don’t really need to know all that by my standing, you just need to know enough to not get scammed and be able to secure your bought coins.

Taking actions like reducing your position in a price drop wouldn’t matter much to a holder using DCA, rather it should be a signal to buy more.

Bitcoin with private keys gives people chance of having their own banks by using Bitcoin non-custodial wallets, having private keys, and fully controlling their bitcoins. However, it does not only have such advantages but also have disadvantages such as you will lose your bitcoins if you lose either your wallet and wallet encrypted password, wallet mnemonic seed phrase, private keys. Because any people who have such information can unlock your Bitcoin wallets, or import wallet seed phrase or private key, then access your bitcoins and steal those coins.

Long term storage or short term storage, the principle is the same: secure your wallet, make wallet backups, store wallet backups rightly.
How to back up your Bitcoin wallet seed phrase?
[Guide] How to create a strong/ secure password?
Are your passwords in the green?

[L E G E N D A R Y]

In my opinion, it is unwise to jump straight into investing in crypto, even if they have learned the basics. I think the beginners should try a trading simulation first, often referred to as a "demo". This allows them to gain a better understanding of the practice, which can complement the theoretical lessons they have learned previously. Once they have mastered the basics through the simulation, they can then move on to the real trial phase with small amounts, as the OP mentioned.

What a demo account really does is to show people and make them understand how  the market works without really risking  your money or any real asset. But again, when we become too attached to the demo account, it could create a source of confidence since there’s actually no real money involved. Demo accounts can be extremely helpful and but i believe if beginner really wanna grow, they should start with a real account and only deposit and trade with very small amount, this way they get to gain more experience and that way they can easily learn control faster.

[EarnOnVictor]

-snip-
The Takeaway:
No shortcuts, no urgency-bait. Learn first, start small, and let stress be your risk gauge, not greed. It's the least exciting advice in crypto, which is probably why it's the advice that actually works.

No new things being said by CZ that's not popular already, but well, the newbies reading it for the first time could still gain from it.

In the world trading and investing, and even in all of risky activities, knowledge, patience, discipline and management are very important. You can make mistakes or lose, but if you are careful enough to limit risks, you will certainly not regret much.

However, I like to add mine, no matter your experience in such activities, still maintain the low risks, as no one knows when the bad day would come.

[Cookdata]

Just basic though, and we all know that CZ has turn to be like Justin Sun now. He is more of shilling his Binance and BNB unlike before wherein his approach was different and he remain neutral. But now it's totally different, I guess he needs to evolved as well in the market to remain relevant.

So for those we might not know CZ, they might think it's a good advise. But if you look closely, it has been told many times already that it was just a rehearse on his end. And only newbies might be fooled and believed how good CZ is in terms of crypto advise and what's not.

Please don't compare CZ to that criminal Justin Sun. The only reason why that dude has not been to prison the way CZ did was that CZ facilitated a lot of transactions that involve US money regulators. If other regulators do their job very well, I will love to see Justin Sun on handcuffs. He lied about having left Tron as the founder, and silently, he is still very much interested in the ecosystem, launching useless tokens for the dumb investors of Tron.

What a demo account really does is to show people and make them understand how  the market works without really risking  your money or any real asset. But again, when we become too attached to the demo account, it could create a source of confidence since there’s actually no real money involved. Demo accounts can be extremely helpful and but i believe if beginner really wanna grow, they should start with a real account and only deposit and trade with very small amount, this way they get to gain more experience and that way they can easily learn control faster.

I don't support the idea of a new person risking real money to make trades; why not try a demo account and understand how trading works. Demo doesn't build confidence, neither through the money. You build confidence with how your calls often result. If I see a chart and I'm able to analyse it properly and the result is like I expected, I will have confidence in my trade to put real money to work else I will continue until I can build confidence on my strategy.

[L E G E N D A R Y]

I don't support the idea of a new person risking real money to make trades; why not try a demo account and understand how trading works. Demo doesn't build confidence, neither through the money. You build confidence with how your calls often result. If I see a chart and I'm able to analyse it properly and the result is like I expected, I will have confidence in my trade to put real money to work else I will continue until I can build confidence on my strategy.

I do agree that demo accounts can be quite resourceful and useful for testing whether a trader actually does understand their strategy before actually putting in money at risk. But let’s not also forget that a strategy working repeatedly on a demo account doesn’t automatically guarantee that it’ll produce the same results with real money, and the reason for this is because emotions may potentially change or become different the moment there’s actually something to lose. So even if one decides to start and get acquainted with a demo account, it’s still crucial to start with an amount small enough that even when lost, wouldn’t affect you financially.

[notocactus]

I do agree that demo accounts can be quite resourceful and useful for testing whether a trader actually does understand their strategy before actually putting in money at risk. But let’s not also forget that a strategy working repeatedly on a demo account doesn’t automatically guarantee that it’ll produce the same results with real money, and the reason for this is because emotions may potentially change or become different the moment there’s actually something to lose. So even if one decides to start and get acquainted with a demo account, it’s still crucial to start with an amount small enough that even when lost, wouldn’t affect you financially.

Demo accounts and demo trading can be used for testing your knowledge and trading skills but the biggest disadvantages are as follows.

With demo accounts, it's not your real money so you are less likely too serious with your trading practice. You can trade for fun and go far beyond a most important purpose: trading to test your knowledge and skills, upgrade your trading skills with time, understand more about the market. With not actual own money, you can trade more arbitrarily and don't actually spend time for assessing your trading mistakes and losses with demo trading.

You will not like be tested emotionally and psychologically in the market. It's not your money, that's why. In fact, beyond knowledge and trading skills, emotion and psychology are most important factors that affect traders in this volatile market.

[abaeze]

There is substance in CZ's advice, although it is a kind of their business marketing but his statement should be judged separately. Long-term accumulation of Bitcoin and short-term trading of altcoins should not be placed in the same risk category. Because for a new Bitcoin investor, short-term trading in altcoins can sometimes cause serious losses. So if a new or novice crypto investor starts with a small amount of money, then if he is experienced in investing along with learning, then there is a balance between his ability and risk management.

Therefore, it is important to understand the long-term investment plan and risk management system when investing in Bitcoin.

[Ishicryptic]

Take this advice with a grain of salt, CZ owns Binance, and also a new Dex, he is a big holder of BNB too, this man is rich in and out so just take this advice as a form of advertisement.

Invest what you can and don't overdo it.
There are many people who started just like CZ and they have already fallen due to risks involved.

Always risk what you can afford to lose even if you are risking it on most trusted assets like Bitcoin, there are other few ways to lose that money is care isn't taken.

If CZ is giving any advice and making references to Binance, we can choose to see it as a soft shill for his interest but beyond that I think the major focus should be on the message that he is trying to pass across which is beneficial for newbies. There is need for newbies to make research before entering into cryptocurrency trading and investments because cryptocurrencies are volatile so the business carries a lot of risks, you can lose your coins as a result of negligence and theft. It is basic to know how to secure your wallet security and understand that because of the volatile nature of cryptocurrency it is better to buy with amounts that you are comfortable to part with. I believe that is the major focus of CZ advice, newbies should never enter the crypto market blindly.

[L E G E N D A R Y]

Demo accounts and demo trading can be used for testing your knowledge and trading skills but the biggest disadvantages are as follows.

With demo accounts, it's not your real money so you are less likely too serious with your trading practice. You can trade for fun and go far beyond a most important purpose: trading to test your knowledge and skills, upgrade your trading skills with time, understand more about the market. With not actual own money, you can trade more arbitrarily and don't actually spend time for assessing your trading mistakes and losses with demo trading.

You will not like be tested emotionally and psychologically in the market. It's not your money, that's why. In fact, beyond knowledge and trading skills, emotion and psychology are most important factors that affect traders in this volatile market.

One thing I’ve also observed and would add about using demo accounts is that it has a way of making traders overestimate how consistent their strategy really is. Seeing several successful trades could actually make them assume that they’ve finally mastered the market, but they fail to realize that a good trader isn’t just someone that can successfully analyze the market but also one who can control the pressure of protecting real capital and is able to keep their emotions in check during tough times. And that’s pretty much why I think moving from demo to real trading should be gradual, with a very small amount, regardless of how much they believe they’ve actually mastered the market. Cos the market can be really tricky.