How much do you know about the cryptocurrency market?

As more and more people focus on the cryptocurrency market, the number of newcomers wanting to participate in trading cryptocurrencies is also increasing. However, there are not many who truly understand the cryptocurrency market. Today, Lulu is here to share some basic knowledge about the cryptocurrency market to help newcomers better get started.

Digital currency: The virtual currency used in the cryptocurrency market, such as Bitcoin, Ethereum, etc.

Fiat currency: Legal tender issued by the government, such as the US dollar, Chinese yuan, etc.

Project party: The company or organization that issues digital currency.

Private placement: A way to invest in cryptocurrency projects, where the project party raises funds for platform operations.

ICO: Stands for 'Initial Coin Offering', similar to an IPO in the stock market, a fundraising activity where blockchain projects exchange their issued virtual currency for commonly used virtual currencies in the market.

Price Drop: Refers to when the price of a virtual currency falls below its issuance price.

Airdrop: Digital currencies that are distributed free to users by the project team when they are first issued, serving as a promotional and hype-building tool.

Airdrop: A marketing method in cryptocurrency, where the token team distributes tokens for free to inform potential investors and enthusiasts about the tokens.

Leverage: Using a small amount of capital to invest multiples of the original amount, aiming for a return that is a multiple of the fluctuations of the investment target.

Coin Standard: Using digital currency as a settlement method.

Market Trading: Buying and selling transactions at current prices, which have trading priority.

Limit Trading: Buying or selling transactions at specified prices, also known as order trading.

Wallet: A tool for storing digital currency assets, divided into hot wallets and cold wallets; hot wallets are connected to the internet and cold wallets are not, making them more secure.

Big Cake: A nickname for Bitcoin.

Auntie: A nickname for Ethereum.

Chives: Refers to people who trade cryptocurrencies, often newcomers or retail investors who are not proficient in investing in digital currencies.

K-Line Chart: A chart that reflects the price trend of digital currencies, consisting of the opening price, closing price, highest price, and lowest price.

Bull Market: A market condition where the prices of digital currencies are rising.

Bear Market: A market condition where the prices of digital currencies are falling.

Halving: Bitcoin and other digital currencies halve their mining rewards at certain intervals, reducing block rewards.

Miner: Individuals or organizations that participate in mining Bitcoin and other digital currencies.

Exchange: A platform that provides digital currency trading, such as Binance, Coinbase, etc.

DApp: Decentralized Application, an application built on blockchain technology.

DAO: Decentralized Autonomous Organization, an organizational form built on blockchain technology.

NFT: Non-fungible Token, representing unique or rare digital assets, such as crypto art, game items, etc.

DeFi: Decentralized Finance, financial applications built on blockchain technology.

Gas Fee: Transaction fees on the Ethereum network.

PFP: A process where project teams or developers obtain new NFT numbers and publish them in public markets for people to collect and use.

Liquidity Mining: The act of earning token rewards by providing liquidity.

TPS: Transactions Per Second, an important metric for measuring blockchain system performance.

The above terms are for reference only; it is recommended to consult professionals for more accurate and comprehensive information. Please also note that the cryptocurrency market has risks, and investments should be made with caution.

Important Reminder: Beginners should not engage in contracts!
Contracts may seem like a shortcut to quick wealth, but they are actually filled with risks. Beginners often fall into liquidation and bankruptcy due to a lack of experience and knowledge, rather than quickly achieving financial freedom.