1. Position: refers to the ratio of an investor's actual investment to actual investment funds.
2. Full position: using all funds to buy virtual currency.
3. Reduce positions: that is, sell part of the virtual currency.
4. Clearance: that is, selling all virtual currencies.
5. Heavy holdings: This means buying a lot of a certain virtual currency.
6. Light position: it means buying very little of a certain virtual currency.
7. Opening a position: buying virtual currency.
8. Covering a position: that is, continue to buy virtual currency.
9. Full position: buying all virtual currencies at one time.
10. Take profit: After obtaining a certain amount of profit, sell the virtual currency held to keep the profit.
11. Stop loss: When the loss reaches a certain level, sell the virtual currency held to prevent further losses.
12. Bull market: Prices continue to rise and the outlook is optimistic.
13. Bear market: Prices continue to fall and the outlook is bleak.
14. Long position (going long): The buyer believes that the price of the currency will rise in the future, buys the currency, and sells it after the price rises.
15. Short position (short selling): The seller believes that the currency price will fall in the future, so he sells the currency he holds (or borrows currency from the trading platform), and then buys it at a low price to make a profit after the currency price falls.
16. Rebound: When the price of a currency falls, it will rise again due to the rapid decline.
17. Consolidation (sideways): The price fluctuation is small and the currency price is stable.
18. Downward trend: The price of currency declines slowly, and the price is cut by a soft knife.
19. Diving (Waterfall): The price of the currency drops rapidly and the amplitude is large.
20. Being trapped: The price drops as soon as you buy, which is referred to as being trapped.
21. Missing out on opportunities: The price goes up as soon as you sell, which is called missing out on opportunities.
22. Cut losses: Sell virtual currency at a loss as soon as you buy it and the price drops.
23. Unwinding: After being trapped, the currency price rebounds and the loss turns into profit.
24. Overbought: The price of a currency continues to rise to a certain height, the buying power is basically exhausted, and the price of a currency is about to fall.
25. Oversold: The price of the currency continues to fall to a certain low point, the selling power is basically exhausted, and the price of the currency is about to rise.
26. Lure more buyers: The currency price has been consolidating for a long time and is likely to fall. Most of the short sellers have already sold the virtual currency. Suddenly, the short sellers push up the currency price, inducing the long sellers to think that the currency price will rise and buy in. As a result, the short sellers suppress the currency price, trapping the long sellers.
27. Luring short sellers: After long sellers buy virtual currencies, they deliberately suppress the price of the currency, causing short sellers to think that the price will fall and sell their stocks, thus falling into the trap of long sellers.
28. Mining: The process of using computers, mobile phones and other devices to run computing programs to obtain digital currency. Note that mining will shorten the life of the equipment.
29. ICO: Initial Coin Offering, originated from the concept of initial public offering (IPO) in the stock market. It is a financing behavior in which a blockchain project uses its own virtual currency in exchange for virtual currency commonly circulated in the market.
30. Private equity round: Private equity is relative to public equity. Public equity refers to the act of raising funds from an unspecified general population, such as funds sold by banks; while private equity aims to raise funds from a specific group of people and cannot be publicly advertised.
31. Angel round: Angel round, or angel investment, refers to individuals investing to help entrepreneurs with specialized technology or unique concepts but lacking their own funds to start a business, and to bear the high risks in entrepreneurship and enjoy the high returns after the success of entrepreneurship. It can also be said that it is a one-time upfront investment made 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.
32. Cornerstone round: similar to private placement round
33. What does the coin circle mean? The so-called coin circle is a circle formed naturally by digital currency players. The coin 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 after all. There are not many people making money, and various ways of making money are quickly copied, such as ICO, coin speculation, mining, etc. 34. How to make money in the coin circle? There are many ways to make money in the coin circle, the most important of which are to make money by speculating in coins, ICO crowdfunding, and brick-moving.
35. Where can I find news about the cryptocurrency world? Market information websites: Feixiaohao, mytoken, aicoin, coinmarketcap News websites: Golden Finance, Wall Street News, PANews Chat websites: Twitter (X), telegram, slack
36. What does legal tender mean? Legal tender is legal tender, issued by the state and the government, and only backed by the government's credit, such as the RMB, the US dollar, etc.
37. What does token mean? Token is usually translated as pass. Token is one of the important concepts in blockchain, and its more widely known name is "token".
38. What does opening a position mean? Opening a position in the cryptocurrency world is also called opening a position, which means that a trader buys or sells a certain amount of digital currency.
39. What does "show hand" mean? Transliterated as "show hand", "show hand" in the cryptocurrency circle means investing all the principal.
40. What does airdrop mean? Airdrop is a very popular cryptocurrency marketing method. Most of them are free. In order to allow potential investors and cryptocurrency enthusiasts to obtain token-related information, the token team will frequently conduct airdrops.
41. What does locking a position mean? Locking a position generally means that after buying and selling a contract, when the market shows a trend opposite to that of the investor's operation, the investor opens a new position opposite to the original position. It is also called locking, locking a single position, or even called butterfly double flying.
42. What does candy mean? Candy refers to the digital currency that is given to users for free when various digital currencies are first issued during the ICO. It is a kind of publicity and promotion for the project itself by the issuer of the virtual currency project.
43. What does "breaking the issue price" mean? "Breaking the issue price" means falling below the issue price, and "issue price" means the issue price of a digital currency. "Breaking the issue price" in the currency circle means that a certain digital currency has fallen below the issue price.
44. What does private placement mean? Private placement is a way to invest in cryptocurrency projects and is also the best way for cryptocurrency project founders to raise funds for platform operations.
45. How to read K-line? K-line chart is drawn based on the opening price, highest price, lowest price and closing price of each analysis period.
46. What does arbitrage mean? Arbitrage means buying digital currency from an exchange with a low price, and then selling it on an exchange with a high price.
Next, let’s understand wallets
It needs to be clarified that the wallet mentioned in the blockchain field is not actually a wallet for storing money, but a tool for storing keys (private keys and public keys). With the keys, you can have control over the digital currency at the corresponding address.
1. Private key: represents the right to withdraw money from a Bitcoin address. If you have the private key, you have the power of life and death on the corresponding Bitcoin address. The private key can be used to calculate the public key, and the public key can be used to calculate the Bitcoin address. For each transaction, the payer must provide the private key and the signature generated by the private key. The signature of each transaction is different, but it is generated by the same private key.
2. Public key: It appears in pairs with the private key. The public key can calculate the Bitcoin address, so it can be used as proof of ownership of this Bitcoin address.
3. Bitcoin address: If the blockchain is a ledger, the Bitcoin address is the account number in it.
4. There are many types of wallets: cold wallets, hot wallets, hardware wallets, brain wallets, paper wallets, etc. I feel dizzy when I see these concepts. I don’t think we need to understand so many. We just need to understand the application scenarios, whether it is on the mobile phone or PC. And I think we will only use light wallets. The full wallet that stores all transactions is too scary. If you are really worried, just install this wallet on a terminal that does not usually go online to prevent hackers from stealing it.
(II) Wallet Practice
Wallets are divided into Bitcoin wallets, Ethereum wallets, NEO wallets, quantum wallets, etc. according to different protocols.
What is a Bitcoin wallet address used for?
You can use the Bitcoin address generated in the Bitcoin wallet to receive Bitcoin from others, and you can also transfer Bitcoin from your account to other people's Bitcoin addresses. Bitcoin addresses are like bank card numbers, with payment, transfer, and withdrawal functions, but when transferring money, you can only transfer Bitcoin if you know other people's Bitcoin addresses. The Bitcoin wallet address must be saved well, because it is used in every payment.
What is bullish (for Bitcoin)?
Good news (Bitcoin): refers to news that Bitcoin has received attention from the mainstream media, or that a certain technological application has made a breakthrough, which is conducive to stimulating price increases.
What is bad news (for Bitcoin)?
News that caused the price of the currency to fall, Bitcoin technical problems, central bank suppression, etc.
What is trading volume? It reflects the number of transactions and the number of buyers and sellers. It can usually be measured by the number of coins traded and the amount of money traded.
What is rebound ?
The price adjustment phenomenon of Bitcoin price rebounding due to a rapid decline in a downward trend. The rebound is smaller than the decline.
What is consolidation?
It usually refers to a market situation in which prices fluctuate slightly, are relatively stable, and the difference between the highest and lowest prices is not much.
What is a callback? In a bull market, the price of a currency rises strongly, but due to the rapid rise in price, there is a temporary decline, which is called a callback. The decline is smaller than the increase.
What is Bricklaying?
Recharge cash to platform A where the price is lower, and then buy Bitcoin; then withdraw Bitcoin from platform A and immediately recharge it to platform B where the price is higher; after the recharged Bitcoin arrives at platform B, sell it immediately, withdraw the cash received immediately, and then repeat the steps.
What is leverage?
Leveraged trading, as the name implies, is to use a small amount of funds to invest several times the original amount in the hope of obtaining a return several times the volatility of the investment target, or a loss. Altcoins refer to all other coins except Bitcoin and Ethereum.
