Hello everyone, today I will tell you about the currency market. Many people who have just entered the industry this year do not understand what the currency market is.
First of all, let’s briefly talk about what the currency circle means?
The so-called currency circle is the circle naturally formed by digital currency players. The currency circle is not big, but the number of people is not small, and it is basically a niche among the crowd, but it is still a circle, there are not many people making money, and all kinds of ways to make money are quickly copied, ico , currency speculation, mining, exchanges, project parties, self-media, etc.
What is the currency market?
The currency circle is divided into two large markets, the primary market and the secondary market. The primary market is simply called the primary market before a currency is launched online. The secondary market is the process of our currency in the primary market. After going through the online exchange, it is called the secondary market. It can also be understood that the secondary market is an open market where everyone can trade after the issuance.
What is the primary market?
The primary market, also known as the primary market, is the market where newly issued currencies are sold from issuers to investors. Simply put, the primary market is the stage where each currency is publicly and privately raised by the issuer to investors before it is listed on the exchange. It is also commonly referred to as the first-level project private equity currency in the currency circle.
What is not traded through an exchange is called the primary market, or black market, and what is traded on an exchange is called the secondary market. Both are supply relationships. If one side is in short supply, the other side will follow.
What are the benefits of the primary market?
Before each coin is listed on an exchange, it is called the primary market. When a coin is ready to be listed on an exchange, it will go through several procedures.
Seed round: Early rounds mainly provide initial team building funds to individuals or institutions.
Private equity round: mainly institutions, pending investment/institutional investment quota, large price discounts
Public fundraising round: Mainly individuals, ordinary users have small investment amounts
Generally, seed prices in the primary market are relatively low, but many cryptocurrency enthusiasts cannot find this channel to participate in primary market projects. Compared with the secondary market, the opportunity to participate in the primary market is greater, and the price obtained is much lower than that in the secondary market. Some friends have even doubled many times, or even several times, the moment they go online on the exchange. More than ten hundred times
It can be said that we won directly at the starting line. Maybe this is the charm of the primary market. Since retail investors or individuals cannot find channels, this also means that there are problems in the primary market that so many people are unaware of.
The currency circle is a place that tests human nature the most. Some people have said that investing is anti-human. I agree very much. Others say that the money earned from investment is a reward for being anti-human. This experience is also passed on. A piece of information: investment in the currency circle is also a place that requires real money to grow. To become a qualified investor, you don’t have to step into a few big pitfalls or lose a little money.
It is extremely difficult to make money, just like when we were young and learned to swim, we would not be able to learn well without drinking a few sips of water. But we can strive to make fewer mistakes and lose less. If we make a mistake once, we will sum up our experience and never fall in the same place a second time. This is what a truly high-quality investor should do.
Of course, the market will definitely reward you with a generous reward for this excellent investment behavior.
The risks of investing in the currency circle are more intense than those in the stock market and futures market. In addition to the risk of currency prices skyrocketing and plummeting (there is no limit trading for 24 hours, and Bitcoin will not rest), there are two other risks. That is, the risk of keeping coins and the risk of trading. Let’s talk specifically about how newcomers can combat these risks.
Risks of sharp rises and falls in currency prices
Risks have increased. The currency price has increased significantly. I think it is not recommended for people with a weak heart and poor ability to withstand stress to enter the currency circle. For newcomers, when they enter the currency circle, they are basically at the tail end of a bull market. Most people will definitely not be able to see it before it comes. In the middle of the bull market, they may think that it is the embarrassing period of turning into a bear market, so most of my friends are waiting and watching during this period.
Until the later stage comes, people's psychology will be to hold on to a bit of luck. At this time, the number of people entering the market may be the largest, which will lead to a large number of friends to be trapped on the top of the mountain. As the old saying goes, build a position in a bear market and reduce a position in a bull market. This is what it means mean
If someone starts to build a position 80% of the time in a bear market, and then sells in batches to cash out in a bull market, the risk of currency price decline will be successfully avoided. And such opportunities have always been there. If the first two bulls and bears did this, they would have made a profit. At the end of last year, Bitcoin fell to US$4,000, which was 80% lower than the highest point of the bull market of US$20,000. If you buy Bitcoin, you still make money so far.
In investment, price is a simple and crude indicator, whether it is for buying or selling operations, or judging whether it is bull or bear. Generally speaking, when the mainstream currency drops by 80%, the price is underestimated, and the mainstream currency breaks When the previous high is high, it is a real bull market.
Of course, what we mentioned above belongs to a secondary market. In fact, most of us are not doing it in the secondary market. What is the secondary market? After a certain currency goes online, it is generally called the secondary market, and things like futures Contracts, etc. are all methods derived from the secondary market. Since there is a secondary market, there must be a primary market, and the primary market can be called the primary market even before it was online.
At this time, someone will probably ask if you can buy it before it is listed. The answer is yes. This is called private placement. Generally, the price in the primary market is very low. You may get 1u of coins in the primary market. It has reached 10u or even 100u when it went online. Of course, it is definitely not 100%. There are also breaks in the primary market, but in comparison, the risk in the secondary market is very low.
Investment is definitely not 100%. What we can do is to minimize the risk. The lower the risk, the rest is profit. There are many skills in choosing high-quality project seeds, including judging the team background, project participating institutions, and professional projects. Rating data, innovation in project technology, listing on exchanges, evaluation from various aspects such as project valuation, currency value, market value of the market, advisory team, community building, etc. to make judgments.
Let’s stop here today, and finally share with you some professional terms in the currency circle.
What does it mean to open a position in the currency circle?
Answer: Building a position in the currency circle is also called opening a position, which refers to a trader's new purchase or sale of a certain amount of digital currency.
What does Suoha in the currency circle mean?
Answer: In the currency circle, it means investing all the principal.
What does airdrop mean in the currency circle?
Answer: Airdrops are currently a very popular method of cryptocurrency marketing. In order to provide potential investors and people who are passionate about cryptocurrency with information about the token, the token team will conduct frequent airdrops.
What does lock-up in the currency circle mean?
Answer: Hedging generally means that after investors buy and sell contracts, when the market trend is opposite to their own operations, they open new positions that are opposite to their original positions. It is also called locking, locking orders, or even euphemistically called butterflies flying together. .
What does coin circle candy mean?
Answer: Currency candies are digital coins that are distributed free of charge to users when various digital currencies are first issued during the ICO. They are a form of momentum and publicity for the project itself by the issuer of the virtual currency project.
What does the currency circle break mean?
Answer: Break refers to falling below, and hair refers to the issuance unit price of digital currency. The currency circle's issuance break means that a certain digital currency falls below the unit price of issuance.
What does private equity in the currency circle mean?
Answer: Private placement in the currency circle is a way to invest in cryptocurrency projects, and it is also a complete way for cryptocurrency project founders to raise funds for platform operations.
