What are the transaction methods for virtual currency ？What are the trading psychology that you need ？

USDTCalled the valuation coin ，ETHIt's called trading coins ，use USDTThis price coin is given ETHDefine price There are limited types of digital currencies in the fast trading area ，If we want to buy digital currency in non-fast zone ，We need to buy stablecoins first ，Use stablecoins to buy other digital currencies

Virtual currency refers to non-real currency 。Virtual currency as a product of e-commerce ，It is also a product of blockchain ，So it's also called cryptocurrency ，It is starting to play an increasingly important role ，and ，More and more intersect with the real world 。So what are the transaction methods of virtual currency? ？What trading psychology should investors have? ？

one 、Virtual currency trading method

1.Spot trading

Spot trading is simply a transaction that spends money to buy coins 。It is divided into fiat currency trading and coin trading 。

（1）Fiat currency trading

Franchise currency ，It's legal currency ，Like RMB ，Dollar ，Pounds, etc. 。 Fiat currency trading ，It is the transaction between legal currency and digital currency ，If you buy Bitcoin directly with RMB 。

We can buy digital currency directly from the exchange's quick coin buying area with RMB 。

The advantage of buying coins quickly is that they are convenient and fast ； The disadvantage is that there are not many types of digital currencies that can be directly traded in fiat currency. ，There are only some mainstream currencies ，Such as Bitcoin （BTC），Ethereum （ETH），Or Tesda （USDT）。

（2）Coin trading

Coin trading ，It means buying another digital currency with digital currency ，Transfer or settlement of legal currency does not involve 。For example USDTBuy ETH，Will form ETH/USDTThis trading pair 。USDTCalled the valuation coin ，ETHIt's called trading coins ，use USDTThis price coin is given ETHDefine price

There are limited types of digital currencies in the fast trading area ，If we want to buy digital currency in non-fast zone ，We need to buy stablecoins first ，Use stablecoins to buy other digital currencies 。

The most widely used stablecoin is USDT。

Stable Coin ，As the name implies ，It is a cryptocurrency that maintains a stable exchange rate with a certain target 。 Stablecoins can be regarded as “Stable value ”Digital currency ，It is an intermediary connecting the world of digital currency and the world of fiat currency 。 The most widely used stablecoin is USDT（Tether ）。Tether （USDT）yes TetherThe company launched a stable value currency based on the US dollar （USD）Tokens Tether USD（Next USDT），1USDT=1Dollar ，Users can use it at any time USDTand USDconduct 1:1exchange 。

2.Contract transactions

Spot trading is a transaction between fiat currency and digital currency 。Different contract transactions ，It's also called a futures contract 。Refers to the view on the changes in currency prices in the market ，If you think Bitcoin's price will rise or fall in the future period 。

In the contract transaction ，I think the currency price will rise ，Buy contract ，It's called doing more ；I think the currency price will fall ，Buy contract ，short selling 。

Contract trading can make profits by going long or short, whether it is a currency rise or fall. ，But in the spot market ，We can only buy the currency ，Expect its price to increase and make a profit 。 There is another concept in the contract called leverage 。When ordering a contract ，Traders only need to base their contract price ，Pay a small amount of funds at a certain rate as a financial guarantee for the performance of the contract ，You can participate in the transaction of the contract ，For example, you want to buy it 6000US dollar BTCcontract ，if 10Double leverage ，Just pay 600US dollar BTCJust 。Margin trading is basically leveraged trading 。In futures trading of digital currency ，Use the transaction currency as margin 。

two 、Trading psychology sharing

People often come to me and say that they suspect that the dealer is staring at the little money in my small retail investor's pocket. ，Otherwise, why does it fall every time you buy it ，I'll get higher as soon as I sell ？Why do operations always have the opposite trend ？

This question is actually very simple ，The dealer uses retail investors' trading psychology to chase ups and sell downs to complete positions. 、Wash the dish 、Pull up 、Shipping 。So as a newcomer in the currency circle, you must understand the following ！

Gambler's Fallacy （gambler fallacy）：Inclined to believe in the future (Something happened )The chances will be changed by past events 。

It's like we're trading ，Due to the psychological effect of people ，Some key prices ，Will generate certain resistance and support ，It will form similarities in the figure 。but ，We need to know that history will repeat itself ，But it won't be a simple repetition 。so ，As investors, we cannot bet ！

Loss aversion （loss aversion）：Have a strong preference for avoiding losses 。That is to say ，Not losing money is far more important than making money 。

For a qualified trader ，Lost 100It should be the same as earning one 。but ，There are always some people who can accept that they have not made any profit 100，But I can't accept it and lose it 100piece ，This is actually a manifestation of immature investment psychology ！

Disposal effect （disposition effect）：Redeem profits early ，But let the loss continue 。

For example, you bought a currency ，100Cost of ，It's just starting to rise 。But when the bull turns into a bear ，Reaching down again 。You said back at the beginning 100Just sell ，The situation has not improved 。You said again 70Just sell it ，You'll fall later 50Sell ​​it 。result ，In the end you are 20Sold ！

Results preference （outcome bias）：Only judge whether it is good or bad based on the results of a decision ，Without considering the quality of the decision itself 。

For example, last year of the currency circle 519A black swan came ，Many people begin to doubt themselves 。but ，Nasim ·Taleb once wrote his own 《Black swan 》It points out the introduction “Narrative fallacy ”Concept ，That is, how flawed pasts affect our worldview and our expectations for the future 。therefore ，We often make up far-fetched explanations for past regrets ，And believe it ，Use this to deceive yourself 。

three、Summarize

As a new digital asset ，Its development has developed rapidly in the past few years ，Market value continues to rise ，Become a focus of widespread attention from all walks of life 。Although the price of virtual currencies fluctuates greatly ，But as more people understand and accept it ，The prospects for the virtual currency market look promising 。