Recently, some friends asked me what those professional terms in the crypto world actually mean. I found that many beginners are indeed only half-aware of these "jargon." So I organized a more comprehensive explanation to see how much you understand.

Let's start with the most basic concepts. Fiat currency is government-issued legal tender, like the Chinese yuan or US dollar. Tokens are usually called "tokens" and are proof of rights on the blockchain, not currency. They must have three elements: digital proof of rights, cryptographic encryption protection, and the ability to circulate within the network.

When it comes to trading operations, building a position means buying or selling a certain amount of digital currency. Going all-in (shouha) means investing all your principal, which is a quite aggressive approach. Arbitrage involves exploiting price differences across different platforms—buying Bitcoin at a low price on one platform and transferring it to a higher-priced platform to sell, repeatedly earning the spread.

Regarding risk control, locking positions is a very important concept. When the market trend goes against your operation, you can open a new position opposite to your original holdings, which is called locking the position, also known as contra-lock or locking orders. Hedging is similar, involving simultaneous trades in opposite directions with comparable amounts to offset gains and losses. Leverage trading uses small amounts of capital to make multiple times the investment, amplifying both risk and reward. Position refers to the contract holding, with long positions being bullish and short positions bearish.

In project financing, airdrops are a common marketing method where project teams distribute tokens for free to let potential investors learn about the project. "Candy" refers to free digital coins distributed by project teams during ICO periods, serving as hype promotion. Private placement is a direct way for investors to participate in projects, with the project team raising funds through private offerings. ICO (Initial Coin Offering) is similar to an IPO in stocks, representing the initial issuance of tokens.

In market analysis, candlestick charts are drawn using opening price, highest price, lowest price, and closing price, serving as the foundation of technical analysis. Trading volume reflects the number of transactions and participant activity. Good news (positive) favors price increases, while bad news (negative) tends to push prices down.

There are several common patterns in price movements. A "break below" (pofa) refers to the price falling below the issuance price. A rebound is a small upward correction after a rapid decline, with a smaller magnitude than the decline. A pullback occurs during an uptrend when the price temporarily dips due to rapid gains, with a smaller magnitude than the overall rise. Consolidation is a state of relatively stable price fluctuation with low volatility.

Mastering these concepts helps in understanding the logic of how the crypto market operates. Especially risk control methods like locking positions and hedging—they might not be used much initially, but knowing their functions is very important.