The Most Agonizing Question for First-Time Buyers
Binance lists hundreds of cryptocurrencies, and new users often feel overwhelmed when they open the trading page — BTC seems too expensive to buy a whole one, some new coin just rallied 100x and looks tempting, and a friend recommended an altcoin that you're not sure about.
Here's the bottom line: For your first crypto purchase, go with BTC (Bitcoin) as your primary choice, ETH (Ethereum) as your secondary choice, and leave everything else alone for now.
Let's explain why.
Why BTC Should Be Your First Choice
Highest Certainty
BTC is the "gold" of cryptocurrency, accounting for over half of the total crypto market cap. Born in 2009, it has survived countless boom-and-bust cycles, but its long-term trajectory has always been upward. You can question whether a random altcoin might go to zero, but the probability of BTC going to zero is extremely low.
You Don't Need to Buy a Whole One
Many beginners think buying BTC means spending tens of thousands of dollars on a whole coin — this is a misconception. BTC can be divided to 8 decimal places, meaning you can buy 0.001, 0.0001, or even less. On Binance, the minimum spot trade is approximately 10 USDT.
Best Liquidity
BTC has the highest trading volume across all exchanges globally. This means you can buy or sell at any time without worrying about not finding a buyer. Some small-cap coins may show impressive gains on paper, but with low trading volume, you might not find a buyer when you want to sell.
Why ETH Is the Second Choice
ETH (Ethereum) is the second-largest cryptocurrency by market cap. It has a different purpose than BTC — BTC is more like digital gold for storing value, while ETH is a smart contract platform that hosts a vast number of DeFi (decentralized finance), NFT, and other applications.
Reasons to choose ETH:
- Largest ecosystem: Ethereum hosts far more applications than any other blockchain
- Continuous upgrades: The Ethereum team consistently implements technical upgrades to improve network performance
- Institutional recognition: Like BTC, ETH has gained significant institutional investor acceptance
ETH carries slightly higher risk than BTC with greater volatility, but it's still considered a "stable" choice among major cryptocurrencies.
Why Beginners Should Avoid Altcoins
"Altcoins" is a blanket term for all cryptocurrencies other than BTC. Some are genuinely valuable (like ETH), but most — especially lower-ranked small-cap coins — carry extreme risk:
High Probability of Going to Zero
History is littered with small-cap coins that once surged 10x or 100x, only to eventually crash to near zero. Many beginners see a coin priced at "just a few cents" and think it's cheap, fantasizing about getting rich if it reaches $100. In reality, 99% of small-cap coins won't have that fate.
Easily Manipulated by Whales
Small-cap coins have low market caps and trading volumes, making it easy for large holders to pump or dump the price. When you see a coin suddenly surging, it's often a whale pumping to offload — you buy in at the top, and the price plummets afterward.
Severe Information Asymmetry
Most small-cap projects are based overseas with opaque information disclosure. "Good news" and "insider information" about these coins on social media is overwhelmingly either released by the project team themselves to pump the price, or fabricated by bad actors. Beginners don't have enough experience or information channels to tell fact from fiction.
Should You Buy Stablecoins?
Stablecoins (like USDT, USDC) are cryptocurrencies pegged 1:1 to the US dollar. They don't go up or down (under normal conditions) and primarily serve these purposes:
- Trading medium: Before buying BTC, ETH, or other assets on Binance, you need to hold USDT first
- Safe haven: When you think the market is about to crash, you can sell other coins for USDT to "ride out the storm"
- Earn interest: Binance Earn products accept USDT deposits for annual returns
So USDT isn't meant for "investing" — it's a tool. You need to buy some USDT as "ammunition" for purchasing other coins, but there's no need to hold large amounts of USDT as a long-term investment.
Practical Advice: Your First Trade
Suppose you've just completed KYC and are ready to invest 1,000 CNY. Here's my recommended approach:
Step 1: Buy USDT via C2C
On the Binance App home screen, tap "Buy Crypto" → "C2C Trading" → Enter 1,000 CNY → Follow the payment process → Receive the equivalent USDT.
Step 2: Transfer to Spot Account
Move your USDT from the Funding Account to the Spot Account.
Step 3: Allocate Your Funds
- 700 CNY worth of USDT for BTC (approximately 70%)
- 300 CNY worth of USDT for ETH (approximately 30%)
Step 4: Execute the Purchase
Go to Spot Trading → Search BTC/USDT → Select Market Order → Enter amount → Buy. Same for ETH.
Why 70/30? BTC is more stable and should be your primary holding. ETH is more volatile but has greater growth potential, making it suitable for a smaller allocation. This ratio isn't fixed — adjust based on your own judgment, but beginners should keep BTC at no less than 50%.
What to Do After Buying
Don't Watch the Charts All Day
Crypto markets trade 24/7, with prices changing every moment. Beginners are especially prone to anxiety — up 5% and you want to sell but fear missing more gains; down 3% and you want to cut losses but worry about a rebound.
The right approach: If you're investing with a long-term mindset, set a price alert (e.g., notify when BTC hits a certain price level), then go about your life.
Consider DCA
Rather than investing all your money at once, a better strategy is Dollar-Cost Averaging (DCA) — investing a fixed amount at fixed intervals, like 200 CNY every Monday into BTC. This smooths out your average cost across price fluctuations and avoids the risk of buying everything at the peak.
Keep Learning
Buying crypto doesn't mean your education is over. Take time to understand:
- The fundamental principles and value propositions of BTC and ETH
- Crypto market cycles
- Basic risk management techniques
The more knowledge you have, the better your investment decisions will be.