As a novice in the cryptocurrency circle, please be sure to understand and be familiar with the following basic concepts first, which will help you become more comfortable in this journey of wealth! I will explain the professional terms in plain language:
1. Position: refers to the ratio of the investment amount actually owned by the investor to the total investment funds, which reflects the investor's risk preference in the investment process.
2. Full position: As the name suggests, investors invest all available funds in the purchase of virtual currencies, showing extreme enthusiasm and confidence in this field.
3. Reduced position: This is a strategy to reduce overall risk by selling part of the virtual currency, which helps investors to flexibly respond to market fluctuations.
4. Cleared position: When investors decide to exit the market, they will choose to sell all the virtual currencies in their hands, thereby realizing the complete realization of assets.
5. Heavy position: This refers to investors investing a large amount of money in a specific virtual currency, reflecting their high attention and optimism about the variety.
6. Light position: In contrast, investors invest less money in a specific virtual currency, showing a relatively cautious attitude.
7. Opening a position: This refers to the act of investors buying virtual currency for the first time, marking the formal entry of investors into this field full of opportunities and challenges.
8. Covering a position: When investors believe that a virtual currency has potential and the price is lower than their expectations, they may choose to continue to invest in order to obtain greater returns.
9. Stop profit: When investors obtain a certain amount of income, in order to protect the existing profits, they may choose to sell the virtual currency in their hands to avoid losses caused by market fluctuations.
10. Stop loss: When investors find that they have suffered a large loss, in order to prevent further losses, they may choose to sell the virtual currency in their hands and stop losses in time. $BTC $ETH