CZ’s actually advice for beginners into crypto worth reading

[letteredhub]

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.

Demo account introduce the newbies trader into the space given them a picture of what trading could look like, and with demo you get to test every strategy with strong conviction since you are not losing real money. But what I have always to tell newbies is that live trading risk carries emotions which is what you don't get to feel with demo trading. And if as a trader you can combat and handle your emotions you have solved a big part of your trading troubles which is FEAR. Truly, when real money goes out to the risk, the temperament changes, the tensions gets wild and fear to lose gets uncontrollable.

[New Judgement]

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.

How sure are you that the beginners can learn control faster when they are trading with real account? What if they can’t control themselves and things go wrong?
Are you trying to say that the professionals in trading, that advised beginners to start with demo accounts don’t know what they are saying? Demo accounts trading came up because beginners were blowing up their real accounts without first building confidence and control. I seriously don’t mind how slow building that control with demo account will be, the most important thing for me is that beginner is learning without his real money being at risk. Beginners should only venture into real money trading when they have fully mastered everything.

[L E G E N D A R Y]

Demo account introduce the newbies trader into the space given them a picture of what trading could look like, and with demo you get to test every strategy with strong conviction since you are not losing real money. But what I have always to tell newbies is that live trading risk carries emotions which is what you don't get to feel with demo trading. And if as a trader you can combat and handle your emotions you have solved a big part of your trading troubles which is FEAR. Truly, when real money goes out to the risk, the temperament changes, the tensions gets wild and fear to lose gets uncontrollable.

Another challenge that’s worth noting is that, fear can actually make a trader just abandon a strategy that have proven to be effective during testing. The moment money gets involved, it doesn’t matter how much you’ve mastered the strategy on a demo account, even a small loss now could potentially trigger panic and even lead one to making a decisions they wouldn’t have ordinarily made while using the demo account. So it’s crucial for every trader to learn how to manage risks and accept losses because it’s just as important as learning when to enter the market.

[Queen Amara Belle]

Demo account introduce the newbies trader into the space given them a picture of what trading could look like, and with demo you get to test every strategy with strong conviction since you are not losing real money. But what I have always to tell newbies is that live trading risk carries emotions which is what you don't get to feel with demo trading. And if as a trader you can combat and handle your emotions you have solved a big part of your trading troubles which is FEAR. Truly, when real money goes out to the risk, the temperament changes, the tensions gets wild and fear to lose gets uncontrollable.

Another challenge that’s worth noting is that, fear can actually make a trader just abandon a strategy that have proven to be effective during testing. The moment money gets involved, it doesn’t matter how much you’ve mastered the strategy on a demo account, even a small loss now could potentially trigger panic and even lead one to making a decisions they wouldn’t have ordinarily made while using the demo account. So it’s crucial for every trader to learn how to manage risks and accept losses because it’s just as important as learning when to enter the market.

Dude, after reading your article, I felt as if you were speaking my own mind. I am completely new to the forum and this subject. To be honest, many things about trading still don't fully sink into my head. I completely agree with what you said about the demo account. I have seen that when I practice in the demo, there is no tension, everything seems to be working fine. But when I think of putting real money in my pocket, a kind of fear works in my heart! It seems like everything is gone. I wanted to know one thing here, that you talked about 'accepting losses' and 'managing risks', how do you actually do this? When you see your real money being lost in front of your eyes, your head is already not right, then how will the previous strategy work? As a newbie, should I set aside something like an emergency fund in advance, so that this fear or mental stress works a little less? How do you, who are experienced, actually handle this fear? If you had explained it in a simpler language, it would have been very helpful for beginners like me.

[AmaGold70]

So I came across this advice given to beginner that are into crypto by CZ and I feel like it’s worth sharing here as well.

Step 1 : learn first. He points to Binance Academy as the top resource

► Step 2 : start small. Not 50% of your net worth.
Start with 1%, even 0.1%. $100, $200, $500, whatever size doesn't scare you.

► What that actually means in practice: learn the mechanics first, wallets, addresses, backups, encrypted backups, sending transactions. Then experiment with DeFi and yield. Only scale up once you understand what you're doing.

► On risk: if a price drop genuinely stresses you out, not just Twitter complaining, that's the signal to reduce your position size.

► Controlling risk matters as much as making money. Don't be too greedy, don't be too fearful

► His comparison: it's like any sport. You don't jump to the extreme version on day one. You build up to it.

► His closing point: crypto is the new finance, the new money. The earlier you understand it, the easier it is to benefit from it.

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.

Source link: https://x.com/bnbcaptain/status/2103345835706925251?s=46

It is very wrong to go into any investment without actually knowing about such business, which means Bitcoin investing requires good knowledge of it before going into it, and it is also better you start small and grow big, this method is to enable you invest with ease without placing the burden of investing with huge amounts of money at once. Investing in Bitcoin also requires patience, only patient investors can succeed, so you have to learn patience, it is not something you should do in a hurry, maybe feel you can get rich overnight. Many of the new investors leave in feat anytime their is serious Bitcoin volatility that leads to Bitcoin dip, but those who understand remain calm waiting for it to be over. CZ has given a good advice, and new investors have to guide themselves with it.

[PVequalNRT]

Another challenge that’s worth noting is that, fear can actually make a trader just abandon a strategy that have proven to be effective during testing. The moment money gets involved, it doesn’t matter how much you’ve mastered the strategy on a demo account, even a small loss now could potentially trigger panic and even lead one to making a decisions they wouldn’t have ordinarily made while using the demo account. So it’s crucial for every trader to learn how to manage risks and accept losses because it’s just as important as learning when to enter the market.

I'm trying to grasp a point here, what is a new person doing with a strategy they are not familiar with in the first place. If you are new to something whether it involves financial or not, you need to make a test before you go fully. If you are new to something and you don't take precautions, you are not going to last doing that same thing, even if you use demo, take caution so you can master it and get used to it.

Most traders on CZ exchanges don't practice and I'm not sure they do spot trading. They are always after where they can make quick money ASAP. This is why many of them rarely makes money from trading.

[uchegod-21]

Another challenge that’s worth noting is that, fear can actually make a trader just abandon a strategy that have proven to be effective during testing. The moment money gets involved, it doesn’t matter how much you’ve mastered the strategy on a demo account, even a small loss now could potentially trigger panic and even lead one to making a decisions they wouldn’t have ordinarily made while using the demo account. So it’s crucial for every trader to learn how to manage risks and accept losses because it’s just as important as learning when to enter the market.

I'm trying to grasp a point here, what is a new person doing with a strategy they are not familiar with in the first place. If you are new to something whether it involves financial or not, you need to make a test before you go fully. If you are new to something and you don't take precautions, you are not going to last doing that same thing, even if you use demo, take caution so you can master it and get used to it.

Most traders on CZ exchanges don't practice and I'm not sure they do spot trading. They are always after where they can make quick money ASAP. This is why many of them rarely makes money from trading.

It is very common for newbie traders to panic since it is their first time. It is not because they have not been practicing or because they are not too familiar with the strategy they are using. But you should know that while they are still at the learning stage, they make use of demo accounts. Demo accounts is different from trading in real life. In real life where It involves money, newbie traders will try to be extremely careful not to make mistakes. Most of the things or strategies they eventually learn and become confident in are gotten after they have learnt from their mistakes.

When we tell newbies to start trading with money that they can afford to lose, it is because of reasons like this.

[L E G E N D A R Y]

Dude, after reading your article, I felt as if you were speaking my own mind. I am completely new to the forum and this subject. To be honest, many things about trading still don't fully sink into my head. I completely agree with what you said about the demo account. I have seen that when I practice in the demo, there is no tension, everything seems to be working fine. But when I think of putting real money in my pocket, a kind of fear works in my heart! It seems like everything is gone. I wanted to know one thing here, that you talked about 'accepting losses' and 'managing risks', how do you actually do this? When you see your real money being lost in front of your eyes, your head is already not right, then how will the previous strategy work? As a newbie, should I set aside something like an emergency fund in advance, so that this fear or mental stress works a little less? How do you, who are experienced, actually handle this fear? If you had explained it in a simpler language, it would have been very helpful for beginners like me.

Okay let’s put it this way. If losing a particular amount of money makes you to panic, then it only means one thing, which is that you’re probably risking more than you can emotionally prepared to lose. The key is starting your trading (when you feel you’re ready to try with real money) with an amount that won’t affect your daily needs in anyway if eventually you lose all the money completely. When we talk about risk management, we are simply talking about deciding how much you’re actually willing to lose before you even enter the market and then secondly be disciplined enough to stick to that limit regardless of the outcome. In trading, your emotions are your biggest enemy, and no matter what, you must try as much as possible to ALWAYS keep your emotions in check, possibly find a kind of anchor that you can always hold on to whenever your emotions wants to get the best of you.