I have summarized some experiences myself.
1. Most cases of entering the cryptocurrency circle
The first way is to start to get in touch with it through information posted by friends around you or by accidentally seeing push notifications about the cryptocurrency world.
The second type is the type that thinks of many directions, and then actively looks for any investable "things" to pursue profit, and enters the cryptocurrency circle by chance.
The third way is the most common and most common way to enter the cryptocurrency circle. The zero-cost projects that have emerged in recent years show that users can earn profits by simply and quickly clicking on them at zero cost, so this way of communication is the fastest. (Off topic) In the zero-cost world, an influential "boss" is very terrifying.
2. Mainstream and altcoins
Mainstream Currency
In my opinion, there is only one mainstream currency in the cryptocurrency world, BTC—a well-known name, even people who don’t know much about the cryptocurrency world can say Bitcoin.
Everyone was surprised that a virtual currency could be worth so much.
But they probably don’t know that BTC was mined for free through computers in the early days (you only need to pay your micro-electricity).
Bitcoin Pizza Day originated on May 22, 2010. A programmer, Laszlo Hanyecz, bought two pizzas with 10,000 Bitcoins.
How could the programmer have imagined at that time that he had missed out on a huge fortune, but at that time he was already very satisfied to be able to exchange it for two pizzas.
This event not only demonstrated the first physical transaction of Bitcoin in real life, but also made more people pay attention to this emerging digital currency.
Since then, May 22nd of each year has been designated as "Bitcoin Pizza Day" by Bitcoin enthusiasts to commemorate this special event, which also witnessed the development of Bitcoin from obscurity to gradually becoming known to the public.
Altcoins
After the value of BTC was realized, various imitation virtual currencies emerged.
Yes, that's right. Various tokens such as $ETH , $SOL , $BNB , etc. are all innovations and expansions based on the original technology of Bitcoin.
As the saying goes, without the big light, there would be no small light. Bitcoin can be regarded as their "father", "pioneer" and "creator".
That’s why the price of Bitcoin is so high that even its price changes can drive other currencies to change as well.
Nowadays, various altcoins are doing very well, which makes the cryptocurrency circle full of vitality and more lively.
3. Pitfalls of the Cryptocurrency Circle
When it comes to the pitfalls in the cryptocurrency world, we always catch you off guard. Let’s see if you have experienced these.
They send messages in various groups or channels to trick newbies into buying some Pixiu coins, which are virtual coins that can only be bought but not sold, and the transaction can be stopped. In the end, the people who set up the platform make a fortune.
Imitating official links means building some fake websites to make you think they are official, and then buy pre-sale tokens and so on.
If you join some groups, you will find that a group of people in the group keep shouting "rush forward!", and these are all agents.
Ponzi schemes, also known as investing in computing power to get tokens, have seen many patterns. At the beginning, the tokens were normal, and the project party shouted: "Brothers, our era has come!" It seemed that everything was going in a good direction, but one day you woke up and found that the coin had returned to zero.
Fake platforms ask you to go to some exchanges that you have never heard of, cannot be found in stores, and have never heard of on the Internet, and then say that there are good benefits and rebates, etc., and ask you to trade there. However, after you have recharged your u, you cannot withdraw the cash when you want to.
Unknown dapp link. Someone on the Internet sent you a dapp URL, saying that you can get some tokens airdropped for free. Then after you authorized the wallet, you found that the tokens in your wallet disappeared after a while. Isn’t it scary?
The most important thing is "black money". If you send and receive money privately, I advise you to be careful. You may be involved in the process of laundering money and enter the small black room at any time. The greatest safety is to use the official platform. No matter what, you have to believe in the official's technical level.
(If you have any other pitfalls, you can also leave a comment so that I can see them 👀)
4. Mainstream trading modules in the cryptocurrency world (spot and contract)
Spot goods
Spot trading is when buyers and sellers directly trade cryptocurrencies at the current market price.
1. Features:
● Trading is relatively simple and intuitive, similar to spot stock trading in traditional financial markets.
● You own actual cryptocurrency assets and can hold them for a long time and wait for the price to rise, or you can sell them at any time.
● Price fluctuation risk mainly comes from market supply and demand and overall market changes.
2. Risks:
● Risk of falling prices: If the market conditions are bad and the price of cryptocurrencies falls, the value of your assets will decrease accordingly.
● Liquidity risk: In some cases, there may be inactive trading and insufficient liquidity, making it difficult to sell cryptocurrencies at the ideal price.
3. Summary:
Spot trading has lower risks than futures trading, but the profits are often lower. However, when the market is not good, you can hold it for a long time until the next good market.
contract
Contract trading is a derivative trading method. Investors predict the rise and fall of cryptocurrency prices and sign a contract with the trading platform to buy or sell a certain amount of cryptocurrency at a specific price at a certain time in the future. Contract trading mainly includes futures contracts and perpetual contracts.
1. Features:
● Leveraged trading: Contract trading usually allows investors to use leverage, that is, to control contracts of greater value with less capital. This can amplify returns, but it can also amplify risks.
● Long-short two-way trading: Investors can choose to go long (expect price to rise) or short (expect price to fall), increasing the diversity of trading strategies.
● Flexible trading: The time period for contract trading can be shorter, and investors can quickly adjust their positions according to market changes.
2. Risks:
● Risk of liquidation: Due to the existence of leverage, if the market trend is contrary to investors' expectations and the losses reach a certain level, it may trigger a liquidation, resulting in the loss of all investors' margin.
● Market manipulation risk: The cryptocurrency market is relatively immature and there may be market manipulation that affects contract prices and causes losses to investors.
● Technical risks: Technical problems on the contract trading platform may lead to transaction delays, system failures, etc., affecting investors’ trading decisions and executions.
3. Summary:
The risk of contracts is too great, and there are too many people who like to gamble. It is recommended not to choose tokens blindly, but to be optimistic about the market and data before trading.
Don’t just choose one token as your entire holding and put all your funds on one token. That will only lead to your death faster. No one can win every battle.
Don't be too greedy, set a good profit target, and stop when you see good results. The consequence of not closing the position with floating profits is floating losses.
Don't trade too frequently, as that will put you in a tense state and that's when you're most likely to make mistakes.
Learn to cut losses decisively. You always think that the market can reverse, but the contract explodes because of this mentality of yours. If you are not decisive, your position will end up like this 💥.
5. Blessings
Finally, I wish everyone in the cryptocurrency circle to achieve success as soon as possible🎉
