Today, Xiao Xun brings you 100 specialized terms that every beginner entering the crypto world must know, so that whether reading web pages in daily life or consulting other crypto experts, you can save costs and improve efficiency. To facilitate learning for new beginners, Xiao Xun has organized the terms into four modules, providing popular science from four perspectives: airdrop projects, contract trading, public chain knowledge reserve, and crypto slang. Whether you are a newbie or an old hand, you can study them well to avoid information gaps during execution.
First, let's talk about two general concepts: What is fiat currency?
Fiat currency is legal tender issued by a country or government, such as yen, US dollars, etc.
What does Token mean?
Token is usually translated as a certificate. Token is one of the important concepts in blockchain, its more widely known name is 'cryptocurrency', but in the eyes of professionals in the 'chain circle', its more accurate translation is 'certificate', representing a kind of proof of rights on the blockchain, rather than currency. In the traditional value system, only things that can be recorded in the ledger can be exchanged for value and circulated. Thus, bookkeeping is the foundation for generating wealth. However, in the real world, the vast majority of things cannot be quantified; the things that can be recorded are extremely limited. But 'Token' can. The magic of this is that Token can record physical assets and virtual digital assets in a digital way.
1. A guide to surviving airdrops (25 units)
Airdrop
Receive project tokens for free, commonly seen in new public chain/DeFi project promotions, requiring specific interactions to complete.Similar to merchants issuing coupons. For example, after completing on-chain interactions (transfers, transactions), the project sends tokens to your wallet.Snapshot
Record the wallet addresses at a certain block height to determine eligibility for airdrops.Whitelist
Pre-register wallet addresses to gain priority participation (such as IDO/pre-sale).Gas Fee
On-chain transaction fees, which can reach hundreds of U during peak periods on the ETH network; chains like Polygon/BSC are cheaper.The 'transaction fee' of the blockchain, like tolls on a highway.Wallet Address
Similar to a bank account number, generated by a public key, a 42-character string starting with 0x.Be sure to keep the private key safe.Cross-chain Bridge
Transfer assets to other public chains, such as from ETH to Solana, with a bridging fee.Testnet
A simulated network used by the project for stress testing, where faucets can distribute test tokens.Staking
Lock tokens to earn rewards, commonly seen in PoS public chains (such as the Cosmos ecosystem).An upgraded version of saving money to earn interest, locking tokens to public chains or DeFi protocols to earn rewards proportionally (like earning 5% annualized on stored ETH).Yield Farming
Providing liquidity to DEX (like Uniswap) to earn trading fees + project token rewards.IDO (Initial Dex Offering)
Tokens first issued on DEX platforms, usually online earlier than CEX.IFO (Initial Farm Offering)
Unlocking tokens through yield farming, commonly seen in new DeFi projects.LP Token
Certificate for liquidity providers, redeemable for principal + rewards.Deposit certificate for funds stored at exchanges. For example, storing ETH and USDT on Uniswap and receiving LP tokens, which can be redeemed for principal + share of transaction fees.Slippage
The difference in actual transaction price caused by price fluctuations during trading.Swap
Directly exchange tokens without needing to place an order; instant transaction.Governance Token
Holding can vote to decide the project's development direction (such as UNI, CRV).On-chain Interaction
Interacting with smart contracts through wallets, such as transfers and participating in DApps.Bot Interaction
Using scripts to automate repetitive operations (like grabbing interactions, claiming airdrops).Anti-pull
Loss caused by operational errors, such as mistakenly transferring tokens to contract addresses.Rug Pull
Project parties absconding with funds, common in unaudited shitcoin projects.Coin prices instantly drop to zero, leaving investors with nothing.Fair Launch
No pre-sale/private placement; tokens are fully distributed through community mining.Cross-chain Interaction
Transferring assets or calling services between different public chains.NFT Airdrop
Receive digital collectibles that may have subsequent empowerment (like community rights for avatar NFTs).Ecosystem Fund
A fund pool used by the project to support developers; applications can receive token grants.Oracle
Provides external data for smart contracts, such as Chainlink.KYC Certification
Real-name authentication; some platforms require submitting identity information to participate in activities.
2. Contract trading (30 units)
Open Position
Establish long/short contract positions, choose leverage multiples.Close Position
Liquidate positions to realize profits or stop losses.Margin
Collateral assets required to maintain the contract, divided into initial margin and maintenance margin.Leverage
Amplifies returns/risk, commonly 10-100 times.Liquidation
Insufficient margin to maintain the position, leading to forced liquidation.Borrowing money to trade coins and losing the principal. For example, opening a long position with 10x leverage, if the coin price falls by 10%, the margin goes to zero, and the position is forcefully liquidated.TP/SL (Take Profit/Stop Loss)
Preset automatic closing points to control risks.Futures Contract
Contracts with a fixed delivery time that need to be settled upon expiration.Perpetual Contract
No fixed duration, positions can be held indefinitely. Uses 'funding rates' to balance long and short positions, preventing significant price deviations from the spot market.A contract with no expiration date that can be held indefinitely. It uses 'funding rates' to have both long and short parties pay interest to each other, preventing price deviations from the spot market.Funding Rate
Interest paid between long and short holders, when negative, the long side subsidizes the short side.When the rate is positive, the long side pays the short side; when negative, the short side subsidizes the long side.Wick
K-line shadow formed by short-term sharp fluctuations, often used to sweep stop losses.A sudden spike on the K-line chart.Liquidation Sweep
Massive liquidations trigger a chain reaction, causing prices to plummet.Scalp
Frequent trading to profit from small fluctuations.Bottom Fishing
Buy at low prices, hoping for a rebound.Top Escape
Sell at high prices to avoid losses from corrections.Hedge
Use contracts to hedge against spot risks and lock in profits.For example, holding BTC in spot while opening a short contract; if the coin price drops, the short contract profits offset the losses.Long/Short Ratio
Reflects market sentiment; extreme values may indicate a reversal.Open Interest
Total amount of open contracts; an increase indicates rising market heat.Volume
Total trading volume within a time unit; analyze trends based on volume and price coordination.Candlestick
A bar chart that records open/close/high/low prices.MACD
Trend indicator.When the white line (fast line) crosses above the yellow line (slow line), it is called a 'golden cross', indicating bullish; when crossing below, it is called a 'death cross', indicating bearish.RSI
Overbought and oversold indicator; above 70 indicates overbought, below 30 indicates oversold.Bollinger Bands
Reflects the price volatility range; breaking above the upper band may result in a correction.Support
A dense trading zone when the price drops, with strong buying pressure.Resistance
A dense trading zone when the price rises, with strong selling pressure.Trendline
A slanting line connecting highs or lows, used to determine trend direction.Double Top
Reversal pattern, two attempts to hit the same high fail, indicating a potential drop.Head and Shoulders
Reversal pattern; after three bottoms, it rises.Triangle
Consolidation pattern; continuation of the original trend after a breakout.Whale
Large holders of tokens who may manipulate the market.Wash Trading
Creating false trading data to cleanse retail investors' chips.
3. Public Chain Knowledge Reserve
Ethereum
The largest smart contract platform supports DeFi/NFT/DAO, adopting PoW to PoS consensus.BNB Chain (Binance Smart Chain)
The public chain supported by Binance, with high TPS and low gas fees, with a thriving ecosystem.Solana
High-performance public chain with TPS over 50,000, suitable for high-frequency trading applications.Polygon (MATIC)
Ethereum Layer 2 scaling solution that reduces gas fees through side chains.Avalanche (AVAX)
A highly scalable public chain compatible with EVM, supporting customized subnets.Cosmos
Cross-chain ecosystem connecting multiple independent chains through the IBC protocol.Cardano (ADA)
An academic-oriented public chain adopting the Ouroboros PoS mechanism, focusing on security.Polkadot (DOT)
Heterogeneous multi-chain architecture, allowing interoperability between parallel chains.Layer 1
Base public chains, such as ETH, Solana.Layer 2
Scaling solutions based on Layer 1, such as Arbitrum, Optimism.An 'extension' of Ethereum, improving transaction speed and lowering costs. For example, Arbitrum, Optimism, processes transactions and then packages them back to the main chain.PoW (Proof of Work)
Validating transactions through computational power competition, adopted by Bitcoin.PoS (Proof of Stake)
Obtaining bookkeeping rights through staking tokens, adopted by ETH2.0.DPoS (Delegated Proof of Stake)
Nodes vote to elect representatives to validate transactions, adopted by EOS.Smart Contract
Automatically executed code deployed on the blockchain.DApp (Decentralized Application)
Applications running on the blockchain, such as Uniswap, Axie Infinity.ERC-20
Ethereum token standard defining transfer, authorization, and other functions.ERC-721
NFT standard, where each token is unique and indivisible.ERC-1155
Multi-asset standard supporting both fungible and non-fungible tokens.Block Confirmation
The number of times a transaction is packed into a block and validated by subsequent blocks.Gas Limit
The maximum amount of gas allowed for a transaction; setting it too low will result in failure.Sharding
Dividing the blockchain into multiple shards for parallel processing, improving performance.Solving congestion issues (like ETH2.0 upgrade).Oracle
Connecting external data to smart contracts, such as Chainlink.The 'information intermediary' of blockchain. It feeds real-world data (like BTC price) to smart contracts; DeFi lending and liquidation depend on it.DAO (Decentralized Autonomous Organization)
A community managed through smart contracts, where token holders vote on decisions.Holders of governance tokens make joint decisions, such as how to spend treasury funds.Cross-chain Interoperability
Free movement of assets/data between different public chains.A 'transit station' for different blockchains. For example, transferring ETH from Ethereum to BSC, converting it into BEP-20 format ETH.Node
Computers participating in maintaining the blockchain network, divided into full nodes and light nodes.
4. Industry slang must-read (20 units)
Rush
Quickly buying a certain token, usually accompanied by FOMO sentiment.All-in
Betting all funds, high risk, high return.High risk, high return; once failed, you may 'go to the rooftop' (lose to the point of wanting to jump off).Zero
When the token price plummets to almost zero, common in junk projects.Shitcoin
Air coins with no actual value, often manipulated by market makers.Market makers pump the price to attract retail investors before running away; 99% of projects do not survive for a month.Ambush
Pre-position tokens expected to have favorable trends, waiting for a pump.Dive
Long-term holding of potential coins, waiting for value discovery.Hold the Bag
Buying at high prices and then seeing the price drop, becoming the last one to take over.Trapped
After buying, the price continues to drop, unable to stop loss and exit.Cut Loss
Sell loss-making assets at a low price to avoid further losses.Pump
Promoting a certain coin through social media to attract retail investors.Bear
Bearish market, the party selling tokens.Bull
Bullish market, the party buying tokens.Whale
Market manipulators who often create false breakouts to deceive retail investors.Deceiving retail investors with fake news and fake K-lines, then crashing the price to harvest.Pump
Market makers quickly raise prices to attract follow-up investors.Dump
Massive selling by market makers leads to a price crash.Wick
K-line shadow formed by short-term sharp fluctuations, often used to sweep stop losses.Liquidation Sweep
Massive liquidations trigger a chain reaction, causing prices to plummet.Rooftop
Mocking investors who suffer losses due to liquidation.Start
Market makers or group leaders call for buying a certain coin, usually accompanied by a pump.Exit
Sell in time to secure profits and avoid losses from corrections.
Basically, common terms can be found above, especially those highlighted in color; everyone should pay special attention.
If you plan to invest in the coin circle, please take a few minutes to read my answer carefully, as it may save your life and your family.
Thousands of originally happy families end up broken due to the pursuit of the unattainable dream of making a fortune in the coin circle.
I believe the reason I can continue on the trading path is that I have been diligently learning, not only understanding basic knowledge but also analyzing news and studying technical indicators, along with forming a stable profitable trading system!
The method I've tested: my coin trading method is very simple and practical, having traded to 8 figures in just one year. I only focus on one pattern, entering when the opportunity is right, and never trading without a pattern, maintaining a win rate above 90% for over five years!
How newbies and veterans trade coins.
1: Newbie Trading Coins
Always remember this phrase: in trading coins, mindset is more important than technique; make money in bull markets, earn coins in bear markets, don’t cut losses in bull markets, and hoard coins in bear markets!
1: Coin Hoarding Method
Suitable for both bull and bear markets. The hoarding method is the simplest yet most difficult play. It is simple because it involves buying a certain coin or a few coins and holding them for more than half a year or a year without operating. Generally, the minimum return is tenfold. However, beginners easily see high returns or encounter a price crash, planning to switch coins or exit. Many find it hard to hold for a month, let alone a year, so this is actually the most challenging.
2: Bull Market Buying the Dip
Only suitable for bull markets. Use a portion of spare money, preferably not exceeding one-fifth of your funds. This play is suitable for coins with market caps between 20-100, because at least you won't be stuck for too long. For example, if you bought the first altcoin and it rises by 50% or more, you can then switch to the next plummeting coin, and so on. If your first altcoin is stuck, just keep waiting; in a bull market, you'll definitely be able to recover. The premise is that the coin can't be too much of a scam; this play is also difficult to control, so newcomers need to be cautious.
3: Hourglass Switching Method
Suitable for bull markets. In a bull market, basically any coin you buy will rise; funds are a giant hourglass slowly seeping into every coin, starting with the large coins. There is a clear rule for price increases: leading coins rise first, such as BTC, ETH, DASH, ETC, etc., then mainstream coins start to rise, such as LTC, XMR, EOS, NEO, QTUM, etc. After that, all the coins that haven’t risen will rise together, such as RDN, XRP, ZEC, etc. Then various small coins will rise in turn. But if Bitcoin rises, you should choose the next tier of coins that haven’t risen and start building positions.
4: Pyramid Bottom-fishing Method
Suitable for predicting large declines. Bottom-fishing method: Place orders to buy 10% of the position at 80% of the coin price, buy 20% of the position at 70% of the coin price, buy 30% of the position at 60% of the coin price, and buy 40% of the position at 50% of the coin price.
5: Moving Average Method
You need to understand the basics of K-lines. Set the indicator parameters to MA5, MA10, MA20, MA30, MA60, and choose a daily line. If the current price is above MA5 and MA10, hold firmly. If MA5 drops below MA10, sell the coin; if MA5 rises above MA10, buy to build positions.
6: Violent Coin Hoarding Method
Trade coins you are familiar with; this is only suitable for long-term quality coins. If you have a portion of liquid funds, and a certain coin is priced at $8, set a buy order at $7. When the order is successfully executed, set a sell order at $8.8. Use the profit to hoard coins. Take out the liquid funds and continue waiting for the next opportunity. Adjust dynamically based on the current price. If there are three such opportunities in a month, you can hoard quite a few coins. The formula is: buying price equals current price multiplied by 90%, selling price equals current price multiplied by 110%!
7: Aisou Violent Compound Interest Method
Continuously participate in ICOs, take back the principal after the new coin appreciates by 3-5 times, then invest in the next ICO, keep the profits, and continue to cycle.
8: Cyclical Wave Method
Find coins similar to ETC, add positions when the price keeps falling; add more when it drops further, then when profitable, continue to sell, and keep cycling.
9: Small Coin Violent Play
If you have 10,000 RMB, divide it into ten parts, buy ten different types of small coins, preferably under 3 RMB each, after buying, don’t worry. Don’t sell until it rises 3-5 times; if stuck, hold it long-term. If a certain coin triples, take back 1,000 RMB as the principal and invest in the next small coin. Then the compound interest returns will be huge!
The methods above are suitable for beginners; I suggest researching slowly! Choose the method that suits you. Once you build your position, continue to hold steadily. Don’t sell if you’re not making money; if stuck, you need to hold steadily and not cut losses.
Experienced Coin Trader
1. Judge the trend of a coin, predict the trend for more than a month; most trends occur within a month, with only one trend, which is upward. So build positions at low levels, don’t operate, don’t make waves, check the returns after a month. Even if it triples, you may not need to sell because quality coins can rise dozens or hundreds of times. Or conservatively, double to take back the principal and continue to hold the profits.
2. Do not do any short selling operations, especially futures; these are extremely difficult and can wipe out your entire position in minutes. In a downtrend, it’s better to be stuck than to short. Because in the long-term trend, you will definitely have the opportunity to recover.
3. Price predictions are all lies; you can only roughly judge the general trend, and leave the rest to time. Don’t be too obsessed with technical analysis; in trading coins, stock-style technical analysis doesn’t play a particularly significant role, it can only serve as a slight reference.
4. Don’t bet too big; use spare money to play; your psychological pressure will be much lighter. Trading coins is not your life. Don’t invest all in one coin; take profits when you make money, and leave the principal to play.
5. In the world of trading coins, making money without labor is the most profitable. Don’t think that the more you operate, the more you earn. What you need to do is pick one or two good coins and hold them continuously, or if you have spare money, invest it regularly as if you are playing with a balance treasure. The biggest gains often come from buying a certain coin, forgetting about it, and looking back years later.
6. Position control and risk management are very important. Many people operate the same coin but earn far less than others. Because everyone's timing for building positions is different, since you can't buy at the lowest price, don't go heavy. It's best to go light on coins bought at high prices. Building positions at low prices is always your safety zone. Position control means allocating the most suitable amount to a few good coins. Generally, I recommend beginners: Bitcoin, altcoins, and liquid funds in a ratio of 1:1:1. Also, learn to build positions in batches, build part of the position at the current price, and add more when prices drop; this way, you can keep the cost price of each coin very low.
7. Don’t stare at market trends all day; don’t think about operations all day. Wealth is external; the most important thing is to sleep peacefully, work, and eat.
This is the trading experience Xiao Xun shares today. Often, because of your doubts, you lose many opportunities to make money. You are afraid to boldly try, to engage, to understand; how can you know the pros and cons unless you take the first step? A warm cup of tea, a piece of advice, I am both a teacher and your friendly advisor.
Fate brings people together, and understanding is a connection. Xiao Xun firmly believes that meeting is destiny, and parting is fate. The journey of investment is long; temporary gains and losses are just the tip of the iceberg. Remember, even the wisest can make mistakes, while the foolish might gain unexpectedly. Regardless of how emotions fluctuate, time will not stand still for you. Pick up your worries, stand up again, and prepare to move forward.
I am Xiao Xun, having experienced multiple rounds of bull and bear markets, with rich market experience in various financial fields. Focus on (Crypto Xiao Xun), and here, penetrate through the fog of information to discover the real market. More opportunities for wealth secrets, discover truly valuable opportunities, don't miss out and regret!
It’s better to teach someone to fish than to give them fish. Investors in the coin circle, whether beginners or experts, gain not only financial returns but also growth in investment knowledge and experience. During the investment process with the instructor, Xiao Xun will not only provide analysis ideas for market trends, basic knowledge of market watching, and methods for using various investment tools, but will also bring exciting fundamental interpretations, sorting out the chaotic international situation, and identifying the influences of various investments. This will help you become both a winner and an expert in investments!
Navigating the coin circle, mastering the seven major trading methods, one must deeply understand the progress and retreat in investment to remain stable in the face of winds and dangers. Xiao Xun has traversed the market for many years, deeply understanding the opportunities and traps within. If you are struggling with investments and feel frustrated with losses, you may contact Xiao Xun, and I will correct your past. If you are currently profitable, I'll teach you how to preserve your profits. If you are still lost and confused in the market, Xiao Xun is willing to guide you forward. The real tragedy in trading is not how much pain you endure, but how many opportunities you miss! Seize the moment and walk forward together. I am Xiao Xun, someone who aims to leave a name in the coin circle.
