First of all, and most importantly, is the trading platform. With a little understanding, you will know that the current platform in the crypto circle is dominant in all aspects. There is nothing to say about this.
The second step is to figure out the general value structure of the crypto circle. This is very simple, you only need to understand the names of the top ten coins by market value, just know that there is such a thing.
In fact, the structure of the crypto circle is very simple, I can explain it in a few words.
The main body of everyone's trading is Bitcoin, the code is btc. The coins in the crypto circle are all coded with such letters.
In addition to BTC, the commonly used coins can be summarized into two types.
The first category is altcoins, which everyone knows. All altcoins are imitating Bitcoin, and doing concept and function processing on the basis of Bitcoin. The most successful altcoin at present is called Ethereum, and the code is eth. (Be sure to remember these codes, because you find products through codes in the trading interface, not Chinese characters.) You can slowly search and read on the Internet to complete the information difference about the details and development history of any coin according to your interests. This takes time, so don't cram it, and you will know more as you play.
The second category is virtual tokens pegged to fiat currencies. (Fiat currencies are traditional currencies issued by countries, such as US dollars and RMB.) It is also a kind of altcoin, but it is a copy of fiat currency. Their value is on par with the pegged fiat currency. Because there is little volatility, they are called stable coins. There are also many such coins. The most representative and successful one that everyone uses is called USDT, which is a coin that is on par with the value of the US dollar, which is what everyone often calls U. Because of policy restrictions, people in the circle use their respective national fiat currencies to exchange for this stable coin, and then purchase Bitcoin or other altcoins.
At this point, you will understand the top three coins by market value in the crypto circle. You can slowly learn about the rest within this framework.
The third step is to choose the trading type, spot or futures.
Simply put, it's whether you choose to speculate in stocks or futures. Speculating in stocks is actually buying shares of a coin and occupying its share. This is what is known as buying spot goods in the circle. It's just that the circle doesn't refer to how many shares are held, but how many coins are bought.
Speculating in futures is like speculating in stock purchase and sale subscription agreements, which is what is known as speculating in contracts in the circle. Of course, there are also options contracts now. Just play according to your abilities and needs.
The fourth step is to choose a participation strategy.
The two most common strategies with high success rates are: fixed investment in spot goods and short-term contract speculation. These two strategies do not involve any technical analysis of the trading market, and can still achieve stable and continuous profitability.
Fixed investment in spot goods is buying the market's long-term volatility. Since the market inevitably has volatility, as long as you continue to stock up every day according to the ratio, so that the profit line is as close as possible to the latest price every day, you will definitely be able to eat the volatility premium cycle. The premise is that you have enough time, patience and money. This strategy of restarting after winning and doubling after losing is essentially a positive conspiracy strategy that can achieve a certain winning result. The disadvantage is that the executor needs to have strong resilience and stress resistance in all aspects.
Short-term contract speculation is buying the market's short-term volatility. Since the market inevitably has short-term volatility, the profit-loss ratio can be used to the advantage of the short-term volatility inertia. When the profit-loss ratio is greater than 3, choosing to participate in the market can obtain a trading environment where the win rate only needs to be 25% to be profitable. Then, trading frequency and position management can be used to limit the daily consumption of time and funds. Finally, profits and investments are isolated through capital management, in order to achieve a long-term operating mechanism, which can result in a trading system where the win rate will remain at 50% as long as a sufficient number of transactions are made. After that, long-term profits can be obtained through the law of large numbers. This kind of game is called ant moving in Macau. However, in reality, most people simply cannot do it. Although this operation does not require long-term holding of transactions, it requires a very good mentality and a demanding self-control that goes against human nature.
The essence of these two strategies is perseverance, one is to persevere in the visible direction of fluctuations, and the other is to persevere in the invisible probability of operation.
The fifth step is to try to understand the operating mechanism of the market itself.
However, this step is actually optional. It's just icing on the cake.
Understanding the market's operating mechanisms can greatly improve the chances of winning, but improving the win rate requires improving your mentality.
As the saying goes, the one who knows how to punch gets beaten to death, and the one who knows how to swim drowns. Precisely because of high skills and boldness, a peaceful mind is even more rare.
Finally, I would like to remind everyone that the platform also provides copy trading. I want to say don't participate. Trading is risky, and investment requires caution. Ultimately, it is a game where you do your own thing and take responsibility for it yourself. Copy trading is not without risk, but it is another very risky game. There is no difference in risk, just a different experience.
I wish everyone will land ashore soon and make a fortune.
