Give the currency circle a new direction in the future!!!

One sentence of truth is preached, and tens of thousands of books are falsely preached.

The threshold for currency trading is not high. You just need to be able to buy and sell. It is very simple and everyone knows it.

However, many people ask how to make money in the currency circle. This is actually the same. It is very simple. Make a long-term cycle, sell bulls and buy bears.

Old Leeks all understand these principles, but most of them cannot integrate knowledge and action.

Back to business. Currency depreciates and prices rise, why? Money flows more, so it depreciates. How is it devalued? 10 yuan is still 10 yuan, 100 yuan is still 100 yuan. Therefore, when prices rise, purchasing power decreases. The general direction between the two is synchronized, but the overall trend will only get bigger and bigger. To give the simplest example, for example, ten years ago, if your daily salary was 100 yuan, you could buy 10 catties of leeks with 10 yuan, and 100 catties of leeks with 100 yuan. Now, with a daily salary of 200, you can only buy 3 catties with 10 yuan, or 200 yuan. 60 pounds. Then many people complain that things are expensive. Some people will say that wages have also increased. After careful calculation, there is no balance between the two. Currency depreciation will cause wages to rise. In fact, the rate of wage increase cannot keep up with the rate of price increase. Wages have not increased much, but purchasing power has dropped sharply. What's the problem? In a word, great working people create the country's economy. In the past, we shed blood to defend the country, but now we sweat to develop the country. It is enough to sacrifice the interests of the few and defend the interests of the majority.

As the overall economy improves, money becomes less and less valuable and depreciates rapidly, but your salary grows slowly. It’s really overwhelming to talk about this.

These are important to the stock market for various commodities as well as risk assets. We who play in the currency circle and do large-cycle trading must understand these things.

Now let’s continue talking about leeks, oh no, it’s considered a currency circle.

When talking about the currency circle, we have to talk about the example of leeks above. Ten years ago, 10 yuan was 10 catties, but now 10 yuan is 3 catties. Okay, ten years ago, you spent 10 yuan to buy 10 kilograms of leeks. For those who don’t have leeks today, you made a profit, because if they want to get 10 kilograms, they need to spend more than 30 yuan to buy it. You You can sell them the leeks you have. You have made more than twice as much, and now your daily salary is only 200, which is just doubled. So much money.

Here, leeks can be understood as gold and real estate. They are considered high-quality assets. After all, they allow you to outperform inflation and make money. Now let's talk about Bitcoin. The leeks you bought for 10 yuan ten years ago are now sold for more than 30 yuan today. It seems that you have made more than 2 times. Excluding the increase in wages, you have actually only made more than 1 time. Some people bought 10 yuan of Bitcoin and sold more than 300 or 3,000 today.

The timeline is extended, and there is no zero-sum game. Have you heard of currency issuance and currency destruction? When inflation reaches a certain level, central banks and the Federal Reserve of various countries will raise interest rates to recycle liquidity instead of destroying the extra money. After the money is collected, the interest rate will be lowered later and released again. The law of the entire market is to raise interest rates, lower interest rates, stop raising interest rates, and then release money. Why do we need to release money and increase currency issuance? Isn't it good to recycle and recycle? Because it is not enough. As mentioned earlier, the overall economic trend of the world is upward. It can be understood in this way that the last bull market in the currency circle was due to the influx of some funds from the global flood of money due to the COVID-19 pandemic + the original stock of funds. Then the next round is the funds poured in by the COVID-19 pandemic + the existing stock of funds + the new round of large-scale flooding. This also explains more clearly why the overall bottom of the currency circle will get higher and higher.

Why has the currency circle risen so much? Let's not talk about anything else. In the final analysis, the market value is too small. Just adding some traditional funds is a new height for the currency circle.

Speaking of this, as for why we should do large-cycle spot trading, the reason is already very clear. From a macroeconomic perspective, the upward certainty is very high. In terms of market value, there is a lot of room.

Before the last bull market, when I was browsing Zhihu, mentioning the currency circle was like a rat crossing the street, and everyone shouted and beat it. Some people promote these, and people outside the circle always feel that they are fooling them to take over. Of course, there are still some now, but not as many as before. Some of those who do the same as me are newcomers who have never been exposed to the currency circle, or have just been exposed to it. From this, it can be seen that the future of the currency circle can still be optimistic.

According to the known Bitcoin bull and bear price growth model, it can be said that we are trying to find a sword by carving on the boat. After all, Bitcoin has only been around for more than a decade, and there are only these few rounds that can be used as reference, from the bottom of the bear market to the top of the bull market. The last round reached 69,000, which is 20 times. This round starts from 15, and 10 times means 15w. To be cautious, you can think about retreating if it breaks 10.Predicting prices is a boring and meaningless thing, but many people like to hear it, so they just talk about it casually to recharge people's faith. When making profits, don't think about selling at the top, just sell at your own psychologically expected price. Of course, be realistic.

The title of this article is written for the new leeks of the future, and the focus is also on the economic reasons for the large-cycle trading in the currency circle. This is the most correct way to trade in the currency circle.

I have said that there are many pitfalls in the currency circle. From buying and selling to various subdivisions, there are all kinds of pits, pits in the past, existing pits, and pits that have not yet appeared. These are not things that I can explain thoroughly in just a few articles. Like I said before, no matter how much you listen to me, it will not be as impressive as paying for the lessons yourself.

I just hope that when someone loses money in the currency circle and can't find the direction in the future, they can read what I wrote and know what the general direction is and what the market cycle is like, so they will naturally know what to do next. Done. There are many big Vs who often tell newcomers not to get involved in the currency circle and prevent Leechi from losing money at the source. This is okay. But I personally don’t recommend it, at least for the current currency circle. For those who have already been involved in the currency circle, I do not recommend that anyone withdraw from the circle. As long as you honestly expand the cycle of spot trading, there will be a day when you can make back your capital and make money. As for the new leek, the kind that can feed the whole family without being hungry, I recommend entering the currency circle. All in all, everyone's financial situation is different, everyone's ability and execution ability are also very different, and their temperament is different, so the final results will naturally be different.

Just play with the assets within your capabilities.