#币圈现状 Next, Brother Kun will explain the basics of trading for the newcomers who just joined the cryptocurrency world!!!
Driven by the digital wave, the cryptocurrency industry has gradually emerged, attracting the attention of many investors. However, for newcomers who are first exposed to this field, the cryptocurrency world is undoubtedly a realm full of unknowns and mysteries. This article aims to provide beginners with a detailed trading guide to help them easily step into the cryptocurrency world.
I. Overview of the Cryptocurrency World
1. Definition of Cryptocurrency World
"Cryptocurrency world" refers to a group focused on trading and investing in digital currencies. They are not only enthusiastic about trading coins but also actively participate in the issuance and fundraising activities (ICO) of digital currencies. In this circle, people share information, exchange experiences, and explore the infinite possibilities of digital currencies together.
2. Ways to Make Money
In the cryptocurrency world, there are various ways to make money, mainly including trading coins, mining, and arbitrage. Trading coins means making profits by buying and selling digital currencies; mining involves participating in the verification process of the blockchain network using computer computing power to earn rewards; arbitrage uses price differences between different exchanges for profit.
III. Information Acquisition
To navigate the cryptocurrency world smoothly, it is crucial to grasp industry dynamics in a timely manner. Market information websites like Feixiaohao, mytoken, aicoin, etc., provide rich market data; while news and finance platforms like Jinse Finance and Coin World News are important channels for obtaining industry news.
II. Basic Trading Terms
1. Building Positions and All In
Building a position (opening a position) refers to an investor buying or selling a certain amount of digital currency. 'All in' is an aggressive investment strategy, meaning putting all principal into the market, which is extremely risky.
2. Airdrops and Locking Positions
Airdrop is an activity where cryptocurrency projects distribute tokens to users for free to promote and market their project. Locking positions refers to investors opening new positions opposite to their original holdings after buying and selling contracts to avoid risks.
III. Candy and Break
Candy is the digital currency issued for free to users during the ICO phase of a cryptocurrency project, aimed at attracting attention. A break refers to the situation where the cryptocurrency price falls below the issuance price, exposing investors to the risk of loss.
IV. Private Placement and K-line
Private placement is a way for cryptocurrency projects to raise funds, usually by selling tokens directly to investors. K-line charts are important analytical tools in digital currency trading, created by plotting opening prices, highest prices, lowest prices, and closing prices, used to predict market trends.
III. Basic Trading Knowledge
1. Trading Characteristics
Virtual currency trading features 7*24 hours of uninterrupted trading, no price limits, and flexible trading units. In addition, investors can withdraw coins for cash at any time, providing high liquidity.
2. Transaction Principles
Virtual currency trading follows the principle of 'price priority, time priority.' Limit orders allow investors to set a commission price lower or higher than the market price; market orders transact at the current market price, but there is a certain risk of uncertainty.
III. Professional Terminology Analysis
Position: Refers to the ratio of an investor's actual investment to the actual investment funds.
Full position: Buying digital currencies with all available funds.
Reducing positions: Selling part of the digital currency.
Heavy position: A relatively high proportion of digital currency holdings in available funds.
Light position: A relatively high proportion of available funds.
Empty position: Selling all held digital currencies.
Taking profits and cutting losses: refers to selling digital currencies to secure profits after achieving certain gains, and selling to prevent further losses after a certain degree of loss.
Bulls and bears: refer to investors who are bullish and bearish on the digital currency market, respectively.
Rebound and consolidation: refers to the recovery adjustment after a price drop and a stable state with small price fluctuations.
Diving and cutting losses: refers to the rapid and significant drop in digital currency prices and selling at a loss to avoid further losses.
Being trapped and getting out: refers to the paper loss caused by the price drop after buying digital currency and the subsequent price rebound turning losses into profits.
Missing out: Selling digital currency due to a pessimistic outlook leads to missing the price increase opportunity.
Overbought and oversold: refers to the state when the price of digital currency has risen continuously to a certain level and is about to fall, and when it has fallen continuously to a certain extent and is about to rebound.
Inducing longs and inducing shorts: refers to bears pulling up prices to entice bulls to buy and bulls pressing down prices to entice bears to sell.
Through Brother Kun's detailed introduction, it is believed that beginners have gained a preliminary understanding of the cryptocurrency world. However, the digital currency market is highly volatile and risky, and investors should fully understand market rules and make cautious decisions before participating in trading. May Brother Kun help every investor find their own path to wealth in the cryptocurrency world!
