What is coin How can you make money with coins?
What is coin? How can you make money with coins? is a question people Make money online Always learn .coin (virtual currency) is the common name of coins electronic money (electronic currency) or digital currency (digital money). This is a unit of currency in digital form, not physical form like coins or banknotes. Usability predicts that it will be used like traditional money in the future, but with digital properties like instant transactions and cross-border money transfers.
WHAT IS COINS?
The European Banking Authority (EBA) does not define a coin as a digital currency unit issued by a central bank or authority that is not necessarily tied to fiat money but is accepted as a means of payment by a specific group or community and can be transferred, stored or transferred handled electronically.
Coin is a cryptocurrency issued on a blockchain platform with basic functions such as smart contracts, sending and receiving, mining … Coins were created to solve payment and security problems. , Finance, application development …
One of the most outstanding features of the coin is its use as a method of investing money.
HOW TO USE THE COIN PROFIT?
To make a profit on coins, people usually use the trade coin, holding coin and mining coin shape.
2.1. Trade coin (Margin trading):
Is a form of buying or selling cryptocurrency during the day on margin exchanges. Leverage mechanism and low margin to multiply profits and trading volume.
Matching object: All objects, the most common ones, however, are still retailers with low capital investment and want to benefit from the price movements of the crypto currencies.
2.2. Hold a coin (Buy and keep):
Is a way of buying coins on cryptocurrency exchanges and waiting a long time for them to go up in price when they sell in the future. Coin owners will not sell even if the market fluctuates.
Matching object: Individuals and organizations with a large amount of capital have the opportunity to see the potential of the cryptocurrency market and determine the market trend over the long term.
2.3. Mining coin (Mining):
Is a form of buying computer equipment, specialized diggers to mine large coins yourself, or joining mining pools and then selling them in the market.
Matching object: Individuals and corporations are highly capitalized and bear the pressure to lose when the cost of production exceeds the value of the coin after mining. This form is no longer popular.
Terms to know when playing trading coins
- Sharks, whales: Only one person or group of people holds enough coins to manipulate the market.
- pump: Driving up the price of a given coin
- Dump: The price of a given coin has fallen sharply.
- Stop: Hold a certain coin for a long time (months to years) and not sell it despite market fluctuations.
- Match (match order): If a buy and sell order have the same price, the trade is matched.
- Bull (buyer): If a person believes the market will rise and buys continuously, we call it bullish.
- Bear (sales page): If a person believes the market is going to fall and continues to sell, we call it bearish.
- Stop loss (stop loss): When you feel that the coin price is going down, execute a sell order to minimize the loss.
- Stop limit: Place an order that will be automatically matched when buying and selling at a specific price. Stop is the price at which the order should be executed, Limit is the best price you would like to get for this trade.
- Take Profit: When investors think the price has peaked and start selling to make a profit.
- volume: Trading volume of this coin in one trading session, usually calculated in 24 hours.
- Low: Lowest price in one session of a transaction.
- High: The highest price in one session of a transaction.
- Last price: The last bid or sale price.
- Span: This is a form of financial leverage. When users borrow money from the exchange to trade, they can buy more coins than they actually have.
- Long: When a trader borrows money from the floor to continuously buy coins in the hopes that the price will be even higher. (Used as a margin when the coin price is higher, you only need to pay the price when borrowing).
- Short: When a dealer sells a coin in the hopes that the coin will sink in order to buy it back. (Used as a margin when the price goes down, you still have some balance after paying the debt on the floor).
- Support threshold: Is the price range in which, if the price goes down, buyers support it to go up again.
- Resistance level: Is the price range where when the price rises, sellers support it to fall.
- FIAT (Fiat currency): A currency issued by the government, e.g. B. USD, VND, EUR etc.
- USDT (tether): As a digital USD, traders often use USDT when trading coins to “avoid storms” i.e.
- Market capitalization: Is the total capitalization of all coins available on the cryptocurrency market together.
- BTC dominance: Is the Bitcoin Dominance Index, i.e. the total capitalization of Bitcoin / the total capitalization of the entire market.
How many types of trade coins are there?
There are currently 2 main forms of trading coins that are most commonly used by traders:
4.1. Trade through technical analysis:
This is a difficult form if you are a newbie and need to learn how to use it properly. With this form, traders rely on charts, graphs of price movements and trading volumes of coins to analyze fluctuations in supply and demand and then determine when to buy, sell or hold. Of course, no matter how demanding a trader is, technical analysis is not always correct, there are times when his predictions do not align with the market.
4.2. Act on news:
The current cryptocurrency market is heavily influenced by news, good news usually goes up and vice versa when bad news prices go down. This is because most investors suffer from “FOMO Syndrome”, which is the type of coin trading that traders rely on to predict prices and decide when to buy and sell to make money.
Main features of a simple coin purse
API code integration
Cryptocurrencies can be secured on the exchange through the integration of email confirmation and SMS service.
Borrow cryptocurrency to trade on the exchange and return it at a set price.
The ability to encrypt data enables the security of transactional information as well as personal information.
Integration of the payment gateway
Users can withdraw and deposit cryptocurrencies through the payment gateway using a variety of methods.
Member Referral Program Member
Users receive a commission when they refer other members to participate in the exchange.
2-step security is a secure method of verifying user identity with Google Authenticator.
Manage exchange functions like KYC, tickets, referral programs and all transactions.
Smart contract (smart contract)
Cryptocurrencies are exchanged between buyers and sellers via a secure smart contract.
Resist changes and user “hacking” actions with blockchain technology.
Important NOTE: All content on the website is for informational purposes only and does not constitute investment advice. Your money, the choice is yours.