The experts will give everyone (newbies) the basic knowledge of the currency circle
1. What is currency speculation
In this article, we will first talk about currency speculation. In fact, currency speculation is similar to stock speculation, real estate speculation, and foreign exchange speculation. They all make profits by buying at low prices and selling at high prices to earn the difference.
For example, if you think that housing prices are going to rise, you will buy a house immediately, and when it has risen almost enough, you will sell it and make a fortune. The difference is that currency speculation is about digital currency, with a freer trading mechanism (24 hours a day, uninterrupted trading), and a larger profit margin (no limit on price fluctuations), making digital currency an investment target with a return on investment far exceeding that of traditional stock markets, futures markets, funds, real estate, etc.
2. What is an exchange?
An exchange is a platform for trading digital currencies. The three major exchanges currently used are Huobi, Binance, and OK.
There are many other small exchanges, just like banks have four major banks and various other banks. Using a top-ranked exchange has a high security factor and can be traded with confidence. Some coins can only be purchased at individual special exchanges.
3. What is USDT?
An exchange is a place for trading digital currencies such as Bitcoin. Trading digital currencies requires an intermediary currency, also called a stable currency, namely USDT. This is also the legal currency we use most often.
USDT is called Tether, a virtual currency that links cryptocurrency to the legal currency US dollar. It is a virtual currency that is stored in a foreign exchange reserve account and supported by legal currency. You can simply think of it as US dollars.
Tether (USDT) is Tether USD (hereinafter referred to as USDT), a token based on the stable value currency US dollar (USD) launched by Tether. 1 USDT = 1 US dollar.
The exchange itself cannot directly sell or buy virtual currency, nor can it sell you USDT, and you and the exchange cannot buy it. If you want to buy coins, you need to buy USDT with RMB first, and then exchange USDT for the digital currency you want to buy. If you want to sell coins, you need to exchange your digital currency into USDT and then sell it for RMB. After you have USDT, you can exchange it for any digital currency on the exchange, which is called currency-to-currency trading.