Recently, the number of people interested in entering the crypto space has been rapidly increasing, but few truly grasp the core logic. Many beginners are confused and don't know where to start. Today, we will provide a detailed basic knowledge list for newcomers to help you quickly understand the operational logic of the crypto world and avoid detours.

**You need to understand these basic concepts first**

**What is the essence of trading?**

Simply put, trading digital currencies is the same as trading stocks, real estate, or foreign exchange—the idea is to buy low and sell high, earning the difference. For example, if you believe property prices will rise, you buy now and sell when the price reaches a certain level to make a profit. The logic of digital currency trading is exactly the same.

However, digital currencies have their unique advantages. The market operates 24/7 without trading hours restrictions, and there are no upper or lower limits on price fluctuations. Because of this high liquidity and volatility, the investment returns in digital currencies often far surpass stocks, futures, or even real estate. This is also why many investors have been attracted in recent years.

**Where to trade?**

Trading platforms are where you conduct transactions. Currently, there are multiple platforms to choose from, and those with higher rankings are generally more secure. Just like banks, there are large banks and small to medium-sized ones; choosing a large, reputable platform reduces risk. It’s important to note that some special coins may only be listed on specific platforms, so understanding each platform’s coin coverage is crucial.

**What is a stablecoin?**

Stablecoins are digital assets pegged to fiat currencies. The most common is USDT (Tether), which maintains a 1:1 peg with the US dollar—1 USDT always equals 1 USD.

In the trading process, you usually need to exchange RMB for USDT first, then use USDT to swap for other digital currencies. When selling coins, it’s the reverse: exchange digital currencies for USDT, then withdraw to fiat currency. USDT acts as an intermediary, making transactions more flexible.

Once you understand these basic concepts, you can start exploring more complex trading strategies.