This article will tell you some relevant knowledge about digital currency. I have been in contact with digital currency for a while, so today I will share with you what I know and understand. If you are a novice, after reading this article, you will basically have a general understanding of digital currency.
The most important question is whether digital currency is legal in mainland China. First of all, there are two points:
1. When you mine, it is illegal and mining is not allowed. However, it is legal to buy and sell virtual items in China. The premise is that you cannot leave the platform for trading.
2. If you have concerns about digital currency, or even think it is a pyramid scheme, or something illusory. Then maybe you have a slightly wrong understanding of it. Why? Just like when we used to play computers or games, people might say that this person is playing with things and is not doing his job. But now there are many people who are engaged in, for example, the Internet or games, and they can make money. Because the times are progressing, everything has its own inevitable reasons for its emergence and development. Therefore, digital currency is widely used in many fields. Blockchain technology has more advantages than traditional accounting methods. Because it cannot unilaterally change a ledger, blockchain technology can be used in many fields.
As for whether it is a bubble, some digital currencies are bubbles. For example, after developing a certain project, people disappear after raising a lot of money. But there are also many blockchains with better ecology. For example, it has some NFT attributes, or some other attributes. So the mainstream currencies can basically be used. Even for example, every time we transfer a transaction, we need mainstream currencies to perform an operation. I will also show you how to operate it in a while, and you will know why some digital currencies are very strong and they always have their value. But some digital currencies suddenly appear, but disappear after a while.
Next, I will use a mobile phone to demonstrate how to trade digital currencies. First, if you are in mainland China, there are two platforms that are also used by Chinese people. One is Ouyi and the other is Binance. Of course, Binance is used by the most people. So we will use Binance for demonstration today.
1. Binance Account Registration and Download
If you haven’t registered a Binance account yet, you can click the Binance registration link below to register.
Binance: https://www.binance.com/zh-CN/join?ref=114789569
After registration, Android users will automatically jump to the download page. Apple downloads require an overseas Apple ID. You can watch the video below to register an overseas Apple ID.
Any investment has risks. All your transactions must be completed under the premise of idle funds. Digital currency can be traded not only on one platform, but also through Fox Wallet or some other tools. Cold wallets and hot wallets can be traded. You only need to pay the burning fee. The burning fee means that it needs to package the ledger once. For example, some people are based on the BNB chain, and some people are based on the Ethereum chain. Especially like Ethereum, it has the attribute of data packaging.
2. Introduction to Binance Exchange Functions
After we open the Binance App, we first need to understand a few pieces of information. If you are a stockholder, you should be very clear that after you register for this software, you must go through a real-name authentication. Even later, if you need to bind your bank card, the bound bank card must match the name of the real-name authentication.
At the top of the Binance homepage is your assets. This asset is actually divided into two parts. One is in the fund account and the other is in the trading account. The fund account is the account I put in my own wallet without trading. The spot account is where I use this digital currency to buy other digital currencies. This account is the spot account, that is, the trading account.
The two most commonly used coins in digital currency are stablecoin and non-stablecoin. They are mined from other currencies. Stablecoin is pegged to the US dollar, and even its exchange rate with the US dollar is basically the same. Every time it issues a USDT, it must have a US dollar fund as collateral, which is equivalent to a regulation. So stablecoins are relatively resistant to risks. Basically, when we buy digital currency, we use RMB or your local currency to buy Tether, that is, USDT.
Next, we will go to the market. There are various currencies in the market. Each currency has different application areas, so its value is also different. Some even have hype or speculation.
The button in the middle is for trading. For example, if you like a certain currency, you can buy it here.
3. Buying and selling USDT
I will now demonstrate it to you briefly. We need to buy USDT before trading.
1. Go back to the homepage of Binance and click [Recharge] on the top. Recharge here is divided into two parts, one is quick purchase of coins, and the other is digital currency recharge. There are two concepts in recharge, one is to recharge from other digital currency platforms to this platform. You can also recharge from your wallet to this platform. If you don’t have coins on other platforms, you can directly choose quick purchase of coins. In this way, you can use RMB to buy USDT.
2. The quick purchase of coins is divided into the self-selected area, the quick area and the bulk area. The quick area allows you to trade directly. The self-selected area means you can choose a merchant yourself, because the requirements and prices of each merchant are different. If you want a large amount, or want to buy from a fixed merchant, you can buy in this self-selected area. If you are buying a small amount, you can buy in the quick area.
3. You can also buy various coins in the quick zone, such as USDT, BTC, BNB, etc. For example, if I want to buy USDT, I will select "USDT". The "CNY" in the upper right corner is the legal currency we want to use, which means RMB. You can also switch the legal currency you want to use here. Select "Buy", enter the amount to buy, and click [Buy USDT]
4. Select the payment method, and he will tell us that if we pay 100 RMB, we will receive 13.19 USDT. Click [Confirm Purchase]
5. After confirming the purchase, the platform will automatically match the merchant for us, and we will make the payment according to the payment information displayed by the merchant, and the payment needs to be made within 15 minutes. At this time, the seller's USDT will be pledged to the platform.
6. After the payment is completed, click [I have paid, notify the seller], and the platform will transfer the digital currency you bought to you. Quick purchase of coins is equivalent to the seller having pledged the corresponding digital currency to the platform. Therefore, the platform can conduct transactions very quickly.
The USDT we bought will be in the fund account, and you can search in the fund account. This is a quick way to buy coins.
7. You can also choose "Self-selected Area" where you can make large purchases. When making large payments, you must check whether the other party has pledged the digital currency to the platform before making the payment. In theory, you will not go wrong if you follow these steps. Of course, you can also make a small purchase first and then a large purchase.
8. When you have digital currency or you have completed the transaction and do not want to speculate in digital currency, you can sell your digital currency. Exchange it for RMB, which is legal currency. Legal currency is a legal currency. We need to transfer it before buying coins. Because my USDT is in the trading account, not in the capital account. Click [Transfer] in the spot account, from the spot account to the capital account, select USDT as the currency, transfer all, click [Confirm Transfer], and the transfer is successful.
9. A spot account is an account where you can directly use digital currency to buy and sell other digital currencies. It is also called a trading account. A capital account is where my assets are kept. After the transfer is completed, we can see that our funds have arrived in the capital account.
10. After the transfer is completed, we still click [Deposit] on the Binance homepage, or select [Quick Buy Coins]
11. Select [Quick Zone] There are buy and sell options. When we buy coins, we select "Buy". Now we want to sell coins, so we select "Sell". Enter the quantity to be sold. For example, if I want to sell 20 coins, I will enter 20 and click [Sell USDT].
12. Select your payment method. It will tell us that we will receive 146.2 RMB for selling 20 USDT. After clicking [Confirm Sale], we will wait for the buyer to transfer the money to us. After we receive the money, we can give him the coins.
It should be noted that you must wait until the funds have reached your bank account before clicking "I have received the payment". If your bank account has not received the funds yet, do not click "I have received the payment". Otherwise, you may not receive the money and the USDT will be gone.
This is a tutorial on how to transform RMB into digital currency and digital currency into RMB.
4. Blockchain transfer
Next, I will tell you how to transfer money through blockchain. For example, the other party has digital currency, and you also have digital currency. Everyone reaches a consensus on this digital currency. Some foreign or overseas buyers or sellers exchange assets. At this time, blockchain technology is needed. How to transfer digital currency through digital currency? For example, the other party has a USDT to transfer to me.
1. Click [Deposit] on the homepage, and select USDT as the currency. You will then have to choose which chain to transfer through. There are various chains, such as BNB chain and Tron chain. These chains are technologies that are attached to the blockchain. Because they are really needed in actual applications. The most commonly used one here is the TRC20 chain, because it has a relatively low handling fee. We choose "TRC20".
2. Then he will give us a QR code and a string of deposit addresses. We can copy this deposit address or share this QR code with the other party. We copy this deposit address. Another point that needs to be paid attention to is that when you copy the address here and send it to the other party, the other party must check with you one by one, because there are many viruses that will change the address after you copy and paste the address you copied here. The other party will receive another person's address and then transfer the money to someone else. This is the key point. After I copied it, I opened my Ouyi platform to demonstrate it to everyone.
3. Click [Assets] in the lower right corner of OUYI and select [Withdraw] at the top.
4. Select USDT as the currency to withdraw. It is divided into on-chain withdrawal, internal transfer and cash. Cash is what we just demonstrated, which is how to sell digital currency. When transferring money to the other party, you must choose to withdraw on the chain, click [Withdraw on the chain]
5. At this time, you can paste the deposit address we copied. After pasting it in, it will automatically identify our withdrawal network. We click in to confirm and can see the network after our withdrawal "TRC20". Because we just selected TRC20 on the Binance platform, select "TRC20" and enter the amount to withdraw. It tells us that it is at least 3. We want to withdraw 5, so we enter 5. The withdrawal account can be selected from the capital account or the trading account. If I have money in my capital account, I will select "capital account" and click [Confirm]
6. Click [Submit], check to trust this address, and click [Continue]
7. Enter the email verification code and mobile phone verification code, and click [OK]
8. You can see that our request has been submitted. The next step is to wait patiently for the entire process. Basically, the whole process takes about 5-7 minutes. You can click [View Withdrawal Details] to see that our withdrawal application is being processed.
9. After a while, you can see that our coins have been transferred out.
10. Let’s go to Binance and check. At this time, there is a reminder in Binance that “USDT recharge has been completed”. Click it and you can see that the currency we recharged has been successful.
5. Buying and selling digital currencies
Next, let me introduce to you how to buy and sell digital currencies. For example, if I want to buy BTC, of course I can also use the quick purchase method. You can also buy it in the "Transaction" below, provided that you have USDT. However, after you buy USDT, it will be in the fund account, which requires you to transfer this currency.
1. Click [Fund Account], click [Transfer], transfer from the fund account to the spot account, select USDT as the currency, set the maximum quantity, click [Confirm Transfer], and the transfer is successful.
2. After the transfer is completed, click the [Trade] button below. You can select the currency you want to trade here. For example, if I want to exchange Bitcoin, I can search for "BTC" and select the "BTC/USDT" trading pair. That is, we use USDT to exchange Bitcoin. Similarly, if you want to buy other currencies, you can search here and then use USDT to exchange.
3. There are limit orders and market orders on the right. A limit order means I specify a price to trade, and a market order means I trade based on the current market price. I will not introduce other stop-profit, stop-loss, and tracking orders.
Here are a few points to note:
First: When you buy coins, there must be a trading volume.
Second: Don’t chase high prices. For example, if you chase high prices when the digital currency is soaring, your mentality may not be able to bear it.
Third: Don’t gamble with a heavy position. Use your own idle funds to play, don’t borrow money or anything like that, because it is very likely that you will be stuck.
There is no 100% rise or fall in digital currency. It always has ups and downs. When you need money urgently, it may not rise. You have to pay back the money, so you have to cut your losses. This is something you should pay attention to.
Another thing I need to remind you is that you need to be cautious when investing in digital currency. Because there is no 100% profit or 100% loss in this thing. If you don’t have some knowledge of finance, try to avoid this thing. But you must learn about digital currency, because in this virtual online world, these things can be used.
