There are many newbies in the industry recently, so Zhong Liangge specially wrote an article about some knowledge that newbies in the cryptocurrency circle must know, just for learning
What does the currency circle mean?
The so-called currency circle is a circle formed naturally by 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 after all. There are not many people making money, and various ways of making money are quickly copied, such as ICO, currency speculation, mining, etc.
How to make money in the cryptocurrency world?
There are many ways to make money in the cryptocurrency circle, the most important ones are cryptocurrency speculation, ICO crowdfunding, and arbitrage.
Where can I usually find news about the cryptocurrency world?
Market website: Feixiaohao, mytoken
News websites: Golden Finance, Babbitt Community, CoinWorld News
What does legal currency mean in the cryptocurrency world?
Fiat currency is legal tender, issued by the state and the government, and guaranteed only by government credit, such as the RMB, US dollar, etc.
What does token mean in the cryptocurrency world?
Token is usually translated as "token". Token is one of the important concepts in blockchain. It is more widely known as "coin", but in the eyes of professional "blockchain" people, it is more accurately translated as "token", which represents a kind of equity proof on the blockchain, rather than currency.
Three Elements of Token
First, it is a digital proof of rights and interests. The token must be a proof of rights and interests in digital form, representing a right, an inherent and intrinsic value.
The second is encryption. The authenticity, tamper-proofness, and privacy protection of the token are guaranteed by cryptography.
Third, it can flow in a network and can be verified anytime and anywhere.
What does it mean to build a position in the cryptocurrency circle?
Building a position in the cryptocurrency circle is also called opening a position, which refers to a trader buying or selling a certain amount of digital currency.
What does All-in in the cryptocurrency world mean?
All-in in the cryptocurrency world means investing all of your capital.
What does airdrop mean in the cryptocurrency world?
Airdrops are a very popular way of marketing cryptocurrencies. In order to allow potential investors and crypto enthusiasts to obtain information about tokens, token teams often conduct airdrops.
What does cryptocurrency lock-up mean?
Locking a position generally refers to investors opening a new position opposite to the original position after buying and selling a contract when the market shows a trend opposite to their own operations. It is also called locking, locking orders, or even euphemistically called double butterfly flying.
What does Coin Candy mean?
Coin candy refers to the digital currency distributed to users for free during the ICO when various digital currencies are first issued. It is a kind of hype and publicity for the project itself by the issuer of the virtual currency project.
What does it mean when a cryptocurrency price drops below its issue price?
"Break" means falling below, and "issue" refers to the issuance price of digital currency. "Break" in the currency circle means that a certain digital currency has fallen below the issuance price.
What does private placement in the cryptocurrency world mean?
Private placement in the cryptocurrency 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 K-line in the cryptocurrency circle?
Candlestick Charts are also called candlestick charts, Japanese lines, yin-yang lines, bar lines, red and black lines, etc. They are often referred to as "K-lines". They are drawn based on the opening price, highest price, lowest price and closing price of each analysis period.
What does arbitrage in the cryptocurrency world mean?
Arbitrage means buying digital currencies from exchanges with low prices, and then selling them on exchanges with high prices.
What does ICO mean?
Initial Coin Offering, which originates from the concept of initial public offering (IPO) in the stock market, is a financing behavior in which a blockchain project exchanges its own issued virtual currency for the commonly used virtual currency in the market.
Synonyms for currency circle
Position: refers to the ratio of an investor's actual investment to actual investment funds.
Full position: Use all funds to buy virtual currency.
Reduce positions: sell some virtual currencies, but not all.
Heavy holdings: Compared with funds and virtual currencies, virtual currencies account for the larger share.
Light position: Compared with funds and virtual currencies, the share of funds is larger.
Short position: Sell all the virtual currencies in your hand 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: When the loss reaches a certain level, sell the virtual currency held to prevent further losses.
Bull Market: Prices continue to rise and the outlook is optimistic.
Bear market: Prices continue to fall and the outlook is bleak.
Long position (going long): The buyer believes that the price of the currency will rise in the future, buys the currency, and then sells it at a high price to realize profit after the price rises.
Short position (short selling): The seller believes that the price of the currency will fall in the future, so he sells part of the currency he holds (or borrows the currency from the trading platform), locks the position and waits for the price to fall to a certain level before taking profit, which can also avoid risks.
Open a position: buy virtual currency.
Covering a position: Buy virtual currency in batches, such as buying 1 BTC first, and then buying another 1 BTC.
Full position: Use all funds to buy virtual currency at one time.
Rebound: When the price of a currency falls, the price rebounds due to the rapid decline.
Consolidation (sideways): The price fluctuation is small and the currency price is stable.
Negative decline: The price of the currency declines slowly.
Diving (waterfall): The price of the currency drops rapidly and the amplitude is large.
Selling at a loss: After buying virtual currency, the price of the currency falls, and the virtual currency is sold at a loss to avoid further losses. Or after borrowing currency to short, the price of the currency rises, and the virtual currency is bought at a loss.
Being trapped: You expect the price of a currency to rise, but it unexpectedly falls after you buy it; or you expect the price of a currency to fall, but it unexpectedly rises after you sell it.
Unwinding: After buying virtual currency, the price of the currency drops, resulting in a temporary book loss, but then the price of the currency rebounds and the loss turns into profit.
Missing out on opportunities: After selling virtual currency due to pessimistic outlook on the market, the price of the currency continued to rise, and you failed to buy it in time, thus failing to make a profit.
Overbought: The coin price continues to rise to a certain height, the buyer's power is basically exhausted, and the coin price is about to fall.
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.
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.
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 currencies, thus falling into the trap of long sellers.
Five investment rules
1. Consider and observe the project from multiple aspects, and don’t just follow the crowd. There have been many copycat money-making projects in the cryptocurrency 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 know the industry pain points that blockchain can solve before entering the cryptocurrency circle.
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3. For the projects 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 background, whether the business logic of the project is closely related to the token, whether there are similar projects in the same industry that are solving industry pain points, and if the project is successfully implemented, whether it has the ability to make profits 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 your assets when participating in blockchain investment, and do not put all your eggs in one basket.
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5. High-quality projects will also have ups and downs. Treat them with a normal mind. For investment projects that you are optimistic about, you don’t need to worry 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 for a long time will you ultimately make more profits.
Ten trading rules
First,
Don’t be easily cheated out of low-priced chips, be firm in your beliefs and prevent the banker from knocking you across the board and smashing the market.
second,
Buying highs and selling lows, and entering and exiting the market with full positions are always taboos. The general trend is favorable, and building positions in batches when the market falls has lower risks, lower costs, and greater profits than buying highs.
third,
Reasonably allocate profits and maximize the release of funds instead of constantly adding positions and deposits.
fourth,
When the price rises sharply, sell the money; when the price falls sharply, keep the money. At all times, you must have a positive attitude, do not speculate, do not be impetuous, do not be greedy, do not be afraid, and do not fight an unprepared battle.
fifth,
The ambush or private placement of low-priced coins in the front is to rely on experience and bet with the dealer on the future of the coin. The secondary market game in the back is a process of relying on technology and information to follow the dealer. Don't put the cart before the horse, which will end up in a mess.
sixth,
When building a position or shipping a product, you must do it in layers and segments, gradually increase the price gap, and effectively control the ratio of risk and profit.
seventh,
You need to be familiar with the linkage effect, and watch the market when trading coins. At the same time, you need to pay attention to the trends of other coins. Each coin is not isolated in the market. They seem to have no connection, but they are actually intricately connected. To understand the linkage effect, you need to understand the coins. There are many tools available now to view coin information and consultation.
eighth,
The allocation of positions should be reasonable. The allocation of hot coins and value coins should be reasonable. Pay attention to the ratio of stress resistance and profit intake. Being too conservative will miss opportunities, and being too aggressive may face high risks! The biggest feature of value coins is stability. The biggest feature of hot coins is extreme volatility. 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. You cannot go all in, or you will die. The grasp of risk control and the reasonable allocation of funds are the key to your mentality and success or failure. Investing with spare money is the foundation.
tenth,
Master the basic operations, learn to draw inferences from one example, master the basic ideas of trading, observation is the prerequisite, remember each high and low point as reference data, learn to record, learn to summarize materials by yourself, develop a reading habit, and cultivate the ability to screen and filter information.
Robust investment plan
Position control, never fill up your position easily. Why not fill up your position easily?
The first point is risk control. You cannot guarantee that the price will go up immediately after you buy it. If you encounter a waterfall, your assets will be greatly discounted, and you will not be able to add to your position to lower the average price.
The second point is mental control. I have had this experience myself. After I went all-in, I would keep watching the market, which seriously affected my mentality. I couldn't sleep well.
The third point is that they are easily taken advantage of. They have a gambling mentality and want to see changes in their income every moment. After fully invested, they see that the price of their own coins has not risen in a short period of time. If other coins rise or there are other coins they want to buy, they will sell at a loss and buy them. Repeated operations will result in less and less money.
Short-term 30-40% Why is there short-term trading? Many people say that short-term trading will definitely lose money. However, when we have made long-term fund allocation, trading in cryptocurrencies is a very interesting thing. I believe that most people cannot control their hands. As long as you do a good job of position control and do not cut losses frequently, short-term trading must generally make a profit before exiting (special cases are when there are problems with the project or the market). Then refer to the position control I mentioned above, and not all cryptocurrencies have higher long-term returns than short-term ones.
30-40% of the primary market. For the time being, you can treat this amount of funds as short-term reserve funds and do not use them at will.
The above statement takes into account other aspects such as human nature. #币安合约锦标赛
