Currency risk

There are certain risks in virtual currency. Investors should know in advance and be prepared to enter the currency circle. The risks of the currency circle are mainly three types: currency, transaction and legal risk.

A, the risk of currency

To trade virtual currency, you must first acquire a certain amount of virtual currency. There are three main ways to obtain mainstream. After a certain amount of virtual currency, the virtual currency needs to be exchanged for legal currency, mainly through legal currency transactions.

1. French currency trading：Mainly through the trading platform provided by the exchange, and the merchants of the platform exchange for virtual currency. The merchant will give the unit price of the sale and purchase pricing currency according to the market value. The investor will purchase the currency or directly sell the virtual currency in exchange for the legal currency. The payment methods mainly include Alipay, bank card and WeChat (the individual merchants will not support all three). Please be aware that the minimum transaction amount specified by different merchants is different.

The risk is mainly from the exchanges and merchants. The way of identification is similar to that of Taobao. It mainly identifies whether the exchange is a mainstream exchange, whether it enters the real website and APP of the exchange, and whether the merchant's credit rating and transaction rate are high enough.

At the same time, the legal supervision of each country is also a kind of risk. The legal currency transaction may directly contact the law, please know.

2、Mining：Mining mainly relies on stacking machine power to calculate the blockchain. The higher the computing power, the more coins are calculated in unit time. The advantage is that the mainstream currency can be dug. The disadvantage is that it requires a venue. Manage the machine.

The main risk is that the income does not meet the electricity bill (because the higher the computing power, the higher the electricity bill), the machine cost can not be recovered, the mine has a natural disaster, etc. (so the miners have a famous saying, mining does not speculate, the coins do not mine) .

At the same time, the mine itself may also be illegal.

3、Sending coins：In the early stage of promotion, many exchanges and projects will propose to join the members to obtain the coins. In the medium term, there will be various rewards for obtaining the coins. The main methods are: registration, delivery, promotion/sale, delivery, sign-off, investment return/rebate , reply / transaction / participation is mining, fee reduction, daily random scraping and so on.

The risk here depends first on what project he is, what company, whether there is a risk of divestment, and secondly, what currency is he giving, whether it has real value, whether it can be traded on another platform, or whether the currency is valuable to you ( Such as Tianya community tokens, McDonald's tokens, Thunder tokens, etc.), whether the gift conditions are strict, the most important gift of the money can be exchanged for physical goods or wallet, can not explain how much may be invalid.

Generally, the activities of mainstream exchanges can participate appropriately if they have conditions.

B. Trading risk (only talk about currency transactions)

1、Market fluctuation：The trading logic of the currency is similar to that of the stock market. If it is not transferred, it will be set to death. Generally, the actual loss will not occur. The actual loss only occurs after the transfer or the value of the currency is cleared. If there is patience, if the market rises, it can still be returned. It is profitable. In currency transactions, investors earn and lose money are denominated currencies. The denominated currency itself has a market volatility. When trading in the currency, pay attention to the timely timing of a good market (such as after the bitcoin surge), a certain amount of currency, especially the profitable denomination currency. Out, change to legal currency, fall into the bag for security, it is not recommended to stay in the currency market to continue to add value.

Pay attention to market fluctuations and avoid high entry.

2、Fall through risk：There are more than 1,000 kinds of virtual currency, and the number is still increasing. It is filled with a large number of altcoins and air coins. These currencies are very easy to fall through. It is the loss of the project side, the value of the currency is cleared, and all the inputs are taken away. One of the main reasons why virtual currency is not optimistic.

It is recommended to select the mainstream currency for trading, avoid trading non-mainstream currencies, and keep in mind the diversification of investment, not all funds are invested in virtual currency.

3、Currency exchange risk：Different currencies have different market capitalizations, there are tens of thousands of RMB, and there are also a few yuan of RMB. If you want to enter certain transactions during the transaction, you must first find out whether your exchange supports it. Currency-to-transaction (whether you need to open another account on another exchange), don't replace all the funds in the past. It is recommended to use a small amount of funds to test it first.

It is recommended to look at the market trend before deciding whether to enter.

4、Valuation currency risk：If you hold bitcoin, bitcoin assets will shrink when the market falls. For example, today there is 1 bitcoin. Today's price is 50,000 RMB, and after 1 month you have 2 bitcoins, but bitcoin The price has become one of 20,000 RMB. In the case of USDT, the exchange rate of the exchange currency is relatively stable. According to the exchange rate of RMB against the US dollar, it is generally between 6 and 7.

Please reasonably choose the currency you are holding according to your psychological endurance and reasonably allocate assets.

Remember to exchange a certain amount of denomination currency in the period when the price is right, and exchange it for the legal currency. It is safe to pack the bag. At the same time, when the market is not good, depending on the specific circumstances, it is possible to appropriately carry out a certain amount of currency replenishment for CCR. Make up the position.

5、Exchange risk:An abnormality in the exchange causes the user to make a mistake in the transaction (repetitive transaction, unable to trade, transaction freeze, etc.) or asset loss (user asset loss, exchange asset loss, etc.), etc. This situation occurs only after waiting for the exchange to provide a solution. Program.

Please choose your own exchange based on your own judgment, combined with the reputation of the exchange and the history of the error.