There are a lot of newbies entering the industry recently, so I would like to write an article about some knowledge that novices in the currency circle must know, just for learning.
What does coin circle mean?
The so-called currency circle is the naturally formed circle of 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 money-making methods are quickly copied, such as ICO, speculation coins, mining, etc.
How to make money in the currency circle?
There are many ways to make money in the currency circle, the most important ones are currency speculation, ICO crowdfunding, brick-and-mortar, etc.
Where can I usually read currency news?
Market website: non-small account, mytoken
News websites: Golden Finance, Babbitt Community, Coin World News
What does fiat currency mean in the currency circle?
Legal currency is legal currency, issued by the country and the government, and is only guaranteed by government credit, such as RMB, US dollars, etc.
What does currency circle token mean?
token, 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.
Three elements of Token
The first is digital proof of rights and interests. The certificate must be a certificate of rights and interests in digital form, representing a right, an inherent and intrinsic value;
The second is encryption. The authenticity, tamper resistance, privacy protection and other capabilities of the pass are guaranteed by cryptography;
The third is that it can flow in a network so that it can be verified anytime and anywhere.
What does it mean to open a position in the currency circle?
Position building 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 coin circle stud mean?
Currency Stud means investing all the principal.
What does airdrop mean in the currency circle?
Airdrops are a very popular method of marketing cryptocurrency right now. 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?
Lock-up generally means that after investors buy and sell contracts, when the market trend is opposite to their own operations, they open a new position opposite to their original position. It is also called lock-in, lock-up, or even euphemistically called butterflies flying together.
What does coin circle candy mean?
Currency candies are digital coins that are distributed to users free of charge when various digital currencies are first issued during ICOs. 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?
Break refers to falling below, and hair refers to the issuance price of digital currency. A currency circle break means that a certain digital currency falls below the issuance price.
What does private equity in the currency circle mean?
Private placement in the currency circle is a way to invest in cryptocurrency projects, and it is also the best way for cryptocurrency project founders to raise funds for platform operations.
How to read the currency circle K-line?
K-line chart (Candlestick Charts) is also called candle chart, Japanese line, Yin and Yang line, bar line, red and black line, etc. The commonly used term is "K line". It is plotted as the opening, high, low and closing prices for each analysis period.
What does it mean to move bricks in the currency circle?
Brick trading is to buy digital currency from an exchange with a low currency price, and then sell it to an exchange with a high price.
What does ICO mean?
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.
Synonyms for the currency circle
Position: refers to the ratio of the investor’s actual investment to the actual investment funds.
Full position: all funds are bought into virtual currency.
Lighten your position: Sell some of the virtual currency, but not all of it.
Heavy position: Compared with funds and virtual currency, virtual currency accounts for a large share.
Light warehouse: Compared with the virtual currency, the capital share is larger.
Short position: Sell all the virtual coins you hold and convert them all into funds.
Take profit: After obtaining a certain amount of profit, sell the virtual currency held 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.
Bull market: Prices continue to rise and the outlook is optimistic.
Bear market: Prices continue to fall and the outlook is bleak.
Long (long): The buyer believes that the currency price will rise in the future, buys the currency, and after the currency price rises, sells it at a high price to take profits.
Short (short-selling): The seller believes that the currency price will fall in the future, sells part of the currency he holds (or borrows currency from the trading platform), locks the position and takes profits after the currency price drops to a certain price. At the same time, he can avoid risk
Open a position: buy virtual currency.
Cover position: Buy virtual coins in batches, for example: buy 1 BTC first, and then buy 1 BTC later.
Full position: buy all virtual currencies at once with all funds.
Rebound: When the currency price falls, the price rebounds and adjusts due to the rapid decline.
Consolidation (sideways): The price fluctuation is small and the currency price is stable.
Falling: The currency price is slowly declining.
Diving (Waterfall): The currency price drops rapidly and by a large margin.
Cutting meat: After buying virtual currency, the price of the currency falls, and in order to avoid expanding the loss, sell the virtual currency at a loss. Or after borrowing currency to go short, the currency price rises, and you lose money by buying virtual currency.
Hold-up: The currency price is expected to rise, but the currency price falls after buying unexpectedly; or the currency price is expected to fall, but the currency price rises after selling unexpectedly.
Unwinding: After buying a virtual currency, the price of the currency fell, causing temporary book losses, but then the price of the currency rebounded and the loss turned into a profit.
Shortage: After selling the virtual currency due to being bearish on the market outlook, the price of the currency continued to rise, and I was unable to buy it in time, so I failed to make a profit.
Overbought: The currency price continues to rise to a certain height, the buyer's power is basically exhausted, and the currency price is about to fall.
Oversold: The currency price continues to fall to a certain low, the seller's power is basically exhausted, and the currency price is about to rise.
Lure buyers: The currency price has been consolidating for a long time and is more likely to fall. Most of the short sellers have sold the virtual currency. Suddenly the short sellers pull up the currency price, inducing the bulls to think that the currency price will rise and buy one after another. As a result, the short sellers are suppressed. The currency price has locked up many parties.
Short-selling: After bulls buy virtual currency, they deliberately suppress the currency price, making short sellers think that the currency price will fall, and sell them one after another. As a result, they fall into the trap of bulls.
Five investment rules
1. Consider and observe the project from multiple aspects, and don’t follow others’ opinions. There have been many copycat money-making projects in the currency circle. Once the founder runs away, there is no way to hold him legally responsible.
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2. Understand the relevant knowledge of blockchain and the industry pain points that blockchain solves before entering the currency circle.
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3. For the project you want to invest in, you must have a comprehensive understanding of whether the project actually uses blockchain technology, whether its founder has disclosed his identity and his background is true, whether the business logic of this project is closely related to the token, and whether it is in the same industry. Are there already similar projects that are solving industry pain points? If the project is successfully implemented, will it be profitable in real life?
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4. If you cannot accurately judge the project prospects of a currency, do not invest more than 20% of assets when participating in blockchain investment, and do not put your eggs in one basket.
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5. High-quality projects will also have ups and downs. Treat them with a normal attitude. If you are optimistic about the investment projects, you don’t need to care too much about the price in the short term. Pay attention to whether the team’s development progress is consistent with the white paper. In addition, only by holding it for a long time will you eventually earn more. Much profit.
Top 10 Trading Rules
First,
Don’t be easily deceived with low-priced chips, have firm faith and prevent the dealer from trying to hit the market.
second,
It is always a taboo to chase the rise and kill the fall. It is always a taboo to buy and sell full positions. The general trend is good. Building positions in batches when the market falls has lower risks, lower costs and greater profits than chasing the market.
third,
Reasonably distribute profits and maximize the release of funds instead of adding positions and deposits all the time.
fourth,
Gain money when it rises sharply, and keep money when it falls sharply. You must have a positive attitude at all times, do not speculate, be impetuous, do not be greedy, do not be afraid, and do not fight an unprepared battle.
fifth,
The previous ambush or private placement of low-priced coins relies on experience to bet on the future of this currency with the banker. The subsequent secondary market game relies on technology and information to follow the banker's process. Don't put the cart before the horse and end up in a mess.
sixth,
When opening a position and shipping goods, we must layer and segment the prices, gradually widen the price range, and effectively control the proportion of risk and profit.
seventh,
You need to be familiar with the linkage effect. You should watch the market when trading coins, and at the same time, pay attention to the trends of other coins. Each coin does not exist in isolation when trading on the market. It may seem that there is no connection, but it is actually intricately intertwined. The linkage effect requires understanding of the coins. Many coins are now traded. There are many tools you can use to view currency information and consultation.
eighth,
The allocation of positions, hot coins, and value coins must be reasonable, and attention must be paid to the ability to withstand stress and the proportion of profit intake. If you are too conservative, you will miss opportunities, if you are too aggressive, you may face high risks! The biggest characteristic of value coins is that they are mainly stable. The biggest characteristic of hot coins is that they are highly volatile. They may rise to the sky or fall to zero in one battle.
ninth,
Having coins on the market, money in your account, and cash in your pocket is the safest and most secure standard. If you can't stud, you will die. The grasp of risk control and the reasonable allocation of funds are the key to determine your mentality and success or failure. Investment of spare money is the basis.
tenth,
Master the basic operations, learn to draw inferences from one instance, master the basic ideas of trading, observation is the prerequisite, remember the high and low points of each time as reference data, learn to record, learn to summarize the material by yourself, develop reading habits, cultivate screening information, and filter information Ability.
Steady investment plan
Position control, don’t fill your position easily, why do you say don’t fill your position?
The first point of risk control is that you cannot guarantee that the price will rise immediately after you buy it. If you encounter a waterfall, your assets will be greatly discounted, and you will not be able to cover your position and lower the average price.
The second point is mentality control. I have had this experience myself. After a full position stud, I will keep staring at the market, which seriously affects my mentality. I couldn't sleep well.
The third point is that it is easy to be cut off, and you have a gambling mentality. You want to see changes in your income every moment. After the position is full, you will see that the price of your own currency has not increased in a short period of time, but other currencies have increased, or there are other currencies you want to buy. If you want to buy the currency, you will cut the meat and buy it. Repeated operations will bring less and less money.
Short-term 3-4% Why are there short-term? Many people say that short-term will definitely lose money. But when we allocate long-term funds, speculating in currencies is a very interesting thing. I believe that most people can’t control their own hands. As long as they control their positions well and don’t cut their flesh frequently, short-term under normal circumstances You must make a profit before exiting (the special case is when there is a problem with the project or the market). Then refer to my position control above, and whether the long-term return of any currency is higher than the short-term return.
3-40% in the primary market. For the time being, you can regard this fund as short-term reserved funds and do not use it at will.
The above statement takes into account other aspects such as human nature and summary#BTC #ETH