Regarding the explanation of the terminology of the currency circle, friends who are just getting started can take a look at:
1. What is legal currency?
Legal currency is legal currency, which is issued by the country and the government and is only guaranteed by government credit, such as RMB, US dollars, etc.
2.What does Token mean?
Token is usually translated as pass. Token is one of the important concepts in the blockchain. It is more commonly known as "token", but in the eyes of professional "chain circle" people, its more accurate translation is "pass", which represents the area. A proof of stake on the blockchain, not a currency.
In the traditional value system, only things that can be recorded on the ledger can be exchanged for value and circulated. Therefore, accounting is the basis for generating wealth. However, in the real world, most things cannot be quantified, and the things that can be accounted for are extremely limited. But "Token" does. The magic of this thing is that Token can record physical assets and virtual digital assets digitally.
3. What does airdrop mean?
Airdrops are a very popular method of marketing cryptocurrency right now. In order to allow potential investors and people who are keen on cryptocurrency to obtain token-related information, the token team will regularly issue unknown tokens to the accounts of currency circle participants, and the number is proportional to the number of original tokens. Ratio, if you want to get more airdrops, you must purchase more tokens. This is a very effective way of marketing.
4. What is candy?
When various digital currencies are newly issued and are in the ICO stage, the digital currencies distributed to users for free are a form of momentum and publicity for the project itself by the issuer of the virtual currency project.
5. What does break mean?
Breakout refers to the issuance price of a digital currency, and breakout means that a certain digital currency falls below the issuance price.
6. What does private placement mean?
It is a way to invest in cryptocurrency projects and the best way for cryptocurrency project founders to raise funds for platform operations. Private Placement is relative to Public Offering. In short, it is raising funds privately. It refers to selling stocks (cryptocurrency) to small-scale qualified investors without going through the public market to obtain funds.
7. What are the current trading platforms in the currency circle?
The well-known and commonly used ones are Binance, okx, and coinbase. The rest include: poloniex, Bittrex, Bitfinex, Kraken, Huobi, gate, etc.
8. Basic characteristics of virtual currency trading:
(1) Trading hours: 7*24 hours, all year round.
(2) No price limit: There is no price limit for virtual currency trading, and there is a price limit for stocks. For example, on May 28, Bitcoin rose by more than 20% in a single day.
(3) Trading unit: The minimum purchase amount is 0.0001BTC (approximately 0.6 yuan), and there is no purchase restriction on the minimum purchase of one stock (100 shares).
(4) Trading at any time: that is, T+0, and stocks are traded on T+1, that is, if you buy stocks on the same day, you can sell them on the next trading day. The virtual currency is a T+0 transaction, and you can sell it on the same day if you buy it on the same day.
(5) There is no time limit for withdrawing and cashing out coins: Withdraw and cash out at any time, with high liquidity.
9. Wallet concept
In layman's terms, it is equivalent to a personal bank card. If you are worried about storing virtual currency on the trading platform, you can store it in your personal wallet at this time. There are many types of wallets, and there are wallets corresponding to a single currency, such as There are wallets that can only store EOS, but there are also wallets that can store a variety of currencies, such as imToken, which is more widely available.
10. Deposit/Withdrawal
The deposits and withdrawals seen on the trading platform are equivalent to the transfer in and out of digital currencies. The withdrawal time may be long or short, and there is no timetable.
11. Position
Position is a market agreement that commits to buying and selling the initial position of a contract. The person who buys the contract is a long position and is in a position expected to rise. The selling contract position is a short position and is in a position of anticipating a fall.
12. Good things / bad things
All kinds of news that are conducive to stimulating price increases are called good news. On the contrary, any kind of news that causes the currency price to fall is called negative news, such as the trading platform being hacked and Bitcoin coins being stolen, or the state suppressing it.
13. Public chain/private chain/consortium chain
Public chain refers to a blockchain where anyone can participate in transactions and transactions can be effectively confirmed. At present, most blockchain systems are public chains, such as Bitcoin and Ethereum. The public chain is suitable for application scenarios where everyone joins in full name maintenance, such as mutual insurance.
A private chain refers to a blockchain where write permission is only for a certain organization or specific object. Read permissions can be open to the outside world, or restricted to any degree. Develop enterprise-level applications based on private chains to help companies implement on-chain businesses. The non-tamperable nature of information on the chain helps enhance corporate social credibility and enhance the investment confidence of investors and investment institutions in companies.
Consortium chain refers to a blockchain whose consensus mechanism is jointly controlled by several institutions. The credit mechanism is jointly maintained by these institutions. The legality of all transactions requires confirmation by most or all institutions before they can be written into the blockchain and become legal block records. Imagine that in the financial industry, a number of socially credible financial institutions set up a blockchain alliance. Each institution runs | a mining node. These institutions exercise consensus rights on behalf of all participants to maintain the normal development and operation of the blockchain. .
14. Rebound/consolidation/pullback
Occasionally, the price of digital currency rebounds under the general trend of price decline, which is called a rebound, and the magnitude of the rebound is smaller than the magnitude of the decline.
A callback is just the opposite. A temporary decline under the general upward trend of prices is called a callback.
Consolidation means that the entire currency price is relatively stable, with small changes and no fluctuations.
15. Moving bricks
It means that the same currency is transferred from a trading platform with a low price to a trading platform with a high price, and the price difference is used to make profits.
16. Leverage
Leveraged trading, as the name suggests, is to use small amounts of funds to invest several times the original funds, in the hope of obtaining multiple returns or losses relative to the fluctuations in the investment target, which is a bit similar to gambling.
17. Basic principles of virtual currency transactions
(1) Market price transactions: Transactions are completed at the current market price, which to a certain extent can ensure that investors’ buying and selling orders are completed in a timely manner. However, at the same time, investors cannot predict the transaction price before placing an order at market price, and there is a certain degree of uncertainty. . Generally speaking, the more violent the market fluctuations, the greater the risk of uncertainty in transaction prices of market transactions.
(2) Price limit trading: Investors can set a buying price lower than the market price, or a selling price higher than the market price. When the market price fluctuates to the set price, the transaction will be completed. When the set price deviates greatly from the market price, it is easy to fail to complete the transaction.
(3) The basic principle of transaction: "price first, time first" principle. A higher buying price is better than a lower buying price, and a lower selling price is better than a higher selling price. When the order prices are the same, orders with an earlier pending order time are better than orders with a longer pending order time. The late order is filled.
Detailed explanation of common professional terms during the transaction process
【Turnover rate】
It refers to the frequency with which a certain currency changes hands in the market within a certain period of time. It is one of the main indicators for evaluating the liquidity of a certain currency.
【Market Price Transaction】
That is, buy and sell transactions are carried out according to the current price. Market price transactions have priority. If you complete the transaction faster, you can use market price transactions.
【Limited Price Transaction】
That is, buying or selling at a specified price, also called entrusted trading or pending order trading.
[knock on each other]
It is a trading method of the banker. The specific operation method is to open accounts on multiple exchanges at the same time, and quote and trade between various exchanges in a see-saw manner to achieve the purpose of manipulating currency prices.
【Wash dishes】
It is a means for market makers to manipulate the currency price and deliberately lower the currency price. The specific method is to first raise the currency price and then ship at a profit.
During this period, the main force often intentionally places large sell orders to suppress the market, forcing low-price buyers to sell digital currencies to reduce the pressure to increase. This method can make the currency price easily increase.
【Protect the market】
When the price is low and the currency is not popular enough, large investors buy the currency in large quantities to prevent the currency price from continuing to fall.
【Bull market】
It means that the market conditions are generally rising, continuing the upward trend, and the outlook is optimistic. (In the currency circle, the rise of BTC is mainly leading the rise of other mainstream currencies and altcoins)
【Bear Market】
Just the opposite of the bull market, it refers to the phenomenon in which market conditions continue to decline, market sentiment is sluggish, and the market continues to decline. (What you are currently experiencing is a bear market. At this stage, the most important thing is that we need to survive. Then there are further actions, such as hoarding coins and bargain hunting.)
【Monkey City】
I believe many people don’t understand this, it exists in the stock market. Why is it called the monkey market? Monkeys like to jump up and down, which corresponds to our market jumping up and down. In the monkey market stage, it is difficult to grasp the market trend. (It may be that the mainstream is rising today and falling tomorrow, or it is possible that some copycats are rising and some copycats are plummeting.)
【Main Shenglang】
Derived from the wave theory, it refers to the longest wave in a rising market. This is also a common trend in the bull market. If you catch the main rising wave, you will make a lot of money. The opposite market trend is also called "main falling wave".
【Yin fall】
The overall market is showing a downward trend, but the trend often rises for two days and falls for one day, which always gives people hope, but always disappoints them.
【Fall】
It means that the market suddenly drops sharply, and several very gorgeous negative lines appear in front of the audience in a short time, like a waterfall, flowing down, making people feel sick and heartbroken. Some people also call it "diving".
【Blowout】
The market is affected by negative factors and remains depressed for a long time. During this period, the market will be very depressed. When the negative factors are exhausted or the negative factors are removed, the market will show an explosive rise.
【Wash dishes】
Large consortiums with funds, such as bookmakers or project developers, use funds to control the market, making the market trend rise and fall, scaring out those who are hesitant, and achieving the purpose of making huge profits.
【Acquisition】
Generally, the leeks will be washed out by washing the market, and then the dealer will take over the coins sold by the leeks, allowing them to have more chips in their hands to achieve the purpose of controlling the market (generally, operations such as collecting funds will be carried out at low prices)
【Control Panel】
It's very simple. I have a lot of money (the coins on hand account for a large proportion of the circulation), and I can make the market rise or fall with just a few flips. The purpose is very simple, make more money and get more sets of leeks.
【Cut leeks】
Some people who lost money in currency speculation left the market, and some newcomers entered the market, just like leeks, harvested one after another. The happiest person is the banker.
[cheating line]
The dealer uses the K-line to create an upward or downward trend, allowing us to buy or sell, which has achieved their purpose of cutting leeks.
【profitable】
Also called good news. It mainly uses the news aspect, mostly referring to good news. In the eyes of most people, good news will definitely lead to an increase. In fact, this is not the case. Good news and bad news are not directly proportional to the rise of the market. They only have a certain impact and will stimulate the market.
【Bad】
It is also the news side, mostly referring to news that is unfavorable to the market. But there is also a saying in the market: when all the negatives are gone, the profits will be high.
【Luring more】
The currency price has been consolidating for a long time, and the possibility of a decline is relatively high. Most of the short sellers have sold the virtual currency. Suddenly the short sellers raised the currency price, inducing many parties to think that the currency price will rise and buy one after another. As a result, the short sellers suppressed the currency price. Trapped in many ways.
【Lure the air】
After the bulls bought the virtual currency, they deliberately suppressed the price of the currency, making the short sellers think that the currency price would fall and sell them one after another. As a result, they fell into the trap of the bulls.
【Position】
This is very simple, the ratio of your account funds to the funds you use to buy coins.
【Full Warehouse】
All the funds in the account have been purchased in coins. What you often call "full warehouse dry" and "stud" are all full warehouse positions.
【Cover position】
For example, if you hold BTC, and then BTC falls, you buy some more BTC to spread the cost.
【Add position】
You hold BTC, are optimistic about the development of BTC, and then buy some more BTC on the way up.
【Build a position】
Also called opening a position. It refers to the purchase of account funds into a certain number of currencies.
[Reduce positions]
It is expected that there will be risks in the market outlook, so sell part of the currency held.
【Lockup】
People who do futures leverage should know this. It’s very simple. If you do EOS futures leverage and you buy 10,000
Long order, and then opened a short order of 10,000. Think about it carefully and consider the location.
【Short position】
Don't do anything, just watch a show. This can be understood in the currency circle. The account only has USDT and no other coins.
【Qingcang】
The funds purchased account for a very small proportion of the total funds.
【Heavy warehouse】
The funds for buying coins account for a large proportion of the total funds.
【Half warehouse】
The funds for buying coins account for half of the total funds.
【Clearance】
I stopped playing, sold all my coins, and prepared to wait and see with a short position.
【Stop Profit】
After making a certain amount of profit, sell all virtual currencies to keep the profit.
【Stop Loss】
After the loss reaches a certain level, sell the virtual currency held to prevent the loss from further expansion.
【Sideways】
The market does not fluctuate much, with rises and falls within a range.
【Rebound】
When the currency price is falling, it receives technical support or capital intervention, and the market turns from falling to rising.
【Reverse】
The price of the currency has bottomed out and has nothing to fall, and has turned from a downward trend to an upward trend. The most common one is "V-shaped reversal".
Rebound is the basis of reversal, and the magnitude of reversal is much larger than rebound.
【Moving bricks】
It's very simple to understand. Look at the previous price difference of the platform and earn the price difference across platforms. What you need to pay attention to when moving bricks is the currency transfer speed. Sometimes the currency transfer speed will affect your income.
【OTC】
Many platforms are also called legal currency transactions. The platform guarantees that merchants or individuals can directly trade in RMB to buy or sell mainstream currencies or USDT in their hands. The transaction is similar to a certain treasure (as long as you understand it).
【Cutting meat】
To put it nicely, it’s called “liquidation”. One thing that some of you often do is to sell even if it falls, fearing that it will fall even more.
【Trapped】
You buy a currency, but it goes down and you can’t bear to sell it. Congratulations. This is called being stuck.
【Relief】
If the currency you bought falls, you will be very sad. After a while it gets up again, you are relieved, and you are happy again.
【Takong】
If the market is not good, you buy. When the market gets better, you wait and see. Missing it perfectly is called missing.
【roller coaster】
The currency you bought went up, and you were very excited and bragging about it to your friends, but then it fell back down again a few days later. It's like you're on a roller coaster, you get a kick and then it's gone.
【Hoard coins】
You are optimistic about the future development of this coin, and want to make it ten times, a hundred times, or a thousand times the currency to achieve wealth freedom, and then you buy this coin in large quantities and hoard it.
【Go long】
Also known as "long", the buyer believes that the currency price will rise in the future, buys the currency, and sells it at a high price after the currency price rises.
【Short selling】
Also known as "short position", contrary to long positions, sellers believe that the currency price will fall in the future, sell the currency they hold (or borrow currency from the trading platform), and after the currency price drops, buy it at a low price to make a profit.
【Mining】
The process of using computers, mobile phones and other devices to run computing programs to obtain digital currency. Note: Mining will shorten the service life of the equipment.
【ICO】
Initial Coin Offering, derived from the concept of initial public offering (IPO) in the stock market, is a financing behavior in which blockchain projects use their own virtual currencies in exchange for commonly used virtual currencies circulating in the market.
【Private placement round】
Private equity is compared to public equity. Public equity refers to the act of raising funds from an unspecified broad group of people, such as funds sold by banks. Private equity, on the other hand, must target specific groups of people to raise funds and cannot be publicly advertised.
【Angel Wheel】
Angel round, also known as angel investment, refers to personal investment to assist entrepreneurs with specialized technologies or unique concepts but lack of own funds to start a business, and to bear the high risks in starting a business and enjoy the high returns after a successful start-up, or It is said to be a one-time early investment by free investors or informal venture capital institutions in original project ideas or small start-ups. Angel investment is a special form of venture capital.
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