Opportunities for digital currency investment

1. With the rapid rise of bitcoin, digital currency has entered an era of barbaric growth. At present, there are nearly 1000 kinds of digital currency or procts under the banner of digital currency listed on various trading platforms, and it is said that there are nearly 5000 kinds of procts waiting for the exchange. Hehe, this is the best time and the worst time. It should be said that among so many procts, there must be some outstanding ones who will eventually stand out, become technology leaders and instry benchmarks, and start another wave of miracle of making wealth. However, most digital currency procts will eventually be eliminated, or even become laughingstock and scam. In fact, it seems that many of them are scams now

in the mixed market, how to practice a pair of eyes to identify the authenticity, this paper provides several perspectives for your reference

First, technical basis. The value of bitcoin does not lie in its price, but in its technical basis - blockchain, also known as distributed ledger technology. It is an Internet database technology, characterized by decentralization, openness and transparency, so that everyone can participate in database records. This paper is not a popular science article, and does not do too much entanglement on the technical explanation. But you need to understand the basic characteristics of blockchain. The first is decentralized and intermediary trust. There is no backstage, no manipulation, and no need for a third party. The second feature is its stability, reliability, persistence and security. Because it is a distributed network architecture, no central node can be attacked, so it has stronger stability, reliability and persistence in the overall technical layout. At the same time, the consensus mechanism does not need the entry of a third party, but through a technology, a previously scheled technology to achieve the completion of the whole transaction. The third is the openness, transparency and non tamperability of the transaction. So when we look at digital currency, we must look at its technical basis. Only when the technical basis is in line with the actual digital currency can it have investment value

Second, trading platform. Investment in digital currency is inseparable from the trading platform, so it is very important to choose a reliable trading platform. A good trading platform should have the following characteristics. First, it is fair and impartial. All traders are treated equally without any discrimination, regardless of the size of the transaction volume or the geographical location. In particular, as an exchange, it can not issue money. How can it be fair and just to be a referee and an athlete? Second, freedom of advance and retreat, without artificial barriers and obstacles. Free registration, free use (not transaction costs). There are no restrictions on the freedom of deposit and withdrawal. Your own money is up to you. What needs to be pointed out here is that today's exchanges are all unregulated. They are also in a period of barbaric growth. Like digital currency, there will surely be outstanding people who will become the benchmark after the waves, and there will also be runners who will leave behind a lot of chicken feathers

Third, monetary characteristics. It refers to the characteristics of a digital currency. A look at scarcity, that is, its circulation. Bitcoin is 21 million. There are many behind it. There are tens of billions and hundreds of billions of bitcoin. If the amount of bitcoin is too large, it is difficult to pry. Second, the theme is the entry point and application basis of a digital currency, from which we can see the social responsibility and existence of the digital currency. Nowadays, there are various themes, such as tips, watching Japanese AV, keeping virtual pets, naming planets, symbiotic economy, and so on. Different people have different opinions, but human society still has common basic values. As an investment, we should firmly grasp this point

Team background. The spirit of enterprise is the embodiment of human spirit. What a liar opens can only be a liar company. Therefore, in the face of a digital currency, it is also important to understand the background of its creative team members. What is the common goal of the team? What are the common interests? Which stage of development is currently in? This seems to be a bit difficult, but because we have the Internet, we can still do it, just don't believe what he said

digital currency investment, in the final analysis, is a technological activity, the key lies in learning and communication. Finally, the value of bitcoin lies in that it has led an era and successfully carried out a popular science ecation for the people on earth. In the future, the dominant digital currency will be the kind of digital currency that covers the world and is endorsed by the common value (such as gold), at least at a certain stage

the Internet will not die out, and digital currency will eventually move towards standardization and orthodoxy. As an investor, are you ready

2. Digital currency is abbreviated as digiccy, which is the abbreviation of "digital currency" in English. It is an alternative currency in the form of electronic currency. Both digital gold coin and cryptocurrency belong to digiccy. Digital currency is an unregulated and digital currency, which is usually issued and managed by developers and accepted and used by members of a specific virtual community. The European Banking authority defines virtual currency as a digital representation of value, which is not issued by the central bank or authorities, nor linked with legal currency. However, because it is accepted by the public, it can be used as a means of payment, or it can be transferred, stored or traded in electronic form. Digital currency is a kind of venture capital. Some people can make profits in this market, while others can make losses in this market. To make money, digital currency can be invested by mining and trading on the platform. Digital currency has price fluctuation and is investable in theory

warm tips: the above explanations are for reference only, without any suggestions. There are risks in entering the market, so investment should be cautious. Before making any investment, you should make sure that you fully understand the nature of the investment and the risks involved in the proct. After a detailed understanding and careful evaluation of the proct, you can judge whether to participate in the transaction
response time: December 2, 2020. Please refer to the official website of Ping An Bank for the latest business changes
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3.

"Investment is risky, so be cautious when entering the market." the same is true of digital currency investment

< H2 > I. channels for digital currency investors to understand the project: < UL >

instry community (e.g. wechat group, telegraph group, currency group, etc.)

instry media (e.g. golden finance, currency world, Babbitt community, block instry)

offline activities (e.g. blockchain instry summit, blockchain offline salon, blockchain cocktail party Blockchain project roadshow site, etc.)

instry tycoons (get some project information through communication with instry tycoons)

investment institutions (many good projects are aimed at investment institutions, not at outside indivials, so digital currency investors can contact with some investment institutions, Get the latest projects)

and so on

< H2 > Second, how do digital currency investors select projects

here, the blockchain instry will introce eight aspects to screen and identify blockchain projects:

1, white paper

the first thing to look at is the white paper of the project, which is very important. Usually, the white paper of the project will show the instry demand background, technical background, team information, instry pain points solved, investor relations and the future development plan of the project, etc. When you read the white paper carefully, you will have a clear understanding of the projects you invest in

2, team, consultant and platform boss

we know that investment projects in the investment field, in many cases, will look at people, and investment projects are mostly the founders and teams of investment projects. The blockchain technology talent market is very scarce. Under normal circumstances, there should be senior technical experts in the excellent team. Users must know the relevant information through multiple channels when looking at the project team members. If the project has a star or instry tycoon platform, you should be careful to avoid exaggeration or false publicity of the project

3, whether the project application solves the problem

after having a general understanding of the project, we need to combine with the real background of the instry where the project is located to deeply analyze whether the project has solved some problems of the instry, and whether the application scenario of the project is real and feasible. If the viewpoint of the project is far from the needs and problems of the instry, you should be careful about this project

4. Project code submission Review

users who know a little bit about technology can see the degree of team code submission. If they come out to raise funds without even code, the risk of the project is great

5, the degree of technological innovation of the project

on the level of technological innovation, we need to see whether the project gives full play to the technical advantages of the blockchain, whether there is innovation and whether it is open source. Generally, open source projects will be uploaded to githob. As for the common problems at the bottom of the blockchain, how the project side solves and plans them

6. Pay attention to the fund-raising situation of the project

we can have an in-depth understanding from the following aspects: whether the total amount of fund-raising of the project is reasonable, whether there is excessive additional issuance, whether the token allocation of the project is reasonable, whether there is a record on the official website, whether the team members make fraud, etc

7. Online trading platform

we can also make lateral judgment through the online trading platform of the project. In general, the well-known trading platform has a strong review on the project. If the project is launched on a small trading platform, or even a trading platform that has never heard of, it needs to be treated with caution

8. Refer to the opinions of the third-party project rating agencies

at present, there are not a few third-party project rating agencies in the market. We can refer to the suggestions and opinions of the third-party project rating agencies on the project as a channel for us to understand the project. It is possible that the project rating agencies have different scoring systems for projects, but their final results will not have a big gap, which can be referred by many parties

How to invest in digital currency

after understanding and determining the project to be invested through various channels and means, we should look at the progress stage and fund-raising situation of the project. Here, the block instry reminds you that when you want to participate in the project investment, please contact the official or officially authorized service provider of the project to avoid being cheated by criminals

4. One is to invest in BTC, for example. At present, there are three channels to choose from:

1. Direct trading, which depends on the market and price difference to earn income, has great risks and consumes more time and energy

2. Become a miner, get bitcoin at the cost price, and then sell it in the market. But now the cost of miner is too high, and there is a lot of investment in the early stage

3. The income of bitcoin's financial management will be less than the first two, but it is better than stability and safety. It means the same as the bank's Fund. At present, AEX's financial supermarket, coin an Bao of coin an, and OK's Yu coin Bao are popular in the market. AEX's financial supermarket has the debt transfer function that other platforms don't have. If you invest on it, your capital transfer will be more flexible

indivials prefer the third.

5. Market can, can do this, dcpro authority, operation is not difficult.

6. This is the level of technology. The specific parameters depend on its architecture, and the frequency is secondary. The level of technology directly affects its power consumption and energy efficiency ratio, as well as its chip area

7. Klaytn cooperates with software / hardware wallets, device manufacturers, financial institutions, global NFT market and blockchain Service Statistics website to further expand klaytn NFT blockchain ecosystem.

8. You can choose cloud wallet for investment. It is a public network platform in China. The monetary unit in it is "AIC". At the beginning, it will give you 300 shares, which will be allocated to big data, artificial intelligence and automatic driving 10aic = 1 equity)

9. There are two key problems in fund investment. One is what fund to buy and the other is when to buy and sell. In comparison, the latter problem is no less troubling than the first one. Because the profit of fund investment lies in buying low and selling high to earn the price difference, there is no other way. In order to achieve the goal of buying low and selling high, it is all about choosing the right time to buy and sell. Therefore, the importance of timing cannot be overestimated. This problem has always been a puzzle for investors, even for institutional investors, it is difficult to judge the best time to buy and sell. From the perspective of China's fund investors' purchase and redemption behavior, a large number of purchase funds will flow in when the market rises sharply and the profit-making effect is obvious. It means that investors tend to believe in long-term holding and holding loss making funds when they are losing money. However, after the early investment funds are deeply set, they will have a certain degree of fear, and many investors will choose to redeem when they are finally set free. When making investment decisions, Jimin usually has a kind of obvious error. When the investment is in a profit-making state, it is easy for investors to rush to sell after a small increase to make a profit; In contrast, when the investment is in the state of loss, investors are not willing to sell to admit the loss. In this way, when investors need working capital, they usually sell the funds that make profits or lose less, rather than the funds that lose more, which will lead to the situation of "bad base driving out good base" and no good return. Looking at the fund purchase and redemption behavior for many years, we can see that the failure of this timing behavior is more than the success
for investment, the most ideal situation is to buy at a low price and sell at a high price, increase positions at a low price and rece positions at a high price. However, it is extremely difficult and even impossible to achieve this every time. When we talk about the timing of the market, because we are looking back, we can see the fluctuation of the market clearly. We can boast that we should buy at this time point and sell at that time point. In the investment operation, we are faced with the future market, and it is difficult to accurately grasp the rise and fall. In fact, the stock market often falls soon after buying, or the stock market soars all the way after redemption
the securities market has always operated according to its own inherent rules, and will never be subject to the wishes of some people. If we do not devote ourselves to studying how to buy and sell funds at the right time, it is difficult to make profits; Even if there is a floating surplus, it will evaporate sooner or later, and even become a "quilt group" again
the following article is excerpted from the website of Dongfang fund, which can be used as an important and useful reference for the timing of buying and selling:
[comprehensive use of the following four moves can effectively predict the periodic trend of the market, Then choose the right time:
the first move is to analyze and compare the relationship between the market turnover and the stock index
when it is found that the trading volume begins to shrink after the initial huge volume, and the stock index also shows high stagflation, or even begins to callback, it can be interpreted as the market has been weak and facing the risk of decline, so we should consider the redemption operation. On the contrary, when it is found that the market turnover is shrinking from large to small, and the stock index has undergone a long period of substantial adjustment from high to low, even showing a low horizontal trend, it can be understood that most of the risks have been released and should be regarded as a buying opportunity
the second move is to listen to the voice of public opinion
when you hear that the bearish voice has occupied the dominant position, and the stock index has experienced a long-term sharp decline, at this time, the market is likely to be at the bottom of the region, you can consider buying. When you hear that the rising is dominant, and the stock index has experienced a long-term sharp rise, the market is likely to be at the top of the region, so you should consider withdrawing as soon as possible. If you don't believe it, please review your own experience: is it just when many people are enthusiastic, and some even think that the stock index will rise to 8000 or even 10000 points, the market has entered an unprecedented bear market? Is it just when everyone is pessimistic and desperate, and some people even conclude that the stock index will fall to 1000 points, the market has entered a sustained rebound process
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the third move is to identify the market reaction in front of all kinds of news
in case of bad news, it can be regarded as a buying signal; In the case of good, it should be understood as a sell signal. The reason why we should do this is that in the face of a factor that can affect the market trend, whether it is good or bad is usually only the subjective opinion of some people, including experts. In addition, natural and man-made disasters such as snow disaster, earthquake, Sanlu milk powder incident and epidemic situation themselves are unpredictable or even unpredictable factors, Therefore, if the basic people want to invest at the right time, they must go out of the ideological misunderstanding of substituting subjective judgment for objective facts, and operate in accordance with the trend of the market
the fourth move is to observe the attitude of the fund
to see whether the fund has generally implemented large-scale dividends. If the observation of net value shows that the fund has made a huge profit, but most of the funds have not issued a dividend announcement, it can prove that the fund manager is still optimistic about the future market and is willing to continue to maintain a high position, so you can naturally buy; If a batch of funds issue dividends, especially large dividend announcements, we should be alert. It is likely that these fund managers have sold a large number of stocks and are no longer optimistic about the future market. Naturally, it is necessary for you to consider whether to redeem them
the following views on the timing of buying and selling are worthy of great attention:
(1) the timing of buying 1. The stock price has fallen for more than three consecutive days, and the decline has graally narrowed, and the transaction has also shrunk to the end. If it suddenly becomes larger and the price rises, it means that there are large households coming into the market to eat, so it is advisable to buy as soon as possible. 2. At the initial stage of the stock price from decline to rise, the trading volume graally enlarged, resulting in an increase in price increase, which indicates that the future market is optimistic and it is advisable to buy quickly. 3. When the P / E ratio falls below 20 (subject to the annual interest rate of 5%), it means that the return on investment of the stock is the same as the return on deposit in the bank and can be bought. 4. Indivial stocks open with the limit down, and close with the limit up, indicating that the market will reverse greatly and should be bought as soon as possible
(2) selling opportunity 1. If the stock price can't reach a new high after soaring, the market may fall. 2. After the stock price falls below the base price support, if the stock price falls below the upward trend line for several consecutive days, it indicates that the stock price will continue to fall. 3. For example, the first wave of the stock price index rose from 2500 points to 3000 points, the second wave rose from 3000 points to 4000 points, at 4000 points straight to 5000 points, the short-term goal has been achieved, if it can't rise after 5000 points, it can't rise again. 4. After the stock price falls in a certain band, it enters consolidation. If it does not rise and falls for a long time, it should be sold
it is very important for investors to set up stop loss points and profit points. When the stock market has been rising for a long time and there is a signal that the stock market should be redeemed e to possible correction, they should redeem out of the market according to the profit points set up in advance, so as to make profits safe. They should not be too greedy or even waste their profits, It is suggested that the stop loss should be set at 10% of the loss after taking into account the subscription and redemption expenses. When the stock market has experienced a period of decline, the fund has lost money, but the fundamentals have not changed much, and the future market is still bearish. At this time, we should also consider the redemption stop loss< Redemption should follow the following principles:
1. It is a good rule to redeem in batches and build or rece positions in batches. Investors with a large amount of investment fund or a large proportion of fund investment in total assets can consider a certain extent of market rise (e.g. 20%) to redeem part of the fund, which is concive to recing the risk
2. Although the stock market has been declining for several consecutive days, the cumulative decline is less than 10%. From the fundamental analysis, there is no bear trend. The funds you hold have always performed well, so you should not redeem them, because once you sell them, you may not be able to buy them. Due to the view that too large a scale will affect the performance, this kind of blue chip funds usually suspend subscription when the scale reaches a certain extent, but still open for redemption. "Pause" is often a stop for half a year or even more, such as the Chinese market
3. Some investors have to change their funds into high-quality funds with the highest yield, so that they frequently redeem and then apply for them. This is an ideal perfectionism. It should be noted that no fund in the world can be the first in all the time. As a result, it is exhausted and loses the original meaning of easy investment, and often does not help to make profits. Economist Simon once said, don't ask for the best, just be satisfied. Fund investment is also valued in contentment. Due to the plate rotation effect in the stock market, different funds with heavy positions in different plates are likely to lead in a certain period of time. As long as your fund is in the top 1 / 3 of the same type most of the time, it is very good
to learn how to use funds to convert funds, the transaction fee of funds is relatively high. Therefore, if every time the market is bad, investors choose to redeem the funds and apply for them when the market is good, they will undoubtedly pay a lot of investment costs. In fact, there is no need to do so. Generally speaking, when the stock market is not good, the stock funds in hand will be converted into money market funds or bond funds and other low-risk varieties to avoid losses caused by the decline of the stock market; When the market turns warm, the low-risk and low-yield varieties in hand will be converted into stock funds or hybrid funds, so as to fully enjoy the benefits brought by the rising market
on many fund websites, there are a large number of comments on the future trend every day. If you look closely, there are no two articles with exactly the same view, and some
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are even quite different, Make the novice confused. Can't find the East, West, North and south, operation into passive. They do not have their own ideas, and follow suit operations often end in losses. We should refer to rather than completely listen to the comments of experts, seriously carry out independent thinking and analysis, and graally cultivate and improve the ability to judge the future market trend. In this way, after a period of exploration and summing up the successful experience and the lessons of failure, we will have a strong judgment ability and make the rate of return on investment higher and higher.