This article is a collection of yesterday’s content for your convenience!
title
What is Bitcoin? How to understand Bitcoin?
A list of N basic vocabulary that Web3 beginners cannot miss
A few things about KYC 4. Maybe you don’t know how to use it completely #Binance
Deposit and withdrawal guide, can’t tell the difference between different addresses?
How to call Treadingview?
01丨How to understand $BTC ? What is Bitcoin? (Helping you understand BTC in a simple and easy way)
Bitcoin, Bitcoin, we can break it down to understand: a relatively special currency. Perhaps many brothers who are rolling in the market have not read the Bitcoin white paper, but even if we don’t read the white paper, we still need to know that 👇🏻
📍BTC is currently the most successful electronic cash payment system in the world, so the Chinese translation of its white paper is also translated as: "Bitcoin: A Peer-to-Peer Electronic Cash System"
Therefore, Bitcoin is another version iteration in the current history of currency development, that is, electronic currency after physical currency (shells), metal currency (gold and silver), and paper currency.
It is different from WeChat and Alipay that we currently use. It is a system in which value is truly circulated. Each transaction has clear accounts that can be queried and the assets are self-sustaining.
The underlying layer of WeChat Pay, which we use, is based on a pool consisting of a basket of banks. Only when funds actually flow out or in will the account be recorded in the bank system behind it (to put it simply, when we use WeChat, the money is not actually in our hands, but is held in trust by WeChat as an agent)
It is also worth mentioning that Bitcoin is not the earliest electronic payment system, because there were many similar electronic systems before Bitcoin, just like in the past e-commerce wars in our country, there was not only Taobao as an e-commerce mall.
But from a bird's eye view, Taobao was the most successful e-commerce mall 17 years ago, and Bitcoin is still a peer-to-peer electronic cash payment system with group consensus (although most people know that its premise is based on investment attributes, this does not affect its basic foundation, which is built on the basis of payment)
In the e-commerce era, there is a saying: There is no era of Jack Ma, only the Jack Ma of the era
As for Bitcoin, which is currently an ownerless peer-to-peer payment system without a clear conscious leader, we can say: there is no Bitcoin era, only the Bitcoin of the era!
The rise of Bitcoin has a strong historical background, namely the financial crisis of 2008. This background is the most important step in promoting the long march forward. Therefore, this is one of the reasons why I say that Bitcoin is not the earliest peer-to-peer payment system: without the times, it is difficult to create a "hero" out of thin air.
At the bottom of this payment system is a consensus mechanism called proof of work, which means that a group of miners need to compete for the right to keep accounts on this electronic ledger system in order to obtain the basic salary (block reward) and commission (transaction fee) paid by the system.
And this proof of work is also designed to be halved every 4 years, that is: this system will reduce your salary once every 4 years<
At present, the main image of Bitcoin in everyone's view is an investment product. With the passage of Bitcoin ETF this year, Bitcoin has officially entered the traditional financial framework.
Therefore, we need to talk about where the investment attributes of BTC come from.
Let's first spread some little-known knowledge: where does money come from?
Regarding the origin of money, the famous economist Adam Smith once gave an example that the origin of money was born from people's demand for goods. Before the emergence of money, the "barter" used by people was obviously inconvenient. With the development of productivity, the types of goods began to increase, and this inconvenience was exacerbated.
Therefore, currency was born, serving as a pricing medium for commodity transactions, so that demand can be met and commodities can be circulated. The requirement for this medium is to ensure that everyone agrees, that is, consensus.
In fact, there is another theory about the origin of currency, that is, currency is based on debt, that is, credit, which is replaced by personal credit, corporate credit and national credit in the modern system, but I believe that the underlying basis is still based on - [consensus].
That is, everyone recognizes it, and the same is true for Bitcoin. Our current monetary system has the state as the credit endorsement to divide the denomination of a single currency and the "invisible hand of the market" to regulate purchasing power.
📍The source of Bitcoin’s value also includes these two factors: [consensus] and [the invisible hand of the market]
That is to say, at the beginning only a small number of people recognized it, and slowly more and more people recognized it. At this time, with the continuous influx of funds, the invisible hand of the market will regulate the purchasing power that a bitcoin can generate.
To put it more simply: Bitcoin is an ownerless virtual bank. People think that this bank is safe or for various reasons such as risk aversion, so they choose to deposit their money in it. The bank will give you some Bitcoins as a voucher for withdrawal, that is, Bitcoins. The next time you want to withdraw money, you just give the Bitcoins back and take out the money.
But it should be noted that because the number of vouchers of this bank is fixed and limited (21 million), when more people go to deposit money, the number of vouchers we will receive will be reduced accordingly. Conversely, if more people go to withdraw money, because the vouchers are limited, one voucher may have to be split among three people, so we may be able to withdraw money with fewer vouchers.
When there are fewer people depositing money or more people withdrawing money, the amount of money that can be withdrawn will also decrease due to the reduction in the total size of the vault.
Therefore, we should usually deposit money when there are fewer people or even when everyone is withdrawing money. This way, we don’t have to queue up and can exchange for more certificates$BTC . Then, when everyone is queuing up to deposit money, we can withdraw the money. This way, we can exchange the same amount of money with fewer certificate shares.
The above is our investment story of buying when no one cares and selling when everyone is talking about it~
02丨"N basic vocabulary popularization table that Web3 beginners cannot miss"
A basic guide to the 4 major currencies in the current market🔻
$BTC: The leader in the crypto market. When you don’t know what coin to buy, buy Bitcoin.
$ETH: The leader of the crypto ecosystem market. When you have the concept of value coins and don’t know what coins to buy, buy ETH.
$SOL: When you have the concept of a valuable currency and think ETH is a bit rubbish and has no prospects, buy SOL
$BNB: The leading cryptocurrency exchange. When you want to buy a cryptocurrency but don’t know its operating mechanism and history, buy BNB.
Blockchain: A decentralized ledger that records transactions. It is decentralized because it is run by individual nodes.
>Block: A page in the ledger
>Block height: ledger page number
White paper: A detailed introduction to the business of the project, including the background and technical vision of the project. The team will be introduced occasionally, but unless it is a really great project or a project where Chinese people are looking for foreigners to support it, it will generally not be introduced in detail.
Whitelist: Chips released in the early stage of the project can also be understood as a kind of early project options. Chips can be obtained at a lower price. Whitelists are also divided into free exchange (Mint) and paid exchange (Mint). It does not mean that those obtained for free are worthless, nor that those obtained for a fee are necessarily valuable. Be sure to be vigilant against whitelist scams
Mint: It means "exchange" as mentioned in the previous article. It also means "casting". It is generally used in NFT scenarios.
NFT: Small pictures that can potentially be exchanged for money
Telegram: the software Telegram
CEX/DEX: Centralized exchanges correspond to decentralized exchanges (DEX). The difference between the two is whether the controlling entity is decentralized, but the more essential market difference is the information gap. Centralized exchanges are operated by entities, so the information they spread, such as listing events, will be more widespread.
FOMO: The fear of missing out
FUD: Spreading negative, often unverified, information
“4”: Ignore FUD, from a tweet by CZ, the original meaning is roughly “Ignore FUD”
GAS: On-chain transaction fee
CX: MLM abbreviation
Degen: can be simply understood as speculators and on-chain gamblers
DYOR: Do your research, it is also a disclaimer, commonly seen by KOLs, analysts and various celebrities
Adding to the position: Buying more on the basis of the original target
Unwinding: Return of capital
Value capture: How much customizability does this project have with its token?
Gamefi: Using tokens and embedding economic systems in gaming scenarios to turn gamers into gamblers and speculators
KYC: Real-name authentication
Investment research: This term is a broad term in Web3. Usually, as long as a project is mentioned, it can be called "investment research"
Oracle: The industry itself does not have enough information channels, and needs to use traditional Internet data resources. Oracles do this.
The pattern is: continue to take profit
Stuck: When losing money, continue to hold
MEME: Simply put, it is a randomly created token. Its main features are that it can be fully circulated after it is launched. It can also be understood as a local dog.
Cold wallet: a wallet on the chain that is stored in an environment without any Internet connection
Hot wallet: an on-chain wallet that stores private keys/mnemonics while connected to the Internet
Mnemonics: A set of words that helps you remember your private key
Private key: similar to your bank card password
Public key: directly understood as wallet address
Impermanent loss: Simply put, after depositing coins in a pool, the price rises, and the price drops at the moment of withdrawal. However, the shares have been withdrawn, and the actual holding value is much lower than before withdrawal.
Primary market: the early stage of the project, when the chips are not circulated and mainly intervened by investment institutions
Level 1.5 market: In the early stage of the project, it is not listed on the centralized exchange, but the chips are already circulating on the chain, and it is mainly participated by active users on the chain
Secondary market: entering the stage of centralized exchanges
Liquidity: Broadly speaking, it refers to the ability of a certain asset to be liquidated without affecting the market price.
Liquidity mining: The act of providing funds to help a target achieve high liquidity, thereby obtaining fees or profit sharing
DAO: Distributed Organization, which can also be understood as a community that operates with certain rules and organizational structures
OTC: Over-the-counter transactions, i.e. transactions completed outside of a trading platform
OG: means "old man" or "earliest"
Pixiu: a coin that can be bought but not sold
Left side trading: guess the market bottom/top, and make a reversal
Right side trading: guess the market may continue the trend, and go with the trend
03丨A few things about KYC 🔻
The word KYC may be more commonly used in exchange platforms. Before that, there is actually a basic understanding that I would like to tell you in advance: a platform with KYC does not necessarily mean it is absolutely safe or compliant. It just means that if the platform wants to be compliant, it must do KYC.
At the same time, it doesn’t mean that platforms without KYC are definitely not good. At present, for the mainland user market, some small platforms will choose to bypass the KYC procedure and allow you to use their products.
My core point is: I think Web3 as a whole is quite “black box”. Whether the platform collapses or not, whether it runs away or not, has nothing to do with whether you have completed KYC. Whether you have conducted KYC or not will not reduce the difficulty of your rights protection after the platform collapses.
📍Let's talk about KYC itself. KYC (Know Your Customer) is translated into Chinese as Know Your Customer, which is mainly used to prevent money laundering, identity theft for financial fraud and other crimes. The general elements required for verification are: name + ID card + liveness authentication, and sometimes external verification is added, such as email, mobile phone number, etc.
Through KYC, exchanges can obtain the true identity of users. If there are risks or other problems in the transaction, the victims can find the users in the area through legal means, which is conducive to combating crime and protecting the security of user assets.
However, the devil is always stronger than the saint. In fact, anti-KYC methods have been emerging one after another. With the development of AI, the live verification barrier has become easier to break through (in fact, there have been market news recently that the KYC information of mainstream exchanges has been frequently exploited).
Therefore, the platform's corresponding [anti-KYC] mechanism may also become severe, which is actually an inconvenience for ordinary users. This is why there is a general trend around the world: technological progress does not necessarily bring about the progress of civilization, but may also bring greater threats.
In addition to basic KYC, there are other security assurance steps to further ensure the security of assets, such as customer transaction identification (KYT)
📍This word rarely enters the vision of the general public. Compared with KYC, which focuses on the identity information of platform customers, KYT (Know Your Transaction) focuses on the transaction process.
It is also a supplementary means of KYC, which can monitor transactions and deposits and withdrawals within the platform in real time. For example, the case we may have heard of: dangerous address identification, actually belongs to this category.
By marking some addresses on the chain that may be involved in or have been involved in crimes, the platform can respond promptly when it receives assets from the address. This is the scope of KYT.
For example, there was a recent case where a BN platform user's account was hacked and his assets were transferred away due to the use of a Google plug-in. In fact, it was due to the lack of monitoring of abnormal trading behavior. However, I am not sure how technically difficult it is to do so. From the platform's perspective, it may be necessary to consider the user's feedback. After all, determining abnormal transactions is relatively subjective.
However, Web3's transaction methods are very flexible. If this mechanism is implemented, it may also reduce the user experience of ordinary users.
The relative freedom of Web3 is destined to keep the industry in a state of rampant on-chain/off-chain attacks for a long time under the premise of strong regulatory red lines, unpredictable jurisdictional scope and unpredictable black swan events.
It is easier for individuals to isolate their assets and make good use of cold wallets and additional independent platform accounts to avoid the risks that may be difficult to prevent from inadvertent operations.
04丨Maybe you often use WeChat, but you may not understand it; maybe you often use Binance, but you probably don’t fully understand it~
This article will introduce you to 12 often overlooked practical functions on the Binance platform other than trading or related to trading, many of which can bring us returns~
We will introduce them one by one based on the order of the picture below. All functions can be found in the [More] column of the Binance homepage 👇🏻
1. [Quick Exchange]: This function is overlooked by many people, who think it is the same as spot trading. However, our spot trading requires USDT or other trading pairs, while Quick Exchange supports the exchange between almost any two tokens in Binance, saving you the step of exchanging coins for U and then exchanging U for coins.
2. [Dual Currency Investment]: This is an automated option strategy financial product. I will not elaborate on the details here. I have written an introduction in the past. You can jump to the article to check it out. This product is still feasible to a certain extent, and the logic is also very simple.Content jump；
3. [Pledge and borrow coins]: This is the function I use most often in a bear market. It can be used as a spot leverage to allow us to hoard more spot in a bear market. The principle is very simple. You use the coins in your hand to pledge and exchange for U, and then use U to buy coins, and then pledge them again. Of course, this also has liquidation risks, which can be regarded as a kind of spot leverage;
But now I don’t use it much, because the current loan interest rate is a bit high~
4. [ETH Staking]: It means the liquidity pledge of $ETH. You can entrust Binance to participate in ETH node staking on Binance to obtain income. If you have idle ether on the platform, you can directly participate on BN to exchange for liquidity tokens $WBETH. This token can be sold, and then U can be used again for repeated operations. It can also be used to participate in some Defi income aggregation
5. [Binance Mining Pool]: How to become a Web3 miner as quickly as possible? Use the Binance Mining Pool function to purchase Bitcoin cloud computing power. The income is also sent directly to the platform, which is similar to the logic of ETH Staking.
6. [Web3 Wallet]: A strategic product that can participate in various on-chain interactions and is an MPC smart wallet
7.【Web3 Airdrop】: Provide airdrop tasks for various projects from time to time. You can get token rewards by completing the tasks. Usually the cost of the tasks is very low, and occasionally you can get a pig's trotter meal (tested)
8. [Trading Insight]: I am not sure whether this function is open to everyone, because I participated in the product internal testing, but even if it is not open now, it will be in the short term. In short, it is a function that prompts you with various trading signals. This trading signal is not only within the exchange, but also on the chain, as well as tracking of unlocking events.
9. [Live Broadcast]: The live broadcast function of the social section covers Web3 anchors such as games and market analysis, which needs no elaboration
10. [Square]: Friends who can read this article believe that I don’t need to explain more. Binance Square is currently the industry’s leading trading platform with built-in Web3 information function
11. [Research Institute]: The research institute covers the project analysis of Binance's new coin mining and Megadrop, and updates several in-depth research reports every month. The English version will be updated first. This feature will be very valuable for interested friends.
12. [Binance Academy]: Is it difficult to get started with Web3? But if you can read 60% of the knowledge in Binance Academy, you will be more knowledgeable than more than 90% of people in this industry. Binance Academy has a problem for ordinary readers like us, that is, it is not colloquial enough, which is also unavoidable as a well-known market player.
Although I haven’t read all the articles in Binance Academy, I have read all the similar popular science series, which has hundreds of articles. That’s why I have the basis to brag to you guys.
I hope that the above content is concise enough to help you understand that in addition to trading, Binance also has many other functions to help you navigate Web3~
05丨Deposit and withdrawal guide, it’s hard to tell the difference between different addresses❓
Because there are too many Layer1s in Web3, I can’t give every example in detail, so I divide the addresses into three categories to help you understand and avoid future transfer errors.
BTC Address
EVM Address
Non-EVM Addresses
1. First of all, the BTC address. Why do I emphasize it? Before the inscription market, many people may not have noticed it, which led to many people actually recharging the wrong address (but it does not mean that the assets are lost)
The Bitcoin network has different addresses. In written terms, there are four types: normal addresses, segregated witness (compatible), segregated witness (native) and Taproot addresses.
(1) The first type of address is generally the most expensive and starts with "1";
(2) The second type of address starts with "3" and is generally used for multi-signature. It doesn't matter if you don't understand multi-signature. I'll just mention it casually. This is not something that novices can learn.
(3) The third address starts with "bc1q", and the transaction fee is cheaper than the first two;
(4) The fourth type of address starts with "bc1p". Note the difference between the third type and the first type. One is "q" and the other is "p". The latter "p" is also the more mainstream one currently used.
Let me answer another core question: the receiving address of the inscription is of the fourth type.
2. EVM address: Almost all ecological systems with ETH as the core use the same address format (0x), whether it is an EVM-compatible side chain (such as BSC, one of the AVAX chains, etc.) or various L2s (ARB/OP/MATIC, etc.). As long as you hear words like ETH L2 or EVM compatibility, you will most likely not make a mistake when withdrawing coins to an address starting with 0x. You may just withdraw to the wrong chain, but you can find it by looking it up.
3. Non-EVM address: This requires special attention, because many Layer1s have their own systems, including Binance Chain, which also has addresses that do not start with 0x. We must carefully identify these, and some even require additional signature notes when transferring money to be valid.
Therefore, when we encounter an address that does not start with 0x, if we have ruled out a Bitcoin address, we must check it carefully. If you are not sure, it is best to check the guide on the Internet. For example, in the case of Binance Chain and AVAX, where a network has multiple chains, the withdrawal channel you are talking about may be completely different from the withdrawal channel mentioned by the other party.
Therefore, the problems we usually encounter are actually non-EVM ones. It is very easy to distinguish the two major schools of BTC and ETH after getting used to them, but non-EVM ones may change a chain, which means completely different address formats and accompanying requirements~
06丨Tradingview User Guide: As the world's most famous market analysis software, some people still don't know how to access it❓
I provide you with 3 channels 👇🏻
-Web version
First of all, I will just talk about my own usage habits. I am used to using two URLs for web pages:
https://cn.tradingview.com/desktop/
www.coinglass.com/tv/zh/
Both of these websites can be accessed smoothly on the web on your computer. The first one is the original site of Tradingview, but if you just want to look at the charts, I mainly recommend the second website, Coinglass.
It also integrates the chart function of Tradingview. Compared with the original site, it has two advantages that attract me the most and are the main reasons why I recommend it to everyone.
(1) Its various indicators are not restricted. If the original website exceeds 2 technical indicators, you need to become a member to further increase the upper limit.
(2) Its chart layout can open up to 9 interfaces, which means that we can use it to view 9 different targets or different time periods at the same time in daily use, while the original website requires not only membership, but also equipment
-Mobile terminal
In addition to the web version, the exchange itself actually has Tradingview integrated. The experience is similar to Coinglass I mentioned above, but I am more accustomed to using my mobile phone when calling it on the exchange interface.
It is also the only channel I recommend because the response speed is very fast. We can watch the market in the exchange and call it immediately if any signal is found.
I found that some people don’t know how to open this function on their mobile phones, so I made a diagram to teach you. This is roughly what the diagram demonstrates: Spot ➢ Open K-line ➢ More ➢ Select [Tradingview]
As for how to use Tradingview, I will not demonstrate it. Everyone is trading cryptocurrencies, and if you don’t have strong exploration skills, it will be difficult to make any money.
Moreover, people cannot teach others to learn. You can teach others once, then call it up by yourself, and then draw it yourself. Get familiar with each thing. After practicing it twice, you will be able to get the hang of it.
If this article is helpful to you, thank you for your interactive support~