Several circles of blockchain
Currency circle: refers to the group of people who focus on currency speculation and even issue their own digital currency to raise funds. Generally speaking, blockchain project parties, exchanges, and some blockchain media all belong to the currency circle.
Chain circle: refers to the group of people who focus on the research and development and application of blockchain or the underlying protocol of blockchain. Without the technical support of the chain circle, the currency circle cannot exist. The implementation of future blockchain scenarios will also rely on the technical support of the chain circle.
Mining circle: refers to the group of "miners" who focus on "mining".
Several investment behaviors of blockchain
Cryptocurrency speculation: It has a similar meaning to stock speculation, and refers to the act of repeatedly buying and selling digital currencies through trading platforms in order to obtain high returns.
Soha: It is the transliteration of the English word Show Hand. It was originally a noun in gambling games, which refers to the act of betting all the available chips in your hand at once. Extended to blockchain investment, it means investing all your available assets in digital currency for the purpose of speculating on coins, which means "betting your entire fortune on a gamble."
Buddhist coin holding: refers to the behavior of not caring about the price trend of cryptocurrency after holding it, and not reducing the holding of cryptocurrency no matter how low the price of cryptocurrency assets falls.
Blockchain investor classification
Market maker: refers to an investor with strong financial resources, a powerful network of relationships and the most informed information. Market makers can influence or determine the price trend of a certain currency to a large extent.
Big investors: refers to investors with strong capital, but not as strong as the amount of funds and network of relationships as the bankers.
Retail investors: refers to investors with small amount of capital, small buying and selling volume and no organization.
Common terms for blockchain investment
Leek: This is a vivid metaphor. Leeks have strong growth and adaptability, and can reproduce on a large scale one crop after another. It is a metaphor for some retail investors who do not understand the market situation. Most of them are easily influenced by investment emotions, buying high and selling low. After some people leave the market at a loss, new forces will enter, just like leeks, which will grow again soon after being cut.
Cutting leeks: It means that the banker buys at a low price, drives up the price of the currency, waits for retail investors to come in and sells at a high price for profit, and then smashes the market to a low price, so that retail investors will suffer losses and the banker will make a profit. The banker and the big investors keep repeating this routine, which is the "cutting leeks" behavior, and retail investors keep entering the market, and the banker repeats the routine of cutting leeks.
Cut in half: refers to a sharp drop in the price of digital currency, which is a huge drop, falling to half of the previous highest price. For example, if I bought a currency, the highest price of this currency was 100 US dollars, but it fell below 50 US dollars a short time later, it can be said that my currency was cut in half.
Cutting losses: refers to the act of selling at a loss in time when the price of digital currency falls in order to prevent further losses caused by continued decline, so as to avoid being trapped.
Being trapped: means that I buy a currency at a high price, and not long after, the currency falls. I don’t want to sell it to stop the loss in time, but choose to wait and see if the price can go back up. This waiting process is called "being trapped". In this case, we can say that I am trapped.
Unwinding: It means that the purchased digital assets gradually rise back after experiencing a round of sharp decline, and the rising price exceeds the price when I bought it. At this time, I will not lose money if I sell these digital assets. This is unwinding.
Airdrop candy: refers to the free distribution of a certain amount of digital currency to users in order to promote the project when a blockchain project is just starting out. These free digital currencies are called "candy" by users.
Big Pie/Coin King: Bitcoin BTC
Private placement/ICO: A type of financing activity. ICO (short for Initial Coin Offering), the first coin offering, originates from the concept of initial public offering (IPO) in the stock market. It is the first issuance of tokens by a blockchain project to raise general digital currencies such as Bitcoin and Ethereum.
Trading pair: EOS/ETH, this is displayed as a trading pair, which means how many ETH are needed to buy one EOS, similar to the concept of ‘gram/yuan’.
Wallet: Generally refers to blockchain wallet. It is not recommended for newcomers who don’t know much about it. Click to view wallet usage tutorial
Ladder: Also known as scientific Internet access, it refers to VPN. For that reason, a horizontal line is added. Because it is sensitive, I will not introduce it in detail. At present, many exchanges cannot log in directly to the domestic network, and they need to use a ladder to connect. If you want to know how to do this, you need to ask your friends around you or ask in the group.
White paper: It is the official professional version of the project introduction.
Telegram group: a foreign encrypted social software that needs to be used with a ladder.
Airdrop/Candy: The act of giving tokens away by the project party is called airdrop, and the tokens given are called candy
KYC: Identity verification, generally you need to provide an ID card or passport.
Smart contract: A computer protocol designed to communicate, verify or execute contracts in an information-based manner. Smart contracts allow for trusted transactions without a third party, which are traceable and irreversible.
Bull market: It refers to a general rise in the market, a long period of big rise. In the cryptocurrency circle, the rise of BTC leads the rise of other mainstream coins and altcoins. In the bull market, basically everyone makes money, because in a bull market, you only need to be a fool. If you can't make money in a bull market, it can only be said that you are messing around or you are extremely unlucky.
Bear market: It is the opposite of bull market. It means that the market price continues to decline, the market sentiment is sluggish, and the market shows a general decline. You are currently experiencing 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 bottom-fishing.
Monkey market: This exists in the stock market. Why is it called the monkey market? Monkeys like to jump up and down, which corresponds to the ups and downs of our market. In the monkey market stage, the market is not easy to grasp. The mainstream may rise today and fall tomorrow. Some copycats may also rise and some copycats may plunge.
Main rising wave: It comes from the wave theory and refers to the longest wave in the 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 trend is also called the "main falling wave".
Negative decline: The overall market trend is downward, but the trend is often up for two days and down for one day, which always gives people hope but always disappoints them.
Waterfall: What are the characteristics of a waterfall? It falls straight down. It means that the market suddenly drops sharply, and several very gorgeous big negative lines appear in front of the audience in a short period of time, just like a waterfall, falling straight down, which makes people feel painful and heartbroken. Some people also call it "diving".
Blowout: The market is affected by negative factors and is in a long-term slump. During this period, the market will be very depressed. When the negative factors are eliminated or the negative factors are removed, the market will show an explosive rise.
Wash trading: Large financial groups with funds, such as bankers or project owners, manipulate the market through funds to make the market trend go up and down, scaring off those hesitant investors and achieving the goal of making huge profits.
Funding: Generally, the market makers will take over the coins sold by the market makers, so that they have more chips in their hands and achieve the purpose of controlling the market (generally, fund-raising operations are carried out at low prices). Some people say that this is a decentralized market, so how can there be a market maker? If you insist on thinking so, I have no idea.
Controlling the market: It’s very simple. I have a lot of money (the proportion of the currency in circulation is large), and I can make the market go up or down by just flipping it a few times. The purpose is very simple, to make more money and trap more leeks.
Fake line: The dealer uses K-line to create an upward or downward trend, making us buy or sell, so as to achieve their purpose of cutting leeks.
Bullish: Also called favorable news. It mainly uses news to stimulate the market, mostly referring to good news. In most people's eyes, bullish news will definitely lead to a rise in prices, but this is not the case. Bullish and unfavorable news are not proportional to the rise in prices, but only have a certain impact and will stimulate the market.
Bad news: It is also news, mostly refers to news that is unfavorable to the market. However, there is also such a saying in the market: when all the bad news is out, it will be good news.
Position: The ratio of your account funds to the funds you use to buy coins. For example, if you have 100,000 yuan for investment and currently use 40,000 yuan to buy funds, stocks or coins, your position is 40%. If you buy all funds or stocks, you are fully invested. If you redeem all funds and sell stocks, you are short. Full position: All account funds are used to buy coins. The often-mentioned "full position" and "all in" are all full positions.
Covering a position: For example, if you hold BTC, and then BTC falls, you buy some more BTC to spread the cost.
Adding to your position: You hold BTC, are optimistic about its development, and then buy some more BTC as it rises.
Opening a position: also called opening a position. It means buying a certain amount of currency with account funds.
Reduce positions: If risks are expected in the future market, sell some of the currencies you hold.
Locking positions: People who do futures leverage should know this. It's very simple. If you do EOS futures leverage, you buy a long order of 10,000, and then open a short order of 10,000. Someone will definitely say, isn't this crazy? This is really not crazy. Think about it carefully and consider the position.
Empty position: Don’t do it anymore, just watch the show. This can be understood in the cryptocurrency world. The account only has USDT, no other currencies.
Light position: The funds used to buy coins account for a very small proportion of the total funds.
Heavy position: The funds used to buy coins account for a large proportion of the total funds.
Half position: The funds used to buy coins account for half of the total funds.
Clear the inventory: Don’t play anymore, sell all the coins, and prepare to wait and see with empty positions.
Arbitrage: It is very simple to understand, look at the price difference between the platforms, and earn the price difference across platforms. What you need to pay attention to when arbitrage is the speed of currency transfer, which may affect your income.
OTC: Many platforms also call it fiat currency trading. Take Huobi for example, the platform cannot top up RMB, which is very inconvenient. But the platform provides fiat currency trading, which is very convenient. The platform acts as a guarantee, and merchants or individuals can directly use RMB to trade, buy or sell their own mainstream currencies or USDT.
Cut losses: A better name is "cut positions". Some of you often sell even when the price drops, fearing that the price will drop even more.
Take profit: It is easy to understand, just run when you make money.
Stop loss: If the market falls and you can’t bear it anymore, leave. Even if you lose money, leave.
Sideways: The market fluctuates slightly, and the rise and fall are all around a range.
Rebound: When the price of a currency is falling, it receives technical support or capital intervention, and the market turns from falling to rising.
Reversal: The price of the currency has reached the bottom and has fallen to the point where it can no longer fall, turning from a falling trend to an upward trend. A common reversal is a "V-shaped reversal". A rebound is the basis of a reversal, and the magnitude of a reversal is far greater than a rebound.
Being trapped: You buy a coin, and it goes down in price, but you can’t bear to sell it. Congratulations, this is called being trapped.
Unwinding: The coin you bought fell, and you were very sad. After a while, it rose again, and you were unwinding, and you were very happy again.
Missing out on opportunities: When the market is bad, you buy. When the market is up, you sell again. This is called missing out on opportunities.
Roller Coaster: The coin you bought goes up, you are very excited, and brag to your friends, but a few days later it falls back. It is like riding a roller coaster, it is just exciting for a while, and then nothing happens.
Hoarding coins: You are optimistic about the future development of this coin and want to make it tenfold, a hundredfold, or a thousandfold to achieve financial freedom, and then you buy a large amount of this coin and hoard it.
Go long: Most people go long every day, buying low and hoping to sell high. Generally refers to bullish.
Short selling: This is an operation that people who trade futures contracts will use. If you are bearish on the market, buying on the decline is short selling.
Legal tender: Legal tender is issued by the state and the government and is only guaranteed by government credit, such as the RMB, US dollar, etc.
Token: Usually translated as pass. Token is one of the important concepts in blockchain. It is more widely known as "token", but in the eyes of professional "blockchain" people, it is more accurately translated as "pass", which represents a proof of rights on the blockchain, rather than currency.
Hedging: It is to conduct two transactions simultaneously with related market conditions, opposite directions, equal quantities, and offsetting profits and losses. In the futures contract market, buy positions of the same quantity but different directions. When the direction is determined, close the opposite direction position and keep the positive direction to gain profit.
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