Invest in some digital currencies with the right attitude

The road to investment in speculation

     Even though digital currencies represented by Bitcoin were not created to satisfy speculators, they have all the characteristics of becoming popular speculative products: high risk, low threshold for buying and selling, no time limit for the rise and fall, and most of the participants are from finance or technology backgrounds. Since 2013, the rise and fall of Bitcoin has invisibly determined the market of some domestic and foreign altcoins. Many altcoins also began to develop rapidly when Bitcoin frequently appeared in the media, accumulating a large number of users, but these users are not loyal users, but more professional speculators, who will make multiple choices between Bitcoin and other altcoins.

     Driven by sufficient funds and professional habits, high-quality individual investors will choose to enter or exit the market at the right time. From an investment perspective, as one of the hottest investment categories at the moment, digital currencies represented by Bitcoin are obviously a very worthwhile market to enter. However, considering the security and profitability of investment, many people prefer to invest in some altcoins in addition to Bitcoin, which is also a relatively safe approach. Generally speaking, when the rise of Bitcoin stagnates or pulls back, the buying in the altcoin investment market will gradually recover. Investors who are foresighted will build positions in some high-quality altcoins in batches in advance, waiting for the opportunity to come.

     As market activity declines and the number of users decreases, many altcoin operating platforms no longer serve speculative users who are limited to the buying and selling stages. Most popular altcoin operators have gradually combined the commercial application of digital currency with the settlement center while developing high-quality investors, and used blockchain technology to try to solve real-world problems, allowing altcoins to complete a large degree of transformation. The Fuyuan Coin trading platform, which was launched in September this year, rose by about 30% on the opening day and became the choice of many investors. Its operating team also revealed that the platform can now maintain more than a thousand registrations per day, but they also insist on the operating model of combining Fuyuan Coin with the traditional jewelry industry. In order to protect the interests of investors, the Fuyuan Coin operating team adopted the T+1 trading model, setting the opening and closing of digital currency transactions that originally had no limit on the rise and fall, and limiting the rise and fall range.

Technology adoption fills the gap

     Since its birth, the new digital currency has been growing amidst people's constant doubts and exclamations, and has now become one of the hottest new investment products in the world. Since the second half of 2015, unlike ordinary individual investors, the blockchain technology based on the Bitcoin basic network has been pursued by many well-known domestic and foreign companies and institutions.

     Last week, Xiong Minghua, former CTO of Tencent and current partner of Seven Seas Capital, publicly stated at the Global Entrepreneurship Week and the 5th China (Shanghai) Angel and Early Investment Summit: In the next five years, we must plan ahead for four major areas including Bitcoin!

     The recognition of the huge potential of Bitcoin blockchain is not just verbal. Some Chinese companies have begun to put it into practice and spend huge sums of money on blockchain research. On November 15, the 50 million US dollar venture fund invested by China Wanxiang Group was officially launched. The fund will be used to fund blockchain source code projects. The Wanxiang Blockchain Laboratory planned by Wanxiang Group plans to allocate 50,000 US dollars every two months and invest 300,000 US dollars a year to fund 6 blockchain source code projects.

    In foreign countries, the preference of many commercial and financial giants for Bitcoin and blockchain technology is nothing new. According to statistics, companies that have conducted research on Bitcoin and blockchain technology, invested in Bitcoin companies, or accepted Bitcoin include: Microsoft, Dell, Nasdaq, JPMorgan Chase, Goldman Sachs, eBay, Rakuten, etc.

     At the same time, the crazy pursuit of Bitcoin by the business and financial circles has also aroused great interest from the government. On November 15, Lee Hsien Loong, the current Prime Minister of Singapore and son of the first Prime Minister Lee Kuan Yew, warned banks not to become complacent at the 80th anniversary dinner of Singapore United Overseas Bank, and urged the country's banks and regulators to keep up with the development of technology and pay attention to Bitcoin blockchain technology.

Maintain proper posture

     For ordinary investors or potential investors, digital currency has the characteristics of low investment threshold and high technical threshold, and it is still in the period of new industry development. Therefore, digital currency is more likely to be used by criminals to create one fund after another. This also leads to dissatisfaction or extremely clear rejection of digital currency by people who are new to digital currency. As an ordinary potential investor, if you have a certain interest in digital currency, you need to make rational judgments, invest rationally, and correctly accept the objectivity of the development of digital currency without being influenced by external attitudes and opinions.