Sunday 15 April 2018

Virtual Currencies Fell by 60%, "Torment" Young Coin Adventurers

Memorabilia of virtual currency regulation

September 4, 2017

Seven departments including the Central Bank and the Office of Cyberspace Affairs issued a joint announcement to stop the issuance of tokens (ICO), clean up and rectify the ICO platform, and organize the withdrawal of ICO tokens.

September 14, 2017

Bitcoin China announced the cessation of Bitcoin and other transactions. The platform will stop new user registration on September 14 and will stop all digital asset transactions on September 30.

September 15, 2017

Beijing regulators announced the closure of virtual currency exchanges such as Bitcoin.

Virtual currencies Speculating

January 12, 2018

The China Internet Finance Association issued an announcement reminding consumers and investors to prevent ICO activities in disguise. It also stated that Xunlei "Lianke" actually replaced the legal currency payment obligation for the services contributed by participants with "Lianke", which is essentially One kind of financing is ICO in disguise.

January 26, 2018

The China Internet Finance Association issued a document reminding the risks of overseas ICO and "virtual currency" transactions. The risk reminder said that due to the general lack of regulations in the world, current overseas trading platforms also have hidden risks such as system security, market manipulation and money laundering.

March 9, 2018

Huobi makes a final farewell to RMB trading users in the form of an announcement. We have decided to officially delist all RMB-to-digital asset transactions at 24:00 on October 31.

March 28, 2018

Fan Yifei, deputy governor of the People's Bank of China, stated at the 2018 National Currency, Gold and Silver Work Conference that this year, internal management and external supervision will be strictly strengthened, and various types of virtual currencies will be rectified and cleaned up.

Crazy Virtual Currency Prices

"In September, I lost all the money I made before, and I will never touch the digital currency again." Only three months after making this statement, the post-90s Chen Cheng (pseudonym) returned to the market to speculate coins again.

Since October last year, the price of virtual currency represented by Bitcoin has soared. Until now, the industry has not reached a consensus on the reasons for this round of currency price increases. Previously, Bitcoins worth 20,000 yuan each rose to 140,000 yuan.

Under the effect of making money, the number of players entering the virtual currency market is increasing, and the "zero threshold" of the currency circle makes the participants correspondingly young. They are like young people's attitude towards anything new: curiosity, experimentation, and speculation.

However, the "high rise" did not last long. After Christmas last year, mainstream virtual currencies fell by 30% across the board, and the prices of some virtual currencies almost halved.

Regulation is another major concern. On September 4 last year, the central bank issued an announcement stating that the issuance and financing of tokens was suspected of illegal and criminal activities such as illegal fund-raising and pyramid schemes and demanded an immediate cessation. At the two sessions of this year, Zhou Xiaochuan, then governor of the central bank, responded to questions about Bitcoin and ICOs and said that he did not like to create a speculative product, which made people have the illusion of getting rich overnight. This is not a good thing.

On March 28th, Fan Yifei, vice governor of the People's Bank of China, stated at the 2018 National Currency, Gold and Silver Work Conference that this year, internal management and external supervision will be strictly strengthened, and various types of virtual currencies will be rectified and cleaned up.

As of April 3, the transaction price of Bitcoin was around US$7,300, and the price of Ethereum was around US$400, both of which have fallen by more than 60% from the highest point.

The price volatility of virtual currencies quickly urged these young "coin speculators". They either used "exercise mentality" as the reason, or after the assets were cut, they reluctantly embraced the rhetoric of "Buddha holding currency". Under the background of huge virtual currency price fluctuations, where will young players go?

Virtual Currency Investor #1

Mu Lan (26 years old) Shanghai civil servant

A peace-minded coin speculator, "Just think it as a souvenir"

Mu Lan said that she belongs to the Buddhist speculation: unless someone mentions it, she usually can't remember owning half of Ethereum.

In the second half of last year, she saw that her friend mentioned Bitcoin online, and she was curious to ask her friend to recommend Ethereum. Mu Lan hesitated for a month or two, watching Ethereum rise from $500 to $1200, and finally entered the market when it rose to a high point in January 2018.

Four months before Mu Lan decided to enter the market, the regulator closed the platform trading business between virtual currency and RMB legal tender in September last year. The platform acts as an intermediary, providing both parties who want to trade virtual currency with the opportunity to find buyers or sellers. platform.

In order to enter, Mu Lan contacted a seller with a suitable price, and after agreeing to pay through a third-party payment platform, the other party sent her a series of numbers. She needs to attach this number to the transfer information for the seller to identify the corresponding. A buyer, then send the virtual currency as soon as possible.

She completed the transaction of more than 3,000 yuan on Huobi.com. "(When transferring money) is a bit like riding a roller coaster, thinking that this person will not be a liar." Mu Lan recalled the moment before the payment, that was the "most exciting" moment in her experience of speculating coins.

After the payment was successful, she opened another page showing all the digital assets of the user, refreshed, and the number in the Ethereum column changed from zero to less than half.

In the first few days after the purchase, Mu Lan will pay attention to the price of Ethereum from time to time. Today, two months later, she is already "indifferent" to the price. "I think Ethereum is like a brick on the Berlin Wall. I just picked it up as a souvenir." After buying, Ethereum fell all the way, and Mu Lan set it up for herself. With a one-year deadline, we will wait for next year to see how much Ethereum is worth.

"After all, this is also a technology that may change the direction of human history. The meaning of buying is actually like the movie music you download on your computer."

Virtual Currency Investor #2

Wang Ran (25 years old) Beijing media practitioner

Use leverage to speculate coins, 80% reduction in funds

In September last year, Wang Ran first knew virtual currency due to his participation in the ICO report.

"After the introduction of the national regulatory policy, the price of Bitcoin and other virtual currencies fell sharply. At that time, I saw that Bitcoin fell to 18,000 yuan and I felt that it was very expensive and I did not buy it. Later, in less than two months, Bitcoin not only reached its previous high. And it has entered a rapid rise stage, which makes me very tempted."

According to Wang Ran, he is mainly engaged in financial reports in the media, and he speculates in stocks outside of work. "The K-line technology in stocks is sometimes useful in this market." Wang Ran believes that this is his advantage in entering the market.

"When I opened an account for trading on the first day, I watched the market until 3 a.m." In Wang Ran's view, all virtual currency exchanges currently use 24/7 trading with no price limit, T+0 trading, In addition, some exchanges can provide leverage services. "In contrast, this market is very free." "The important thing is that there is no capital threshold for leverage services. I can also use 4 times leverage for a few thousand yuan."

However, Wang Ran did not make a return, and instead suffered a large loss. "At the beginning I wanted to increase the return, so I adopted a full position, 4 times leveraged short-term trading model. During the market turmoil, it was not bad. I made a profit of 20% within a week by grabbing the band. However, the market weakened later, which made my total assets. Just cut it in one day."

Talking about the transaction process, Wang Ran said frankly that he was "very tired". He wanted to open the trading software and stare at it when he walked on the road, because there are often large trading fluctuations in the night market. The official account, look at the opinions of others, and give yourself some psychological comfort. When the market crashes, the mood will be very bad, which will have a greater impact on the work."

Recently, the market has continued to plummet, and Wang Ran's small currencies have also been cut in half, and total assets have shrunk by 80%. Wang Ran gave up leveraged, short-term trading, and chose a digital currency from a well-known domestic tycoon platform, "planning to hold it all the time." Regarding whether to withdraw from the market, Wang Ran replied, "I have no choice but to stay calm, try not to care about it for the time being."

Virtual Currency Investor #3

Chen Yan (21 years old) Sichuan Design student

Internship salary in January hardly equals the rise and fall of currency prices in one day

Three months ago, when the price of Quantum Chain exceeded 300 yuan, Chen Yan counted his virtual currency assets: 10,000 Quantum Chains, 14.5 Bitcoins, plus other currencies, worth more than 6 million yuan.

His original capital is 305,000 yuan. The first 5,000 yuan is my own savings. I invested in Bitcoin in October 2016. The price at that time was about 4,900 yuan each. At the end of 2016, Bitcoin exceeded 8,000 yuan, and Chen Yan, a junior at the time, decided to increase his position.

He spent a week explaining Bitcoin to his business family members, "When they first heard about it, they thought I was doing a pyramid scheme." In the end, his family agreed to give him a total of 300,000 capital, which was used to increase the position of Bitcoin and buy Litecoin and Quantum Chain, which was counted as an "angel investment."

"In the second half of 2017, when Bitcoin rose to more than 100,000, I still thought about whether the next car would be a Ferrari or a Lamborghini," he joked.

Chen Yan thought about using the stock's swing operation, buying low and selling high, "I wanted to do the swing and avoid the ups and downs. Later, I found that the swings became more and more losses, and they simply didn't manage much." He mentioned a popular sentence in the currency circle: There are only two kinds of people who can make money, madmen and fools, "I think I am half a madman and a half idiot."

Chen Yan, who is busy looking for a job, hasn't checked the price of virtual currency for a while, "in fact, it is a state of pretending to be dead now." During the interview, he logged on to the platform page. When the average price of the bitcoin fork BCD was 200 yuan, it fell to 20 yuan. Although heartache, he "holds a firm mindset of not throwing it away."

As a design student about to graduate, Chen Yan said frankly that the gap "will be huge" compared to another identity of a coin speculator.

He seldom tells people around him that he is speculating on coins. When he was most confused, he also thought about the need for work. "Later, I felt that currency speculation could only be done as a side job, because it really needed a very stressful heart to bear, and the main business was still a little stable." He still wanted to be "an original artist who paints quietly and quietly." currency.

Recently, a classmate who had participated in the original painting training with him found a job with a monthly salary of 800 yuan during the internship-this amount may not be as high as the virtual currency he holds in one day.

Virtual Currency Investor #4

Gu Tian (27 years old) USA User Experiencer

"There is a new deal every month, and I can definitely wait until the price is low"

Gu Tian, ​​who works in the Bay Area, learned that Bitcoin is because of his colleagues.

"He had a house in Ireland that he wanted to resell, and it was troublesome for the buyer to convert the payment into U.S. dollars, so he simply used Bitcoin to pay. At that time, he felt that the house could be bought and sold with Bitcoin." She started to pay attention to Bitcoin and invested money in the market in July last year.

Gu Tian’s biggest source of information is the video website youtube. She searches for popular science videos of Bitcoin every night after returning home from get off work. Some are programmers who explain technical issues to everyone, and some talk about possible solutions that Bitcoin can solve from a humanistic perspective. The question, "These videos are particularly numerous."

In Gu Tian's view, blockchain and Bitcoin in the entire Bay Area are very popular. Stanford University and some other companies have weekly lectures, and there are many entrepreneurial teams from China.

"Young people are more accepting, they don't have much savings, they can't afford to buy a house, and stock profits are not high, it is impossible to get rich overnight. They would think it is better to buy Bitcoin." In her opinion, most of the speculators in the Bay Area are millennials.

Gu Tian gradually bought more other currencies. When buying, he will pay attention to the development team of each currency, and pay attention to the market reaction of different time nodes according to the development process of the currency.

However, after experiencing several ups and downs in the currency price, Gu Tian began to reflect on the price-performance ratio of speculating coins, "If I do the wrong operation, I will definitely lose money, but it takes a lot of time to learn to do the correct operation." Compared with my time, the profit is very unworthy."

At this point, she decided not to sell the virtual currency she held, only to buy and fall, and set a total holding limit equivalent to 10 bitcoins, "each month is equivalent to a promotion," she half-jokingly Said, "Every month, there will be some new policies and the like, and we can definitely wait until the price is low."

Virtual Currency Investor #5

Kevin (23 years old) Singapore student

After the crazy coin speculation stage, clear all currencies

During the Spring Festival of 2016, Kevin worked as an intern at a bank in Singapore. The manager at the time was optimistic about Bitcoin and Ethereum, and recommended the account opening platform to several interns including Kevin. "At that time, the price was very cheap, tens of dollars apiece. We bought a few Bitcoin and Ethereum each. , It is equivalent to please the manager".

After the first purchase, Kevin did not pay much attention to it for more than half a year. Until the summer of 2016, there were more and more news about Bitcoin, and he began to understand the principles behind it.

In mid-2017, Kevin sold his holdings of Bitcoin and Ethereum for the first time, and the money he earned was enough to travel back and forth between China and Singapore. A few days later, seeing that the price was still rising, Kevin bought all the money he sold for the first time and returned to the market. "It was a coincidence to buy at the beginning, but it was speculation the second time. At that time, I was waiting for it. Feeling soaring into the sky".

Kevin started his "crazy" coin speculation phase: internship during the day and operation at night, including spending an hour or so looking at virtual currency-related information.

For each transaction, Kevin will set a take-profit line and a stop-loss line through the trading platform poloniex, and the platform will automatically sell when the line is reached. He admitted that he was affected by the "speculation" mentality, and even manually closed the stop loss line when the currency price continued to fall and was approaching the stop loss line, "I think it will come back one day."

In January of this year, the prices of several currencies, including Bitcoin, held by Kevin continued to fall. “The loss was small at the beginning, and it can be solved by mental adjustment, but later found that there is no bottom.” He judged that the market has reached an adjustment period. So decided to withdraw.

At the end of January, Kevin cleared all currencies.

Virtual Currency Investor#6

Zhang Hua (25 years old) Shanghai PhD in Financial Engineering

The market value fell, "exit first, look at the direction of the wind"

In the second half of 2017, Zhang Hua, who was studying for a PhD in financial engineering, came into contact with virtual currencies through friends.

"At that time, I saw my roommates making money every day from trading, so I followed in." Zhang Hua showed reporters the app Huobi Pro, which is used to speculate coins. "I am still a student and have a low income, so I bought 15,000 yuan. Ethereum."

Before the Spring Festival this year, the virtual currency market as a whole fell sharply. Zhang Hua chose to buy it at that time, and the cost was around US$680 per coin. During the Spring Festival, Ethereum rose to above US$900, with a floating profit of 30% in a week. “The principal is relatively small, so I made a few thousand yuan, and I can switch to a mobile phone.”

For Zhang Hua, trading virtual currency is “mainly still trying and just playing around”. In his opinion, it is not smart to spend time on short-term trading of coins. "Virtual currency is now a capital market. There are no fundamentals. If there is, then the founder of XX currency came out to say two things. Or draw a bigger pie for investors."

Zhang Hua gave an example. During the 2018 Spring Festival, a virtual currency called "Dogecoin" rose sharply, up to 4 times in one month. Judging from the news, there is no good news except that the Chinese New Year in 2018 is the year of the dog. “We don’t know if the dealer will pull a certain currency or why it will pull a certain currency, so it’s very nonsense.”

"I have no belief in all kinds of virtual currencies, including Bitcoin. I am speculative trading." After the Spring Festival, due to the regulatory policies of various countries and the impact of attacks on exchanges, the overall market value of virtual currencies fell sharply. Zhang Hua Tell the reporter, "Now that you have a short position, exit first and see the direction of the wind."

Source: The Beijing News

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