Speaking of digital currency, the first reaction in many people’s brains must be Bitcoin. From the initial worthlessness to the highest peak, it has risen to a price of $20,000. They can hardly believe what they see with their own eyes. What is it? Bitcoin (BTC) was first proposed by Satoshi Nakamoto in 2009, and the total amount is constant at 21 million. According to Satoshi Nakamoto's ideas, the open source software is designed and released and the P2P network is constructed on it. Bitcoin is a P2P form of digital currency, and peer-to-peer transmission means a decentralized payment system. Unlike most currencies, Bitcoin does not rely on specific currency institutions to issue. It is generated through a large number of calculations based on specific algorithms. It is commonly known as mining. The mining reward is halved every 4 years and is expected to be completed in 2140.
Bitcoin uses a distributed database composed of many nodes in the entire P2P network to confirm and record all transactions, and uses cryptographic design to ensure the security of all links in currency circulation. The decentralized nature of P2P and the algorithm itself can ensure that the value of the currency cannot be manipulated by the large-scale production of Bitcoin. The design based on cryptography allows Bitcoin to be transferred or paid only by the real owner, which also ensures the anonymity of currency ownership and circulation transactions. With the development of Bitcoin, digital currencies such as Bitcoin have gradually been recognized: Germany has become the first country in the world to accept Bitcoin payments; well-known companies such as Microsoft and Dell have also accepted Bitcoin payments. In short, in some countries and You can directly use Bitcoin to buy computers, cars and even houses. Not only that, investors can also profit by investing in Bitcoin on digital asset trading platforms.
[Psychological misunderstanding of currency speculation] It means that people’s inner thoughts are incorrect, which means they are often formed by people’s subjective beliefs. Below we will focus on these major psychological misunderstandings in foreign exchange investment:
1. Subjective dogma
Participating in the foreign exchange market, everyone will have their own set of ideas, and they will always artificially think that certain things will happen, and some things will not. However, subjective determination and dogma are the big taboos of investors, because there is only one market, price There is only one direction, "the market is always right." If your views conflict with the market, you must study where your mistakes are. It does not mean that the market is wrong. It is important to be objective.
Second, repeat the mistakes
"It is important for a person to know himself." Only by constantly analyzing his own mistakes can he continuously improve. When a person succeeds, he always thinks he is clever, and it rarely comes down to luck. However, when people make mistakes, they always use bad luck as an excuse for fear of admitting mistakes and analyzing mistakes, so that they will revert to the same kind of mistakes in the future. Successful investors can face reality from a mistake, analyze the reasons, learn lessons, and take measures to avoid repeating the same mistakes
Three, stubbornness
"Three people must have a teacher", the foreign exchange market is changing, and people around you often benefit from it. "Three people must have my teacher." Not only should we ask the winners, but also discuss with the losers. "History will repeat itself." The failures of others today may become their own failures tomorrow. The winners certainly have good experience. But losers have more bloody lessons. Avoiding failure in foreign exchange investment is often more important than achieving success. But asking for advice does not mean accepting it all. “Taking the strengths of others and making up for the weaknesses of oneself” is the best policy.
Four, different hands and brains
Some investors have made investment plans and strategies in advance, but when they enter the real foreign exchange market, they are influenced by the external environment. When investing in the foreign exchange market, one should not only pay attention to the dynamics of the foreign exchange market, but also pay close attention to the local and international political and economic situations. Combine the estimation of the situation with the technical analysis of the exchange rate trend. Only in this way can we capture buy or sell signals in time. The actual action of buying when it is time to buy and selling when it is time to sell.
Five, the herd effect
For foreign exchange investment, the number of people is not necessarily the crowd, but it contradicts the opposite theory. When everyone is rushing to buy, the trend is at its peak, and when everyone is rushing to cut the meat, the trend is at the end, so the followers often lose money. customer. If you get out of the misunderstanding of the herd, you will experience the beauty of "a winding path leading to the quiet" and the fun of "everyone is drunk, but I am alone."
6. Investment hungry
Some investors in the foreign exchange market cannot bear to hold too much principal in their hands and enter the market casually. When this mountain is high again, they often have the experience of "buying and selling, rising", impatient ,
In fact, the misunderstandings are often man-made. As long as we keep a clear mind and insist on ourselves and not be influenced by others, then what are these misunderstandings! Want to learn more about foreign exchange?