Essential for beginners in the crypto world, pure practical information

Must-learn for beginners in B circle

Cryptocurrency trading = Spot trading

Perpetual contracts = Contract trading

Placing an order = Making a trade (refers to the user's trading operation)

Buying = Going long = Bullish on cryptocurrency price (for example: if a user buys BTC at 50,000, they profit when the price rises above 50,000)

Selling = Going short = Bearish on cryptocurrency price (for example: if a user sells BTC at 50,000, they profit when the price falls below 50,000)

Market order = Current price order (trades executed at the current market price, quick operation) Limit order (users can set a specified price for an order, for example: if the current price of BTC is 50,000 and the user thinks the price will rise to 50,100 and then fall, they can place a limit order to short at 50,100, which will automatically execute once the specified price is reached)

Position: Refers to the user's holding situation after placing an order

Full position = All in (user invests all funds in the account into a single trade)

Reducing position: Selling part of the position but not all

Heavy position: Investing a large portion of funds in trading (for example, if the account has 50,000, the user invests more than half of the funds)

Light position: Investing a small portion of funds in trading (for example, if the account has 50,000, the user only invests a small amount)

Empty position: Funds in the account have not been traded

Take profit: Selling virtual currency after profits reach a certain level to lock in gains

Stop loss: Selling virtual currency after losses reach a certain level to avoid greater losses

Bull market: Market conditions are continuously rising, outlook is optimistic

Bear market: Market conditions are continuously falling, outlook is pessimistic

Bullish trader: Buyer, believes the cryptocurrency price will rise, profits by buying low and selling high

Bearish trader: Seller, believes the cryptocurrency price will fall, profits by selling high and buying low

Rebound: A temporary rise in price during a significant decline

Consolidation (sideways): Cryptocurrency price fluctuates little, overall trend is stable

Downtrend: Cryptocurrency price declines slowly

Waterfall: Cryptocurrency price drops rapidly, with significant decline

Cutting losses: User makes a wrong judgment, for example, going long when bullish but the price falls, selling at a low price to minimize losses, or going short when bearish but the price rises, being forced to stop loss and exit

Being stuck: User misjudges the trend, for example, going long when bullish but the price drops significantly, resulting in large losses

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