Newcomers just entering the crypto space are often confused by all kinds of jargon. Today, I will organize and explain these common concepts for everyone, hoping it will be helpful.

First, you need to understand the basic concepts of the crypto world. Fiat currency refers to the currencies we use daily, like RMB, USD, issued and backed by the government. The term Token is often translated as "digital token" in the community; it represents a certificate of rights on the blockchain. Unlike traditional currencies, Tokens can record and transfer both physical assets and digital assets through blockchain accounting.

Before entering the space, you should also know a few important concepts. Airdrops are free or proportionally distributed tokens given by project teams for promotion. Candy is similar but usually refers to free distributions during the early ICO phase. A "breakout" means a coin's price falls below its issuance price. Private placement is a way for projects to raise funds from specific investors, different from public fundraising.

Regarding trading, there are several features you must understand. First is time flexibility—trading 24/7 without daily limits on price increases or decreases. Second is low threshold—can buy as little as 0.0001 BTC, with no minimum lot size like in stocks. Plus, T+0 trading allows buying and selling on the same day, providing high liquidity. Withdrawals and cash-outs are also unrestricted, so you can operate anytime.

As for trading platforms, there are many options within the community, each with its own features and advantages. If you don’t want to keep your coins on the platform, you can transfer them to a personal wallet. Single-coin wallets and multi-coin wallets are available. Deposits and withdrawals refer to transferring coins in and out, with specific times varying by platform.

Next are some market terms. Position refers to your buy/sell stance—long means bullish buying, short means bearish selling. Good news (positive) favors price increases; bad news (negative) does the opposite. Rebound, correction, and consolidation describe different price movements. Arbitrage involves exploiting price differences across platforms. Leverage trading uses small capital to amplify gains but also increases risk, somewhat like gambling.

Public chains, private chains, and consortium chains are the three main types of blockchain. Public chains like Bitcoin and Ethereum are open to everyone. Private chains restrict access and are often used for enterprise applications. Consortium chains are maintained by multiple organizations and are common in finance.

There are two basic principles of trading—market orders execute immediately at current market prices, limit orders wait for your specified price. Orders follow the "price priority, time priority" rule.

Next are various manipulation tactics and phenomena in the market. Market makers may use wash trading, shakeouts, and price stabilization to control prices. Shakeouts involve raising prices then dumping to scare off retail investors. Accumulation is when big players buy more chips through wash trading. Market control means holding large amounts of coins to manipulate prices at will. "Cutting leeks" describes new traders constantly entering and getting wiped out. Fake signals are created with misleading candlestick patterns.

Market trends have several typical states. Bull market is characterized by continuous rising prices and optimistic outlook. Bear market is the opposite—persistent decline and low market sentiment. "Monkey market" refers to volatile, unpredictable price swings. Main upward wave is the largest rise during a bull market. Bearish decline is slow and accompanied by hope of reversal. A "waterfall" indicates a sudden sharp drop. A "blast" refers to explosive growth after a long period of stagnation.

Position management is a crucial part of trading. Full position (all-in) means investing all funds into coins, also called "all-in" or "going all-in." Averaging down involves buying more during losses to lower the average cost. Adding positions means continuing to buy if optimistic. Building a position is initial purchase. Reducing positions involves selling part of holdings when risk is perceived. Hedging means opening both long and short positions simultaneously. Cash position means holding only stablecoins, not other cryptocurrencies. Light, half, and heavy positions describe the proportion of holdings. Clearing positions means selling everything to wait and see.

Take profit and stop loss are core risk management tools. Taking profit involves selling once gains reach a certain level; stop loss involves selling at a set point to prevent further losses.

Market movements can be described in many ways. Sideways (flat) indicates low volatility. Rebound is a short-term rise during a decline. Reversal means shifting from a downtrend to an uptrend, with a much larger magnitude than a rebound. Arbitrage involves cross-platform price differences, paying attention to transfer speed. OTC trading refers to directly trading mainstream coins or stablecoins with fiat currency.

Then are some personal state descriptions. Cutting losses means selling at a loss out of necessity. Being trapped refers to buying in and then the price drops, unwilling to sell. Break-even means the price recovers after being trapped. Missing out (FOMO) describes perfectly missing the opportunity. Roller coaster indicates rapid rise and fall in a short period. Holding coins (HODLing) means buying in large quantities with confidence in long-term growth.

Going long means buying expecting prices to rise, selling at higher prices later. Going short involves selling or borrowing coins expecting prices to fall, then buying back at lower prices. Mining is the process of obtaining cryptocurrencies through computational calculations.

In terms of financing, ICO is a fundraising method where a project issues its own tokens in exchange for circulating coins. Private rounds are fundraising from specific groups. Angel rounds involve early investments by individual investors in startups, with high risk and high reward.

Once you understand these basic concepts of the crypto space, you'll be better equipped to grasp market trends and trading logic. This knowledge is key to survival and growth in the crypto world. I recommend repeated study and thorough understanding.