Today, I have compiled introductions to building positions, going all-in, and locking positions in the crypto world. For those who are not familiar with crypto 'lingo', hurry up and learn!
1. What is fiat currency?
Fiat currency is legal tender issued by a country and government, guaranteed only by government credit, such as the Renminbi and US Dollar.
2. What is building a position?
Building a position in the crypto world, also known as opening a position, refers to traders buying or selling a certain amount of cryptocurrency for the first time.
3. What is all-in?
Going all-in in the crypto world refers to investing all principal.
4. What is locking a position?
Locking positions generally refers to investors opening new positions that are opposite to their original holdings when the market trends contrary to their operations, also known as hedging or locking orders, sometimes euphemistically referred to as butterfly double flying.
5. What is breaking the issue price?
Breaking refers to falling below, and issuing refers to the issuance price of a cryptocurrency. Breaking in the crypto world refers to a certain cryptocurrency falling below its issuance price.
6. How to read a candlestick chart?
A candlestick chart, also known as a Japanese candlestick, Yin-Yang line, bar line, or red-black line, is commonly referred to as a 'candlestick'. It is created using the opening price, highest price, lowest price, and closing price for each analysis period.
7. What is arbitrage?
Deposit cash into a lower-priced platform A, then buy Bitcoin; withdraw Bitcoin from platform A, and immediately deposit it into a higher-priced platform B; once the Bitcoin arrives at platform B, sell it immediately, withdraw the cash, and repeat the steps.
8. What is hedging?
Generally, hedging involves simultaneously conducting two trades that are related, opposite in direction, equivalent in quantity, and offsetting in profit and loss. In the futures market, buying the same quantity in opposite directions, and once the direction is determined, closing out the opposite position while retaining the positive direction for profit.
9. What is good news?
Good news: Refers to news that attracts mainstream media attention to a cryptocurrency or breakthrough technological applications that are beneficial for stimulating price increases.
10. What is bad news?
Bad news: News that leads to a decrease in cryptocurrency prices, such as Bitcoin technical issues or central bank suppression.
11. What is trading volume?
Reflects the quantity of transactions and the number of buyers and sellers. Generally measured by the number of traded coins and transaction amounts.
12. What is a rebound?
A price adjustment phenomenon where the price rebounds due to a rapid decline in a downward trend. The rebound is smaller than the drop.
13. What is consolidation?
Usually refers to a market situation where the price fluctuation is small and relatively stable, with little difference between the highest and lowest prices.
14. What is a pullback?
In a bullish market, the price of cryptocurrency rises strongly, but temporarily declines due to rapid price increases, known as a pullback. The decline is smaller than the increase.
15. What is leverage?
Leverage trading, as the name suggests, involves using a small amount of capital to invest multiples of the original amount, hoping to achieve returns or losses that are multiples of the fluctuations of the investment target.
