When it comes to investing in crypto assets, many people are still confused. Today, let's talk about the basic logic behind digital assets like Bitcoin and Ethereum, and the pitfalls that beginners should watch out for.

First, it's important to understand that these assets are fundamentally different from stocks and funds. There are no listed companies or financial reports to support them; their prices are entirely determined by market consensus, regulatory guidance, and capital flows. This is also why their volatility is so intense—daily price swings can reach dozens of percentage points, and they can also plummet rapidly. This uncertainty is both an opportunity and a trap.

Before entering the market, you need to understand the trading methods. The most common is spot trading, which is straightforward: buy low, sell high to make a profit. This approach is relatively gentle, with risks within controllable limits. But if you want higher returns, you'll encounter derivatives like contracts and options. These tools often involve leverage; for example, 10x leverage means you can control a position worth 10 times your capital with just 1 dollar. Sounds tempting, right? But the problem is, when you profit, you double your gains; when you lose, you double your losses, and your principal could be wiped out entirely. This is too dangerous for beginners.

Regarding risks, there are a few points you must remember. Platform selection is the first hurdle—be sure to operate on well-known, large-scale exchanges. Small platforms are extremely risky; some may just run off with your funds, leaving your assets worthless. Next is private key management: if you transfer your coins to a self-custody wallet, the private key is your lifeline. Losing it or having it leaked means your assets are truly gone, with no recovery options. Lastly, policy risk cannot be ignored—regulations on cryptocurrencies are constantly tightening worldwide. New rules and policy adjustments can trigger market shocks.

Ultimately, trading crypto assets is not a guaranteed way to make money. High returns inevitably come with high risks. Never gamble with essential living funds, and don't be brainwashed by others' success stories. Rationality is the key to surviving the longest in this market.