The virtual currency (also known as cryptocurrency) market has rapidly developed in recent years, attracting a large number of investors. From Bitcoin (BTC) to Ethereum (ETH), and various emerging DeFi projects, NFTs, Layer 2 protocols, etc., the types of virtual currencies are diverse, presenting significant opportunities and challenges for investors. For newcomers to virtual currencies, understanding how to start from scratch and mastering the relevant operational tools in the crypto space has become an important step for many to enter the digital currency market. This article will provide you with a comprehensive guide for beginners in virtual currencies, helping you quickly understand the basic concepts and operational methods of virtual currencies, and become familiar with commonly used virtual currency tools.
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Beginner's guide to mastering virtual currencies
- How to play with virtual currencies?
For beginners, playing with virtual currencies is relatively simple, mainly through trading on exchange platforms. The following is a detailed tutorial on playing with virtual currencies on the Binance platform: - Open the Binance official website (click here), download the Binance APP, and on the homepage click "Register/Login" to select "Create New Account," enter your email address to register (you can also use your phone number), then enter the six-digit verification code received via email, which is valid for 30 minutes.
If you are using an Android device, select the APK installation package for download on the Binance official download page.
If you are using an iOS device, you can refer to the iOS download tutorial for Binance.
Binance registration - Set your password. The security password for Binance must include at least 1 uppercase letter, at least 1 number, and the password length must be between 8 and 128 characters.
Password setting - After reaching the "Welcome!" page, it indicates that the Binance account registration is successful. Binance will also ask if you have an inviter; you can choose yes and enter the invitation code XZLST5T9 to reduce the trading fee by 20%.
Binance registration completed - Open the Binance APP, after completing registration, click on identity verification on the homepage, and enter the type of identity verification. Among the three types of verification (ID card, driver's license, passport), we default to selecting ID card, and then complete the verification according to the prompts.
Identity verification - After submitting the verification materials, Binance usually reviews them within 2 hours. Once the standard identity verification is approved, you can start trading digital assets.
Note: The daily limit for fiat currency with standard identity verification is 50K. You can also choose to complete advanced identity verification to raise the daily fiat limit to 2M, gaining higher trading permissions.
Binance standard and advanced identity verification - After verification, you must first purchase USDT with RMB before you can trade on the platform. On the Binance APP homepage, click "C2C Buy Crypto" to enter the USDT trading market.
C2C buy crypto - On the C2C trading page, click the filter button in the upper right corner. On the filter page, select the type of merchant you want to trade with, then enter the purchase amount and click "Confirm."
The system will filter out C2C merchants that meet your criteria based on your selection. You just need to click "Buy" to conduct C2C transactions with the corresponding merchant.
Filter C2C merchants - Confirm purchase: After selecting a merchant, enter the purchase amount and payment method on the USDT purchase page, and click "Confirm Order." When you reach the order generated page, click "View Payment Details."
On the "Please pay to the seller" page, confirm the seller's payment method for the transfer; the order must be completed within 15 minutes. After selecting payment, return to the payment page and click the "I have completed the payment, notify the seller" button.
Purchase USDT - After notifying the seller of the payment for USDT purchase, the order will require the seller to check and release the coins within 3 minutes. The USDT received will default to your fund account.
If the coins are not released for a long time, you can click the "Remind Merchant" button or enter the chat page to notify the seller. If the order times out and the seller does not respond, you can contact Binance customer service for assistance.
USDT purchase completed
C2C trading precautions:
As a buyer, if you place multiple orders without making payments, the system will impose certain penalties on your account.
Whether as a buyer or seller, when choosing a C2C merchant, you should select those with a high transaction rate, paid deposits, and registered for over a year.
C2C merchants - Transferring USDT: Before trading, you must transfer the purchased USDT from the fund account to the corresponding trading account. On the Binance asset page, click the "Transfer" button to transfer USDT.
Spot trading: Transfer from the fund account to the spot account.
Contract trading: Transfer from the fund account to the contract account.
USDT transfer - Virtual currency trading
Open the Binance APP and enter the trading page, selecting spot trading. In the input box at the top of the page, search for the currency you want to trade/USDT. The following are common trading methods:
Limit order trading: Place an order at the price you want to buy or sell. When the currency drops to or rises to the order price, it will automatically buy or sell. You can check the order status in the current orders or cancel the order.
Limit order trading
Market trading: Buy immediately at the current currency price. This method achieves instant execution through counterparty orders.
For example, if the current price of a currency is 2400, placing a market order will execute based on the counterparty price directly, but the average execution price may not equal 2400. Depending on the buy/sell direction, the average execution price may be lower or higher than 2400.
Market trading
Flash trading: Flash trading is more convenient than the previous two methods, but some currencies do not support this trading method.
Binance's flash trading is located on the left side of spot trading, allowing you to exchange USDT for other currencies, or vice versa, and it also supports mutual exchanges between currencies, saving on multiple transaction fees.
Flash trading - Virtual currency tool operation guide
Using virtual currency tools is essential for beginners. Here, I mainly recommend three commonly used tools: news tools, financial calendar tools, and wallet tools. - News tools
PANews (click here) provides the latest and most professional cryptocurrency and blockchain industry news globally. The platform's content covers various aspects such as virtual currency news, industry policies, technological developments, project evaluations, and market dynamics. Its content sources are extensive, including market trend analysis, industry conference reports, global regulatory policy interpretations, and project technical detail analyses.
News and analysis: Not only provides news but also includes real-time tracking of market conditions and technical analysis to help users understand market changes.
Updated 24 hours: Almost continuously updates content to ensure users receive the latest industry information.
PANews tool - Financial calendar
Jin10 Data (click here) has a powerful economic calendar function that gathers important global economic data releases and policy changes, helping investors stay informed about economic conditions, monetary policies, and fiscal policies.
Global economic data: Includes important economic indicators such as U.S. non-farm payroll data, GDP, CPI, interest rate decisions, and more.
Historical virtual currency market crashes, surges, and black swan events are closely related to this data. Mastering virtual currency trends and information makes this tool particularly important.
Jin10 Data tool - Wallet tools
Wallet tools refer to wallets used for storing virtual currencies, rather than keeping them on trading platforms. There are many types of virtual currency wallets, but here I recommend using the OKX Web3 wallet, as it not only supports Chinese but also has a simple wallet interface, making it easy for beginners to operate.
OKX wallet mobile download: The OKX wallet is integrated into the OKX exchange, requiring the download of the OKX APP and switching to the Web wallet at the top of the APP.
OKX wallet desktop download: Download the OKX wallet extension from the Chrome or Edge browser extension store.
OKX wallet tool
OKX wallet operation guide:
Open the OKX wallet, and since we are beginners, choose "Create Wallet" > mnemonic phrase creation method, and verify according to the OKX prompts. After verification, the OKX wallet will be successfully created. On the homepage, click "Manual Backup" to save the wallet's mnemonic phrase and do not disclose it to others, as this is the key to the wallet.
OKX wallet creation and backup
After backing up the wallet, we will start to deposit funds, taking USDT as an example:
On the OKX wallet homepage, find USDT and click to enter, then select the network for depositing funds. This is very important; the network selected for depositing must match the network used for withdrawing.
Click the "Receive" button, and after entering, copy and save the deposit network for use when withdrawing.
OKX wallet deposit
Open the Binance APP, click "Withdraw" in assets, select USDT and "Transfer via Blockchain." On the transfer page, fill in the deposit address, select the main network to match the deposit address, and enter the amount of USDT to withdraw. Click withdraw and complete verification, then wait for it to arrive.
Note: When withdrawing, be sure to repeatedly confirm that the deposit address and the selected network are consistent.
USDT withdrawal
Check the order status in Binance order history > withdrawal records. The speed of arrival depends on the selected deposit network and the congestion situation on the chain. If it does not arrive for a long time, you can contact platform customer service for inquiries.
Withdrawal completed - Basic concepts of virtual currencies
- What is virtual currency?
Virtual currency, or cryptocurrency, is a decentralized digital currency based on blockchain technology. It does not rely on any country's central bank or government for issuance but ensures the security and transparency of the currency through computer algorithms and distributed ledger technology. Bitcoin (BTC) is the earliest virtual currency, while others like Ethereum and Litecoin are also popular virtual currencies in the market. - What is blockchain technology?
Blockchain is the underlying technology behind virtual currencies. It is a decentralized distributed ledger where all virtual currency transaction records are permanently stored. Each block contains a certain amount of transaction data, and these blocks are linked together through encryption algorithms, forming an immutable chain. This is also why virtual currency transactions are relatively secure and transparent. - Conclusion
To master virtual currencies from beginner to expert, one must have a clear understanding of the basic concepts of virtual currencies, trading platforms, and tools, as well as continuously improve one's market analysis capabilities and risk management levels. By effectively using the tools provided by exchanges, mastering price tracking, trading strategies, and security measures can help you achieve stable profits in the crypto space. Although the virtual currency market is full of opportunities, it also comes with high risks. Therefore, being well-prepared before investing, ensuring the safety of your assets, and maintaining composure at all times are key to becoming a successful investor.