One day in the cryptocurrency world is like one year in the stock market - this is not an exaggeration. In this new financial world, the only thing that can limit people is their imagination. The market is open 24/7. You need to have a strong heart and be on high alert all day long, because the slightest disturbance can cause the price of a few cents to increase by thousands of times in a month...
I have always been against young people speculating in cryptocurrencies, not because of the risks, but because of the rate of return. The appreciation of thousands of times overnight has constantly stimulated the increasingly impetuous nerves of the public, causing too many people to lose their goals in life. Everyone is talking about blockchain, as if blockchain is another symbol of the UAE, Singapore, Hong Kong, Tokyo, and New York. It is filled with countless greedy dreams - attempts to get rich overnight.
There are many legends here, such as Li Xiaolai, Bao Erye, and the magical girl. There are also many big names gathered here, and BAT has also joined the game.
"If it doesn't increase by hundreds of times, don't say you bought it." A friend often told me this. The myth of getting rich quickly can easily lead people astray.
What I want to recommend today are three relatively low-risk ways of playing. They won’t make you rich overnight, but they have stable income, high rate of return, and low threshold, which are suitable for both new and old players.
1. Moving Bricks
There are many ways to make money in the cryptocurrency circle, besides the well-known methods of cryptocurrency speculation, mining, and profiteering... there is also a group of people who are making a fortune in silence.
They are the real speculators in the cryptocurrency circle, and can be called "fighters among speculators." Domestic policies are strictly controlled, the price of cryptocurrencies plummets, and everyone is wailing, but this group of people are dancing with joy and making a fortune.
They are the hermits of the cryptocurrency world - the "brick-moving army".
The essence of arbitrage is very simple: take advantage of the price difference between different currency trading platforms, buy low and sell high, or sell high and buy low, in order to earn arbitrage profits.
Last September was like a nightmare for many seniors who traded in the cryptocurrency circle. On September 4, the central bank issued a document clearly stating that ICOs were illegal. On September 14, the regulatory authorities required the closure of Bitcoin exchanges registered and operating in China. Under these heavy blows, the price of Bitcoin plummeted rapidly.
The price of Bitcoin in the Bitcoin China exchange fell to 18,000, while the price in overseas exchanges was 23,000. Every time a huge price difference occurs in the exchange, it is a godsend opportunity for the arbitrage army. When volatility occurs, it is their sniping time.
A friend who does brick-moving told me: "I do this with a few friends in South Korea. We buy in China and sell on the Korean exchange. Our profit is only 2%. We invested 2 million to enter the market, and we only make more than 40,000 each time."
After doing this 40 times and earning nearly 1.6 million, he stopped. Due to the country's control over personal foreign exchange, he could only transfer money to foreign exchanges through underground banks. This faced huge risks. Once he was spotted by the regulatory authorities, his account would be frozen and his principal would be lost.
In addition to account freezing, arbitrage also faces other risks.
Therefore, in addition to "single-soldier combat", there are also many professional brick-moving teams with clear division of labor. Software development, transaction personnel, and financial personnel all perform their duties.
The development of the Brick Moving Corps has gone through four stages:
1. Original stage: Bitcoin is different on various platforms. The most primitive way of arbitrage is to buy at a low price and then sell at a high price.
Problem: The turnover rate is very low. The exchange is fast in sending coins, but the money transfer is too slow. If you frequently transfer money with fiat currency, there is another problem. It is difficult for you to explain to the bank what you are doing.
2. Coin-to-coin trading stage: In order to solve the speed problem, all coins are directly converted into other coins, and no legal currency transactions are involved.
But there is still a problem: it is still not fast enough. In the cryptocurrency world, opportunities are often fleeting.
3. Primary hedging stage: You can put some coins (such as USDT) on each platform. If the price on this platform is high, sell it here: buy the same amount of coins on another platform. After a period of time, when the price on another platform is high, sell it on the other platform and buy it here again, always keeping the positions on both sides equal.
Existing problems: The price of the currency itself fluctuates. In December last year, Bitcoin fell from 20,000 US dollars to more than 6,000 US dollars now, a drop of half. Such fluctuations are very risky.
4. Advanced hedging stage: After completing the transaction in the traditional brick moving market, hedge in the futures market. In this way, no matter whether it rises or falls, you can earn the difference of its fluctuation.
2. Coin Circles
In November 2017, a project called Mexin was promoted, and users could get token rewards by registering and inviting other users to download DAPP. And this project has six levels of referrals, which means that you can get rewards for the six levels below the people you invite.
At that time, the price of MiXin was about 2.2 ETH, and the highest price reached 18,000 yuan. Many people got 10 by taking advantage of the opportunity and sold them at a price of more than 10,000 yuan. Airdrop coins are like this. They may make you a lot of money, but they may also leave you with nothing.
When many people first started to get the free money, they would almost walk around and read all kinds of free money information. If you count by quantity, there are probably millions of coins in your wallet, but if you count by value, these coins are currently worthless.
In addition, there are also risks in registering to obtain airdrop coins through personal information such as mobile phones or email addresses. Accurate personal information in the cryptocurrency circle is at least ten yuan per piece on the black market, and you can make a lot of money just by selling personal information.
In addition, there are many project parties that build communities by issuing worthless coins, and then promote other project parties. Although the wool party does not suffer any property loss, it has become a tool for others to make money.
You can't catch a wolf without sacrificing a lamb. There is no reward without sacrifice. Just like plucking the wool, "while you are plucking the wool, others may be plucking you."
3. Invest selectively
Everyone wants to buy low and sell high. Take a look at the trend chart of Bitcoin and imagine what your situation would be if you bought at a low price and sold at a high price. Would it be like winning the lottery?!
Many people have just started to get on board, have no acquaintances to guide them, and know nothing about it. They just buy big coins, such as BTC, ETH, ECH, EOS... Little do they know that these big coins currently have no advantages in terms of appreciation rate and price. If you are not a big player who is prepared to invest large amounts of money and hold for the long term, I do not recommend that you buy blindly.
Moreover, because these coins have a large number of traders, they are the main targets of large funds and institutions to pull up or dump the market. Retail investors who come in often cannot escape the fate of being harvested.
If we look at the entire cryptocurrency market as a whole, and the entire market share of cryptocurrency is constantly increasing.
What is the opportunity for this market cap rise is certainly not driven entirely by one coin, but by multiple coins. The best way to safely capture the overall growth of cryptocurrencies is to diversify and reap the growing profits from multiple coins.
Also, here’s an interesting fact: between January 2016 and January 2018, Corgicoin increased 60,000 times, while Verge increased 13,000 times;
In the same period, Bitcoin has only risen 34 times. While you will make a decent profit from Bitcoin, expanding into other cryptocurrencies may make your potential profits even greater.
Therefore, as a novice, investing in small currencies is a wiser choice. When they are first issued, many people cannot see their value, but they are indeed the favorite of old investors. They specifically subscribe to these new coins, and when they are open for trading, they can sell them for a small profit.
More experienced players will also judge based on their own experience. For example, if some currencies have good team background, project vision, and technical strength, such projects are very suitable for medium- and long-term investment and holding. Their value doubling will definitely surprise you. BNB is a good example of a currency that should be held for a long time.
Recently, it fell 20% at one point, and I witnessed some people selling it to protect their investment, but a week later, it almost tripled again. GPA is also a good choice. The project has good momentum in all aspects, and the price is reasonable in the private placement stage. It is expected that there will be a good market after the opening.
When talking about GPA, we have to talk about the information asymmetry in the cryptocurrency circle. Why do some people always make money while others are always being cut? To put it bluntly, it is caused by the information asymmetry.
Big dealers have first-hand information, and big players have more channels to obtain information than ordinary players, or they know how to screen and identify information better, and can distinguish the impact of comparison circles caused by fluctuations in policies, economic conditions, and industry conditions.
Therefore, it is easier for them to accurately grasp the timing of entering and exiting the market, while novices are relatively blocked from information. When they see that a coin is growing well and are ready to enter the market, the big players are already ready to reap the benefits. Therefore, it is very important to obtain information in a timely manner, especially private placement information, because the price is low enough and the doubling is large enough, which can be said to be a small investment with a big return.
Like the FI that I subscribed to before, the private equity was 6 points, and it rose to 3 yuan in two days after opening, which is 50 times the original amount. The cycle is short and the return is high. What is the key? It is to find information.
I believe that many people only learned about this coin after seeing the news that it rose 50 times. If you enter the market at this time, the profit margin will be much smaller. Therefore, your information lag directly affects your investment income.
If you are also a technology geek and are also devoted to studying the technical operations in the cryptocurrency circle, you might as well follow the official account (Trend Prediction), where you will get the latest cryptocurrency intelligence and trading skills!
There is no doubt that everyone's original intention of coming to the cryptocurrency circle is the same. If you just want to have fun and kill time, then this place is not suitable for you.
I think you need to master the terms I list below as soon as possible, otherwise it will be difficult to enter the circle.
The picture below is a Web3 ecosystem mind map that I summarized over two weeks. It basically covers all the tracks and top applications in the current cryptocurrency circle. Please like and save it to read it later.
Once you encounter these 7 "bottom patterns" when trading cryptocurrencies, take action immediately, the main uptrend is about to appear!
1. Double Peak Reversal
A double peak reversal refers to two peaks formed at the top or bottom of the price, that is, a double top and a double bottom. People often call it an "M" type or "W" type reversal.
The double peak reversal pattern does not necessarily mean a reversal of prices. It is also possible that the price will rise in the process of falling back to the neckline and being supported by the support line. At this time, the price moves in the area between the support line and the previous two high points, forming a triple top.
, triangle and other forms, but this possibility is very small.
The greater the distance between the two peaks, that is, the longer it takes to form the two tops and bottoms, the greater the potential for a double top reversal in the future, and the more violent the fluctuations after the reversal will be.
The rise (fall) after the breakthrough of the double peak pattern is 1 to 3 times the neck height of the pattern itself.
2. Head and Shoulders
This is a long-term trend reversal pattern that usually appears at the end of a bull market.
The head and shoulders reversal pattern has three peaks in total. The middle peak is higher than the other two parts, so it is called the head. The two peaks on the left and right are lower and are called shoulders.
When the neckline of the head and shoulders top is broken, it is a real sell signal. Although the price has fallen considerably compared to the highest point, the decline has just begun and investors who have not sold continue to sell.
When the neckline is broken, we can predict the price will fall to what level according to the minimum drop measurement method of this pattern. This measurement method is to draw a vertical line from the highest point of the head to the neckline, and then measure the same distance downward from the point where the right shoulder breaks through the neckline. The price measured in this way is the minimum drop of the stock.
Examples:
[The blue circle is a reference sell signal]
3. Head and Shoulders Bottom
(1) The shapes of the head and shoulders top and the head and shoulders bottom are similar.
(2) When the neckline of the head and shoulders bottom is broken, it is a real buy signal. Although the price has risen a certain distance compared with the lowest point, the upward trend has just begun, indicating that investors who have bought should continue to chase in. The method of measuring the minimum increase is to draw a vertical line from the lowest point of the head to intersect the neckline, and then measure the same height upward from the point where the right shoulder breaks through the neckline. The measured price is the minimum increase of the stock.
In addition, when the neckline resistance is broken, there must be a surge in trading volume, otherwise it may be a false breakthrough. However, if the transaction gradually increases after the breakthrough, the pattern can also be confirmed.
(3) Generally speaking, the head and shoulders bottom pattern is relatively flat and therefore takes a longer time to complete.
(4) There may be a temporary decline after breaking through the neckline, but the decline should not be below the neckline. If the decline is below the neckline, or the price falls back at the neckline level and fails to break through the neckline resistance and falls below the head, this may be a failed head and shoulders bottom pattern.
(5) The head and shoulders bottom is one of the most predictive patterns. Once confirmed, the increase will usually be greater than its minimum increase.
There are many special forms of the head and shoulders reversal pattern, namely the compound head and shoulders pattern. The analysis method is the same as that of the head and shoulders reversal pattern. Several common forms are listed below to help you deepen your impression.
4. Triple Top (Bottom)
Any head and shoulders pattern, especially when the head does not exceed the shoulders by much, can be called a triple top (bottom) pattern. The triple top pattern is also very similar to the double top, but there is one more top, and the tops are separated and deep. The triple bottom is an inverted triple top, and the analysis and meaning are the same.
5. Round bottom (top)
The price rises in a solitary shape. That is, although it continues to rise, each high point will fall back soon. First, the new high point is higher than the previous point, and then the recovery point is slightly lower than the previous point. In this way, connecting the short-term high points will form a round top. There will also be a round shape in terms of trading volume.
(1) Sometimes when a round head is formed, the price does not fall immediately, but only repeatedly develops sideways to form a hovering area, which is called the handle. Generally speaking, the handle will soon break through, and the price will continue to develop in the expected downward trend.
(2) Circular reversals occur at both tops and bottoms of prices, with similar patterns but opposite meanings.
At the bottom, the price falls in an isolated shape. At the beginning, the pressure on the sellers continues to ease, so the trading volume continues to decline, but the buying power is still shrinking. Although the price is falling at this time, the amplitude is slow and small, and its trend curve gradually approaches the horizontal.
At the bottom, buying and selling forces reach a state of equilibrium, so there is only a very small trading volume. Then demand begins to increase, prices rise accordingly, and finally buyers completely control the market, prices rise sharply, and a breakthrough upward situation occurs.
In terms of trading volume, it slowly decreases to a level at first, and then increases again, forming a round bottom. This pattern shows that a huge market rally is coming. Investors can chase in at the beginning of the round bottom uptrend.
6. V-shaped reversal and extended V-shaped reversal
Downward phase: Usually the left side of the V-shaped decline is very steep and lasts for a short time.
Turning point: The bottom of the V-shaped trend is very sharp. Generally speaking, it takes only three or two trading days to form this turning point, and the trading volume increases significantly at this low point. Sometimes the turning point appears during a panic trading day.
Recovery phase: Prices then recover from the lows and trading volume also increases.
When the price breaks through the top of the extended V-shaped hovering zone, there must be an increase in trading volume. When it falls below the bottom of the inverted extended V-shaped hovering zone, there is no need for an increase in trading volume.
Morphological meaning:
Due to the strong power of sellers in the market, prices have been falling steadily and continuously. When this selling force disappears, the power of buyers completely controls the entire market, causing prices to rebound dramatically, recovering all lost ground at almost the same speed as when they fell. Therefore, the movement of prices on the chart forms a V-like moving trajectory.
The reverse V-shaped situation is just the opposite. The optimistic sentiment of the market makes the price rise steadily, but a sudden factor reverses the entire trend. The sellers fall at the same speed as the rise, forming an inverted V-shaped moving trajectory. Usually this pattern is caused by some sudden factors and some factors that well-informed investors cannot foresee.
7. Expanded reversal type (trumpet type)
The price rises for a period of time, then falls, then rises again and falls again. The high point of the rise is higher than the previous one, and the low point of the fall is also lower than the previous low point. The whole pattern starts with a narrow fluctuation, and then expands up and down. If we connect the high and low points above and below, we can draw a triangle shape that is reflected in the mirror, which is the trumpet shape.
In terms of trading volume, the trumpet-shaped pattern maintains high and irregular trading volume during the entire formation process. The trumpet-shaped pattern is divided into rising and falling types, and their meanings are the same.
A standard trumpet pattern should have three high points and two low points. The three high points are higher than each other, and the two low points in the middle are lower than each other. When the price falls back from the third high point, and the low point of the fall is lower than the previous low point, it can be assumed that the pattern is established. Like the head and shoulders top, the trumpet pattern belongs to the "five-point turning" pattern, so a gentler trumpet pattern can also be regarded as a head and shoulders trend with a higher right shoulder and a downward neckline.
The trumpet-shaped pattern is caused by investors' impulsive and irrational emotions, so it rarely appears at the bottom of a falling market. The reason is that after prices have fallen for a period of time, investment willingness is weak, so it is impossible for this pattern to form in a depressed market atmosphere.
Again, if you don’t know what to do in a bull market, click on Brother Kui’s avatar, follow him, and he will share the bull market spot planning and contract passwords for free.
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