Entering the world of cryptocurrency can feel overwhelming, especially with the flood of technical terms, trading strategies, and platforms to choose from. But for anyone looking to understand the basics—especially Bitcoin—this guide breaks down everything you need to know in a clear, structured way. Whether you're completely new or just brushing up on fundamentals, this primer covers legality, key concepts, trading types, and how to get started safely.
Is Bitcoin Legal in China?
One of the most common questions among new investors is whether owning or trading Bitcoin is legal in China.
While Chinese authorities banned initial coin offerings (ICOs) and shut down domestic cryptocurrency exchanges several years ago, personal ownership and peer-to-peer trading of Bitcoin are not explicitly illegal. The government has recognized Bitcoin as a form of virtual commodity, meaning individuals can legally hold it as an asset.
However, financial institutions and payment companies are prohibited from processing crypto transactions. This means while you can own Bitcoin, banks won’t help you buy or transfer it. Any trading activity must be done independently and at your own risk.
Important Note: Trading crypto carries high risk due to volatility. Always conduct thorough research and never invest more than you can afford to lose.
👉 Discover how to securely start your crypto journey today.
Key Concepts Every Beginner Should Know
Before diving into trading, it’s essential to understand some foundational terms used across all major platforms.
What Is USDT?
USDT (Tether) is a stablecoin pegged 1:1 to the U.S. dollar. It offers the stability of fiat currency with the speed and flexibility of blockchain transactions. Because its value remains relatively constant compared to volatile assets like Bitcoin, USDT is widely used as a base currency in crypto-to-crypto trades.
For example:
- You exchange Bitcoin for USDT during market downturns to preserve value.
- You use USDT to enter new trades without converting back to traditional money.
This makes USDT one of the most practical tools in a trader’s toolkit.
Understanding Different Types of Trading
There are several ways to engage with cryptocurrency markets, each suited for different goals and risk tolerances.
1. Spot Trading (Buy Low, Sell High)
Also known as cash or physical trading, this is the simplest method: buy Bitcoin when prices are low and sell when they rise. It's ideal for beginners who want exposure without complex strategies.
Most spot trades happen using USDT pairs, such as BTC/USDT or ETH/USDT.
2. Margin & Leverage Trading
Leverage allows traders to borrow funds to increase their position size. With 2x to 10x leverage, even small price movements can generate larger profits—or losses.
For example:
- Deposit $1,000 with 5x leverage → control a $5,000 position.
- A 10% gain becomes a 50% return on your capital (but a 10% loss wipes out half your investment).
This amplifies both opportunity and risk—only experienced traders should attempt it.
3. Futures Contracts
Futures let you speculate on future prices of Bitcoin without owning the actual asset. These contracts have expiration dates and allow two-sided trading:
- Go long (buy) if you expect prices to rise.
- Go short (sell) if you believe prices will fall.
Many platforms offer up to 50x leverage, making futures powerful but highly risky tools.
4. Over-the-Counter (OTC) Trading
OTC lets users trade directly with others using fiat methods like Alipay or WeChat Pay. This is often the easiest way for beginners to enter the market with local currency.
It’s particularly useful during periods of high volatility when exchange liquidity may dry up.
👉 Learn how OTC trading works and how to use it safely.
How to Choose a Reliable Crypto Exchange
With so many platforms available globally, selecting a secure and functional exchange is crucial. Here's what to look for:
- Security: Look for two-factor authentication (2FA), cold wallet storage, and a proven track record.
- Trading Options: Does it support spot, margin, futures, and OTC?
- User Experience: Is the interface intuitive across web, mobile, and desktop?
- Liquidity: High trading volume ensures faster order execution and tighter spreads.
- Customer Support: Responsive help desks make a big difference during emergencies.
Platforms like OKX rank among the world’s top exchanges by volume and offer all these features. They provide global access to Bitcoin, Litecoin, Ethereum, and hundreds of other digital assets through multiple trading formats.
While no platform is completely immune to risk, choosing one with strong regulatory compliance and transparency significantly improves safety.
Common Beginner Mistakes (And How to Avoid Them)
Even seasoned traders were once beginners. Here are some typical pitfalls—and how to steer clear:
Emotional Decision-Making
Many new investors:
- Hold too long during rallies hoping for “just a bit more.”
- Panic-sell during dips out of fear.
Without experience navigating bull and bear cycles, emotional bias dominates decision-making.
✅ Solution: Set clear entry and exit rules in advance. Use stop-loss orders and take-profit levels to automate discipline.
Overleveraging Too Soon
Using high leverage early often leads to rapid account depletion.
✅ Solution: Start with spot trading. Build confidence and knowledge before touching leveraged products.
Ignoring Security Practices
Reusing passwords, skipping 2FA, or storing large amounts on exchanges increases vulnerability.
✅ Solution: Use hardware wallets for long-term holdings. Enable all available security layers.
Frequently Asked Questions
Q: Can I buy Bitcoin with RMB in China?
A: Direct bank transfers aren’t allowed, but P2P and OTC platforms enable RMB-based purchases via third-party payment apps like WeChat or Alipay.
Q: What is the minimum amount needed to start trading?
A: Most platforms allow trades starting from just a few dollars. There’s no minimum purchase requirement for Bitcoin—you can buy fractions (e.g., 0.001 BTC).
Q: Is USDT safe to use?
A: While widely adopted, stablecoins depend on issuer transparency. Tether claims full reserves, but occasional concerns arise. Diversifying across stablecoins like USDC can reduce risk.
Q: What’s the difference between spot and futures trading?
A: Spot trading involves immediate ownership of the asset; futures are contracts betting on future prices without ownership.
Q: When is the best time to buy Bitcoin?
A: There’s no perfect timing. Dollar-cost averaging (DCA)—buying small amounts regularly—reduces timing risk and smooths out volatility.
Q: How do I protect my crypto assets?
A: Use strong passwords, enable 2FA, avoid sharing private keys, and store long-term holdings offline in cold wallets.
Final Thoughts: Start Smart, Stay Safe
The cryptocurrency space moves fast—but starting slow gives you an edge. Focus on learning core concepts like Bitcoin, USDT, spot trading, leverage, and exchange selection before jumping into active trading.
Remember:
- Markets operate 24/7—no need to rush.
- Knowledge compounds faster than capital.
- Safety comes first: always prioritize security over convenience.
👉 Access a trusted platform where security meets advanced trading tools.
By building solid habits early—like setting rules, managing emotions, and protecting assets—you position yourself not just to survive, but thrive in the evolving digital economy.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are subject to high market risk. Trade responsibly.