Many people don’t understand what spot, contract, leverage, long, short, liquidation, position closing and position closing mean in the cryptocurrency circle.

1. Spot: Buy the coin directly and sell it when it rises to make money.

2. Contract: Buy the derivative of the coin. By judging the future market rise and fall, choose to go long (buy up) or short (buy down) to earn the rising/falling income.

3. Leverage: Used with contracts to increase the multiple. The more leverage multiples, the more you earn, and it is proportional to the risk. The higher the multiples, the greater the risk, and the lower the multiples, the lower the risk.

4. Long (long): Buy bullish when you think it will rise later. Income = principal × increase × leverage multiple. Loss = principal × decrease × leverage multiple.

5. Short (short): Sell bearish when you think it will fall later. Income = principal × decrease × leverage multiple Loss = principal × increase × leverage multiple. 6. Liquidation: Long liquidation: The principle of long orders is to be bullish on the future market, borrow money to buy first, sell at a high price when it rises to make a profit, pay back the borrowed funds, and the rest is profit. If a long order encounters a falling market, the loss will be forced to close when it reaches the account margin, and the money in the account will be directly cleared. For example, at a certain price, you think it will rise in the future, so you open a 10x long position, that is, the long money is ten times the margin. Your margin is 10,000 U, and 10x long is equivalent to the exchange lending you 90,000 U first. You use this 100,000 U to open a long position. The price of the currency has fallen by 10%, which is equivalent to a loss of 10,000 for opening a position of 100,000, and your principal is only 10,000, and the remaining 90,000 is borrowed. In order to prevent you from not being able to pay it back, the exchange will forcibly take back the 90,000 lent to you, and because you have already lost 10,000, there is no money in the account, and it is zero. This is a long liquidation. Short position explosion: The principle of short position is to be bearish on the future market. First borrow coins to sell, and then buy the same coins at a low price when the price drops and return them to the lender. The remaining money is the profit. If the short position encounters a rising market, and the money previously borrowed to sell is not enough to buy back the same number of coins at a high price, it will be forced to buy back. At this time, the price of the coin is higher than the opening price. Your principal plus the loan can only buy back the same number of coins. After returning the coins, your money is gone. For example, if you short a certain currency at a price of 10,000 U, and your margin is 10,000 U, it is equivalent to the exchange lending you 9 coins worth 90,000 U at this time plus your one coin worth 10,000 U, a total of 10 coins. You sell first

A piece of advice for cryptocurrency traders! ! !
Whether you hold BTC, ETH or BNB, take three minutes to read this!
Nine things not to do after you achieve financial freedom in the cryptocurrency circle.
First, don't let people around you know that you are trading in cryptocurrencies. There are many reasons, and those who understand will understand.
Second, don't let others know how much money you have made. Don't post profit charts or asset charts to avoid unnecessary trouble.
Third, don't post your rich life in your circle of friends. Except for your closest relatives, no one wants you to live well. Showing off can easily lead to jealousy.
Fourth, after acquiring a large amount of wealth, keep a distance from the people you knew before. After many cryptocurrency bigwigs achieved financial freedom in the bull market in 2013, 2017 or 2021, the first thing they did was to resign, and they never went to work again. The second thing is to delete all the people you knew before.
Fifth, don't touch gambling and drugs. Gambling will destroy people on the psychological level, and drugs will destroy you on the physiological level.
Sixth, don't call people stupid, harmony is the most important thing
, getting angry affects your fortune. Stay away from trash people
, stay away from people who consume you. If you encounter disagreements, just block and delete them directly. It's a waste of time to say one more punctuation mark.
Seventh, don't take the initiative to do good, don't pity anyone, let go of the complex of helping others, and respect the fate of others. Just do your best, and let the rest take its course.
Eighth, don't invest in areas you are not familiar with. People can't make money beyond their cognition.
Ninth, resolutely don't touch physical entrepreneurship unless you enjoy it and don't make money. In terms of the current economic environment, physical entrepreneurship is a life-or-death struggle#非农数据