Analysis of regional currency "Regional currency and stocks battle"

The last article published some basic analysis directions, and received some questions from friends, mainly about the investment value of cryptocurrencies, whether there are opportunities to make money, etc., and they all have certain investment experience, from buying and selling Hong Kong stocks to US stocks have spent a lot of tuition fees. When it comes to cryptocurrency, how should you start? How to characterize this "investment product"? In the last regional currency (cryptocurrency) value analysis, when it comes to fundamental analysis, one starts with background information to know whether to enter the game or invest. Through basic analysis, the risk can be a little more transparent. Remember, it is to understand the risk, not to reduce the risk, but at least it will not fall into a scam and lose everything... I will try to compare cryptocurrencies and stocks, and sort out what I have learned , I hope it is easier to understand and digest.

talk ahead

Come to the conclusion first: the cryptocurrency market is not suitable for lazy people, not suitable for conservatives, and the risk is absolutely super high! Super high! Super high! You can't just use old thinking to understand, the rewards are reserved for those who are prepared.

Similarities between cryptocurrencies and stocks

From the perspective of investment, we must first talk about returns, and everyone's eyes must be motivated by getting rich.

At the beginning, as long as you open different cryptocurrency exchange apps, you will see the trading prices of various currencies. The most direct way to profit is to buy low and sell high, and speculating is the easiest to understand. If it's just to get started, it's not difficult, just open an account on the exchange, deposit money (fiat currency) in, and you can start, it can have longer trading hours than the stock market, it's 7 x 24 hours Also trading, so can really get rich overnight (bankrupt).

If there is a price, there will naturally be a price volatility trend. Similarly, the technical analysis of the chart school can be incorporated, such as moving averages, various support levels, candlesticks and so on. The same goes for stocks.

The threshold for entry is lower. Stock transactions must take one share (US stock) or one lot (Hong Kong stock) as the smallest transaction unit. This is available in regional currencies, but each transaction unit is finer. Take bitcoin as an example, it is a One hundred millionth, in terms of price, is HK$0.00346. So it can be lower to start.

Centralized trading? Centralized or decentralized?

In general, it is not difficult at all to start with regional currency from the traditional perspective of buying and selling stocks. That's the benefit of centralized exchanges, centralized exchanges. Stocks are monitored by the laws and exchanges of various countries, and there are laws to abide by. Investors buy with "confidence in national laws and regulations." Relatively speaking, the decentralized regional currency exchange is relatively unregulated. As far as Hong Kong is concerned, it does not comply with any laws and regulations. It has two aspects, no supervision and no guarantee. If there is a problem with the decentralized exchange one day, Recovery will be questionable.

Of course, this is not the whole of the facts. The difference between the two is also a question of traditional "safety monitoring" thinking. Do people want to believe in the rule of man or the rule of law? The biggest element of decentralization is to use programs as law, "code is law". No one person can rule with hegemony, change the rules, and move to vote for implementation. As in the above situation, it is definitely easier for a centralized exchange to take everyone’s coins and escape privately than to decentralize, because based on the principle of not your keys not your coins, all your coins are not in your own hands, and is on the exchange. When you use it, keep in mind the risks involved, nothing is too big to fail, only to balance the interests and risks. Hong Kong people are used to being arranged and believe in convenience, so they tend to take risks lightly.

The same is true in the stock market, but in a long-term habit, the Hong Kong Stock Exchange and the major banks have created the illusion that they are too big to fail, and that everyone will be buried together when they die. We will not consider the problems in it. In essence, I think it is a problem that the two should be aware of in terms of trading risks. When investing, this is the point that everyone tends to ignore. To learn investment, you must first avoid losses and avoid blind spots.

The right to participate is always in your hands

Returning to the discussion of the exchange just now, it is also a company in essence, just like the Hong Kong Stock Exchange, it can even go public to raise funds. All shares are issued by a listed company, and everyone is a shareholder of it. Whether it is one share or 100,000 shares, they are essentially shareholders, and they have the right to make any questions to the management at the general meeting of shareholders. Shareholders have the right to participate in the company. Unfortunately, as shareholders, everyone automatically gives up their rights and even feels that it is a waste of time. This phenomenon also occurs in regional currencies.

The holders of the regional currency hold the private key and are also shareholders. Every opinion can definitely be put forward, which is more direct than the shareholders of the stock. Just think if you have the right to think that there is a problem with Boss Li's rule, and you have the right to make a proposal to remove him, you will be excited if you think about it. It needs to pay a small amount of coins as collateral, and at the same time, it can work with basic code knowledge. The embodiment of liquid democracy also reflects on the definition of stocks from here. In addition to stock prices, there are deeper meanings in investment.