What is Speculation in the Coin Circle (Brainwashing Techniques of Coin Circle Speculators)

What is speculation in the coin circle? Coin circle is a very important sector in the blockchain industry. With the promotion of Bitcoin, it has become the most popular sector – “cryptocurrency”. However, due to the sluggish development of the cryptocurrency market and the high attention from investors, many people choose this sector. But in fact, with the increasing popularity of encrypted digital assets, there have been significant changes in the information behind it, including competition between exchanges, decentralized financial platforms, and various DeFi protocols; these emerging technologies are also considered the future direction of the cryptocurrency industry.

From the current perspective, the coin circle has formed its own characteristics:

1. Investments primarily focused on BTC can be understood as speculative tools for speculators or traders, while ETH does not have such investment opportunities.2. Unlike other mainstream digital assets, the price of Bitcoin is mainly determined by supply and demand, meaning that an increase in price will bring more demand from buyers and attract more participants.3. Compared to other traditional stocks, Bitcoin has a higher rate of return, thus reducing the difficulty for ordinary investors to enter this field.4. In addition to digital currencies, most of the altcoin projects raise funds through Initial Coin Offerings (ICOs).5. DeFi products developed on the Ethereum network also have certain risks, such as security vulnerabilities in smart contracts and the emergence of Dapps. (Note: This article represents the author’s views and does not constitute any investment advice.)6. The market cap of Bitcoin continues to rise. As of the time of writing, Bitcoin’s market dominance has reached 65.28%. XRP ranks fifth with a market cap exceeding 10 billion US dollars, followed by EOS and LTC.7. Binance announced the launch of Ethereum futures contracts and is expected to launch the mainnet by the end of this year. BitMEX officially went public on October 21, 2020, with a current price of $0.041. Binance’s spot price is $0.019. (Data source: bitcoin.com/market analysis)

Brainwashing Techniques Revealed by Coin Circle Speculators

Editor’s note: This article is from Fengchao Finance News (ID: fengchao-caijing) and is authorized to be reprinted by Odaily Star Daily.

Recently, coin circle speculator “Xiao Jiu” shared his brainwashing techniques and experiences in a WeChat group: “I recently saw a joke saying that I buy Bitcoin for short-selling, and then I found out that someone wants to mine altcoins? How is that possible?”

In the past few days, “Xiao Jiu” also revealed in a live broadcast that he is now in a new state – traders have started frequent operations in various contract transactions. “Xiao Jiu told me that several friends are playing futures.” He also claimed that this is a typical arbitrage behavior.

According to incomplete statistics, the current long position of BTC perpetual contracts on domestic exchanges has exceeded $300 million, and the spot position of Bitcoin has exceeded $600 million. “You give me a thumbs-up and you’ll make money,” he said, “I’ll write down all your suggestions, but the price is too high.” However, some people have expressed that this model is not suitable for ordinary retail investors.

In addition to liquidation, another situation that people pay attention to is the theft of leveraged funds. After this incident occurred, many big players have also joined this round of investment to participate in such activities. On January 20th, OKEx CEO Jay Hao posted on Weibo: “Many big players will choose to lay out some contracts first, but for these old leeks, they often cannot easily seize the market. For example, we cannot see that a sum of money will run away or directly flood the market.” As of 7:30 p.m. on February 19th, USDT on OKEx platform has risen by more than 2% in a single day, and it has fallen by 70% as of the time of writing. According to OKEx’s data, USDT has risen nearly 20% in the past month, with a highest price of $18.4! In response, Jay Hao himself replied, “My personal analysis did not mention the issue of leveraged funds. In fact, I also believe that after the bull market comes, it is time for leveraged funds to flee. Either wait for a pullback and then sell, or if the next market goes well, it should be the performance of leveraged capital.” Jay Hao added that due to the huge market fluctuations, investors are easily prone to losses or loss-related exits. Similar incidents have been reported by various media since the end of February.

1. Around September this year, a certain exchange suddenly announced the suspension of services. Subsequently, there were a large number of issues related to the exchange. In addition, due to the high regulatory requirements for cryptocurrency trading platforms, users could not withdraw legal tender normally. Starting on March 22nd, some mainstream virtual asset trading platforms suspended all exchange-related businesses. At the same time, some large institutions also stopped using their OTC platforms. Some companies even transferred their clients to other overseas websites for custodial processing.3. “Black Swan” and “Air” issues often cause panic, such as “The White House freezes all bank accounts”, which attracts public attention. (Wu, blockchain commentary)