The categories of digital currencies are diverse, including: currency type (BTC), platform type (ETH), application type (SC), stablecoin type (USDT), and dividend type (repurchase BNB). Digital currencies have various attributes.#
New investors in the cryptocurrency space should focus on distinguishing between valuable coins and worthless coins. Valuable coins are suitable for long-term holding, while worthless coins should be avoided even if they experience significant price increases! So, what are the basic knowledge points for trading cryptocurrencies?
For newcomers who are just getting into digital currencies and blockchain, the biggest confusion often lies not in choosing which coin to buy, but in understanding various professional terms. What foundational knowledge must a true beginner master before becoming wealthy?
Today, I've compiled relevant professional terms for reference:
I. Basic Knowledge of Cryptocurrency Trading: Fundamental Characteristics of Virtual Currency Transactions#
- Trading Time: Open 24/7 all year round without holidays.
- No Price Limits: Virtual currency trading has no price increase or decrease limits, while stocks have such constraints; for example, on May 28, Bitcoin rose over 20% in a single day.
- Trading Units: The minimum purchase is 0.0001 BTC (approximately 0.6 yuan), with no similar restrictions as stocks requiring a minimum purchase of one lot (100 shares).
- Anytime Trading: This is the T+0 mechanism; stocks are T+1 trading, meaning purchases made on the same day must be sold the next day; virtual currencies support buying and selling on the same day.
- No Time Limits for Withdrawal and Cashing Out: Funds can be withdrawn or cashed out at any time, with extremely high liquidity.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 reputable platforms with a long history—
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II. Basic Knowledge of Cryptocurrency Trading: Common Knowledge for Beginners in Virtual Currency Transactions#
- Bitcoin and Ethereum are hard currencies in the blockchain field. If newcomers are unsure which assets to purchase, it is recommended to prioritize BTC and ETH.
- There are many types of digital currencies, including currency type (like BTC), platform type (like ETH), application type (like SC), stablecoin type (like USDT), and dividend type (like repurchase BNB), each with unique attributes. Investors should distinguish between valuable coins and worthless coins; valuable coins can be held long-term, while worthless coins should be avoided even if they surge!
- Fiat currency purchasing channels include over-the-counter trading platforms and private over-the-counter trades. Over-the-counter platforms typically support multiple assets like BTC/ETH/EOS, while private over-the-counter trades vary in scale, mostly limited to hard currencies like BTC and ETH. Avoid private trades without guarantees to prevent scams that are difficult to recover from.
III. Basic Knowledge of Cryptocurrency Trading: Common Professional Terms in Virtual Currency Transactions#
- Position: Refers to the ratio of the actual assets held by the investor to the total investment funds.
- Full Position: Investing all funds to purchase virtual currencies.
- Reducing Position: Selling part of the virtual currency but not completely liquidating.
- Heavy Position: A large proportion of the virtual currency in the investment portfolio.
- Light Position: A large proportion of available funds in the investment portfolio.
- Empty Position: Completely selling all held virtual currencies and converting everything to cash.
- Take Profit: Selling assets after achieving a certain profit to lock in gains.
- Stop Loss: Selling assets when losses reach a preset point 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.
IV. Basic Knowledge of Cryptocurrency Trading: Security Issues in Digital Currencies#
The security of digital currencies has always been a major challenge in the cryptocurrency space. Storing assets on exchanges is not absolutely safe; even large platforms like Binance have experienced theft, and smaller exchanges are at even higher risk, making them easy targets for hackers. How can one ensure the safety of their assets? It is recommended to store digital currencies in private electronic wallets. Software wallets store assets through applications but have lower security; hardware wallets like onekey (usually in USB form) provide higher protection.
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Related Reading#
The latest ranking of the top 10 virtual currency trading platforms in China for 2025 is out 🔥【Worth collecting】
【Real Stories of Wealth in the Cryptocurrency Space】 Many people ask me, after years of trading cryptocurrencies, how did I go from 0 to 11 million and then to a debt of 100,000?
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