Essay on Front: Cognitive Creation of Value
Digital currency:
The difference between digital currency and stocks:
[Working day]: Stocks can only be traded during working hours on working days, and digital currency has no restrictions
[Trading time]: Buying stocks on the same day is not allowed and selling on the same day is the fastest the next day, that is, T+1 (If you sell and fall, you can’t throw it away today), digital currency can be bought and sold at any time
[Buy and sell]: Stocks are one-way transactions. After stocks are bought and held, they can only make a profit if they rise, otherwise they will lose money. Digital currency two-way transactions can be bought Go up or buy down
[Leverage difference]: Stocks are not leveraged, buying is the actual amount, and digital currency with the same amount of funds can be expanded to leverage multiples according to the leverage multiple. The largest loss is the principal (position type can be set)
————— —————————————————
Leverage multiples and liquidation spreads (different multiples correspond to different liquidation spreads) :
When the liquidation line is reached, the margin (principal) will be lost. As shown in the figure, 100 times leverage, the spread is 100 points, when the price reaches the purchase price -100 points, it will be liquidated, and the margin will be lost, and so on. . . . . .
Change profit and loss point:
If the opening price is 10085.69, 100 times the leverage, it rises by one point to 100.86.69, which is equivalent to the user earning $10
————————————————————————
Trading Rules:
Buy up or buy down : Predict the future ups and downs
Market price liquidation : Close the position at the opponent’s price, when it’s over, if you feel satisfied with the profit, close the position and leave.
Limit price liquidation : You can set the range of stop profit and stop loss, and reach the threshold After closing
—————————————————————————
Terminology:
Isolated and full
positions (gradual increase, adjustable by yourself) : For example, 1000USDT funds, 100U is used for investment, and the account can be used for 900U of user funds. After liquidation, only 100U of the investment will be lost, and the remaining 900U will be used to
magnify the profit. The loss will not be magnified, it will only lose the current investment principal, the investment amount and the total capital have no linkage relationship, and it is easy to liquidate the position in isolated positions, and the liquidation is the current position.
Full position (highest risk) : In the above situation, all may be lost.
Reason : When the investment amount is lost, it will be automatically replenished from the total fund until the total fund is short; Note: The investment amount and the total fund are linked, and all positions will be liquidated. Cleared, both profit and loss will be multiplied.
Summary : Isolated positions only lose the margin at the time of opening the position. If the margin for opening a full position is lost, do not liquidate the position and continue to lose the rest of the money. For example, one loses until the position is
liquidated —————————
Transaction classification:
[spot spot trading] : Currency trading, leveraged trading, strategy trading, over-the-counter bulk commodity trading
Note : Spot cannot be long or short
- Currency trading: use funds to buy coins (such as Bitcoin, Ethereum), use RMB to recharge as USDT, and then use U to buy coins (such as currency pair USDT/BTC)
- Leverage trading: Leverage will amplify the range of ups and downs, such as 100 times leverage, a point increase is equivalent to income x100, the higher the leverage, the higher the risk of liquidation and liquidation
[ futures futures contract trading] : delivery contract, perpetual contract
----- contract: buy and sell a certain amount of certain assets at an agreed time
- Delivery contract: When the delivery cycle (weekly, monthly, quarterly...) is reached, if the open position system performs liquidation and settlement, you can close the position at any time during the settlement period. Allocation of
positions: When a user's margin cannot cover the loss, all profitable users will share the position among users who have lost their positions losses; perpetual contracts generally adopt automatic lightening to reduce counterparty positions and avoid market risks - Perpetual contracts: the system generally does not close positions, and settles them every day. Users can open and close positions at any time (the leverage is more than that of delivery contracts)
平仓时机： 用户亏损爆仓后系统介入进行平仓 自定义止盈止损策略平仓
币本位永续：如买BTC，自己必须以BTC为抵押物，即本身持有BTC余额，才可以买
BTC，BTC是现货，如买币本位永续的BTC合约，需先将BTC现货划转
到合约账户才可以买，本位币只能买本位币合约
USDT本位永续：通用抵押物，只要有USDT就可以买任何币种，有资金费率
资金费率：因为没有交割日，永续合约通过资金费率让合约价格锚定现货价格
抵押物：即用什么东西买
币本位：买什么币的合约就用什么币来购买和做抵押，如需先持有BTC，才可以在币本位永续中买BTC
USDT：通用抵押物，可在合约中转移
- Option contracts: Currently slightly
[Quantitative trading] : Automated trading, using computer technology (statistics and mathematics) to analyze and automate the formulation of investment strategies (big data analysis)
[margin] : Margin trading mechanism, that is, credit trading, without the need to purchase assets in full, that is, leverage
[OTC fiat currency trading] : Over-the-counter trading, policy – the exchange prohibits RMB transactions, channels for fiat currency and digital currency exchange, so the exchange has set up a fiat currency trading area
- Role: users complete legal currency and digital currency exchange, C2C, users directly to users, platform as guarantee
- Process: The buyer places an order, the platform freezes the seller's coins, the buyer pays or coins to the seller, and after the seller confirms the payment, the platform transfers the coins to the buyer
- Differences: On-site trading: transactions on the exchange platform, real-time transaction price dynamics (price transparency) OTC trading: both parties pre-define the price, and then trade (price is not transparent)
合约如何选择？
流动性（持仓率）：流动性大，持仓率高说明买卖双方很多，热点币，关注度高，容易出手
避免频繁的买卖，如选择季度合约，减少手续费的流失
预测币会涨，使用币本位买合约，双重增长，如预测币会下跌，使用USDT，USDT本身波动小，下跌仍保值。
做合约主做主流币，使用币本位合约，因为转换为USDT会有手续费
————————————————————————
Contract transaction related:
Fund preparation
Currency standard : The specific spot currency in the currency account is transferred to the contract account, that is, spot account -> contract account
USDT : USDT in the currency account is transferred to the contract USDT account
Isolated position : Between contracts of various currencies Deposit independent
full position : Multiple currency contracts share the deposit (margin, that is, the user 's principal )
—————————————————————————————————————————————————————————————————————————————————————————— Empty taker and maker
-
taker (taker) : If you place an order at the opponent's price, you will take the initiative to take the orders listed in other contracts. The transaction speed is fast, that is, you will place an order at the opponent's price, and the handling fee will be higher. Note
: Taker is not necessarily one-to-one. For example, if I buy 100 One, need to take 5 opponents' orders to meet my purchase quantity, one transaction of n orders, such as buying from low price to high price, until the quantity is satisfied and can be set when buying more (depth, that is, gear
)IOC, according to the depth of the gear (the deeper the depth, the higher the price), if I buy 100, set the depth to 5, if it can’t meet my needs, I will only take 5 orders
FOK, if the depth of the reached position cannot meet my quantity, all orders will be cancelled, and either the transaction will be completed according to my needs, or none of the orders will be completed
-
Maker (pending order) : hand input price, passive pending order enters entrustment, provides liquidity for the exchange, pending order will not be executed immediately, such as limit order, waiting to be executed, lower handling fee
-
Bid :
custom input such as limit order or direct counterparty price
————————————————————————
matchmaking:
Buyers and sellers are matched by the platform as a transaction according to a certain strategy, and the platform charges a handling fee, such as frequent buying and selling, each time is called a handling fee. If you buy or sell a house, pay an intermediary fee
Digital currency is realized on the basis of blockchain technology. The picture below shows the knowledge of blockchain previously learned and recorded. Combined with recent learning, let’s summarize the blockchain together
: decentralization, each transaction has a digital signature, blockchain Instead of recording balances, transactions are recorded (bank transfers record balances)
Essence : Establish a trust system in a non-trust environment through a consensus system and a distributed network to achieve large-scale collaboration
Block : Every time data is written, a block (such as a transaction) is created. The block records data, just like each row of records in the database
Block header : current block meta-information
such as current time, previous block hash, hash of this block body... the hash of each block is established based on the current block header
Block body : stored data
Mining : The miner calculates the hash value and gets a valid hash. The person who calculates the correct value first will be rewarded, the machine that calculates the hash is the mining machine, and the person who operates it is the miner
What is the correct value ? Blocks are always added under concurrent competition, and the single-linked list can only be added after the latest block. If someone preempts the calculation after half of the calculation, then you have to recalculate
Understanding : The blockchain system asks a question, and all machines rush to answer it. The fastest and most correct victory, the basis for correct judgment is the consensus mechanism
Consensus value : such as gold, diamonds, currency, their value comes from consensus, not its own
consensus algorithm : POW (proof of work), POS (proof of equity), PoSpace (proof of capacity), POI (proof of importance) , DPos (Delegated Proof of Equity), PBFT (Byzantine Solution), etc.
———————————————————————————
POW (all participation, whoever is faster has the final say) : That is, proof of work, the first machine to get the correct value in the massive data wins, which is related to the computing power of the computer itself
Advantages of POW:
true decentralization, fair distribution of bookkeeping rights to each node, a node strike does not affect
high security, tampering needs to tamper with data of more than 51% of blocks
POW Disadvantages:
massive computing consumes resources
and is slow to generate blocks , such as the Bitcoin block time is 10 minutes
———————————————————————
POS (a small amount of participation, whoever has more coins has the final say) : The core is the coins in the network, and the nodes with more coins are given priority. Similar to the shareholding system, the more shares each node has, the greater the right to speak. The biggest
advantage : fast block generation time, saving resources
Disadvantages : large households control the right to speak, centralization, which violates the core of blockchain decentralization
——————————————————————
DPos (small participation, fairness) : Elections are added on the basis of POS. All currency holders elect some token holders as super nodes (similar to representatives of the National People's Congress). Nodes will be replaced if they fail to perform their duties.
Rules : Randomly specify the order of producers, blocks produced out of order are invalid, and the order is shuffled once in a cycle. Advantages
: The speed of block generation is second-level, and the performance can reach thousands of TPS
——————————————————————
PoSpace (whoever has the most space has the final say) : At the cost of the hard disk space paid by the node, the larger the downloaded file, the greater the weight of the node. Chips are not suitable for mining, and only hard disks are used. Advantages:
save a lot of computer resources, only hard disks are used.
Disadvantages : Low mining cost may cause miners to fork the main chain and transactions at will, and the storage space of a single node is greater than 51%, which is easy to be tampered
————————————————————— —
POI (Whoever gets the most points uses who) : Miners prove their importance to the blockchain network through the number of node transactions and bills. Similar to POS, the coin has more say
——————————————————————
PBFT (no fork) : Block nodes are selected in each round (through a series of complex voting methods), and more than 2/3 of the participating nodes need to be agreed
.
Disadvantages of the final block : the more participating nodes, the greater the complexity of producing blocks, and the longer it takes
to improve : select a small number of nodes through the election mechanism, and then calculate the block nodes
—————————————————— —————
Smart contract : It can be understood as an account that is automatically guaranteed. When certain conditions are met, the program will release and transfer funds
Distributed ledger : Information is stored in multiple nodes
Collaboration : Trust method x concept x (incentive + punishment)
Weak collaboration : Consensus
Stronger Weak Collaboration : Consensus + Incentives
Strong Collaboration : Consensus + Incentives + Penalties ✅Traceable
: The source and destination of the transaction are recorded, and the balance itself is encrypted
. and asymmetric encryption) to ensure transaction security and control the transaction medium created by transaction units