In two minutes, let's understand what cryptocurrency trading is. 1. What is cryptocurrency trading?

In this article, we will first talk about cryptocurrency trading. In fact, cryptocurrency trading is similar to stock trading, real estate trading, and forex trading, where one makes a profit by buying at a low price and selling at a high price. For example, if you believe housing prices will rise, you immediately buy a house, and when the prices rise enough, you sell it for a substantial profit. The difference is that in cryptocurrency trading, you trade in the digital currency market, which has a more flexible trading mechanism (24-hour uninterrupted trading every day), and a larger profit margin (there are no limits on price fluctuations). This makes digital currencies an investment target with a return on investment far exceeding traditional stock markets, futures markets, funds, real estate, and more.

2. What is an exchange?

An exchange is a platform for trading digital currencies. Currently, the most commonly used exchanges are Binance and OKX. There are many other smaller exchanges, just like there are four major banks and various other banks. Using well-ranked exchanges provides a high safety factor, allowing for secure trading. Some coins can only be purchased on specific exchanges.

3. What is USDT?

An exchange is a place to trade digital currencies like Bitcoin. Trading digital currencies requires a type of intermediary currency, also known as a stablecoin, which is USDT. This is also the fiat currency we use most frequently.

USDT, known as Tether, is a type of virtual currency that links cryptocurrency to the fiat currency US dollar. It is a virtual currency backed by foreign exchange reserves and supported by fiat currency. You can simply think of it as US dollars.

Tether (USDT) is a token of the stable-value currency linked to the US dollar (USD) launched by Tether. 1 USDT = 1 US dollar.

Exchanges themselves cannot directly sell or purchase virtual currencies, nor can they sell you USDT. You cannot buy USDT directly from the exchange either. If you want to purchase coins, you first need to buy USDT with RMB, then exchange USDT for the digital currency you want to buy. If you want to sell coins, you need to convert your digital currency into USDT before selling it, and then convert it into RMB. Once you have USDT, you can exchange it for any digital currency on the exchange, which is called coin-to-coin trading.