Cryptocurrencies come in various types, including currency types (like BTC), platform types (like ETH), application types (like SC), stablecoins (like USDT), and dividend types (like repurchased BNB), each with unique attributes. New investors only need to learn to distinguish between valuable coins and worthless coins; valuable coins can be held long-term, while worthless coins should be avoided even if they skyrocket! So, what essential knowledge is required for trading coins? Many newcomers to cryptocurrencies and blockchain are often confused not by which coin to choose, but by the multitude of technical terms. For those truly wanting to enter the crypto space, mastering the necessary knowledge for wealth creation is crucial.
Here are some relevant technical terms for reference:
1. Common Knowledge for Trading Coins: Basic Characteristics of Virtual Currency Transactions#
- Trading Time: Open year-round, 24 hours a day without interruption.
- No Price Limits: Virtual currency trading has no price limits, unlike stocks; for example, Bitcoin rose over 20% in a single day on May 28.
- Trading Unit: The minimum purchase amount is 0.0001 BTC (approximately 0.6 yuan), unlike stocks which require at least one lot (100 shares).
- Anytime Trading: Uses a T+0 mechanism, allowing purchases to be sold on the same day; in contrast, stocks are T+1, requiring a day before selling after purchase.
- No Restrictions on Withdrawals and Liquidation: Assets can be withdrawn or liquidated at any time, with high liquidity.
There are many informal exchanges in the market, and newcomers often lack the experience to judge their reliability. It is recommended to register on established and reputable platforms first —
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2. Common Knowledge for Trading Coins: Basics for Beginners in Virtual Currency Trading#
- Bitcoin and Ethereum are hard currencies in the blockchain field; if newcomers are unsure what to buy, BTC and ETH are recommended.
- There are various types of digital currencies, such as currency types (BTC), platform types (ETH), application types (SC), stablecoins (USDT), and dividend types (repurchased BNB). Newcomers only need to distinguish between valuable coins and worthless coins; valuable coins can be held long-term, while worthless coins should not be touched even if they rise!
- Fiat currency purchase channels include over-the-counter trading platforms and private OTC. Over-the-counter platforms usually support multiple assets like BTC/ETH/EOS, while private OTC may be limited to BTC and ETH. Avoid unsecured private transactions to prevent scams, as losses can be hard to recover.
3. Common Knowledge for Trading Coins: Common Technical Terms in Virtual Currency Trading#
- Position: Represents the ratio of the actual assets held by the investor to the total investment funds.
- Full Position: Investing all funds to purchase virtual currency.
- Reducing Position: Selling part of the virtual currency but not liquidating everything.
- Heavy Position: The share of virtual currency dominates the assets.
- Light Position: The share of available funds exceeds the amount of virtual currency held.
- Empty Position: Liquidating all virtual currency, converting everything to cash.
- Take Profit: Selling assets after achieving a certain profit to lock in gains.
- Stop Loss: Selling when losses reach a specific level to prevent further losses.
- Bull Market: Prices continue to rise, and market prospects are optimistic.
- Bear Market: Prices continue to fall, and market prospects are bleak.
4. Common Knowledge for Trading Coins: Security Issues in Digital Currency#
The security of digital currency is always a major challenge in the crypto space; even storing assets on exchanges is not absolutely safe. Large platforms like Binance have faced multiple hacker attacks, and smaller exchanges are at even higher risk, making them easy targets. So, how can asset security be ensured? The best practice is to store digital currencies in private electronic wallets. Software wallets, which save through applications, have lower security; hardware wallets like OneKey (similar to a USB drive) are more reliable.
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