What does the cryptocurrency world mean?

The so-called cryptocurrency world is a circle formed naturally by digital currency players. The cryptocurrency world is not large, but it is not insignificant in number, and in the crowd, it basically belongs to a niche group. However, it is indeed a circle where not many people make money, and various ways of making money have been quickly copied, such as ICOs, trading coins, mining, exchanges, project parties, and self-media.

What are the mainstream coins in the cryptocurrency world?

BTC (Bitcoin) ETH (Ethereum) XRP (Ripple, XRP)

BCH (Bitcoin Cash, Big Prince) EOS (Orange) LTC (Litecoin, Spicy Strips)

How to make money in the cryptocurrency world?

There are many ways to make money in the cryptocurrency world, the main ones being trading coins, ICO crowdfunding, arbitrage, contracts, etc.

Which exchanges are the best to operate on?

Spot exchanges: Binance, Huobi, OKEx, BitZ (most well-known and secure)

Futures exchanges: OKEx, BitMEX, Huobi (most well-known and secure)

Where can you usually find news about the cryptocurrency world?

Market websites: CoinGecko, MyToken, Alcoin, etc.

News websites: Jinse Finance, 8btc Community, CoinWorld News

What does fiat currency mean in the cryptocurrency world?

Fiat currency refers to legal tender issued by a country and government, guaranteed only by government credit, such as the Renminbi, US Dollar, etc.

What does token mean in the cryptocurrency world?

Token, often translated as 'certificate'. Tokens are one of the important concepts in blockchain, more widely known as 'tokens', but in the eyes of professionals in the 'chain circle', a more accurate translation is 'certificate', representing a proof of rights on the blockchain, rather than currency.

Three elements of a Token

First is the digital proof of rights. The token must exist as a digital form of rights certificate, representing a right, an inherent and intrinsic value.

Second is encryption. The authenticity, tamper-proof ability, and privacy protection of the token are guaranteed by cryptography.

Third is the ability to flow within a network, allowing for verification anytime and anywhere.

What does building a position mean in the cryptocurrency world?

Building a position in the cryptocurrency world, also known as opening a position, refers to when traders buy or sell a certain amount of digital currency for the first time.

What does 'going all in' mean in the cryptocurrency world?

Going all in in the cryptocurrency world means investing all of your principal.

What does airdrop mean in the cryptocurrency world?

Airdrop is currently a very popular marketing strategy in cryptocurrency. To provide potential investors and cryptocurrency enthusiasts with information related to tokens, the token team often conducts airdrops.

What does lock-up mean in the cryptocurrency world?

Lock-up generally refers to when investors buy and sell contracts, and when the market shows a trend opposite to their operation, they open a new position opposite to the original position, also known as hedging or locking orders, and even euphemistically called butterfly double flying.

What does candy mean in the cryptocurrency world?

Candy in the cryptocurrency world refers to various digital currencies that are distributed for free to users when they are newly issued during ICO, which is a way for the project issuer to create momentum and publicity for the project itself.

What does breaking issue mean in the cryptocurrency world?

Breaking refers to falling below, while issue refers to the issuance price of the digital currency. Breaking issue in the cryptocurrency world means that a certain digital currency has fallen below its issuance price.

What does private placement mean in the cryptocurrency world?

Private placement in the cryptocurrency world is a way to invest in cryptocurrency projects and is also the best way for cryptocurrency project founders to raise funds for platform operations.

How to read K-line in the cryptocurrency world?

K-line chart (Candlestick Charts) is also known as candlestick chart, Japanese line, yin-yang line, stick line, red-black line, etc. The common term is 'K-line'. It is drawn based on the opening price, highest price, lowest price, and closing price of each analysis period.

What does arbitrage mean in the cryptocurrency world?

Arbitrage means buying digital currency from exchanges with lower prices and then selling it at exchanges with higher prices.

What does ICO mean?

Initial Coin Offering, originating from the stock market's Initial Public Offering (IPO) concept, is a financing behavior in which blockchain projects exchange their own issued virtual currency for commonly used virtual currency in the market, as well as IEO, STO, etc., which are similar in pattern.

Five major investment rules

1. Consider and observe the project from multiple aspects, and do not follow the crowd blindly. Many copycat projects have appeared in the cryptocurrency world, and if the founder runs away, there will be no way to pursue legal responsibility.

2. Understand blockchain-related knowledge and know the industry pain points that blockchain solves before entering the cryptocurrency world.



3. For the project you want to invest in, be sure to understand it comprehensively. Check whether the project truly uses blockchain technology, whether the founder has publicly disclosed their identity and background, whether the business logic of the project is closely related to the token, and whether there are similar projects in the same industry solving industry pain points. If the project is successfully implemented, check if it has profit-making capability in real life.

4. If you cannot accurately judge the future prospects of the cryptocurrency, do not invest more than 20% of your assets when participating in blockchain investments, and do not put all your eggs in one basket.

5. High-quality projects will also have ups and downs. Treat them with a calm mindset. For investment projects you are optimistic about, do not worry too much about the price in the short term. Pay attention to whether the development progress of the team is consistent with the white paper. Additionally, only long-term holding will ultimately yield greater returns.

Ten trading rules

First, don't easily let go of low-priced chips. Stay firm in your beliefs and prevent market manipulators from driving prices down.

Second, chasing highs and selling lows, as well as going all in, are always big taboos. If the overall trend is bullish, building positions gradually on the way down is less risky, costs less, and yields more profit compared to chasing highs.

Third, allocate profits reasonably to maximize the release of funds, rather than continuously increasing positions and depositing more money.

Fourth, take out your capital in case of a rapid increase, and hold onto your coins in case of a rapid decrease. Always maintain a positive mindset, avoid speculation, impatience, greed, and fear, and do not engage in unprepared battles.

Fifth, the previous ambush or low-priced private placement relies on experience and market manipulators to bet on the future of the coin, while the secondary market competition relies on technology and information to follow the market. Do not confuse the two, or it will end up in chaos.

Sixth, building positions and exiting must be layered and segmented, gradually widening the price gaps to effectively control the ratio of risk and profit.

Seventh, be familiar with the interconnected effects, watch the market while looking at other coins' movements. Each coin in the overall market is not isolated; they are intricately linked. There are many tools now available to check coin information and news.

Eighth, asset allocation should be reasonable. The allocation of hot coins and value coins should be balanced. Pay attention to pressure resistance and profit intake ratios. Being too conservative may cause missed opportunities, while being too aggressive may pose high risks! The main feature of value coins is stability, while the main characteristic of hot coins is volatility, which can lead to rapid gains or losses.

Ninth, having coins in your account and cash in your pocket is the safest and most reassuring configuration. Do not go all in; going all in is a certain death. The grasp of risk control and the reasonable allocation of funds are key to determining your mindset and success or failure. Idle money investment is foundational.

Tenth, master basic operations, learn to apply principles to different situations, understand the basic logic of trading, observe as a prerequisite, remember each high and low point as reference data, learn to record, and develop a habit of reading and filtering information.

Stable investment plan

Position control; never easily go fully invested. Why not go all in?



First is risk control; you cannot guarantee that the asset will rise immediately after you buy. If you encounter a waterfall decline, your assets will suffer greatly, and you will not be able to lower the average cost by adding more.

Second is mindset control. I have experienced this myself; after going all in, I would constantly monitor the market, which severely affected my mindset. I couldn't even sleep well.



Third is the tendency to be cut, having a gambling mentality, wanting to see the changes in your profits at every moment. After going all in, if you see that your coin price hasn't risen for a short time while others are rising or if you see other coins you want to buy, you may sell at a loss to buy in again, leading to diminishing returns.

Long-term holding 30-40%, holding for a long time.

Short-term holding 30-40%. Why short-term? Many people say that short-term trading is bound to lose money. However, under proper long-term asset allocation, trading can be an interesting endeavor. I believe that the vast majority of people cannot control their impulses. As long as you control your position and avoid frequent losses, short-term trading can generally yield profits upon exiting (unless there are issues with the project or the overall market). Also, not every coin's long-term performance is necessarily better than its short-term returns.#币安Alpha上新 #美国AI行动计划 $ETH $BTC