Today, based on a real case of a friend of his, Haonan will tell you how a friend of mine made 23 million US dollars in the cryptocurrency circle in two years. My friend is not a financial major, and he doesn't know how to analyze the market. He is just an IT technician abroad, but he wrote a few strings of code, which made him earn more than 23 million US dollars in two years.
I am not writing this article to show off or to encourage everyone to do so. The purpose of this article is to help everyone understand how the dealer operates and how we are being ripped off. This process is legal and does not violate moral ethics, but it is a little against my conscience.
In fact, the method is very simple, which is to issue virtual cryptocurrency by yourself. It is not spot, not contract, nor a copycat coin with a hundred times potential. You are the issuer yourself, issuing your own coins, and the ones who make money are those who speculate in coins. So I hope everyone will read this article by themselves, forward this article to those around you who are speculating in coins, and dream less and learn more.
How to issue currency
Next, I will lead you to understand it in several steps. If you want to issue coins in China, you need to apply for issuance on certain platforms and pay 80 million RMB as a deposit. Of course, the threshold is very low abroad, and my friend does not have 80 million to issue currency.
For example, Dogecoin was created to mock Bitcoin. It has independent spot and futures exchanges, and these exchanges are only online, not offline, and the cost is very low.
The first step is called ICO, which is to issue your own cryptocurrency
This method is very simple. Find the official website of Ethereum, download a wallet from the official website, and then create your own cryptocurrency (there are many tutorials on the Internet). Because blockchain technology can ensure that the issued coins are limited and cannot be copied, you are the only manipulator, and you are the only one who has the sickle for harvesting. Then give the issued cryptocurrency a name. The name is arbitrary. If it already exists, it cannot be used. After giving a name, set the number of issues, such as 10,000 or 20,000. This is the first step. The next step is to sell the issued coins.
Step 2: Prepare for selling
If you want to make 100 million by issuing currency, then you have to find a way to sell it at a certain price. At this time, you need to establish a secondary market where everyone can enter as a buyer, and people who hold this currency can also be sellers. Only buying and selling can generate profits (that is, having your own trading platform and a server). When these are ready, the next step is to rush.
Lock in profits using market control
Now that you have a secondary market and you hold all the coins to be issued, you can set the price at will. For example, you set the first-hand transaction price at RMB 10,000 per coin, or even higher. Then how do you sell it? After all, you are the only one who knows about this coin and there is no market. The next step is to create momentum. You must have seen that “such and such coin is the future and its price will rise to such and such a level in the future”.
Then we can start selling at 30,000 or 50,000 each, and the price of the coin will fall madly. Because our cost is 0, we don’t have to worry about losing money. Then we continue to build momentum and say, "Hurry up and buy the dip." Some people will also make up some stories to attract attention. Although this method is a bit low, don’t underestimate the courage of those who want to make money.
Another way is to establish a futures market on this basis. The futures market was initially used to avoid risks. It is a forward trading contract used to preserve value. The price at the time when the buyer and seller signed the contract is the standard. No matter how the price fluctuates in the trading market later, it must follow the original price. The difference between the futures market and the spot market is that the spot market has a limited quantity, but the futures market does not.
But why have futures become one of the riskiest markets? The intraday trends we see on the futures software are actually the prices of the most recent contracts signed by both parties to the long and short positions. For example, the latest price of the Bitcoin May delivery contract is the latest transaction price signed by both parties for delivery in May. This is the latest transaction price at every minute, which is connected into a line to form the trend chart we see.
The principle of price fluctuation is the same as that of price fluctuation in the capital market. Whether a contract is traded depends on whether the long and short parties agree to settle at the specified time according to the price. Therefore, a contract must have long and short orders, also known as counterparty orders. If the number of people or funds who want to buy at this price is greater than the number of sellers according to the latest delivery contract price, the price will rise, and vice versa. This process of fluctuation has nothing to do with the spot price. No matter how the spot price changes, the people or funds involved in the futures market ultimately determine the price of the futures contract (I won’t talk about more knowledge about futures, most people understand it. If you don’t understand it, you can search it online)
Back to the main text, when there is a futures market, anyone who enters the futures market is creating value for us. First of all, most people dare not go short because they don't have the currency. The currency is in our hands, so it's okay to go short. They must close their positions before delivery, and closing a short position is going long, which will naturally drive the market up. However, whether the position can be closed successfully depends on whether the counterparty is willing to sign an order with him. Who should we go to if we want to sign an order? That is the issuer. Isn't it the issuer who has the final say on the price of the transaction? Because there is no other selling order, the price channels of futures are completely determined by the issuer.
If the person coming in is long, that's great. What the issuer wants is to sell the coins. You give him the coins and he gives you money.
So why are we being ripped off? This is because we are competing with our opponents. Knowing ourselves and our opponents will help us win every battle. This is how my friend turned over and became a landlord. Economic and financial knowledge is the most important thing for us ordinary people. Knowledge = money bag. Don’t even use conscience to measure the other party, because the other party’s conscience has long been eaten by dogs. They only have money in their eyes. Haonan will work harder in the future and write more articles about currency circle knowledge. I hope all currency friends can get what they want! !
